May 20, 2012

Dealing With Credit Cards Debt Issues

It is so easy to become heavily in trouble with your credit cards. Debt takes no prisoners and the only way to deal with it is to hit it head on.

It is always admirable when people decide to sort out their problems themselves but; if you are one of those people who are not very good at dealing with things like this then you need to seek out free professional services that are only too willing to help people in your predicament.

How do you know if you have a problem?

Well, quite simply, if you are struggling to make the minimum monthly payments on your credit cards you have a problem. You may be one of these people who never keeps track of their balance, shame on you if you are, and, as a result of that, the first indication you may receive are the unexpected calls from collection agencies or the mailings threatening legal action from your credit cards. Debt collectors may even be visiting your home which is upsetting when expected never mind as a surprise visit!

OK, I have a credit cards debt problem, what now?

The first step is to collate your credit cards debt so you can see the size of the problem and then you need to list your monthly income and all of your essential monthly outgoings. The essentials are those items that are required for you to function normally on a daily basis, and a regular list would normally be composed of ; mortgage or rent, fuel, council or property tax, utilities (gas, water, electric), telephone, insurances, food, housekeeping, travel, clothes etc. By compiling this list you leave yourself an amount that is available for payment of non secured debt such as unsecured loans, credit cards and overdrafts.

How to Deal with your Creditors.

This is the part of getting back on track that a lot of people worry about. They shouldn’t; it is relatively straight forward and there are procedures and simple steps to follow and as long as you are doing things correctly you will have nothing to worry about.

You can either, write to each of your creditors independently and send them your proposal for a lower monthly repayment and a copy of your budget to back up your proposal, OR you can contact a debt management / settlement firm who will do this on your behalf. Personally, I think it is much better to take care of this yourself as it gives you greater control and it will be cheaper in the long run as many of these management firms will carry a cost of sort, even if they are non-profit.

In the attached letter to your creditors, always remember to explain your circumstances and that you are contacting all of your creditors with proposed lower repayments based on a pro rate system.

There is no guarantee that your creditors will accept this proposed repayment but if they see that you have supplied them with a budget plan and that you are distributing what you can afford evenly amongst you creditors it is likely they will eventually accept your proposal.

You can ask them to freeze the interest on your debt to stop the debt getting any bigger and in a lot of cases this will be agreed to. If a creditor refuses to accept your proposal and you cannot afford the payment they are asking for, repeat the process continually and make your proposed payment to your creditor as and when you have proposed, they may refuse payment but try to pay anyway.

They will either eventually accept your proposal or they may pursue the owed amount through the courts, which is highly unlikely as it is not cost effective for them to do so; but SHOULD they do this you have done, and can prove you have done, everything you possibly can to continue making payments, and this will be looked on favorably by the court; and your creditor knows this.

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May 20, 2012

How to Boost Sales by Accepting Credit Cards!

Introduction

Why should you implement E-Commerce into your website? Simply put, because the ability to market goods and services and accept online payments is a great example of a passive income model. Your online store is running, customers have found their way to your site and their purchase is completely automated – from payment processing and approval to product delivery. With prior and proper preparation, your involvement in the transaction process is limited, leaving you more time to focus on other areas of your business.

1. Accepting Credit Cards Boosts Profits

As an online merchant you should already have a good understanding of the importance of making your product easily accessible to potential customers. With so much competition on the Internet, a frustrated potential customer can exit your site without looking back if you do not offer a clear and easy method to order and deliver your products and services.

Let’s look at an example:

Assume two competitive merchants, A and B, both have websites which are geared to marketing jar candles. Merchant A offers detailed product information, appropriate product photos, great customer service and the ability to quickly and easily order his product through an online shopping cart and payment processing system with a price slightly higher than that of Merchant B.

Merchant B also offers detailed product information, appropriate product photos and excellent customer service but a lower price. You’ve decided to order from Merchant B because his price is lower. Upon trying to checkout, you then discover that Merchant B does not have a shopping cart, cannot process credit cards from his website and requires you to either email or call to place your order.

Which merchant do you believe would earn the final sale in this example?

If you said Merchant A, 99.9% of the time you’d be correct. Accepting credit cards can boost your profits immensely because it adds value and convenience to your customer’s online shopping experience. The merchant benefits because he is not consumed with taking orders via phone or email; he is diversifying his income streams by delivering goods and services online thereby freeing up time to focus on other aspects of his business. Processing payments online also reduces the total transaction time since the traditional method of waiting for checks to clear prior to shipping/delivering products and services is eliminated.

2. Online Payment Systems

Now that you’ve decided to accept credit cards ? you’ll need to select a merchant processor to handle the transactions and to deliver your money to you. Names in the processing arena come to mind such as: PayPal, 2checkout.com, ProPay or various other Merchant processors such as Verisign who can provide you with an Internet Merchant Account.

What is the difference between PayPal and an Internet Merchant Account?

PayPal

PayPal is referred to as a 3rd party payment processor. Simply, this means that PayPal holds the Internet Merchant Account, and will process your credit card transactions using their account for a nominal fee of 2.9% + $.30 per transaction. One of the advantages to PayPal is that there are no signup fees, no setup fees, no credit checks, no monthly minimums, no monthly service fees, no contract, no gateway fees, no statement fees and their shopping cart is free. For a small business venture who is just staring out, this is an attractive cost-effective method of conducting online business. Currently there are other processors such as ProPay and 2checkout.com which are based along this same concept; however some competitors charge setup or monthly fees in addition to per transaction fees that can run as much as 5%.

There are some things to be aware of if you are going to use PayPal. In exchange for the freedoms from contract periods and monthly fees, you are consenting to process your business’ transactions through a Merchant Account that does not belong to you. Why is this important to me you ask? This becomes important when you are dealing with issues of charge backs or fraudulent transactions. Despite our best intentions as merchants to conduct business fairly and securely, at some point a fraudulent purchase may be made from your website. PayPal’s Terms of Service agreement gives them unrestricted rights to freeze and remove all funds from your PayPal and checking accounts in the event of a dispute or fraudulent transaction. Your best bet is to read the entire agreement cover to cover and be prepared to ask questions if you are uncomfortable with anything listed.

Internet Merchant Account

An Internet Merchant Account is a relationship between a retailing company and a Merchant Bank, which allows the retailer to accept credit card payments from customers via the Internet.

As a merchant, you have a direct relationship with the processing bank, the account is in your name (belongs to you), you have control over how transactions are conducted, and what steps you can take to reduce risk to your cardholders and to your business. Most processors offer fraud detection suites and companies like PreCharge can screen and identify online credit card-based transactions for your business in an effort to prevent charge backs and fraud. PreCharge will also reimburse you 100% of your charge back fees should a transaction later turn out to be fraudulent. This reduces risk for the merchant processor and gives peace of mind to you in your business dealings.

The obvious downside to an Internet Merchant Account can be the initial start-up costs and increased monthly costs as compared to 3rd party processors such as PayPal. This is in addition to a credit check and the wait for the account to be setup. That being said, more and more merchant processors are offering specials which include no setup fees, no application fees, reduced monthly fees and per transaction processing rates which are lower than PayPal, making them easier to obtain and an attractive alternate.

3. Merchant Account Reviews

An excellent source of information on merchant processors is available online at the Merchant Account Forum Here you can access information and feedback on some of the most well known merchant processors.

4. Do’s and Don’ts of accepting Payments Online

A quick list to keep in mind…

DO:

1. Assess your processing needs first:

a. Do you want to accept Visa, MasterCard, Discover and American Express or perhaps just Visa and Mastercard?

b. What is your monthly budget for card processing fees?

c. Are you comfortable paying signup or annual fees?

d. Would you prefer to apply online, via mail or fax?

2. Consider a handful of merchants who meet your initial criteria:

Create an excel file to track merchant fees and assess your overall costs at zero transactions and 100 transactions.

3. Assess the merchant:

a. Are they available to answer your questions promptly?

b. What is their track record?

c. What do customers say about their service and support?

d. Are there any “hidden” fees? These may be listed in the merchant contract but not provided up-front and online for your consideration.

e. Do they require a contracted commitment…1, 2, or 3 years?

f. How do they handle charge backs and fraud?

4. Investigate Fraud Detection Services:

Request information from the merchant processor on methods which reduce fraud and charge backs. These may be in-house solutions such as Address Verification Service (AVS) or Credit Verification Value (CVV) or 3rd party solutions such as Cybersource or Precharge.

5. Call the toll-free number and speak to a customer service representative about any contract/fee concerns or questions you have. It’s better to inquire about all fees now than to find out on your next monthly bank statement!

DO NOT:

1. Forget to read the ENTIRE Merchant contract. This means cover to cover! The full details are sometimes buried in the very fine print. These contracts can be intimidating; go slow and highlight areas which may be of concern.

2. Select the first merchant you talk to. This is a highly competitive business so investigate your options before making a decision.

3. Signup with multiple merchants at once. Merchant Accounts generally require a credit check. Be picky about which companies you allow to access your personal and business information.

5. Customers who Prefer Offline Payments

The decision to allow “offline” payments is an important choice. For example, companies who deliver digital goods such as paid newsletter subscriptions and e-books, have designed their product to facilitate instant payment and delivery. The idea with e-books being is that they are instantly downloadable and readable. Not all companies are cutout for allowing offline payments. For example, if you allowed your customers to download your digital product with a promise of mailing their payment, you would be setting yourself up for the risk that the payment may never come. What recourse do you have of recovering your money? Unfortunately, not much.

Not all customers will be open to paying online. There are many who feel that it is not safe to place personal credit card information on the Internet, and no amount of security or encryption notices will convince them otherwise. Does that mean you simply cannot do business with them? Absolutely not! One of the alternatives to paying online is to allow customers to place orders and mail in a check or money order for payment.

Who then is uniquely setup to accept “offline” payments? Merchants who ship products to their customers can help their customers take advantage of this additional payment option. In these instances, search for a shopping cart which has a check or money order payment option to allow your clients to check out of your website without providing credit card information. ALWAYS wait to ship the product until the order has been confirmed, and the payment has cleared. Confirming the order and waiting to ship until the payment has cleared will help reduce risks to your business.

Closing

The main idea behind selecting a good merchant processor is to assess your needs closely. Assess your needs prior to selecting a merchant, and read the fine, fine print to be sure you completely understand your commitments as a merchant. This ensures that you are equally matched with a merchant processor and hopefully starts your business relationship off on the right foot.

Website designer Krista Garren publishes the “Design Like an Expert” monthly ezine where you can learn EASY, fun and money saving website design strategies to build a BUSINESS BOOSTING website. To learn more, check out her ezine and sign up for her FREE how-to report at [http://www.designlikeanexpert.com]

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May 20, 2012

Using Business Credit Cards to Finance Small Business

When the economy struggles and default rates increase, lending standards can get mighty tough, especially for unsecured micro-loans. Banks may continue to court small business during these times, but borrowing will be an uphill climb. There may be one source of financing, however, that will remain plentiful and accessible even in tough times: the business credit card.

Not too long ago, under these circumstances, small business entrepreneurs did bank on business credit cards for their financing needs, according the Small Business Administration’s annual micro-loan study, which tracks trends in loans of less than $100,000. Even during times when traditional commercial lending essentially remain flat, small business loans can grow by as much as 10 percent. This may be an indication of the success of banks’ small business campaigns, offering as a come-on a plethora of small business credit card packages or perhaps even the better methods employed by credit scoring agencies.

Today, a business owner with good standing in personal credit cards will have no problem gaining approval for business credit cards. Even in those cases where the applicant’s credit history is less than sterling, business credit cards are still easier to obtain than ordinary commercial loans. When commercial loans are simply not available – and those occasions do arise – the remaining fallback may be business credit cards. The business credit card is essentially a guaranteed line of credit, and when banks withdraw their unsecured loan offerings, the small business owner may have no recourse other than securing business credit cards.

Is financing with business credit cards prudent?

It can be the ideal solution during crunch time. Business credit cards give you a 21- to 30-day float on your money. You get a guaranteed loan – albeit at high interest rates. The float you get from a business credit card does come in very handy when payments from clients become overdue, or when your business requires unexpected supplies.

This does not mean that business owners don’t get into trouble with financing via business credit cards. More than a few of them have. You should not forget that while the average business owner does not generally carry large balances on the business credit cards from one month to the next, the temptation to do so is very real and it is there all the time. Most entrepreneurs are very responsible people and are prudent in handling their finances – but when their backs are up against a wall, most of them will do whatever they legally can in order to save their businesses. Racking up the balance on their business credit cards can become one such alluring option.

Barring extreme circumstances, intelligent and discriminate use of business credit cards may actually help save the business money. If you consider the savings programs carried in many business credit cards, it is possible for business credit card users to earn discounts on a lot of services – couriers, car rentals, office supplies, printing, and many others. When you work for yourself, you’re always looking to save the pennies. Business credit cards can help you do just that.

Richard Gilliland Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card – Compare Credit Card Offers with Credit-Wisdom.com – Unraveling the best in Personal and Business Credit Cards [http://www.credit-wisdom.com/creditcards/business-credit-cards.php].

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May 19, 2012

5 Steps to Fix Bad Credit After Bankruptcy

In the world of loans and mortgages, the worst entry on your credit report is no doubt bankruptcy. Failure to manage your money in these extreme cases results in chapter 13 (some debts are eliminated and a payback plan set up) or chapter 7 (all debts eliminated except for a few essentials).

For borrowers whose adjustable rate or interest only mortgages are coming due, and won’t be able to refinance at the original low teaser rate, foreclosures could be a real possibility leading to bankruptcy.

Despite the stigma, foreclosures, which stay on your credit report for 7-10 years, do NOT destroy your chances for getting a future mortgage or any loan for that matter. You just have to have a plan to get your credit on track.

With a bit of discipline you can get your credit score back up to at least 600 in about 18 months. You will however, need to find creditors who are willing to give you a second chance – and they’re out there – you just need to do some leg work to find them.

Here are a few basic steps you can take to re-establish yourself in the eyes of most lenders.

1. Make small purchases at stores that will give you a small line of credit at a reasonable rate - A good place to start would be a furniture, appliance or electronics type store. 3-4 entries like these within 6 months will start to re-establish yourself as creditworthy.

2. Make a down payment of half- try to finance only half of what ever you purchase. You want to do this to shorten the length of the loan – your goal should be to pay off the loan in 6 months.

3.Open up secured credit card – these are typically very low limit cards – $250-$500 and require deposit. Charge only very small amounts – amounts you know you can pay off at the end of the month – and make sure you PAY IT OFF. Many of these cards will raise their limits once you prove responsible re-payment.

4.Pay On time and in Full – No matter if the small amount of credit originates from a store or a new credit card pay off your bill each month or earlier.

5.Make sure good credit habits are reported – If you take out the secured credit card make sure they report history to the major credit bureaus. It doesn’t do you any good to establish good credit habits if your improve credit behavior is not reported.

If you follow these relatively simple guidelines you will on track for a 680 score in short time – 12-18 months.

There IS life after foreclosure – learn how you can establish credit regardless of your foreclosure status : Getting Credit After Foreclosure

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May 19, 2012

Avoiding the Pitfalls of Business Credit Cards

For startup entrepreneurs having an excruciatingly difficult time raising capital for their project, borrowing against business credit cards becomes a very real temptation; and sometimes, it is the only option immediately available. The caveat is that if you do not manage your business credit cards wisely, you may end up failing in the venture that you have long wanted to establish. Without proper management, the debts that one incurs from business credit cards will simply pile up.

Business credit cards undoubtedly are very convenient to use. The moment you get approved for business credit cards, you get a guaranteed credit line that you can use virtually anywhere, anytime you need it. In spite of not having the cash, you can purchase what you need for the business with your business credit card. The convenience that business credit cards provide can also be the pitfall; and to the unwary user, business credit cards can be dangerous.

Knowing that business credit cards can be dangerous does not mean to say that you should not resort to using business credit cards to prop up your business. The key thing in minimizing the danger is to use the business credit card wisely, or to use it within bounds.

You might be too excited about a new business and get carried away about making more money and having a better life. But wait! Have you ever considered your fallback options should things not work out as you expect them to be? Remember that filing for bankruptcy is no longer an attractive option; the bankruptcy laws have been amended recently, and it is more difficult now for debtors to escape creditors in this way.

There is a way to avoid the debt trap. You should keep track of purchases you charge to your business credit card — which you can easily do by logging onto your account at the business credit card issuer’s website. You should then work out your payment plan in advance by estimating your cash flow per month, and using this figure to calculate how much you can afford to pay against your business credit card debt. Pay off the entire business credit card balance as often as you can afford to. If that proves difficult to do, try to pay more than the minimum required payment for each month. This is the only way you can stay ahead of finance charges and the very painful bite of late payment fees and default APRs. Unless you have already arranged to remove the personal guarantee you signed in favor of your business, anything that happens to the business credit card account will have repercussions on your personal credit report.

It is necessary – and quite educational, really – that you do comparison shopping on trends in business credit card rates. You must educate yourself about how you can effectively use the float period on purchases, the fees for cash advances and late payments, over credit limit charges, balance transfer fees, and penalties for late payments. Then, there are also the annual fees: some business credit cards charge annual fees while others do not. There is a lot of information about business credit cards on the huge variety of websites devoted to the subject. Manage your business credit cards well, and they will help you finance your business.

Richard Gilliland Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card – Compare Credit Card Offers with Credit-Wisdom.com – Unraveling the best in Personal and Business Credit Cards [http://www.credit-wisdom.com/creditcards/business-credit-cards.php].

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May 19, 2012

The Basics of Bad Credit Debt Consolidation Loans

After debt sets in, you’re bound to see your credit rating fall. This makes it hard to open new credit lines or to be approved for things like auto and home loans. If you are approved for such things, you will often have to deal with incredibly high interest rates. This makes it hard to pay off and manage such bills. However, debt consolidation loans for bad credit are available. The key is to find one that has the most favorable rates and terms. The following includes the basics of bad credit debt consolidation loans so that you know exactly what to expect.

If you have bad credit, this makes you a riskier investment for a bank or financial group. This doesn’t mean that a consolidation loan is out of your reach. Instead, it means that you need to know what to expect from this process. For example, it’s normal to be turned down for loans, especially if your credit is bad. This means that you may have to shop around for many loans before you find a list of potential candidates.

High interest rates are normal for loans for people with bad credit. This is part of the price you have to pay for having a lot of debt or having made some mistakes with your finances. Thus, be prepared to see high interest rates when you do begin applying for consolidation type loans. Once you have an idea of what to expect for your specific rating, you can then shop around and will know a deal when you see one.

Ultimately, if you have a lot of debt, you will probably need a fairly large loan amount to cover paying off bills. To make monthly payments affordable, this may mean that this consolidation loan is a part of your life for many, many years. Debt consolidation is not something that erases your debt. Instead, it’s a way to juggle your finances so that you can get them back on track. Thus, you should know that a basic tenant to consolidation is that it’s a long-term commitment. You will most likely be paying off this loan for quite some time.

Such a loan really could get your life back on track. Once you know the basics of what to expect, you can dive in and start looking for rates and terms that are most favorable to your financial situation.

NOTE: there are reputable debt consolidation companies in the market, so you must research and compare thoroughly to find the one that meets your specific financial situation. Specialized advise from a seasoned debt counselor is always suggested.

Hector Milla runs the Reputable Debt Consolidation Company website – where you can see his best rated debt consolidation service.

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May 19, 2012

Bad Credit Repair Counseling – Get Your Life Back on Track

All of us are facing difficult economic times and some of us may have been facing these for quite a number of years. Some of us have had to live from paycheck to paycheck for a long time and whenever we are trying to stretch a dollar, at times it doesn’t go as far as we need it to go. This is especially the case now Some of us have had to live from paycheck to paycheck for a long time and whenever we are trying to stretch a dollar, at times it doesn’t go as far as we need it to go. Unfortunately, this can wreak havoc on our credit score and make it very difficult for us to acquire a loan that we may need. If you are having a difficult time in this area, bad credit repair counseling can help you to get your financial life back on track.

The first thing that you are going to need to do what ever it comes time to going in to speak with a counselor is to know what your credit score is. Typically, they will pull all of the credit scores from the three credit agencies and explain to you everything that is listed on them. They will then go over each of these things one by one and show you how you can raise your numbers quickly if you’re able to follow a specific program. Bad credit repair counseling is not necessarily going to do all the work for you but they will certainly give you an option or two of how to accomplish the work yourself.

Your counselor is, more than likely going to explain to you the importance of paying your bills on a regular basis. Skipping a bill one time can send your credit numbers down a considerable amount and skipping several of them can make it difficult for you to pull your credit up easily. It is also important that you pay a little bit more than the minimum amount due and that your credit balance is not too high with any credit cards that you have. These are all things that take part whenever you go through bad credit repair counseling so they are things that you should expect.

Even though a lot of the work is going to be on you, your counselor will be able to contact your debtors to see if they would be willing to work something out with you. Most of them will work along with you in order to make sure that they receive their money and that your credit is repaired in the quickest time possible.

“Bad Credit Repair Counseling” is an important topic at [http://www.officialcreditrepairtips.com] – After many years of research and web site design, Ann Born has written hundreds of articles on the topic of credit alone. This article may not be reproduced in any way without including the Author’s Bio.

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May 18, 2012

Finance is Within Your Reach – Getting a Personal Loan with Bad Credit

Bad Credit

Someone with bad credit will usually be accustomed to getting declined by lenders, loan denials will be the law and most certainly an approval would be the exception. However this doesn’t have to be the rule, there are lenders specialized in dealing with bad credit applicants and have a variety of loan options for each credit situation.

Bad Credit Personal Loans help people with bad credit to get access to cash and also aid them in rebuilding their credit as long as they pay on time and don’t miss payments. There are lenders willing to take the risk and offer this kind of loans for people with bad credit, no credit or even bankruptcy.

How to get Started

The first thing you need to do is find out how bad your credit score is. In order to know this you need to pull a credit report, go through the report carefully and if anything stated there is inaccurate or wrong, you should get it rectified immediately. Credit agencies make mistakes more often than you may think.

Different Uses

The loan amount can be of course used for any purpose, you can go on vacations, buy a new car, pay for education, medical bills, etc. Or you could even payoff outstanding loans and credit card debt which of course will contribute to increase your credit score and help you obtain loans with lower interest rates in the future.

Finding a Lender

When determined to obtain a Bad Credit Personal Loan, you should pay special attention to the different lenders available. There are online sites offering access to many lenders and these kind of online applications are fast, secure and low cost. Since more and more lenders are willing to offer this type of loans you’ll be surprised at how many options you’ll be presented and how interest rates have been reduced due to the high competition that exists in this type of loan market

Bad Credit Personal loans are the right option for you if you are willing to get rid of the bad credit label. Use the money wisely and you’ll soon be back on the right track. Debt is a trap, but a trap you can escape from, get a bad credit personal loan and start rebuilding your credit. Once you’ve repaid your loan, you’ll have raised your credit score significantly and you’ll be able to access cheaper finance. At this point, you should also start putting money aside to build a savings amount you’ll be able to use if an unexpected situation rises and you won’t have to worry about having bad credit anymore.

Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams.

If you need more financial aid visit her Website or just copy speedybadcreditloans.com and paste it in your browser?s address bar.

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May 18, 2012

The Top 10 Most Common Credit Mistakes (And Tips to Avoid Them)

Establishing credit isn’t really that hard to do. Get a credit card and start charging stuff to it. It’s maintaining GOOD credit that can be the problem. Many people do all they can to stay on top of their credit history. They pay their bills on time, they keep excessive spending to a minimum, and they only apply for new lines of credit when it’s a necessity.

So what happens when they try to apply for a major loan and discover their credit is not where they thought it was? They did everything right – or thought they did anyway. So what went wrong?

Most people are so busy watching the major items in their credit history, they forget there are minor details that can become major issues if left unnoticed. With that in mind, here are the top 10 most common credit mistakes to watch out for (in no particular order), and how you can avoid them.

1. Closing all credit cards. As soon as most people see that their credit isn’t as high as they thought it was, their gut reaction is to immediately close all their credit card accounts and immediately stop spending money. This is a big mistake. Closing your credit accounts will renders them inactive meaning they’ll eventually fall off your report, leaving you with a smaller credit history. That may not sound bad, but a smaller overall history makes it harder to apply for new credit when you need it.

? How to avoid this. Think of your credit report like your resume. You wouldn’t suddenly want your impressive work history to become null and void after a set amount of time, would you? Of course not. If you do have multiple credit card accounts open (say, 5 or more), you may consider closing the ones you never really use, but keeping at least 2-3 open so that you’ll still have open lines of credit.

2. Missing or late payments. Everyone knows that to maintain a good standing with the credit bureaus, you have to pay your bills on time, and in full. Miss a couple of payments and it shows up on your credit history. What may surprise you though, is how severely late payments can affect you, especially the later your payments are.

? How to avoid this. The obvious answer is to pay your bills on time, and you won’t have a problem. If you’re on a fixed income though, or if you have too many bills to keep track of, you might consider creating a budget for yourself to better map out what needs to be paid and when (you should probably do this anyway). You may also consider switching to automatic withdrawals from your account to pay your bills, so you won’t have to worry too much about it.

3. Too many maxed-out credit accounts. If you treat your credit cards like Veruca Salt treats her daddy’s bank account, you’re probably sitting on top of a pile of junk you’ll never need and a credit history that looks like it fell in with the bad nuts.

? How to avoid this. Refer back to the first point. Close any excess accounts you may have, and start paying down your debts as much as you can each month. In the future, remember to keep your charges below 30% of the available balance and DO NOT EXCEED IT.

4. Shopping for credit. Every time you fill out a new credit or loan application, the creditor will make an “inquiry” into your credit report. This is to let the credit bureaus know that you’re actively looking for new credit. Having too many inquires on your report signals to them that you are “high risk.” So, the more inquiries you have on your report, the more points you can lose from your score.

? How to avoid it. Most people think “shopping for credit” translates to “shopping for a car or home loan” and so think they’re covered since they don’t plan on doing that. But if you’ve ever applied for a store credit card to get in on some savings, guess what? They dinged your credit score too. That said, think twice before you try and apply for new credit to save a couple of bucks, and you’ll save some other numbers instead.

5. Co-signing anything. Any parents out there with kids around driving age will probably be familiar with this one. Before you sign on the dotted line for anyone else though, consider that whatever they’re asking you for is going to show up in your credit history, meaning you’ll be just as financially responsible as they are. You also run the risk of lowering your credit score if such a loan raises your debt-to-income ratio to high.

? How to avoid this. Be extremely picky about who you co-sign a loan for. My personal rule for loaning more than money to someone, is no one outside my immediate family. At least I know where they live… and sleep.

6. One overall credit report/score. Another common myth when it comes to credit reports is that there’s one overall report and score for you. In fact, each of the three credit bureaus generates their own reports for you, and so have their own numbers as well. That’s right – you actually have three credit scores to worry about. As if things weren’t confusing enough already…

? How to avoid this. While you can’t actually avoid these scores, you can better educate yourself on the scoring model. Most companies refer to your FICO score when determining whether or not to extend you credit, so the next time you’re looking to make a major purchase – like a car – be sure to check your FICO score, because that’s the number the dealers will be looking at. With this, you at least won’t be walking into a deal completely oblivious to what they’re basing their decisions on.

7. Thinking all credit scores are the same. This was almost an addendum to the last point in the previous article, but I felt it justified its own entry. So, we know you have 3 overall credit scores to worry about from each of the credit bureaus, and we know about the FICO score. Trouble is, there are a lot of services out there that offer to tell you your credit score, only to offer numbers that are wildly different than other scores you’ve seen.

? How to avoid this. Stick to the FICO score. It’s the closest approximation anyone can give you to your actual credit score, and is the only score creditors check.

8. Not understanding your FCRA rights. Or understanding what that even stands for, to begin with. The FCRA, or Fair Credit Reporting Act, is a list of rules intended to keep creditors and credit reporting agencies in check. The most important ones for you are your right to dispute information on your credit report, and your right to free copies of all 3 credit reports.

? How to avoid this. To give yourself a more comprehensive understanding of your rights under the FCRA – so you’ll know what creditors can and can’t do and can avoid that hassle – see the full guidelines under the FCRA here.

9. Not using your full name on credit applications. Anyone who shares the same or similar name as one of their parents knows how annoying this can be. It doesn’t even need to be a family member; anyone with the same name has probably at one point checked their credit report only to discover their personal information listed – including names, addresses and employers – as well as some of their credit history doesn’t match up with their own records, for better or worse.

? How to avoid this. Short of completely changing your name, you’ll want to start filling out all credit/loan/financial forms with your full name. If you’re a Jr. or a Sr. or you have a middle name different from your father’s, make sure to indicate that. Mistakes may still happen (after all the credit bureaus are still run by people), but they’re easily fixed with a quick call or letter to the creditors.

10. Not having credit. It constantly amazes me that there are people that refuse to use any type of credit at all, choosing instead to pay for everything with the cash from their personal bank account. While they certainly have good intentions, refusing any type of credit is a huge mistake. Not only will you have nothing to show as far as sensible money management on your part when applying for a loan, you’ll also be left without a credit score, which can make anything from purchasing a home or car, to landing a good job next to impossible.

? How to avoid this. Stop paying for everything with the cash you keep in a mattress and start applying for credit cards to establish a credit history. The faster you build up a good credit profile, the easier it’ll be to secure loans at reduced interest rates.

My Credit Group Inc., a trusted debt settlement and credit repair company, has assisted over 100,000 clients and large institutions. Consultations are free and credit repair is backed with a risk-free guarantee.

Contact Information:
My Credit Group Inc.
800-430-7494

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May 18, 2012

Choosing the Right Business Credit Card

No matter the size of a company, to apply for and use a business credit card is a smart financial decision. Not only does using a credit card allow you additional time to pay those daily expenses, it helps keep track of your cash flow with detailed monthly statements.

With a small business credit card, you are building your company’s credit history separate from your own. The advantage of having a business credit card over charging expenses on your personal account is it keeps your company expenditures separate from your personal charges. A business credit card assists you in measuring your company expenses and then during tax season you will have completely separate records which will make it much simpler to do your tax returns.

A higher line of credit is generally allowed for a business credit card and many offers have no preset spending limits. Most of the financial institutions have business card offers with no annual fee. There are some exceptions to the no fee deals, but that is because they have additional perks such as flexibility in the credit limit or extended warranties on new purchases.

Several of the business credit card offers include rewards for purchasing business supplies at particular retailers, using specific phone services and discounts at designated car rental agencies. There are proposals of bonus points for companies that require travel, 3% discount on gasoline purchases and even discounts at authorized GM dealers and GM parts and service. Many of the business card offers include quarterly and yearly reports, free online access to your account, and free additional credit cards for employees.

It is essential to keep accurate records of your business expenses for a small company as well as a large business. There are decisions to be made prior to applying for any credit card. With the large variety of business credit card offers and the diversity of perks that can be obtained with each card type, it may be best to speak with your financial advisor before applying for a new business credit card.

Choosing the right business credit card can be a step in the right direction to establishing your business financial well being.

About the Author: Bradley Carson is the webmaster and editor of Apply Online For a Credit Card at http://www.cards-king.com, a website created to bring concise credit card information and introduce the best credit card offers from premier financial institutions. See Brad’s current recommendations for Business Credit Cards at http://www.cards-king.com/categories/business_credit_cards .

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