joi, 6 octombrie 2016

Tips to increase your credit score quickly

As long as you do not have serious black marks on your report as a bankruptcy or foreclosure, you can improve your score in less than a month or two.

So what is the fastest way to improve your credit score? Unfortunately, there is no trick of a magician who can boost your score by some points. The situation of each is different, and there are just too many variables that come into play. But do not worry, increasing your credit does not have to be difficult or take a decade. As long as you do not have serious black marks on your report as a bankruptcy or foreclosure, you can increase your score in less than a month or two by following these tips:

Review your credit report from each of the three major reporting agencies close. Then immediately clarify any errors, such as incorrect credit limits, late payments, or collection items that are not yours. Errors that appear on credit reports. You can get your credit report for free from each of the three credit bureaus once a year at, and you are never penalized for checking your credit report or score.

Always pay your bills on time. The default has the greatest adverse effect on your credit score. If you simply forget to pay your bills on time or are guilty of being chronically disorganized, what are you thinking? I know a better way! Consider setting your bills for automatic withdrawal from your checking account. If you have overdue bills, make plans to get them arrested. Did you know that having an account go to a collection agency is a blemish on your credit report stays there for up to seven years?

Pay your credit card balances. Reduce your overall debt that is in your credit report is a very effective way to raise your credit score. But if you do not have the funds to do so, consider taking a loan from a family member or friend. This does not reduce what you owe, but move debt off your credit report and give your credit score a quick boost.

 Do not close credit card accounts unused. Canceling a card can lower your score. For more information about how this happens, read one of my previous posts. A better strategy is to use occasionally your older credit cards to the issuer does not stop sending your information to the credit bureaus. Have a long credit history helps increase your score so remember that hangs over the older cards are a good idea.

Never max out your credit cards. A good rule is to keep your balances below 30% of your credit limit, even if you pay them in full each month. For example, if you have a card with a credit limit of $ 3,000, not accumulate a balance that exceeds $ 900. It is better to have two cards with balances that are each below 30% of your limit, than having a card that you consistently max out.

Make your loan shopping quickly. Since your credit score is pulled when you shop for a loan, submit applications to potential creditors within a period of two weeks. Having lots of credit inquiries can lower your score. But the system will not treat some credit questions (for a car or a home loan, for example) within a short period unfavorably.

Get a credit card. If you have no credit history or a low credit score, a secured card can help you build credit if it reports information to the credit bureaus. You have to allocate an initial security deposit of at least a few hundred dollars, which the card issuer holds as collateral. Some secured cards will extend you credit after showing the responsible use for a minimum of six months. Check the Public Savings Bank Visa, which is a credit card that offers 0% interest on purchases for six months with no annual fees. It tells the story of payment for each of the three credit bureaus.

 Get a gas card shop. Even though you may want to buy more than gas, beer and snacks to credit, these types of cards can be easier to get than regular credit cards. And if you're trying to establish a credit history, making small monthly charges you pay in full and on time each month will work wonders to increase your credit score quickly.

What is a credit score?

Credit scores they are like report cards for adults. It is a three-digit "level" you get on a scale that ranges from 300 to 850. Your score shows your credibility to potential creditors, banks, landlords, insurance companies, and even some employers, for example. I'm sure you know that the higher the score, the better.
Where you can get your credit report and score for free?

You can get your credit report from each of the three major agencies-Equifax reports, Experian, and free once a year at TransUnion-for. But credit reports do not include your actual credit score you usually have to pay for those. However, I recently joined Credit Karma, in where you can get it for free!
What is a good credit score?

Lenders set their guidelines and breakpoints for distributing credit. But here's what the credit score can mean for your personal finances:

    300-580: You will be denied credit or will be approved for the higher, more expensive interest rates.
    581-650: You may qualify for credit at high interest rates.
    651-710: You will be eligible for credit at moderate interest rates.
    711-750: You will qualify for credit at competitive interest rates.
    751 and up: You'll get them, smaller more competitive interest rates in the market.

Someone with a credit score of 550 may be charged an interest rate that is three to four percentage points higher than someone who scores over 750. This could translate into paying several thousands of dollars more in interest for $ 20,000 car loan or more than one hundred thousand extra dollars in interest over the life of a 30-year $ 200,000 mortgage! That's money you could invest for your retirement instead.

How to get a loan with bad credit

Having no credit or poor credit is a major obstacle to obtaining a loan because you are seen as a high-risk client that standard could and leave the lender holding a bag of worms. It's just a fact that until you raise your credit score, you will not fit the standard lending guidelines that traditional, large banks have to follow.

If you are turned down for a loan or do not want to get stuck paying high, subprime interest rates, here are five alternatives to consider:

Use a home equity line of credit

If you have enough equity in your property, you can get a low interest, deductible credit line to spend as you wish.

Of course tapping your home equity puts their property at risk if you can not pay the debt. But if you have reliable income and are disciplined about paying down a line of equity, it is a low-cost option, regardless of their credit score.

Apply for Credit Unions

Credit unions are similar to banks but are owned by their members, who usually have something in common: how to work in the same industry or living in the same geographical area. Credit unions are nonprofit organizations that pass through earnings to members in the form of lower rates and greater customer service.

Visit to find a credit union near you and give them a call to discuss getting a personal loan. Compare loans from different institutions, so you know you're getting the lowest interest rate possible before signing the final paperwork.

Get a Peer to Peer Loan

Peer to peer or P2P lending has been around since 2005. It is an online platform that allows you to borrow directly from an individual, rather than from an institution. Peer to peer lending is growing in popularity because it is a simplified process that is a win-win for borrowers who pay low-interest rates and investors who earn high-interest rates. Now you can ask for as little as 6% and make an average return in the double digits; that is quite impressive.

Borrowers post a loan listing that includes the amount they want and why they want. Investors review credit lists and choose the ones that meet your criteria. Peer to peer lenders screen all applicants and check your credit; it becomes part of your investment list. So while your credit score is still a factor, an individual investor can be more understanding of your situation than a traditional bank.

Taking a loan from family or friends

If one of the online peers will not give to you, perhaps you have family or friends who will. Treat a loan from someone who knows only as a serious business transaction that is clearly documented and legally registered.

To avoid complications later, create a written contract that includes the interest rate, payment terms, any collateral you put up for the loan, and what happens if you fail to pay the debt. You can get promissory notes from sites like the lawyer rocket or LegalZoom.

If you are borrowing money to buy a house, the loan must be adequately secured to take advantage of the mortgage interest deduction. To register correctly and manage a home loan with a relative, use a service like

The bottom line is that an investment family should benefit all involved and should be a last resort. You do not want to risk leaving a close relationship souring more bad debt or a misunderstanding about money.

Appealing to a co-signer

If you do not have a friend or family member who is willing to give you the loan, perhaps with good credit would be prepared to co-sign a loan with you. Someone who knows your situation and trust in your ability to repay the debt would probably be willing to take a chance on you.

Just remember that if you do not pay the debt, the lender will look at your co-signer for full payment. Also, all payment history will be recorded in both your credit reports, which could be devastating to your co-signer if you do not keep your end of the deal and make late payments or default.

If none of these five loan options works for you, do your best to increase your credit score so you can qualify for a traditional loan. A good place to start is to check your credit report for free at and correct any errors that may be hurting your credit score. You can improve bad credit by paying bills on time and not overextending on loans and credit cards.

How to Rebuild Your Credit

A step-by-step guide to improving your score

A bad credit score can feel like a dark cloud that you just can not shake. If you want to buy a house, get a student loan, apply for a credit card or even apply for a new job, bad credit can get in the way of achieving your goals. The good news is there are many things you can do to improve your credit score and dispel this dark cloud. Follow these steps to get your credit back on track:

Step 1: Assess the situation

It is very easy to shoot hand accounts and ignore their debt problems. But the first (and most important) step to financial responsibility is to face the facts. Request your annual credit report free from the FTC-authorized site (or call 1-877-322-8228 toll-free) to receive a report from each of the major agencies: Equifax, Experian, and the TransUnion. Compare the reports and note any discrepancies or errors.

Step 2: Understand your credit utilization rate

After identifying all open credit lines, determine your credit utilization rate (also known as debt to credit ratio) on each card. Take your current credit balance card and divide by credit limit, then multiply that number by 100. If you owe $ 1,000 on a card with a limit of $ 10,000, your credit utilization rate is 10 %.

High credit utilization rates can have an adverse impact on your credit score1. One goal might be to have under-utilization of 25% on all lines of credit in your name. If one of its lines of credit have a utilization rate of 90% and the others are much lower, you can focus on paying down the one with a high usage rate first (assuming that all lines have a rate similar interest).

Step 3: Apply for a credit card

Sometimes past mistakes can keep you from building a positive credit history with regular credit cards. In this case, you might consider a credit card. With a secured card, you deposit an amount of money up front as a form of collateral to the lender. How do you use the card and do in regular payments of time you can establish a better credit record . When choosing a secured credit card to be sure of the company for each of the major credit bureaus.

Step 4: Avoid missed payments

Payment history is a major factor in your credit score to do your best to not miss payments on any existing or new debt2. Use online reminders from your lender and consider setting up automatic payments, if you have a value set in the budget for the amount of the debt each month.

If you are in a real dilemma to make a payment, contact your financial institution and talk to them about the possibility of extending the due date or receive a one-time late payment forgiveness. While it is important not to miss payments, avoid borrowing from high-interest lenders as this may prove to aggravate their debt problems rather than solve them.

Understand that ultimately pay a debt does not remove the payment history of your credit record. When you pay off debt, keeping an open line of credit can demonstrate responsible use of long-term (but perhaps store the card in a drawer if you do not want to use it)!

Step 5: establish credit Diverse

Once you've gotten a handle on consumer habits and responsible given your credit score a boost, consider diversifying your credit accounts. Changing insurance for an unsecured credit card and apply for a school loan or car if you need one. Demonstrating your ability to manage different types of credit can have a positive effect on your score.

That said, avoid opening several lines of credit, all at the same time. Each time you apply for a credit line, it creates a "new credit inquiry" on your credit file and many of these in a short period can have a negative impact on your credit score3. Keep this in mind, for example, with many store credit cards every place you buy frequently.

Rebuilding your credit takes time and dedication. Most credit reports back seven years, so it may take a long time to make significant improvements to your score. But asking your credit reports today and following these steps you can stop letting bad credit block back from your goals and dreams.

How do I rebuild my credit score?

Whatever your financial situation is, if you have a bad credit score, your number one priority should be to rebuild it. We recommend that consumers practice these simple for a positive impact on your credit score.

Pay the balance of the credit card in full and on time each month. Pay your debts is a surefire way to show the credit bureaus that you are a responsible spender - meaning they do not take into loans that they can not pay off. Do whatever it takes, from the creation of a monthly reminder on your cell phone or your calendar, or start a recurring monthly payment from your checking account so that it does not slip your mind. While it may be tempting to pay only the minimum, and not worry about some of your balance, there is even more negative than for the damage to your credit score. Most bad credit credit cards have high-interest rates, unfortunately, which means that your interest costs will be higher - unless you have the EMV Savings Secured Visa Platinum Card.

Do not spend beyond your credit limit. Most experts agree that the use of more than 60% of your total available credit limit has an adverse impact on your credit score. With typical secured credit cards starting with minimum balances of $ 250, it means that you do not have much room for error. While issuers do not give you a certain amount of credit, they like to think that you do not rely entirely on it - the closer you are to your limit, the more desperate you seem an agency of information.

Find someone to co-sign your credit card with you. If you have a family member or close friend with a good credit score, see if they are willing to co-sign on your new credit card. They will be taking a share of responsibility if you are unable to pay your debt. In return, you will effectively increase your credit score so that the loan application - resulting in qualify for better credit cards that can ultimately end up saving you more money.

How to avoid hurting your credit score

One of the few things that can turn a bad situation worse not understand why you're in a bad situation first. It can be frustrating to be told you have bad credit when you do not know what's there. Below we explain three of some of the most common pitfalls consumers make that cause them to have a bad credit score. Avoid late payments.
 One of the biggest culprits behind ruining credit score is to pay your overdue credit card bill. Consumers tend to think that had to pay a late fee, no other consequences associated with a late payment. First, being late on your payment will have a direct impact on your FICO score.
The later you are, the greater the damage. On top of hurting your credit score directly, one late payment can increase your APR This means that if you carry a balance, you will pay a higher interest rate on it. If you are not ready to pay more, you will likely take an even greater balance and the effects of this can quickly snowball out of control.
 Do not apply for many credit cards in a short period. Part of what determines your FICO score is appearances. Companies looking to their financial habits like to see you act as if the credit is a nice perk, you do not necessarily need. Each time you submit an application for a credit card, loan or anything like that an inquiry is made on your credit card.
When several inquiries are made within a short period, the credit reporting agencies realize this as you need credit desperately - something that does not bode well for your ability to pay back. When this happens, your credit score may decrease, and you may be denied their applications. Not defaulting on a loan or bankruptcy.
While playing the towel can save a headache at present, defaulting on a loan or bankruptcy should always be the last resort. If you never do either of these two things, it will become part of your permanent record. Having declared bankruptcy digs a deep hole at 1-1 credit history that will take several years to dig out in the future.

miercuri, 13 august 2014

7 golden rules of credit

Get the green light from the bank for a loan for the financing of a project is a time of high stress for entrepreneurs who can make a difference in the viability of a business. Prepare yourself before facing account manager and know the tactics to be successful.

1 Provide complete information to the bank

Trust is the basis of signing a credit agreement. Therefore, it is essential to provide the financial institution with the most complete and reliable information possible. All data that will be requested, even if you think you have little relevance must provide to the bank. The financial institution should know the company well, in order to present you with the most appropriate solutions. Furthermore, it should not feel that ignores relevant aspects.

2 business viable and strong balance sheet

The company's management is a key factor in analyzing the allocation of funding by financial institutions. For the company presents a lower risk to the bank is important that your business has a solid balance sheet and a balanced economic and financial situation. A condition that will allow the management to deal with more adverse economic and financial circumstances. The company business must be viable, which means that in the future, their survival must not be called into question in a difficult environment.

3 Activity and margin growth

The company's ability to distinguish the market where it operates is crucial to get the approval of funding by the bank. "We can point a company has lower risk, the following factors are present: good products and good customers, markets and diversified customers, their products or services have competitive advantages over their competitors; production units are modernized and technologically updated, the their managers have high market knowledge and experience in business management, "explained the official source of Santander business.

4 Sector exporter is privileged

With the subject to an adjustment program and all the difficulties that it has caused Portuguese economy, exposure to other markets has helped businesses grow. The reduced dependence on the domestic market has been seen as an advantage compared to companies who are completely dependent on the direction of the national economy. By contributing to a more balanced economic and financial situation, the export activity is well regarded at the time of loan appraisal.

5 Meet public support available

With very high rates of interest to the possibilities of many companies, should look at the market of subsidized lines of credit by the State to see if your business fits the requirement of each of these instruments. Although also not be for everyone, these lines have lower "spreads" as well as amortization periods and grace more extensive than the average of the banking market. Ensure that these lines are not to recycle credit, but actually serve to further investment to the economy.

6 Solve debts to the Treasury and Social Security

If you have debts to the state machine, notably Social Security and the IRS should address this issue immediately or at least start with these institutions to negotiate an agreement of payment that can be extended by time. This is a requirement that you must meet in order to gain access to bank financing. Sometimes just presenting the agreement enclosed with the state payment.

7 Compare offers from several banks

In certain periods or contexts, banking launches credit products more competitive against the usual offer specifics. Banks tend to compete with each other "spreads" and similar grace periods, but there are features that distinguish them. Look for offerings available in the market before heading to the institution of their choice. And if comparisons obtained to get more favorable terms.

vineri, 11 aprilie 2014

All about college credit cards

College credit cards are the credit cards that have been specially designed for college students. College credit cards are more popularly known as student credit cards. College credit cards allow the students to experience the benefits of credit cards much earlier in their life. Through college credit cards, the college students are able to learn more about credit cards and their use. In fact, for most of the students, their college credit card is their first credit card that acts as a gateway to the world of credit cards. Some other students might have previously used supplementary credit cards linked to their father’s credit card account; however, for such students too, their college credit card is the first one that is truly theirs.

College credit cards are not very different from other types of credit cards in the basic sense; they function in the same way as any credit card would. However, there are some differences, which basically arise from the fact that college credit cards are used by people who have no prior experience with credit cards and who perhaps don’t understand the concept of credit cards completely. Hence, the credit card supplier is at risk with issuing credit cards (college credit cards) to such people whom he is not sure about. Most of the students don’t have a credit history either. In such a case, the supplier of college credit card cannot be sure of receiving the credit card bill payments in time (and even receiving them at all). To counter such risks, the supplier of college credit card requires the parent of the student to co-sign the college credit card application form as a guarantee. Moreover, the credit limit on college credit cards is generally around $500-$1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to fulfil the typical needs of a student). Another risk mitigation instrument used by the college credit card suppliers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to dissuade the students from overspending on their college credit card (and finally not being able to pay their credit card bills).
However, if we were to look at these impositions in a positive sense, we would find that these are actually in favour of the student (who is still getting trained to take on the real world of credit cards).  Moreover, college credit cards also help the students in establishing a (good) credit history which is another important benefit that becomes handy when the student needs any type of  loan at a later stage in his/her life.

So, college credit cards are really something that every student should consider going for.

Student credit cards

For students, the student credit cards are the best way to enter the fascinating world of credit cards. Student credit cards help the students in taking advantage of the various benefits associated with credit cards in general e.g. convenience, safety, rebates etc., much earlier in their life. Moreover, student credit cards act as training ground for students, most of whom haven’t had any experience with credit cards. The student credit cards help the students in gaining hands-on knowledge about the various aspects of credit cards and their use. Most credit card suppliers also include a small guide that helps the students in gaining a good understanding of credit cards, upfront. The students learn more and more with every transaction on their student credit card and as they experiment with the various benefits associated with the student credit cards using their student credit cards in various ways. Another important benefit is in terms of the time that student credit cards save for the students. As we know, time is very valuable for students and by using their student credit card to order things online, they can actually save a lot of time too. Moreover, the students might require short term loans (in case there is a delay in the arrival of funds in their account, for whatever reason); and student credit cards facilitate this very easily taking the burden off from the student (so students can use their student credit cards like a loan for making payments in the meantime). As such, money is the other critical thing for students. Student credit cards again become handy here by saving them some money in terms of rebates from retail stores, grocery shops etc. Moreover, the students also receive additional rewards/benefits from the members reward programmes that come with all credit cards (including student credit cards).

As students use their student credit cards, they keep building their knowledge database. This knowledge becomes handy when they are out of college and into their job and looking for a full-fledged credit card (i.e. credit cards which have lesser restrictions, more credit limit etc as compared to a student credit card). Hence the student credit cards help the students in making a knowledge-based decision rather than a fancy-based one. Such decisions and the knowledge about using the credit cards in a disciplined manner, acts as a deterrent to one of the most serious problems being faced by credit card industry i.e. the problem of credit card debt.

With so many advantages on the plate, the student credit cards are really an essential for every student.

Credit card offer

So many credit card offers, what to do?

Just browse through the daily newspaper and you will be overwhelmed by the number of credit card offers advertised. Move around the town and you will find credit card offers being advertised everywhere. Same is the case is with television which seems to host a number of credit card offers too. So, the credit card offers are there everywhere. Why are there so many credit card offers? Well, quite simply because credit card business is a highly profitable business for the credit card suppliers.

In this situation, when there is no dearth of credit card offers, which is the best credit card offer?

There is nothing like a best credit card offer, really. A better question to ask would be – ‘Which credit card offer is the best for me?’ The spending habits of one person are different from that of another person. Their living styles vary and hence their needs vary too. So for deciding on which credit card offer is best for you, you need to evaluate your needs vis-ŕ-vis your lifestyle and your spending habits (and not go just by the recommendation of someone). For example, if you frequently travel by air, a co-branded airline credit card might be more suited to you than the general purpose one. These airline credit cards offer discounts, rebates and other kind of rewards when the credit card is used for making payments (the rewards are even higher when these credit cards are used for paying for the airline tickets or other airline products). Similarly, if you have a favourite retail store where you do a lot of your shopping, it would be beneficial to check if the retailer is a credit card supplier too and if there is a credit card offer that suits you. A lot of big retail chains do offer co-branded credit cards to their customers and these credit cards offer rebates/discounts etc when they are used for making payments at the retail store. As such, you get reward points for making payments at any place but the rewards are higher on the payments made at retail store.  On similar lines, we have credit cards for gas stations and grocery stores too, which you can opt for if you have a favourite gas station or a favourite grocery store where you shop a lot.

So, if you look around, you will find a lot of lucrative credit card offers. However, this doesn’t mean that you enrol for all the credit card offers. You need to first evaluate your needs and rank them. Then you need to evaluate what all credit card offers suit your needs. And finally you can make your choice and go for a credit card offer that covers most of your needs and gives maximum benefits.