Posted by admin on July 15th, 2010
My brother came to me about two month ago to talk about his financial situation. I’ve always been pretty good with money, always kept my bank balance in the black and never had any problems. My brother, however, is a little different, and finds it hard to manage his finances – he always has done.
As soon as he gets paid, he gets on the internet and thinks about what he can buy himself. Within a week, he’s scraping the bottom of his bank account to pay for his bills – and wonders why his situation isn’t getting any better.
Well, the good thing is, he knows it needs sorting. He has debts (they aren’t too bad, though) and knows that he needs greater self control over his money. This is where I can help him. (If you need a bank account but have bad credit, try these guys…)
I’ve told him to look into debt management. It’s a technique that some debt advisers teach people. It is basically managing debts more effectively, prioritising them and making sure all payments are made on time every month.
He has gone away to do some research, which is good for him because it shows he is willing to change his ways. No longer will he be spending his money on things he doesn’t actually need – I hope!
I’ve already taught him how to budget properly, helping him come up with a realistic budget – ensuring he can keep on top of his spending. He now writes down everything he earns each month and then everything he spends. By doing this, he could see how much money he’s been wasting on things he doesn’t need, and now he only spends money on the things he has to…like food, petrol and bills.
I really hope that by looking into debt management he will be able to regain full control over his finances – it won’t take him long to repay his debts if he does!
Posted by admin on July 15th, 2010
Credit card late fees are a fact of life for some consumers, but they don’t have to be for you. Legally, credit card companies can hit you with pretty much whatever fees they want. On the other hand, you don’t have to pay them, but only if you avoid them in the first place. Here are five sure fire ways you can avoid costly credit card late fees:
1. Pay Before the Due Date. Of course, this makes the most sense. However, this is also the single most important reason why people get socked with fees: they receive their bill and immediately forget about it! When you get your bill, open it up and pay it promptly. Waiting means forgetting and forgetting about your credit card bill will cost you money.
2. Pay on the Internet. If you have access to a computer, then paying online is the best way to make certain that your payment gets to your credit card provider on time. Be careful, as there is still some lag time from when you authorize funds to be released from your checking account and when that payment is finally credited to your credit card account. The gap between the two can be as long as one week!
3. Schedule Automatic Payments. Some credit card providers allow for you to set up a scheduled deduction from your checking account which is then automatically sent to your credit card provider. You should set it up to take money out of your account well before the due date to ensure that your funds are received on time. You can always send in a separate, extra payment if you want to pay down your debt faster too.
4. Question a Late Payment. Even if the credit card company claims that your payment was late, it doesn’t mean that you must be charged a late fee. Contact the company and ask them to reverse their charge –- which usually runs between $29 and $39 — and to expunge their records of your tardiness. You not only want to avoid any fees, you want to avoid their possible notification of your lateness to the three major credit report agencies [Experian, TransUnion, and Equifax]. Any information supplied to the credit reporting agencies can work against you in the form of higher interest rates on current cards as well as on future loans!
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Posted by admin on July 14th, 2010
A lot of credit card holders aspire for a higher credit card limit.
But: credit card holders need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the credit card company or their bank.
Here are 5 ways to get a higher credit card limit:
1. Prove your credit worthiness
The most important thing to do for getting a higher credit card limit is to prove your credit worthiness. This is the first thing that banks and companies look for when giving a higher credit limit.
2. Attract positive attention from the credit card company
At least: try to attract positive attention by paying finance charges once in a while. Obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.
Proving to credit card companies and banks that you are good “borrower” can be a convincing way to get a higher credit limit. But be careful because this strategy also means that you will be paying finance charges which can accumulate in a hurry.
3. Always spend within your credit card limit
Doing so means that you are capable of controlling your expenses.
4. Use your credit cards regularly
Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior. Under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.
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Posted by admin on July 13th, 2010
Here are 5 tips to help improve your credit score.
1. Get copies of your credit report —then make sure the information is correct.
Go to the Annual Credit Report web site. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months
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You can also call 877-322-8228 or complete the Annual Credit Report Request Form at the Federal Trade Commission (FTC) web site and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
2. Pay your bills on time.
One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid overdraft fees.
3. Understand how your credit score is determined.
Your credit score is usually based on the answers to these questions:
Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.
What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
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