Get All 3 Credit Scores

Affordable Credit Repair Solutions That Work

Most people that are looking for affordable credit repair solutions do not have a lot of money to put out for someone to prepare a credit repair dispute for them with all of the creditors that are haunting their credit report. So with this said, finding affordable ways to erase bad credit fast is essential for them

It’s so important for everyone to have the best credit rating they can. Having good credit is going to take you so many places in life and offer you so many more opportunities than otherwise. There are affordable credit repair solutions out there that you can go use and who will provide you with the help you need, but not all are as they seem. B

Read more…

In a few weeks, it will be a lot more difficult to get a credit card if you’re under the age of 21, at least, that’s the plan.

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (Credit Card Bill of Rights) will go into effect on February 22, and bring with it a number of changes, which I previously wrote about.

But another issue at hand is extending credit to so-called underage consumers, namely those under the tender age of 21.

The impending legislation will require that those under 21 who apply for a credit card either get a co-signer aged 21 or over, or document the ability to repay the credit card debt.

If the under 21 applicant chooses option one, that co-signer will be on the hook for any unpaid debt; if they choose to document income, it’ll probably be rather cumbersome, and certainly not the instant approval we’ve all grown so fond of.

Additionally, if under 21, a credit line increase will only be permitted on a joint account with the co-signer’s permission.

In other words, kids can’t go increasing their card limit without their parent’s knowledge.

So it’s going to be more difficult to get a credit card if you’re under 21, which in one respect, will be a good thing.

But what about those who need the credit, are generally responsible, but unable to get a co-signer or document income?

Will it lead to an increase in the use of prepaid credit cards, or an increase in personal loans, those with much less favorable terms than credit cards?

I hope all the implications have been considered for the sweeping changes, especially since credit cards are often a young consumer’s initial credit building tool (how to build credit).

Most of us don’t know the true cost of credit, we simply pay attention to what we’re paying in fees and finance charges.

But the cost of goods and services increases as a result of credit card use, as merchants need to pay fees to banks, credit card issuers, and other companies for the infrastructure, equipment, and convenience.

These merchant and interchange fees vary based on the type of transaction, merchant, and card issuer involved.

Visa charges an average of about 1.80% per transaction, while American Express charges around 2.50%, though smaller retailers typically pay between 3.25% – 3.75%.

This is why you’ll often find that not all small merchants accept American Express, as they don’t want to pay the extra fees (Amex also tends to side with the consumer, another drawback for merchants).

If the merchant has a special deal in place with a card issuer, perhaps based on a volume or exclusivity agreement, they’ll be able to secure lower pricing.

Take a look at these figures below, provided by TrueCostofCredit.com to get a better understanding of what credit really costs:

But even if you elect to pay with cash, more often than not the price already reflects the option to pay with plastic, unless you work out a deal specifically with the merchant.

The use of credit is already priced in, so it’s wise to get your hands on a rewards credit card, like the American Express Blue Cash, which offers cash rebates of up to 1.25%  – 5% on all purchases.

Tip: Watch out for merchants that try to pass the “transaction fee” onto you directly.

Your income may become a more important factor in determining whether you’ll be approved for a credit card, according to a post in the WSJ.

The paper said beginning in February, credit card companies will be required (Credit Card Bill of Rights) to consider an applicant’s income or assets/current debt before extending credit to ensure consumers have the ability to repay.

In preparing for the change, the credit bureaus have already gotten in on the income estimation business, with Experian reportedly nailing down income to the nearest thousand.

They came up with their estimates by matching credit reports with wages, interest, and investment income, along with total credit lines and related payments.

These income estimates will help credit card issuers approve or decline applicants, and may also be utilized to increase or decrease an existing credit line.

In the past, credit card issuers simply asked consumers to enter their gross annual income in a box on the application form, but soon you could be required to provide pay stubs, tax returns, or be asked to fill out a form 4506, which allows the IRS to release your tax filings to lenders (so no fudging the numbers).

What the changes really communicate is that credit scoring has proven to be unreliable, at least as a standalone determinant of capacity to repay debts.

Of course, the income estimates are just ballpark figures when it comes down it, which is why the credit bureaus’ contracts prohibit card issuers from turning down customers based solely on the information.

See: why credit card regulations are worthless.

Credit card consolidation can be a beneficial way to pay down debts.  If you are considering this avenue, make sure that you get the lowest interest rate and the best terms available.  Below are the ways in which you can use consolidation to achieve one low monthly payment:

Home Equity Loans 

By putting your house up for collateral, you can obtain a credit card consolidation loan.  Consolidation loans allow you to pay less interest, and make a lower payment than the combined total of all your credit cards.  Caution should be exercised when taking out a home equity loan for credit card consolidation, because you stand to lose your house if you can’t make the payments.  A good rule of thumb is to close all but one credit card account so that you aren’t tempted to add even more debt.

Balance Transfers

This is another method of credit card consolidation.  Basically, you apply for a card that offers a low introductory rate and transfer all your other balances to that card.

Be aware that this “teaser” rate only lasts for a limited time, and will return to normal interest rates at the end of the introductory period.  Before it converts to the regular rate, you can transfer your balance to another card with a low introductory rate.  

Using balance transfers to consolidate your credit card debt often brings added costs in the form of transaction fees.  Read the fine print to see how much it will cost you to make the transfer for your credit card consolidation.  Be sure to make your payments on time, as late payments often raise your interest rate to the normal rate charged.

When using balance transfers to consolidate your credit card balances, be sure to close old accounts so that you aren’t tempted to use them.  Failure to do so can leave you even deeper in debt if you rack up new charges.  

Credit Card Consolidation Services

If your credit card debt is out of control, you can lower your payments by up to 57% using a consolidation service.  Consolidated loans are not for everyone, though.  Before you make a decision, you must realistically look at the pros and cons of debt consolidation to determine if this is the right decision for you. Click here for m

Read more…

I like American Express a lot, I don’t hide that fact. Their customer service is stellar, it’s easy to dispute fraudulent/bogus charges, and the rewards tend to be the best in the industry.

Their credit cards also look cool, and who doesn’t like to look cool?

At the same time, a number of American Express credit cards come with some hefty annual fees, which I’m not a fan of.

I’ve never embraced the idea of paying a fee to use a credit card, it just doesn’t sit well with me.

Fortunately, American Express has a number of credit cards with no annual fee, good ones at that.

So check out the following American Express cards with no annual fee:

Blue from American Express®

0% Intro APR for 6 Months on Purchases, “No Annual Fee,” Point-based Rewards Program, Instant Approval in Under 60 seconds

Blue Cash® from American Express (my personal favorite)

0% Intro APR for 6 Months on Purchases, “No Annual Fee,” Cash-Back Rewards Program, Instant Approval in Under 60 seconds

Up to 5% cash back at supermarkets, gas stations, and drugstores. Up to 1.25% everywher

Read more…