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Archive for October, 2012

Feeling The Effects Of A Bad Credit History?

Written by Toi Williams on Oct 31st, 2012 | Filed under: credit score

Many consumers understand that the data in their credit history can affect their ability to obtain credit, but they fail to realize that their credit history can affect their lives in other ways too.  Hundreds of thousands of borrowers do not give monitoring their credit history the level of importance they should because of this misconception, neglecting to review the data for accuracy on a regular basis.  Your credit history is one of the most important pieces of financial data available to a borrower and the number of areas affected by the data in your credit history has increased significantly.

Your Personal Data

The data in your credit history is the data that creditors use to make a determination about how credit worthy you are.  The data includes any open credit accounts, the payment history for those accounts, whether the accounts are current, and the length of time that the accounts have been open.  Delinquent accounts and missed payments can be reflected on your credit history for up to 10 years, depending on the account type.

The data included in your credit history is also used to calculate your credit score. Negative data in your credit history will cause a reduction in your credit score while steady payments and a long account history will improve it. Keeping your credit score as high as possible will allow you to pay less in interest rates and fees for future credit products.

The Effects

Negative data in your credit history can affect a number of different areas of your life by reducing your credit score and labeling you as irresponsible for future creditors.  Rental companies often look at the credit histories of their applicants to determine whether they can depend on the applicant to pay their rent on time.  Car dealerships will increase the interest rate charged for the loan or deny a car loan completely based on the information in the consumer’s credit history.

Tips For Avoiding The Most Common Credit Card Fees

Written by Toi Williams on Oct 28th, 2012 | Filed under: credit cards

Lending institutions that issue credit cards have seen their profits soar into billions of dollars as credit card usage has increased dramatically over the past two decades.  Fees levied against accounts due to mismanagement by the account holder accounts for a great deal of the money earned by these lending institutions.  Many things can trigger these fees, but knowing how to avoid them will keep the fees that you pay for your credit card as low as possible.

Interest Payments

Every month, interest is charged to credit card accounts based on the balance of the account and the interest rate charged.  The amount of interest paid increases as the balance increases, and people that regularly carry a balance on their credit card can end up paying thousands of dollars in interest annually.  If the balance of the credit card is paid in full every month, these interest payments can be avoided altogether as a grace period of around 30 days is typically given to pay off new purchases.

Late Payment Charges

When the minimum payment due on the account is not paid by the due date on the credit card statement, late payment fees are charged against a credit card account.  The fee will be charged each time a payment is not received on time and can be as high as $35 each time.  Your credit card bill should be paid as soon as you receive it to ensure that you will not forget the due date or mail the payment late.

Fees For Exceeding The Credit Limit

When a person charges more than the amount of credit available to the credit card, overlimit fees are added to the balance of the account.  This generally happens when the person is close to the credit limit and makes a purchase or has an annual fee posted to the account.  Avoiding this charge can be as easy as only using your credit card for emergencies and paying down the balance of the account as much as possible each month.

Managing Your Money Effectively Is A Worthy Goal

Written by Toi Williams on Oct 23rd, 2012 | Filed under: mindset

Learning to manage your money is a very important part of making your financial future secure.  People need to know about effective ways to manage their money so that they will not fall into insurmountable debt, succumb to bankruptcy, or destroy their credit rating.  The best way to avoid financial issues is to take control of your finances by implementing some effective money management tips.

Track Your Spending

One of the most overlooked aspects of financial management is tracking your spending.  If you have no idea where all of your money is going each month, you will not be able to control your spending or ensure that you are spending your money on the right things.  You will also be able to identify areas of excessive spending and trim your budget to obtain more savings without affecting your quality of life.  Creating a way to documenting all of your purchases will provide you with good idea of how much you are spending and the money is being spent on.

Use Automatic Savings Deductions

Many people have little savings because they are constantly finding other things to buy with the money that they should be saving.  To make sure that you are saving as much as you can, automatic deductions from your paycheck directly into your savings account can be implemented.  This allows you to remove the money from your spending funds as quickly as possible before it can be spent on other things.  This is one of the easiest and effortless ways to save money on a regular basis.

Review Your Credit History For Errors

Nearly 25% of individuals across the nation have errors on their credit reports that could be costing them a significant amount of money.  People that have negative information, accurate or otherwise, in their credit history are charged higher interest rate and miss many financial opportunities.  Federal law allows each individual to receive one free copy of their credit report from each of the three main credit reporting firms annually so that the information can be examined for mistakes and misreported information.  If an investigation by the credit reporting bureaus proves that there are any incorrect entries in their records, they must remove the information from the person’s credit history.

Avoid Using Your Credit Card For These Items

Written by Toi Williams on Oct 20th, 2012 | Filed under: credit cards

You can purchase nearly anything a credit card, but just because you can, does not mean that you should do it.  There are some purchases that should never be placed on a credit card because they are not worth the cost of the interest you will pay on the purchase.  Here are some items that should never be paid for with a credit card.

Casino Chips

Cash strapped gamblers can always obtain a high interest cash advance using their credit card at the casino ATM or cash window.  Casino operators make it very easy, knowing that most of that money will be going right back into the casino.  Some gamblers wrack up hundreds of thousands of dollars in debt by obtaining cash advances from their credit cards at the casino when they have spent all of the money that they brought with them.  For any gambling trip, you should leave the credit cards at home and only take a set amount of cash that you know you can afford to lose.  When the cash is gone, gambling should be done as well.

Comfort Expenses

Comfort expenses will cost you much more than you realize if you charge them and do not pay off the charges promptly.  The interest charges for the credit card can increase the price of the purchase by 33% or more over time the entire balance of the account is not paid off each month.  Because comfort expenses are generally unnecessary purchases, you should save up for them and make your purchase when you actually have the cash.

Tuition For College

The college tuition is so expensive that most students are unable to pay the entire amount on their own or with loans from their family.  Placing tuition costs on a credit card extends the length of time you will be paying and increases the amount you will pay by adding significant interest charges.  You should look at all of your available financial aid options, including grants, scholarships, and student loans and to consider attending a community college instead of more expensive universities in order to save money.

Some Ideas On How to Select a Forex Broker

Written by admin on Oct 9th, 2012 | Filed under: debt relief

Over the past few years more people are looking into trading currencies as opposed to stocks. By trading in the Forex, a person opens himself/herself up to some incredible financial gains. Because of the huge surge in people trading in the Forex, there are more Forex brokers in business than ever. As a result, people have more choices of brokers than ever before. That is one of the reasons why people need to make some careful decisions when choosing a broker.

Most people locate Forex brokers by looking over the Internet. When doing an Internet search for Forex brokers a person will find a vast array of choices. To narrow their search down, they need to come up with some criteria to weigh the benefits of opening up an account with a specific broker.

One of the things a person should look for in any Forex broker is if they are regulated by the appropriate regulating agency. This can give a person a measure of the broker’s commitment to following guidelines, and are serious about the business.

Another facet of this criteria should include making sure that the brokers are capitalized. Having a well-capitalized Forex broker will help minimize any risk of the brokerage filing for bankruptcy.

Another concern for a lot of investors is the level of open communication a brokerage house has with its clients. Having good customer service is extremely important to many investors. The customer service department should be able to communicate with clients by phone, e-mail, and live chat. A person should be very wary of companies that do not offer solid customer service and open communication.

If a person wants to find a good Forex brokerage house there are a couple of places they should go on the Internet. A person should type the words “list of Alpari brokers sites across the world” into their web browser. They then should look for the Alpari daily market updates channel. By doing this a person can obtain excellent Forex information from a wonderful brokerage.

When it comes down to it, many people want to get into the Forex market, but need to find a company that is reliable, and has timely information to help the investor make profitable trades.

Credit Card Mistakes To Avoid At All Costs

Written by Toi Williams on Oct 5th, 2012 | Filed under: credit cards

It is very easy to make credit card mistakes and some of these mistakes can be more costly than others.  Repairing the damage from one of these mistakes can take several months and the damage to your credit score could last for years.  Avoiding these credit card mistakes entirely is the best course of action to take.  Here are some of the most costly credit card mistakes and how to avoid them.

Cash Advances

You should never use your credit card to get a cash advance unless it is a true emergency.  Cash advances have a different interest rate than purchases and the rate is often sky high.  Interest charges on cash advances begin to incur as soon as the advance is made and you may have to pay an upfront fee as well. The longer you take to repay a cash advance, the more money it is going to cost you so you should explore other ways to get extra cash before resorting to a cash advance.

Basing Spending On Rewards

It is easy to believe that “free” rewards are actually free, but they all end up costing you something.  To earn the rewards, you will have to spend a large amount of money, and the allure of earning rewards can lead you to spend more than you can afford.  A good rule of thumb is that any reward you earn on a credit card will be worth 1% of the amount you spent to qualify for the reward.  Only use your credit cards when you really need to and try to pay off the balance as quickly as possible.

High Annual Fees

Paying a high annual fee for the privilege of being able to use a credit card is often a waste of money.  Banks usually charge higher annual fees for credit cards that offer a rewards program, offer premium services, or is geared towards risky borrowers.  It is possible to get a credit card that does not have an annual fee attached to it, so go for these credit cards whenever possible.