Visit 20,000
Credit Card Debt.com

To earn your stripes to get a credit card you need to have a budget. Without that and a lot of will power, you will be sorry you ever took a credit card.

To create a family budget you need to know two main things: 1) how much money you are earning; 2) your total expenses for everything. Just subtract your expenses from your earnings and the remainder will be your discretionary budget amount.

It is easy to create a budget but not so easy to keep to it. Make a list of items that you pay for just once or twice a year - presents, vacations, etc. Include an estimate of expenses to maintain items you must have such as your automobile and your house. If you can accurately approximate the items that come up occasionally, then you are in a much better position to figure out how much you can spend on other items like amusements and dining out.

Try to include all the things you normally have to pay for. Also include all the things you end up having to pay for at least once or twice a year and budget these in. Try to leave an emergency fund that you can budget for unexpected thing that will almost certainly happen. Don't forget to include things that you consider your own fun time, such as a family vacation or money spent eating out.

Once you have created your budget try not to budget yourself up to the maximum of what you earn. Instead try to leave a little bit spare every month. This will help you pay for all the things that you forgot to put on the budget like a coffee every morning before work.

Be sure to put as much as possible into a savings account or, better yet, and IRA account for your retirement. You will be smiling later in life when you do this consistently.

FICO Scores


A credit score is based on examination of a person's credit files. The score is normally between 300 and 850. The purpose is to use statistics to determine if a person is fit and able to pay back loans and credit card balances in a timely fashion. The credit score uses credit report information from the three main credit agencies.

Fair Isaac Corp (FICO) uses three types of credit including mortgages, auto loans and consumer credit reports. The scores of these three areas will often differ by 50 points or more for the same borrowers.

The three main credit reporting agencies are Equifax, Experian and TransUnion.

A borrower is compared with other borrowers for similar events. For example, if the borrower is late on two payments he is compared with other histories of borrowers with similar late payment history.

Major factors in determining your credit score include:

*punctuality- did you ever have a payment over 30 days past due?

*amount of the debt

* length of credit history

*types of credit employed - installment loans, revolving credit, consumer
finance

*recent searches by companies for credit history

You may think that all credit cards are the same, but this is not in fact true. This is just like saying that a dented, roughed up van from sometime back in the 1970's is pretty much the same as an SUV made in 2007. Terms and conditions vary from credit card to credit card, so you have to be careful.

The credit card industry is an extremely competitive one, with different companies bombarding you with advertising like there's no tomorrow trying to show each other up. In order for you to get a deal, you do have to pay attention to the terms and conditions that are included in the fine print.

Naturally, you want the card that is going to end up costing you the least. So what you want is one with a low APR (Annual Percentage Rate). The APR is the interest that is charged on the balance of your card at the end of each month, so the lower it is the better for you.

Also, you have to be able to keep up with the payments. As long as you manage to make the minimum payment on time then all will be well and your APR will stay at the same rate, however, miss a couple of payments - whether they are just late or not paid at all - and your card's APR might increase as some companies do this.

The problem then is that yes, whilst your APR was lower until you were late making a payment, now that it has been upped into the 18-22%, it's not going to drop back down again just because you make the next payment.

As an example, say that you're a good credit risk and you always manage to make the monthly repayments in time. In this case, a card that will give you a bonus for doing this could be very handy. There are cards out there that give out bonus "points" which you can use for buying gifts, in restaurants, at the movies, buying things online and other things.

With a card like this, you're earning as you spend. All you have to do is buy things with your card and you get some extra stuff for free! If you charge everything to your credit card and make sure that you pay it off in full each month then you might even be able to get yourself an airplane ticket to anywhere in the world with the points you've earned.

The fastest way to get a credit card for yourself is online, as all you have to do is quickly fill in the online form and then wait for approval, which only takes a couple of minutes as long as your credit rating is in good condition.

Some companies will give you a small opening limit after you have been approved so that you're able to shop online right from the off. This is called instant credit as your actually credit card will take some time to arrive through the post, usually between seven and ten business days.

You might also be able to find yourself a good deal online if you already have a credit card but it has a high APR. There are many cards that will offer you a 0% charge on balance transfers - which is when you simply transfer the balance from one card to another. This 0% will usually last for six months, so it can be a good way to make up for all that high interest you have paid.

Negotiation Tips To Lower Interest Rates On Credit Cards

Consumers carry a lot of weight when it comes to interest rates. It can sometimes be a lot more straightforward to negotiate on interest rates than people think.

Consumers can negotiate with lenders on some financial packages before they sign on which happens a lot with mortgages. Mortgages are often flexible packages that can be negotiated to beat competitors etc. Credit card deals may be harder

to negotiate lower interest rates before you sign because they are generally fixed packages.

However, after signing it is almost the reverse. A mortgage company is less likely to change the interest rates because the effect it has on the return on their investment is very significant. However with credit cards and small loans consumers may find they can negotiate lower interest rates.

Negotiating lower interest rates is easier when you have a good credit history. This is because you have established that you are responsible with your finances, and it looks less likely that you are trying to get out of paying money.

It costs money to take consumers to court for failing to repay their credit card loans and if legal proceedings take place, it is likely that the consumer will repair the amount over a period that suits the financial situation.

This is the reason why it's so easy for consumers to contact their credit card company and try to negotiate lower interest rates. And remember, it is very easy to get a different credit card and transfer the balance. So the credit companies have two options, lose your custom or lower their rates.

Tips for negotiating

It is always better to write letters to negotiate because conversations are worth nothing if things turn nasty and it goes to court.

You must avoid being confrontational or nasty because this simply gives the impression you are not taking responsibility of yourself and that you're not trying to resolve the issues properly.

You must be fair in your negotiations. Individuals can't make huge demands on the big companies because they are likely to be ignored.

Don't threaten them with non-payment or filing for bankruptcy. These are not good ways to approach your creditors and they are likely to simply prove in court that you were not wiling to take responsibility of your own finances.

When you negotiate, try to be realistic but also try to lean things in your favor. If you negotiate interest rates, try to negotiate fixed rates with realistic payment periods.

If you negotiate a change in your interest rates and your creditor accepts, you must make sure that you stick to your new commitment. If you fail to keep up with your new payments then it makes things harder for you if your creditor takes you to court. This is why it is important to be realistic in your negotiations.

by Greg Cryns

What is the CVV number on your credit card?

This is an authenticating code established by the credit card companies to help ward off fraudulent use on the internet.

When purchasing something on the internet the interface on the checkout will often ask for this code. It is located on the back of the card and usually a 3 digit code. This provides cryptographic check of the embossed information on the front of the card. The back of the cards do contain the full 16-digit account number. the CVV/CVC code comes after the long number separated by a space.

Asking for the code helps, but doesn't guarantee, that the person making the purchase has the credit card in hand. VISA and Mastercard call it the CVV2. American Express calls it the CID.

You could write in "Ask for ID" next to your signature when you are checking out of an offline store. It is fun to see if the clerk asks or not.

CVV stands for CARD VERIFICATION VALUE CODE

You Can Build Your Credit Score with A Secured Credit Card

What is a secured credit card?

A secured credit card is where you pay a bank an amount of money, say $500 and receive a credit card with a $500 limit on it. You use the credit card in exactly the same way as any other credit card and make regular monthly payments to pay off any money that you spend using the card.

The credit card is secured against the money you have in the bank so there is no risk for the lender because they simply take this balance if you don't pay the
balance on your credit card. Most banks will even give you interest on the initial payment you make to secure the credit card.

How this helps to build credit:

This is a great way for people with bad credit to build up their good credit. Firstly there is no risk for the bank so there should be no problem in them giving you a secured credit card.

Secondly if you are making regular and consistent repayments on your card then you are building a positive credit history on you credit report that shows you consistently pay off your debts.

What to watch out for:

You must repay your monthly amounts without fail or you'll just be damaging your credit more. Also make sure you don't go over your limit on purchases. This can be easy to do because secured credit cards do not allow large credit limits.

Secured credit cards don't make a big financial impact on repaying interest rates because at the low credit limits, even with high interest rates your repayment interest will be low.

Many secured credit cards will be free to open, so be wary if a company offers you low interest rates but a high annual fee or start-up costs.

Building good credit

If you use your secured credit card often and make regular payments then you will build a thread of good credit history. After a year or so you can apply for other credit, such as a non-secured credit card. If you manage this properly too then you are well on the way to establishing good credit. But remember that you must avoid penalties for late payment.

What you need to know about Payday Loans

Payday loans come at a very high price. They have near the highest interest rates and fees allowed by law.

My first advice is not to patronize the fast loan folks, including the tax preparation companies.
They are also known as cash advance loans, post-dated check loans and deferred deposit check loans.

A borrower will write his personal check to the lender for the loan amount PLUS an additional fee. He then gets the money

for the loan excluding the fee. Fees are charged based on a percentage of the face value of the note or a fee is imposed for each $50 or $100 borrowed.
Of course, the cost of the loan must be disclosed according to the Truth in Lending Act. This includes a dollar amount for the finance charge and the APR on a yearly basis.

You can extend the loan with the "rollover" provision and that also comes with a fee.
Payday loans are legal. The industry got a bad name because it preys on the poor people who cannot afford to set up a regular checking account. Because many people default on the payday loan, the companies resort to strong arm tactics to get their money back.

Your payday loan is like a check. When you sign on the dotted line you are, in fact, giving the loan company the right to take the money from your account at work.

You will be charged fees at the lender and at your bank.

There are alternatives to payday loans but the disadvantaged will be taken for the ride because, in reality, their alternatives are almost zero.
Tips if you are hounded by loan collectors
1. When they call tell the person you are recording the conversaition. Tell him to repeat the penalty for not paying immediately. It is against the law to threaten on the phone.

Also, the loan company cannot dispense any confidential information.
In most states your wages cannot be garnished for late payments on a payday loan.