The Dbottino Weblog

The Credit History report is like the Hall Monitor in the world of credit cards. The credit history report will serve as a security for credit card companies to screen out the bad weeds and the good weeds.

However, it might be hard for some of us to maintain that perfect credit history. This is because life is not perfect; some of us will encounter problems in our cash flow to pay off certain bills. When that happens, it damages your credit score more.

The lower credit score you have the harder time it is for you getting a credit card or even loans. Lower credit scores may even give you problems finding a job or an apartment.

To be on the fair side, credit card companies do look at other matters when you apply for a credit card. It will only serve as a consideration. The other thing they look at is your credit history. On your credit history, they will base how many times you’ve paid late, how much debt you owe and how much is the credit still available. They will also look at the time you have spent with your job and if you have been earning a steady income with that job.

The lender will usually give consideration to person who has made late payments but has seen that the debt to income ratio is manageable. This means that you are able to make enough money that can pay off the debts you currently owe.

When also applying for a credit card. Limit your application to a few number of credit card companies. The more number of pending applications you have, the more damaging it could be to your credit score. Try to research before applying for a credit card. Check out the cards that are catered for people with low credit scores.

If you are afraid of all of the bad things and risk involved when getting a card also consider the benefits the credit card is able to provide. If you are a person who is repairing or improving your credit rating. You are most likely using all the cash you have to pay out those bills. Therefore making you have less money available for emergency purposes.

Having a card will give you the money you need. However do be responsible with the card and don’t overcharge it. Also learn to pay the bill of card on time.

It is suggestible for people with bad credit rating to get secured credit cards. This cards work by making the user deposit certain amount of money to the card company. The limit you have is the amount you have deposited. When you use the card, the amount will be deducted to your deposit.

The good thing about this is, when you are not using the deposited money, the money will be earning form the interest. It also helps improve your credit rating.

Michael Colucci is a technical writer for Low Interest Credit Cards - A site that offers credit cards with an intro rate of 0% for 12-15 months.

How much do you really know about Merchant Account Credit Card Processing? If you’re like most new business owners today, you may have very little information about this valuable e-commerce service. A merchant account works much like a personal credit card account, except that you use it for company purposes. Providing your business with a merchant account not only conveys a credit line to promote growth, but it also can include a service package that supports new technical services that your company may adopt, including credit card processing services.

Think about the last time you visited a new shop or interesting tourist site. Finding something you wanted to purchase, you waited a few minutes in the checkout line behind other customers for your turn to pay. Presenting your desired purchase item to the cashier, she rings up the total as you take out a credit card.

“Sorry,” she says curtly, “cash only, since the boss hasn’t applied for Merchant Account Credit Card Processing yet. We don’t accept credit cards.”

“What!” You fume silently as you fumble in your purse for the requisite amount, realizing that using your last few dollars for this picturesque coffee table book will eat up your parking money and fast food stop, and wondering how anyone could neglect the option of “Merchant Account Credit Card Processing.” Ah, thankfully the drive-through restaurants take credit cards now, so with a sigh you scrape the last of your change from your billfold to pay the cashier. Turn this scenario around and you can understand how some of your customers might feel when your company accepts payments in cash only. Isn’t it time you started accepting credit card payments?

Think of your customers’ gratitude when they realize you offer Merchant Account Credit Card Processing options for their benefit. They will throng to your store, eager to buy things with their trusty credit card without the worry of trumping up a fistful of cash or writing a check that might deplete an account. With pride you can post a sign that lets them know before they reach the checkout line that you are ready to accept their credit cards. Your colleagues will take your business a little more seriously when they see how committed you are to serving your clients’ needs and staying current with e-commerce methods. Even your employees, if you have them, will appreciate the fact of having less collection work to do when monthly payments fail to materialize as scheduled or a check gets rejected at the bank.

Making the move to credit card processing may be the best decision of your professional career. Opening an account with a trusted lender will let you experiment with credit payment acceptance and measure your customers’ responses to this new option. Don’t be the last in your business community to get a commercial account that will let you try new services that can benefit your customers and your company. Join the electronic age now by applying for Merchant Account Credit Card Processing.

Shane Penrod is the founder of http://www.merchant-account-quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com

One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. However there are two broad areas that you should look at:

Annual Interest Rate

Firstly if you do not intend to pay off your Credit Card bill at the end of each month, then you should look at the Annual Interest Rate (APR), this rate is typically between 13-17% at the moment, and you should be looking for a card that offers as low an interest rate as possible. You should also bear in mind that you are charged much higher rates of interest than other forms of borrowing money, so if you do not intend to pay of your bills for a long period of time, then you should seriously consider a different form of loan that is less expensive.

Extra Benefits

On the other hand if you do intend to pay off you credit card bill at the end of each month, then you should be more interested in the loyalty schemes that are on offer. These vary from being awarded points every time you purchase something (these points can than me used to purchased gifts or air miles etc), to simply being given ‘Cashback’ on everything you buy (typically 0.5%-1% of your purchase). You should also look at the level of service that your card company offers. They are obliged under law to offer certain protection to the consumer, but often they will increase this protection with other guarantees. Some offer extended warranties on electrical goods, extra travel insurance when you are on holiday, accidental damage insurance for any goods you buy, and even free commission on cash withdrawals when abroad.

Also some companies charge an annual fee for using their card (especially business credit card accounts), so these fees should be weighed up against the cards benefits.

Even if you usually do pay off your credit card bills at the end of each month, when you open a account you may be offered 6 months interest free credit. This is often an excellent way of saving money as you are basically given an interest free loan for 6 months. It is even more useful if you are allowed to transfer some credit card debt from a different company into the interest free offer. However there is a danger of becoming trapped in a bad debit cycle here, transferring your debt from card to card until it is completely unmanageable. The best advice is to make sure you always have enough money in the bank, or in a savings account, to pay off your debt when you are taking advantage of the interest free credit period. That way you benefit from earning interest on your savings in your bank, but as soon as the interest free credit period has expired, you can pay the entire bill off without being stung for high interest charges.

So to summarize

If you are not paying off your monthly credit card bills, look for a card that offers a low interest rate

If you are paying off your monthly credit card bills, looking for additional card benefits

Interest free credit periods are good news for saving money, but beware of being caught in a debt spiral

Credit Cards are an expensive way of obtaining a loan or borrowing money, and you should investigate other cheaper forms if you intend to borrow money in the medium to long term.

Alastair Taylor runs a website that tries to give the consumer the truth about how to save money on Financial matters as well as home improvement. Visit Whatprice to saves yourself time and money.

Our credit scores determine much about how we live our lives. We buy practically everything on credit. When applying for a loan, our good credit scores help us receive reasonable interest rates. In fact, from landlords, to insurance companies, to utilities, everyone looks at our credit scores, as they are a reflection of our financial health. A healthy credit score may determine what various agencies will charge for their services. Today, even employers check personal credit scores before offering a job.

Knowing more about our credit scores and the factors affecting them may help us build a positive credit history. But first, let’s look at how they are maintained by the various credit reporting agencies.

Three major credit bureaus - Equifax, Experian, and TransUnion - calculate credit scores. Though they use the same methods and formula to calculate scores, they sometimes come up with a different rating for various reasons. One agency may have more updated information about an individual. A creditor may have shared information with one agency only, but not with the others. Creditors, while checking on our scores, take the average of the three scores from these three agencies.

Credit scores range between 300 and 850. A score of 680 and above is excellent for obtaining mortgage financing at low interest rates. A credit score of 621 to 679 is an average score and you would have to pay a slightly higher rate of interest. A credit score of below 600 makes us potentially unreliable and harder to obtain credit. When a credit score falls below 600, credit repair steps should be taken immediately.

The following are factors affecting credit scores and basic steps to take to maintain an accurate credit score rating with the credit bureaus:

1. Routinely check payment history and the current credit debt held.

2. Credit history length is a determining score factor. Naturally, the longer a ‘good’ credit history, the better.

3. Do not close old or paid off accounts. These show the credit history length and contribute to higher credit scores.

4. Pay off debts to improve credit scores.

5. On-time payments. Delayed payments appear on credit reports and adversely affect it.

6. An individual’s race, sex, age, level of education, or marital status has no bearing on a credit score, nor does the fact that an application for credit was previously turned down.

Taking care to maintain a high credit rating enables us to receive credit and loans at good rates. Our credit score is a reflection of how we manage our finances and a determining factor for many aspects of our lives. Knowing early on how to have a healthy credit history is the best way to avoid bad credit and limited loan options in the future.

Sherry Frewerd publishes How to Consolidate Credit Debt where you can find free information to help you repair and improve your credit history and reduce credit debt.

When shopping for a new balance transfer credit card, take the time to compare a number of credit cards, as the terms and conditions of these offers varies greatly. There are numerous things to consider before you take this step of choosing a new card. Be sure to read the fine print.

First, you need to have a plan on why you’re applying for this new balance transfer credit card. If it’s to consolidate two or three credit card balances from higher interest credit cards to a card offering an introductory 0% APR, there’s more you need to know. Some issuers charge a fee for each balance transfer transaction. This can amount up to 3%, or a flat fee of $35.00 for each transfer. So if you have a number of account balances you want to consolidate, you need to figure this charge in also.

Some financial institutions only offer the 0% APR on the balance transfer amount and not on new purchases. So if you’ve transferred balances to this new credit card, and then you use the credit card for new purchases, when you make a payment it is applied toward the lower APR balance and you’re assessed interest on your new charges. It isn’t until the balance with the lower interest rate is cleared, that your payments are then applied toward the newer charges with the higher interest rate.

Another thing to take into consideration is the balance limit on the new balance transfer credit card. Is it enough to cover those other credit card balances you want to consolidate? If the credit limit isn’t high enough, they won’t transfer the whole amount. In addition, you wouldn’t be able to use the credit card as it would take you over your credit limit. Again, read the fine print. Going over your credit limit would take you out of the terms and conditions of the credit card, thus voiding the special introductory offer. The penalties can be steep.

You also need to know if there is an annual fee for this new balance transfer credit card. If there is a fee, that would have to be taken into consideration when determining any savings you might realize by consolidating your debts into a new balance transfer credit card.

Now, don’t get me wrong, a balance transfer credit card can be a good thing and work to your benefit. With a definite purpose of eliminating some of your debt and then sticking to your plan, a balance transfer credit card with a 0% APR valid for several months, can save you a lot of money in interest payments.