It is unfortunate that many Americans must live with this reality, since with some financial discipline, this delimma is avoidable. When a spending plan is developed and followed, a credit card becomes no more dangerous than any other form of payment.

When credit card bills are paid in full each month, credit card fees and finance charges do not accumulate. With a little extra bookkeeping from a spending plan, a credit card is transformed from being a burden to a very rewarding financial partner-since it provides the following advantages over other forms of payment:

· Rewards Programs.

Many credit card companies offer loyalty programs to reward those customers who use their cards more. Rewards usually come in the form of points or cash. Depending on the company, the points can be redeemed for things like restaurant gift certificates, hotel stays, airfare, vacation packages and more. Cash cards typically pay a 1% rebate on your purchases, which makes for an extra $180 a year on monthly spending of $1,500. This level of spending is easily achieved by putting all your purchases on a credit card (including utility bill payments). There are even cards that pay more than 1% for particular types of purchases like groceries or gas, such as Citi’s Dividend Platinum Select card.

· Perpetual 0% Loan.

When you use a credit card, you are using the bank’s money to pay the store instead of yours-for free. While you’re waiting for your statement to arrive, your money can continue to work for you in an interest- bearing account, such as ING Direct’s Orange Savings. Unlike a debit card that continually reduces your account balance, using a credit card preserves your entire bank account balance for earning interest until your statement’s due date. That’s an extra $35.25 a year based on a $1,500 balance at today’s rate of 2.35%*.

· Fraud Protection.

If your credit card number is used fraudulently, by law your maximum liability is $50. This is not true of a debit card. A perpetrator can easily use your debit card as “credit” transaction in retail stores or online. This type of transaction does not require a PIN number to be entered, and is especially dangerous since a thief can clean out your entire bank account in short order.

· Loss Protection.

Unlike cash which is gone for good if lost, a credit card can be replaced within days of reporting it to the issuing bank. In the meantime, you’re protected against unauthorized use by anyone who finds the lost card.

· Warranty Coverage.

Many MasterCard credit cards warrant your purchases above and beyond that offered by the product’s manufacturer. Your purchases made with one of these cards get an extra level of protection for free. See MasterCard’s website (http://www.mastercard.com) for the full scoop on their coverage terms.

· Purchase Protection.

Another benefit MasterCard offers on most of their cards. With their Purchase Assurance plan, your purchases are automatically insured against damage or theft for the first 90 days, also at no additional cost to you.

With all of these benefits over other forms of payment, credit cards can easily become your favorite way to pay. Instead of dreading your credit card bill each month, it can become a pleasant reminder of your money mastery.

Copyright 2005, Jim Hood

Jim Hood is senior contributing editor at the Discount Shopping Service Guide. He frequently writes credit card offer reviews and articles on money-saving strategies for shopping online.

* Rate quoted from ING Direct on January 4, 2005.

But don’t enjoy your life by becoming a debtor to somebody.

Of course in the modern world, there are many ways and means, which force you to become a debtor.

Attractive advertisements in the satellite TV force you to become a debtor.

It tempts you to buy the modern amenities at any cost.

Even though you don’t have any money or resources it shows you many resources for obtaining credit to buy that product. But you must think thousand times before becoming a debtor.

In today’s world credit is the easily available commodity. Numerous companies are waiting to pull you in their trap. They are competing severely to pull you in their trap.

But you must be careful to entangle in that trap.

In spite of this caution if you are prepared to enjoy, then you won’t get any pleasure. But you will lose your peace of mind.

Let us discuss about the common desire of everybody. It is natural that every body wants to have their own house. It is a reasonable desire.

But the desire can be attained if you have enough money on your own to buy the house.

If you are an executive working in a company what will you think?

You will get ready to apply for some loan and buy that house.

As such you have decided and applied for a loan.

The loan has also been sanctioned.

Next you will ask the engineer to construct the house with in the sanction of loan.

But the Engineer on seeing the plan will say “Sir, you are constructing house once in your life,

Why such a low budget house, we can increase slightly your plan sir, it won’t cost much only some increase in your normal budget, he will tempt you.

By that time you will also have some Himalayan courage, and think why can’t we adjust that 10% increase, we can adjust that 10% increase by obtaining loan from our relatives, and you give consent to the engineer’s suggestion.

The Engineer begins to build your house. The house is also going to be completed soon and only some finishing work is there.

You ask your engineer ‘when can I take possession of the house’, sir?

The engineer will politely tell you, Sir, there is a small problem, the problem is due to the increase in the cost of materials, I fear whether it is possible to complete the House what we have already planned.

But you are in the dream that the house should be constructed at any cost.

What you will do. The next thing before you will be some bank balances available in your savings account and the jewels of your wife or your children.

So your savings, jewels will all go from you and fill the cashbox of another businessmen.

Your house becomes ready finally. On seeing the house raised beautifully you will forget where you got the money.

You will forget about the loan you obtained from your company.

You will forget about the loan you obtained from your relatives.

You will forget about the erosion of your savings and jewels.

All these will come to your remembrance only when the company commences their recovery for the loan you obtained.

All these will come to your remembrance only when your relatives need the money they paid.

All these will come to your remembrance when you don’t have enough money in your savings account for your urgent requirement.

You can get easy resources to fill up the shortfall, because you are working in a company. Companies are ready to give you credit on the basis of your salary slip.

You are also ready to get credit from another company to fill up the deficit.

Now you are ready to close the small debt pit, and begin to dig another debt pit, which will be deeper than the first pit.

The same deficit pressure mounts after some time. Again you are prepared to obtain loan with some other company.

Now you dig another debt pit, which is more than the size of first and second debt pit.

Like this you will go on digging pit after pit, closing the earlier pit to overcome your deficit.

Finally at one stage when you see the remaining pit, it will look like a deep pit, which will be very difficult to fill it up from any source.

So the ultimate choice before you will be to dispose off the house to fill up the deep pit.

You have also made up your mind to sell the house.

Then you have also made arrangements to dispose off the house.

One buyer came forward to buy the house. Even though the rate offered by him is not as expected by you, you have to get the money and fill it up the debt pit finally remaining before you.

The house was finally sold off and you got the money. But while working out the amount you have to settle to your debtors, you need some more money.

With the proceeds realized out of selling the house, you have settled most of the debt.

So what happened to your dream of having house?

You have lost all your savings, jewels, and other resources and still have some debts.

Where all of your money has gone?

It is no secret, most part of your debt were for the interest.

The interest made you to close one pit after another and finally it let you with a deep pit.

This is a common plight of most of the families especially in the middle class peoples.

The reason is due to their mental capability to enjoy all modern amenities without knowing their economic capability.

Enjoying the life is absolutely necessary but it should be one’s own resources. We can enjoy life but not on obtaining debt.

We have to increase our resources and then think about enjoying the amenities.

Author’s bio:
Krishnan C, was formerly working in a State Government Corporation in India.

He is now writing articles mostly on motivational topics. He has written many articles on parenting, children, health practices, etc., His articles are being published in many Internet sites.

Please visit his homepage to view more articles: http://www.tncity.biz/article.html

The main benefit of balance transfer is a money-saving one. In the competitive credit card market an increasing number of companies are offering a 0% interest rate for a fixed period on balance transfers made by new customers. This allows new cardholders to make considerable savings in interest repayments. Interest free periods vary and certain credit card issuers extend the 0% interest rate offer to cover new purchases, it is worth taking great care to compare balance transfer offers well before deciding which one to choose.

Some companies offer lower than average interest rates on transferred balances for the life of the balance transfer. This may be good news for card users who are not planning to pay back credit card debt in the short term.

Transferring credit card balances is usually a simple process. Once a card application is approved it usually involves a phone call to the new card issuer to transfer the balance(s) from the other card(s). Many credit card companies also offer an on-line service, making it even easier to transfer balances via the Internet.

There is usually a window of time after a new card is approved during which balance transfers attracting the promotional interest rate must be made.

A word of caution regarding balance transfers. Minimum monthly payments still need to be made. Fall behind with minimum payments and fines can be made and interest free offers withdrawn. The same can happen if credit limits are exceeded.

In a market full of balance transfer deals, offers vary greatly. It is important to double-check the details carefully before signing on the dotted line. For example:

• Are there any additional fees to be paid when balances are transferred?
• Do I need to make a minimum monthly spend using the new card to qualify for the promotional balance transfer rate?
• How soon after my credit card is approved do I need to make the balance transfer?
• What interest rate is charged on new purchases made using the card? In particular, ‘Balance transfer for life’ cards often put payments towards clearing the low interest balance transfer and not the recent purchases that attract higher interest
• Do I get charged interest on new purchases from the time the purchase is made?
• What does the interest rate revert to after the promotional period has finished

Before taking up a balance transfer offer, also take time to consider the amount you need to move and how much you intend to pay off and purchase each month. That way you can be sure that you choose the right card for you.

The latest balance transfer offers in the UK at the moment can be seen at www.1st-uk-credit-cards.co.uk/summary_by_Transfer_Rate.html

Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of 1st UK Credit Cards and 1st UK Loans

1 evening in 1949, McNamara-head of the Hamilton Credit Corporation in New York City-was dining out with two business associates. Their topic of discussion: 1 of McNamara’s customers, who was defaulting on a mortgage simply because he had shared his gasoline and division-shop credit cards with some pals in require. Unfortunately, the pals did not have the cash to pay back again what they had borrowed, so the good samaritan was now dealing with his personal monetary demise.

As the meal ended, McNamara attained for his wallet so he could choose up the check. To his horror, he recognized he had left it at house-and was pressured to phone his wife so she could bring him the cash he needed to settle the tab.

This fateful meal led to an invention that has transformed how the world handles cash to this very day: the credit card. While previously available gasoline and division-shop credit cards permitted customers to make purchases at a single location, McNamara’s individual plight-and that of his nicely-which means client-prompted him to create a credit card that could be used in multiple venues. The Diners Club card was born. In its initial year, 200,000 consumers signed up for 1.

The rest is history. After cautiously observing Diners Club’s good results, American Express and Financial institution Americard (soon to be renamed VISA) followed suit. Thank McNamara the next time you pay with plastic.

But has McNamara’s novel concept turn out to be much more of a curse than a blessing in your existence? Are your credit cards managing you-and is your debt spiraling out of control?

Right here are 5 methods to tame the credit card beast.

one. Know Your Limits

If you have a tendency to overspend, restrict your extravagances by relying on paper currency instead of plastic. Set spending limits prior to you leave the home, whether or not you are purchasing for groceries or heading to the mall to buy a new pair of footwear. If you discover yourself reaching for your credit cards, freeze-and don’t transfer an inch until you can solution the subsequent concerns:

? Why am I breaking my personal rule?

? Am I being self-destructive with my monetary health?

? Do I truly require this item, or is my capability to say &quotcharge it!&quot clouding my good judgment?

2. Learn from McNamara’s Consumer

As McNamara’s client learned the hard way, loaning your credit cards to even these closest to you is a surefire way to accrue debt. You are providing your partner, children, other relatives and/or pals carte blanche to spend up a storm-and you are the 1 who is legally obligated to pay the expenses that will discover their way into your mailbox at the finish of the month. Be very selective when passing the plastic to anybody who can operate up a bill-and fall short to pay you back again.

3. Show Interest in Interest

Surveys consistently show that most individuals make only the needed minimal payment on their credit card expenses every month, leaving them with an outstanding stability that continues to climb. Not only do extra purchases include up, but you are continually paying interest on your current and new balances-a sometimes significant fee that has catapulted many consumers into existence-altering debt.

These days, the average American family, for instance, owes roughly $8,000 on its credit cards-and the credit card companies could not be much more pleased. If 115 million households owed you cash-on which you make finance costs and late fees every month-you would be positively giddy, too.

Let’s say you have an outstanding stability of $2,000 on a single credit card. Your yearly interest rate is 9%, and your credit card business demands you to make a minimal $30 payment every month. Assuming you do not skip any payments (which would trigger your interest rate to rise, as nicely as include late fees as high as $40 per month), it would take you 204 months to pay off this stability if you make only the minimal $30 payment every month-and by then, you will have paid an additional $one,028.43 in interest. This is how debt starts: A $2,000 charge winds up costing you $3,028.43.

four. Change Cards

If you are nonetheless paying an yearly fee on your credit card, it is time to make the change to a card that is not only free, but rewards you for utilizing it.

Assuming you have good credit and can secure a new card, explore your choices. Financial institutions provide cards that award cash-back again bonuses, airline miles, gasoline rebates and other perks every time you use them. If you can manage your credit appropriately, keep tempo with payments and pay your expenses on time, you might as nicely reap the advantages of your spending routines.

5. Read Your Statements-Cautiously Some consumers pay their credit card expenses with out cautiously reviewing their statements. This is 1 of the most severe errors you can make-particularly in an age of identification theft, when somebody can use your card to make purchases in your title.

Always keep your credit card receipts, and check them against the bill when it arrives every month. Make certain every charge is correct, and notify your credit card business immediately if there are any costs you did not make. The business can reverse the charge if it is a easy error-or if somebody has used your card with out authorization. In the latter situation, inquire the business to cancel the card, evaluation any extra purchases made since that day and problem a new card with enhanced security functions, this kind of as a individual identification number (PIN), to be entered every time the card is used.

In addition, check because of dates on credit card expenses. You might be used to paying your bill by the 20th of every month, but credit card companies have been shortening the length of time consumers have to pay their balances. Very often, there is no notification of a policy change-or the good print is buried someplace on your statement. Notice the payment because of day every month, and attempt to pay the full quantity to steer clear of accruing interest or late fees.

—–

Australian Debt Reduction offers all Australian consumers free debt consultations to help them in obtaining back again on top of their debt. They clarify debt consolidation in easy conditions and if you have more than $four,000 in debt there are methods available to the Australian public you might not have heard of to help restrict the quantity of interest paid and rapidly reduce your debt. Go to Australian Debt Reduction at http://www.australian-debt-reduction.com.au or get in touch with them straight on 1300 306 272

Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers’ payment history to any of the three main credit bureaus namely Experian, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.

Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.

Unsecured Credit Cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one’s ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.

Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.

Rebuilding your credit takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating.

Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers’ payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.

Business Credit Card Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advantage, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!

Student Credit Card

Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children’s account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.

If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.

Student’s credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!

Explanation of some of the credit cards we offer:

0% Intro APR Credit Card or Balance Transfer Credit Card gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.

Cash Rewards or Cash Back Credit Card earns a percentage on purchases made. This reward or cash back is credited to your account.

Debit Card takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.

Low interest credit card saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.

Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.

Secured Credit Card is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.

Unsecured Credit Card is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one’s ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.

Travel Rewards Credit Card benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.

About The Author

David Hall owns http://www.iCreditOnline.com. He offers free downloadable, high quality guides on credit repair, credit ratings, credit scoring, debt consolidation and more. He has tools for finding a wide range of financial services including secured and unsecured cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in at least 60 seconds. Visit David’s site today: http://www.iCreditOnline.com

The score represents a distillation of information gleaned from the three main credit score-reporting bureaus ? Equifax, Trans Union, and Experian, regarding your mortgage and payment history, as well as any bankruptcy filings you may have produced. Andy liens or payment defaults will be incorporated into the score as well. The score, which can differ from a reduced of 300 to a higher of 850, represents an attempt to quantify a lifetime of financial dealings into a single number. It has been quite effective. In reality, most people would be surprised to see just how important that score has turn out to be and how numerous businesses use it for reasons that aren’t entirely apparent.

Most people would assume, correctly, that lenders would check the score of a potential borrower who was applying for a car mortgage or a house equity line of credit score. Numerous would be surprised, nevertheless, to see that the score is frequently accessed by potential employers, landlords, or even insurance coverage businesses. While some states have strictly forbidden the use of FICO scores as a guideline for setting insurance coverage costs, some insurance coverage businesses still access the scores in order to evaluate danger for potential clients. Employers access the scores to see if a feasible employee might be a security or theft danger, and landlords may use the score to figure out whether or not a tenant should post a higher security deposit prior to relocating into a rental house.

A substantial argument can be produced that there is no way to accurately decrease someone’s financial standing to a single three-digit number. That said, it is merely a whole great deal simpler for most businesses that need a financial &quotsnapshot&quot of a consumer to look over their credit score report, look at the score, and provide a &quotyes or no&quot response based on the score alone. Fair or not, this is the way things work these days, and it is probably unreasonable to expect lenders, employers and landlords to start searching deeper into their customers’ and employees’ finances.

The greatest answer for anybody who is concerned about his or her credit score score is to look at their personal credit score report, which can be obtained for totally free at annualcreditreport.com. Report any mistakes to the suitable credit score bureau, and try to check your report as soon as or twice a yr. Fair or not, we are our credit score score. Generating certain that the number is accurate is an important stage towards a solid financial future.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Web sites, such as End-Your-Financial debt.com, a website devoted to debt consolidation and credit score counseling, and HomeEquityHelp.com, a website devoted to information regarding home equity lending/a>.

Let’s imagine for a moment that you have $5000 debt on one credit card that is charging you 17.5% APR. Let’s also imagine that you pay only the minimum due of $25/month on this card. Guess what? You will never pay it off! The interest alone on this card is $73/month!

That means that each month you get further and further into debt. By the time you have been paying on this $5000 for 10 years, assuming you have not used the card during this entire period of time, you will owe $20,385! That’s over $15,000 in interest. If you triple your payment to $75, it will take you over 20 years.

So, what do you do? How do you get out of debt and use that money towards other necessities, savings, and investments? Here are a few simple methods that you can use without having to go to an expensive financial counselor.

Tip #1: Cut Up Your Cards

The very best way to reduce your credit card debt is to STOP using your credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an ‘emergency card." These are true emergencies, not mere inconveniences. For instance, buying a new TV would not be an emergency, but renting a car in order to get to the bedside of a dying loved one would be. You can carry your emergency card with you, but don’t make it too easy to use. One good suggestion is to cover the card tape and paper and write on it: For Emergencies Only.

Tip #2: Move Your Debt

If you have more than one credit card payment, you may want to consider moving debt from a card with a higher APR to one with a lower APR. This will lower the amount of money you are spending towards the interest and get you out of debt faster.

Tip #3: Use the Snowball Principle

List all of your credit card debts, and the amount you are paying each month. Pay off the lowest amount first. Then use that money to start paying off the second lowest amount. And then the next and the next. Let’s look at an example.

If you have a $7000, $5000, and $2000 card with payments of $150, $125, and $100, you will finish paying off the $2000 card first. Once it is paid off, you take that $100 and put it towards the $5000 credit card. That means you are now paying $225/month. You have increased your payments which will pay off that credit card sooner and will have you paying a lot less in interest. Once that is paid off, you apply the $225 to the $7000 card, making your monthly payment $375. This will greatly accelerate the payment of this card, reducing your interest payments even further. When everything is paid off, you now have $375/month extra to put towards savings or investments!

Tip #4: Prioritize Your Debt Repayment

One of the best ways to pay off your debts is to get rid of the highest interest payment first. Looking back at the snowball example, you took the lowest and paid it first. If, however, the $2000 card had the lowest interest rate, you would want to pay off the card with the highest rate first. This will save you much more in interest payments.

If the math gets too hard here, don’t despair. There are many places on the Internet where you can find good debt reduction calculators. It is then just a matter of punching in your numbers and reading the report.

Tip #5: Consider Consolidation

If you own a home, you may want to consider consolidating your debt using a home equity loan. Since a home loan is a secured loan (they can take away your house if you don’t pay) you have a much lower interest rate than you do on your credit cards. Paying a lower interest rate is always a good thing! Not only that, but the interest you pay on your home loan is tax deductible. This is NOT true for credit cards.

By following these tips, anyone can take control of and completely eliminate credit card debt.

Wesley Atkins is the owner of http://www.credit-cards-advisor.com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and easy online credit card applications you will never choose the wrong credit card again.

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease.

Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.

Nevertheless, newspapers and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee. The scam artists who run these ads not only don’t deliver – they can’t deliver. Only time and a plan to repay your bills will improve your credit as it’s detailed in your credit report.

Here are details of the type of information that is collected and added to your credit report:

Identification and employment information:

Your name, date of birth, national insurance number, employer, and spouse’s name are noted routinely. The consumer reporting company also may provide information about your employment history, home ownership, income, and previous address, if a creditor asks.

Payment history:

Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.

Inquiries:

Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.

Public record information:

Events that are a matter of public record, such as bankruptcies may appear in your report.

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Scores range from approximately 300 to 800 and are provided to lenders by the three credit bureaus, Equifax, Experian, and TransUnion. You also have access to your FICO scores, but will be charged a fee by each credit agency providing your report.

According to Fair Isaac, the credit scores of the American public are divided as follows:

? 499 and below 1 percent
? 500-549 5 percent
? 550-599 7 percent
? 600-649 11 percent
? 650-699 16 percent
? 700-749 20 percent
? 749-799 29 percent
? 800 and above 11 percent

A score of 720 or higher will probably get you the best interest rates on a home mortgage. Your credit card company looks at your credit score to decide whether or not to raise your credit limit or charge you a higher interest rate. The higher your credit score, the better you look to lenders and the lower your interest rates.

Raising your FICO score can make a big difference to your wallet. Some basic actions you can take to improve your score include paying your bills on time, lowering your account balances, and not taking on new debt.

Around the time you intend to apply for a loan, several factors can decrease your FICO score and, therefore, your ability to qualify for credit and low interest rates. First, order copies of your credit report from all three bureaus and correct any errors you find. Be sure that balances you have paid down are reflected on the report, along with closed accounts and settlements.

It’s important to get your credit scores from all three credit reporting agencies. Each bureau may have different information about you as reported by retailers and creditors. Clerical errors at a particular agency may also result in a varying score. Lenders often look at all three FICO scores, and rather than using the average of the three scores, they may use the middle score to determine your credit worthiness. Finding out what this middle score is and doing what you can to raise it is to your advantage.

Second, pay what you can on your debt rather than moving it around. Consolidating your credit card debt may be tempting, but it could lower your FICO score. Here’s why: keeping your account balances between 25% and 50% of your available credit, signals a responsible borrower. For example, if you have a credit card with a $2000 limit, you should keep your debt below $1000. The ratio of your credit card balance to your credit card limit will increase if you pile all of your debt into a couple of accounts, rather than keeping it spread out over several.

If you have three credit cards with limits of $2000 each, and you owe a balance of $1500 on all three combined, you have a total credit limit of $6000 on which you owe a balance of $1500. That’s a debt to credit limit ratio of 25%. But if you consolidate your $1500 debt into one card with a $2000 limit, you increase your debt to credit limit ratio to 75%, an unfavorable factor in your overall credit score. For this reason, the best solution is to simply pay off your existing cards as quickly as possible.

Also important in making the most of your FICO score near loan time is keeping unused accounts open, for the same reason as listed above. Your debt to credit limit ratio will rise drastically if you close your unused accounts. Wait until you have secured your loan to trim inactive accounts from your credit report. Also refrain from applying for any new accounts during this time.

Paying off your debt in a timely manner, building a solid credit history over a lengthy period of time, and erasing errors from your credit reports can all help you make the most of your FICO score and, in the end, make the most of your money.

Resources:
Equifax 800 525-6285 http:///www.equifax.com
Experian 888 397-3742 http://www.experian.com
TransUnion 800 680-7298 http://www.tuc.com
Credit Damage 714 441-0900 http://www.creditdamage.com

Cathy Taylor is a marketing consultant with over 25 years experience. She specializes in internet marketing, strategy and plan development, as well as management of communications and public relations programs for small business sectors. She can be reached at Creative Communications: creative-com@cox.net or by visiting http://www.creditdamage.com or http://www.internet-marketing-small-business.com

Over 46 million Americans have had personal records containing credit card numbers, bank account information, and social security numbers lost or stolen during the first six months of 2005.

Having even just one piece of personal information is sometimes all that an identity thief needs in order to wreak havoc to your credit profile. Many people falsely believe that an ID thief uses only the stolen credit cards to go on their shopping sprees. The truth is ID thieves use your stolen information to open new accounts for credit, cars, loans, mobile phones and more. Most victims won’t know there’s a problem until they’ve been turned down for credit or begin receiving calls from creditors and collection agencies about the unpaid bills.

So, what can you do to guard your identity from criminals? Along with vigorously protecting your social security number, using a shredder to destroy credit card offers, and monitoring your credit report regularly, you may also be able to use a new line of defense against ID thieves – placing a "freeze" on your credit files.

Placing a freeze on your credit files with the three major credit reporting agencies – Experian, TransUnion, and Equifax – shuts out potential lenders from accessing your credit files in order to make you an offer for credit. When applying for new credit accounts or loans, you would use a special password or PIN to "thaw" your credit files, a process that takes a few days. The credit bureaus charge around $10 for each freeze or thaw as allowed by law.

A credit freeze protects your data since the lender can’t check your profile in order to approve any new credit. Unfortunately, credit freezes are currently available only to consumers in California, Colorado, Connecticut, Illinois, Louisiana, Maine, Nevada, Texas, Vermont, and Washington.

Congress is examining laws to make credit freezes available nationwide, however they are facing some strong opposition. And guess where it’s coming from? The credit bureaus and data clearinghouses! They make money every time they sell your information to banks, mortgage brokers, car dealerships and other retailers.

The time to act is NOW. If you live in a state that doesn’t offer you, the consumer, the right to freeze your credit files, contact your state legislators to let them know that YOU WANT TO CONTROL who can access your personal and financial data. Names and contact information for your Senators and Representatives can be found at www.senate.gov and www.house.gov. Write or e-mail them and tell them you want control of your personal data. After all, it’s your identity and your finances at stake!

© 2005, http://www.yourfreecreditreportnow.com

Author: James H. Dimmitt

James is editor of “TO YOUR CREDIT”, a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other free bonuses by visiting http://www.yourfreecreditreportnow.com