Credit – Finance Articles

Posts Tagged ‘credit’

Online Credit Cards and Financial Responsibility

Wednesday, April 27th, 2011

Getting a credit card in Australia is not something to be rushed as it can be a ticket to the “debt cycle.” Credit cards can be a great asset in the right hands but you need to take a long hard look at your own hands to see if they can handle a credit card responsibly without dragging you into heavy debt.

Nowadays there are plenty of resources to help us compare online credit cards and we can even make credit card applications online, but before we get to that stage let’s look at our own spending and repayment habits and make an assessment of our own personal financial management skills.

There are plenty of ways to save money by using a credit card wisely so let’s look at a few questions we can ask ourselves that will help us know if we are suited to a credit card: are we responsible enough to pay off the balance within the interest-free period? Will we pay off more than the minimum required to reduce the amount of interest, if possible? Are we responsible enough to avoid high interest charges by not getting a cash advance on our card? Will we only have one card or are we looking at multiple cards? Will we have a credit card limit that reflects what we can afford and not more?

If we answer yes to the above questions then the likelihood is we can manage our finances well enough to enjoy the benefits of a credit card without is costing us for years to come. We can browse through the best online credit cards on the Australian personal finance sites that aggregate all the offers and sort them by interest-free period, annual fee, purchase rate, cash advance rate and balance transfer rate. Pick out a couple of the key factors – you probably won’t get everything you want from your card, as the banks always make their money somehow – but concentrating on a long interest free period and a low annual fee might suit what you’re after, for example.

Once you have compared and decided you can normally go ahead and make your online credit card application from the same personal finance site. Make sure you have all personal information and financial status information available as you will need to provide this during your application. You will be redirected to a secure site where you will complete the online application and await contact from the issuing authority about its status.

Article Source: http://www.articlesbase.com/credit-articles/online-credit-cards-and-financial-responsibility-4683089.html

About the Author

For more information regarding credit card applications, online credit cards and credit card interest rate, please visit: www.lowerbills.com.au

Tags:credit, credit card applications, credit card applications online, debt cycle, financial management skills, financial responsibility, free period, interest charges, personal finance, personal financial management, ways to save money
Posted in rssorange | No Comments »

Who Gets the Cash – Creditors or Debt Collectors?

Tuesday, April 26th, 2011

When you are working on repairing your credit, part of the process will involve figuring out how much money you owe and who you owe it to. It can get awfully confusing when several companies show up on your credit report under the same account.

It is important you understand the chain of command when it comes to repaying overdue debts. If you pay cash to the wrong individual you may not be doing yourself or your credit profile any justice.

Navigating the Repayment Chain

When a creditor has sufficiently made all attempts to collect on a debt owned with no success, they are likely to cease their own efforts of collection. However, for the consumer the debt will not die here. In most cases, the original creditor will first attempt to get the money owed to them by hiring a third-party agency to collect on the debt. The debt collection firm will take a percentage of the amount collected on behalf of the original creditor and the creditor will subsequently report the debt to the reporting agencies as being paid but the lateness of the account will negatively affect the consumer’s credit score.

If the third-party debt collector working on behalf of the original creditor is unable to collect the debts owed, the account may be permanently resold to another agency and the creditor will write the debt off as a loss to their business. Once the account has been resold, it usually is picked up by a different debt collection agency which pays a portion of the amount of the consumer debt to the creditor. This agency then becomes the legal owner of the debt.

Once an overdue account is ‘bought out,’ the collection attempts typically become increasingly aggressive. The new account holder is in the business of collecting debts and the debt collection agency will use many high-pressure tactics to get the money owed from the consumer since they have put up their own money to buy the debt. For the consumer, this may mean relentless calls and other contact in order to get payments.

Who to Pay?

When you are reviewing your debts still outstanding based off of your credit report, you can become confused as to whom you should pay to make good on the debt. Having any creditor account transferred to a debt collection agency is bad news for your credit score but you can still successfully make good on the debts.

The key to correctly handling debts that have been sent to collections is to find out who the legal owner of the debt is. This information may not be very clear on your credit report. Typically, if the debt is sold, the original creditor’s account information on the report will be shown as a ‘charge off.’ This shows the creditor is no longer pursuing the debt. You will need to find the name and contact information of the debt collection agency. This will be the company to contact in order to settle your overdue balances.

If you are still unsure as to who you need to pay, you can contact the original creditor and ask if they have the information you need. Most creditors will have specific information as to where the debt was sold and when. If no information is provided or you are unable to confirm the debt reported by the collection agency on your credit report, you can file a dispute with the credit reporting agency who will then investigate the information. The debt collector will in turn need to provide the proof they now are legally allowed to collect on the debt owed.

Paying the wrong person for your outstanding debts may mean you lose money. It is always best to never assume and be sure to confirm how much you owe on the debt and where you need to pay in order to settle what you owe and eventually improve your credit standing and score.

Article Source: http://www.articlesbase.com/credit-articles/who-gets-the-cash-creditors-or-debt-collectors-4679427.html

About the Author

Steve Dowell is a seasoned writer on personal finance, specializing in credit repair. You can find more of his articles located at CreditRepair.org.

Tags:credit, credit profile, credit score, debt collection agency, debt collection firm, debt collector, debt collectors, lateness, overdue account, overdue debts, pressure tactics
Posted in rssorange | No Comments »

Purpose of Charity Credit cards

Tuesday, April 26th, 2011

Large numbers of people in different parts of the world are using charity credit cards and you can use them for doing some charity to needy people. This type of card has been launched in the market such that people can lend help to needy without actually visiting and encountering them. Other name that is being used for describing this kind of card is known as affinity cards. It has been around twenty years since when various financial institutions started using this type of cards and they helped non-profit organizations in the best manner possible. Generally, this type of cards have a logo of charity group on their top such that they can be distinguished easily from other types of cards.

Before you take charity credit cards, it is mandatory to understand how these cards work. Whenever the cardholder makes a purchase using the card, a small portion of the purchased amount is transferred to non-profit organizations. The more you use your card for making purchases the more amount of money would be transferred to the nonprofit organizations. It is possible that the portion given to charity varies from one credit card Company to another but the most commonly given share is 0.25 percent.

If you plan to apply for such type of card then you should be aware of the fact that these cards are not similar to other kinds of cards being used by people for purchasing products and services. Firstly, credit cards meant for charity carries annual percentage rate with them as well. The percentage rate varies anywhere between 15 and 22 percent. If you want card with lower percentage rate then it would be possible if you put in some efforts. Second fact of which one would be familiar with is annual fees is charged by cardholders and you should be ready to pay it.

One feature that lures individuals towards credit cards is the reward system and incentives that the cardholders get after using their card. However, you should know that the numbers of incentives offered with affinity credit cards are very less and you would not be availing many benefits with the use of this type of credit cards. Credit cards falling into this category have been divided into different categories and some of the categories include environment, animals, gender, health and a few more. Users can choose the category of cards depending on their own choice and thinking.

Article Source: http://www.articlesbase.com/credit-articles/purpose-of-charity-credit-cards-4677135.html

About the Author

We teach you what points you must consider while trying for 0 purchase credit cards and what are the Drawbacks of Interest Free Credit Cards

Tags:affinity cards, amount of money, annual percentage rate, cardholder, cardholders, charity group, credit, financial institutions, purchasing products, reward system, small portion
Posted in rssorange | No Comments »

How to Become Debt Free Without Debt Management Companies

Monday, April 25th, 2011

If you decided to break up with your debt, you need to do some serious work. You might have already consulted with debt management firms, and they told you about the costs involved. There are many ways you can do the same work they do, and save yourself a bit of money. It is true that it usually takes longer to get rid of bad credit yourself, but it is more cost effective, and the results tend to last. Once you have realized how much harder is it to eliminate bad credit than building it up, you will stay away from temptation more.

1, Face your problem

The first step is crucial, and not many people complete it when thinking about getting rid of bad credit. You need to admit that you do have a problem and it is your fault. Obviously, you can go around trying to find excuses, but in the end of the day nobody forced you to take out credit cards or loans and spend the money.

2, Do not panic

No matter how bad the situation is, you should keep a stiff upper lip and think clearly. You will need your brain later on, so try and see things realistically. Make a note of the most urgent problems. If your account is in collection, you need to deal with it before the lender would go through the legal procedures.

3, Hold a family meeting about credit

Chances are that the bad credit affects more than one person. If you are living in a family, you would have to come clear about the situation. You might have kept up appearances before, and some people might not have any idea of the bad credit problems. To avoid them having too high expectations, you need to involve them. You can brainstorm together to find more ways of solving the situation.

4, Write down your budget

You need to make a note of everything you are spending on: your credit commitments, bills, monthly shopping, and also the take home pay for the family. Compare the two of them to see if there is a negative figure left.

5, Get the balances

Next you need to contact your creditors for settlement figures or balances. Make sure that you are keeping these documents safe.

6, Rate the bills by importance

You have to take out your budget again, and rate the bills by importance. Take the most urgent things to pay out and place them on the top of the pole. Add the due dates to your calendar.

7, Change your budget to save money

Next you need to find ways to save money in order to paying off your bad credit early. Try to switch to cheaper services, check how much waste your family produces and start becoming energy-conscious. Think about switching to public transport if it saves you money, and cancel all the subscriptions for magazines you no longer need.

8, Pay your bills and consolidate

Once your accounts are back on track, you can look for a suitable product to consolidate your debt. There are some low interest bad credit products as well as normal personal loans. Speak to your mortgage lender to see if it is possible to add the amount on your mortgage.

Article Source: http://www.articlesbase.com/credit-articles/how-to-become-debt-free-without-debt-management-companies-4663308.html

About the Author

Tags:bad credit, commitments, credit, credit cards, creditors, debt management companies, family meeting, high expectations, management firms, stiff upper lip, temptation
Posted in rssorange | No Comments »

Debit card or credit card- which works better

Sunday, April 24th, 2011

These days carrying liquid cash and use it for varied purpose is inconvenient and unsafe. Using a credit card or a debit card is always a better option. If you are confused about choosing one type over the other, then you should find out information and then proceed. There are several online sources that feature complete information about the debit and credit cards so that you can easily take a learned decision and use according to your convenience. However, there is a never ending debate, which goes like- debit or credit card- which one is better? Here are some common merits and demerits of both these varieties. This will give you an idea how these cards work.

Using credit cards is simple. Suppose you have visited a store (land based or online) and searching for the items that you want to purchase. Once you have found your items, all you need to do is plug in the number of your credit card and the process of purchase is over. You are not actually paying for your purchase at that time; the merchant will get the money from the company that has issued the card to you. Generally, the merchants receive money within 30 days period and that is the time within which you will also receive the bill from the credit card company. You have to pay off the full payment or remit a part of it. This is actually dependant on specific terms of different companies.

You can use a debit card in the similar fashion, at least in several respects. Consider similar example. You have visited a shop, picked up an item and now provide your debit card number to process the payment. Here also, the merchant will receive the payment through the company that provided you the card. However, the catch is that your account must contain sufficient money at that point of time. Using a debit card means you are agreeing to directly deduct money from your account immediately. If in any case, your account balance becomes nil, you cannot purchase anything by using the card, which is different in case of credit cards.

The above mentioned point shows that credit cards have a certain edge as you don’t need to have money available while purchasing anything. You can pay for the item within 30 days and based on your policy term you may not have to pay the entire sum at one time as well. However, this advantage can sometime turn into a big disadvantage. The users sometimes get carried away and keep using the card for items that might not be very essential. What happens is that they accrue huge debts and paying them off becomes troublesome. Sometimes people never recover from such big debts. This works as a benefit for the debit card users as they are aware about the balance remaining in their account and have more control over the urge to buy something, which is of less necessity.

Article Source: http://www.articlesbase.com/credit-articles/debit-card-or-credit-card-which-works-better-4663197.html

About the Author

Both debit card and credit card can be useful if you use them properly. Find out more about these cards by visiting our site.

Tags:account balance, convenience, credit, debit and credit, debit card number, different companies, liquid cash, merchants, merits and demerits, respects, using credit cards
Posted in rssorange | No Comments »

Finance Articles

Posts Tagged ‘credit’

Online Credit Cards and Financial Responsibility

Who Gets the Cash – Creditors or Debt Collectors?

Purpose of Charity Credit cards

How to Become Debt Free Without Debt Management Companies

Debit card or credit card- which works better

Recent Posts

Archives

Pages

Blogroll

Partners

Meta