Archive for the ‘Credit Card’ Category

New Credit Card Laws – Understanding the Basics

New credit card laws that will affect credit card users and credit card companies went into effect earlier this year. It seems like good news for credit card users. I am just saying this because the credit card companies are upset about the new laws. So, trust me they are hard at work this very moment trying to figure out ways to take advantage of the new laws or try to stick it to credit card users another way. This means you might want to at least understand the basics of the new credit card legislation and be prepared to bend over when the dust settles. Here is a basic look at the new laws.

• Your credit card company must now let you know 45 days ahead on time if they are going to increase your credit card rate, change most credit card fees or make major changes to your credit card account. Your credit card company does not have to let you know about increases on credit cards with variable rates or if you got a new card with a special introductory rate and the time period for the promotion is over.
• A credit card company may not raise the rate on your credit card until one year from the start of your credit card account. There are rate increases that are excluded from this rule like when you have a variable rate credit card or you are more than 3 months late on your credit card payment.

• Now they cannot raise the rate on your entire balance. They can only increase your rate on things that you charged after the increase that took place after one year has passed.
• You must choose or opt-in for charges that go over your limit. The credit card company must decline charges that go over your limit. They cannot allow the charge to go through then charge you extras fees unless you want this option on your credit card. Also they can only charge one over the limit fee per 30 day period and if you want out of the program you can get out of it at any time.
• The card company must indicate on your monthly bill how long it will take for you to pay off your card if you only make the minimum payment. The credit card company must also what is the amount you should send in if you want to pay off your balance in three years.
• Those who are under the age of 21 will need a cosigner if they cannot proof that they can make the payments on a credit card they are applying for.
• There is now a limit on the fee a credit card company can charge you. That limit is 25% of your starting credit limit. So if you are starting credit limit is one thousand dollars your fees for your first year cannot be more than $250. This does not include late fee or penalties.
• You must receive your credit card bill 21 days before your bill is due.
• Your credit card cannot be double cycle billed, interest can only be charged on what is owed on your current billing cycle.

Tags: Credit Card Company, Credit Card Law
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My encounter with Credit Card Debt Relief Company

After a not so pleasing encounter with a credit card debt relief company I decided that I would give others a heads up. I went through the negotiating process with a company and realized that if I had known few things before hand my situation would have went a lot better. I hope you can learn from my experience of credit card debt settlement and would try to avoid the mistakes I made.

Stick To These Guidelines

• Have everything you need in advance of contacting the credit card debt relief company.
• Have your most recent credit card statement handy
• A letter from your credit card company saying they are willing to accept a proposed settlement on your debt.
• And the closest estimate of what you will be able to give to them

Keep Your Cool

When you call your creditor remember they are not going to be nice when you are late by over 5 months. Try not to get angry over the phone because the person you will be talking to will probably be using a script that is designed to get information out of you so they can make contact with you when they want to for credit card debt. There two ways dealing with your company can go either they will be willing to settle with you or they will not. Just let them know you are taking credit card debt help with the intention of paying them back; but you cannot pay everything and can agree to meet at a negotiable amount.

A Few Options When Greeted With Rejection

If they play hardball with you, you will have three ways of dealing with credit card debt settlement:

• End the phone call and do not reciprocate any negativity. Most of the time the person you are talking to does not have the authority to accept your offer.
• Politely try going over the persons head. You may get a better response when you talk to a supervisor or manager
• Send a letter to the management or head of the company with your offer included.

Keep Focused

A negotiated solution is your goal. Try to get anything added to your balance via a penalty removed. Usually this is almost 35% of your balance. If you are able to get these reduced you will on your way to a good deal. If they only make offers in the 25% and under range then do not take their offer. Most likely they will get in contact with you with a better offer in the weeks to come.

Remember

Keep a few things in mind when dealing with credit card debt relief folks;

• Keep detailed records of any correspondence with your lender, whether it is over the phone or by mail. Make sure you have the name of those you communicated with.
• Verbally abusing someone is a definite no, no, they will record most calls and this could be used against you in negotiations.
• All agreements with credit card debt settlement must be in writing. Verbal agreements will not stand up in court.
• Know your legal right and be armed with the most information as possible.

Keep Your Eyes on The Prize

Always remember the main goal; getting your credit card debt reduced. When you are in negotiations you must be professional if you feel like you cannot remain aloof then perhaps a credit card debt relief company maybe your best bet.

~ Good Luck

Tags: Credit Card Debt, Credit Card Debt Relief, Credit Card Debt Relief Company, Credit Card Debt Settlement
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How to Improve your Credit Score REAL FAST?

The race goes on to find ways of reducing debt and increasing our credit scores. This illusive feeling of being debt free has grown to be big business and financial professionals now charge individuals to give them advice of how to increase their credit score. Here we will break this mold and divulge some of the secrets that we hope will help in improving your credit score.

• Pay down the Credit Cards: An effort to pay down your credit card gives an indication that you are willing to manage your debt. Although you may not clear your credit card debts, it does wonders to your credit score. Lenders are happy to see a huge gap between the amount of credit you use and your credit limit. A good ball-park figure is to maintain your credit balance below 30% of the credit limit. Therefore, while some analyst will suggest getting rid of the credit card with the highest interest rate, surveys of credit card lenders say if you want an accelerated increase in your credit score, it is best to pay down the credit cards that are closest to their credit limits.

• Regulate your Credit Card Use: The rate at which you use your credit card affect you credit score significantly. Making emergency withdrawals from ATM machine and frequent shopping send the credit score through the roof. Even if you pay off your balance in full each month, the credit score is calculated the balance of the last reported or your last statement. Now we are not saying that paying off your credit card monthly, actually, that is a great positive practice. However, by regulating your credit card use helps to improve your credit score real fast.
• Use Old Card Every Now and Again: Even though we may stop using old credit cards, it is not wise to cancel them totally. Every six months or so use them to prevent your creditor from putting it on the list of dormant accounts. Have a credit card over an extended period show a huge amount of stability in the credit card system. As a result, this record is fed into the general system when calculating your credit score and improves your credit score exponentially.
• Increase your limit: A word of caution here. If increasing your credit will trigger you to go on a spending spree, then this one is not for you. This is for individuals who have a lid on things and are managing the use of their credit card. Increasing your credit limit actually gives you more room between your outstanding balance and the principal. Now, for this to work, you must maintain your credit balance below the 30% of principal mark and then just enjoy watching your credit score flying through the roof.
• Do not ruin a good thing: It is said if something is not broken, then do not fix it. If you already have a good credit score and good management of your credit card spending, then this is enough to give you a high credit rating. Continue implementing you control mechanism and do not play around with new ideas that may get you into problems.

Tags: Credit Card, Credit Cards, Credit Score
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