Posts Tagged ‘Credit Cards’

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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Top 10 Tips to Avoid Bankruptcy

Bankruptcy is never the first choice of any individual or company who is facing a financial crisis. However, every year thousands of individuals are faced with this choice of filing for bankruptcy due to the protection it gives them to reorganize their lives and businesses. This may sound good on the face of it, but in reality, filing for bankruptcy severely restricts your purchasing power, as individuals must make stringent changes to get out of debt. In addition, filing for bankruptcy remains on your credit record for at least ten years.

There are some steps that individuals can take to avoid bankruptcy. This advice is not a legal binding, as individuals will face their own scenario and this will give the basic idea on how to handle situation when in bankruptcy. However to avoid bankruptcy, individuals can:

1. Good Financial management: The best way of avoiding bankruptcy is through good financial management. Always put away something for a rainy day. This money must only be touched only in cases dire emergencies.
2. Increase income: The first step in avoiding bankruptcy is to increase your monthly income. This can be achieved by getting a second job. It does not matter how small the salary is per week, it all adds up at the end of the month and can go a far way in reducing your debt.
3. Stop using credit cards: Credit cards encourage you to spend and are one of your main sources of financial demise. Do what you have to do, freeze them, hide them whatever, but remove them as a source of finance for your daily expenditure. You can keep one only for emergencies.
4. Debt consolidation: Refinancing is another good way of avoiding bankruptcy. Under refinancing, the refinancer will pay off all your existing debt and give you a new loan with a more reasonable repayment schedule over a longer period. This may also in the short-term increase your liquidity as more cash becomes available from the reduced monthly payments.
5. Taking a second mortgage: If you own a house and its value can cover the extent of your debt, a second mortgage loan is a good option. However, if its value does not cover your debt, this is not a good option.
6. Selling valuables: Being on the brink of bankruptcy is a dangerous time. As a result, serious decisions must be made. Assess what valuables you possess that if sold can bring in some much need money that can contribute to relieving your debt.
7. Selling your car: Unlike a house, the value of cars will depreciate. Selling your car now, will give you more money than delaying it until next year, or whenever the crisis becomes critical.
8. Budgeting: When bankruptcy comes knocking at your door, budgeting can be a life savior. Implement strict budgeting conditions. Every month write down what you need and not you want before going shopping.
9. Life style changes: One must adjust their lifestyles to suit their financial conditions. Do not go clubbing if you know your rent or credit card is not yet paid. Reduce your power consumption and other non-essential utilities.
10. Negotiate with creditors: If you have exhausted all your options in trying to streamline your finances, then try renegotiating with your creditors to give you more time or the ability to make smaller monthly re-payments.

Tags: Bankruptcy, Credit Cards, Debt Consolidation, Second Mortgage
Posted in Bankruptcy, Credit Card, Debt Management | 2 Comments »

Smart Tips to be Debt Free in 2010

Tags: Credit Cards, Debt Free
Posted in Bad Debt, Credit Card | 1 Comment »