Credit Creators » Good Credit

Practical Suggestions for Building a Good Credit Profile

Allison May — Tue, 06 Dec 2011 01:28:54 +0000

If you are looking for information on how you can build an excellent credit profile, then you have come to the right place. In the remainder of this piece, we have listed down and discussed several pointers that can help you, as well as other credit consumers, in your quest to jump-start your credit history.

Tips for First-time Credit Consumers

Apply for a line of credit. You cannot establish your credit reputation, unless you have applied for and taken out a line of credit. This means that for you to jump-start your credit profile, you need to shop for and soon obtain an affordable credit account – either a student credit card, a secured card account, an unsecured personal loan, or any combination of these credit programs.

A word of caution, though. Make sure that you obtain and manage at most two lines of credit at a time. After all, handling multiple credit programs can make it harder for you to juggle your personal expenses with your credit charges or installments.

Manage your credit account in the best way you can. This tip involves paying your credit card bills, as well as your loan installments, prudently and completely. This will not only help you build and eventually maintain a strong credit profile. It can also serve as a key towards keeping your credit payments at a minimum. After all, by paying your credit obligations when they are due, you can avoid shelling out additional funds on late payment penalties, huge interest charges and other pesky fines that are usually imposed on delinquent credit cardholders and borrowers.

Aside from this, you also need to abide by the terms and conditions of your credit accounts. Make sure that you are well-aware of the provisions and restrictions that are imposed on your lines of credit so that you can live up to them all the time.

Monitor your credit and payment transactions. We also recommend that you keep receipts and other relevant financial documents. This way, you can easily monitor your credit and payment transactions. At the same time, such documents can serve as proof in case you stumble upon incorrect or outdated items in your credit report.

Order copies of your credit report. You can order copies of your credit report from the three credit reporting agencies – Equifax, Experian and TransUnion, six months to one year from the time that you have applied for your lines of credit. This is important not only for you to determine your latest credit rating, but also to check the accuracy of the transactions listed on your credit file.

Should you encounter fraudulent or erroneous entries in your credit report, and then you need to immediately write and send letters of dispute to the credit bureaus. This way, you can alert their employees to start investigating on your records to validate your claim. In case they discover that indeed they have committed errors in updating your credit file, then they will make the necessary adjustments on your credit report and soon provide you with a more credible document.

How to Help Your Child Build Good Credit

Allison May — Wed, 09 Nov 2011 02:43:17 +0000

Parents play an important role in helping their children build good credit. If you are a parent, what can you do to help your child build good credit? Consider the following tips:

Apply for a student car loan. If appropriate, a student can benefit from driving his/her own car. You can help your child acquire a car loan for students by being their co-signer. By acquiring a car loan in his/her name, a student can establish credit history at the same time.

However, your child should understand the responsibilities involved in maintaining a car and repaying a car loan. Assist your child by ensuring that they promptly submit their monthly car loan payments. Encourage your child to discuss matters with you if there is a problem with their finances.

Acquire a student credit card. It is technically easy apply for a student credit card than a bank loan. However, if a student is below 21 years old, he/she will still need a co-signer to get approved for a student credit card.

As a parent, you are the perfect person to co-sign for your child’s credit card. You can also guide your child in comparing student credit cards in order to find the right one. Take the time to explain to your child the terms found in the fine print. Students may not understand what APR means or how interest rates are calculated.

If you have experience in using a credit card, share some tips on how they can use a student credit card for his/her benefit and avoid falling in the trap of bad credit. A student should also be aware about the importance of paying their credit card balance in full and on time each month.

Monitor credit report. Students must learn the value of regularly monitoring their personal credit reports. All consumers are entitled to receive one free credit report annually from each of the three major credit bureaus (Equifax, Experian, TransUnion) – through www.annualcreditreport.com.

Encourage your child to check his/her personal credit report at least twice a year to ensure that all payments have been reported to the bureaus. In case there are errors, consumers have the right to dispute them as stipulated in the Fair Credit Reporting Act. This can be done by sending a dispute letter to the bureau that issued their report.

Use credit wisely. Having a credit card can be a great privilege but students must not forget the responsibilities associated with it. Even if a student credit card offers a low-interest rate, maximizing credit limit should be avoided. Why is this necessary? This is because 30% of the FICO credit score is based upon credit utilization.

If a student gets into the habit of maximizing his/her credit card limit, his/her credit score can suffer as well. Even worse, frequently maximizing limit increases the risk of debt build up. By keeping credit card charges minimal, a student will have an easier time paying off his/her charges.

Secure Your Financial Future By Building Good Credit

Allison May — Mon, 31 Oct 2011 05:10:38 +0000

Building and maintaining good credit is important in managing personal finance. The reason for this is obvious since banks, lending companies, and financial organizations determine a person’s credit-worthiness based on his/her credit history. Aside from creditors, employers and landlords are also known to inquire credit history to check a person’s background and credibility.

It is safe to say that good credit history and excellent credit score can open more doors of opportunity, when it comes to financial matters. What advantages can you enjoy if you have good credit? First, getting approved for a credit card, a loan, or other types of credit will be much easier if you have good credit. Needless to say, lenders prefer customers with exemplary credit history than customers with blemished credit.

Getting quick approval is not the only benefit you can enjoy if you have good credit. It is also worth noting that lenders reserve their best deals to customers with a better credit score. Hence, the higher your credit rating is, the lower the interest rate of your loan would most likely be. In fact, you can take advantages of your personal credit when negotiating with creditors.

Do you have good credit or do you currently have a problem with your personal credit history? Let’s take a look at the ways on how you can build and keep your credit score in good standing:

Use your credit card for small purchases. You can boost your credit score by using your credit card regularly. However, this does not mean you should be careless with your spending. Keep in mind that you don’t need to carry a large balance in your account to boost your credit score. What’s more important is to pay off your monthly charges in full and on time. By paying your full balance each month, you can avoid interest rate charges and improve your personal credit as well.

Pay all your bills on time. Aside from paying off your credit card balance on time, you should also be prompt in paying all your bills especially if you live by yourself. Pay off your electricity, internet, cable and phone bills on time or you can also arrange for automatic payment to make sure that you won’t miss a single due date. Keep in mind that 35% of your FICO credit score is based on payment history. If you are frequently late in submitting your payments, you will not only incur late fees, your credit score will also suffer.

Pay off your student loan. Once you graduate, it is your responsibility to pay off your student loan but this does not mean you should wait until you graduated before taking action. Even while in college, you can start paying down the interest rate of your student loan to cut down your debts one small step at a time. Thus, when you’re ready to find a full-time job, you can complete your student loan repayment at the soonest possible time.

Looking for the Right Instant Approval Credit Card

Allison May — Tue, 10 May 2011 08:32:39 +0000

An instant approval credit card offers approval in just a matter of minutes. There is no need to visit your local bank just to fill out and submit your credit card application. Instead, application is done online so it is very easy and convenient.

If you search the market, you will find several credit cards instant approval offers. How can you pick out the best one? Consider the following tips:

Check the issuer’s credit requirement. An instant approval credit card offer is not necessarily a guarantee that your application will get approved regardless of your credit rating. Some credit card companies do have strict credit requirement so if you have a low credit score or a history of bad credit, your application may be declined. Before signing up, be sure to check the credit card company’s criteria to avoid unnecessary rejection.

Check the rate of interest. Watch out for instant approval credit cards with extremely high interest rates. You might also come across credit card offers that seem great at first but upon closer look, you might discover unpleasant surprises. Understand how the rate is calculated and which APR applies to what particular transaction. Some cards do carry more than one APR so that the low rate advertised may only be applicable to balance transfers but not on new purchases or cash advances.

Evaluate rewards. How about instant approval reward credit cards? The rate of interest is more likely to be higher for reward credit cards so you should take time to compare. In addition, you should look for a credit card that offers a reward program that complements your lifestyle. See to it that you understand the rules on how you can earn points and claim rewards.

Check the fees. See to that you are aware of all the fees you will be paying to keep your account active. Some credit cards that offer introductory rates may try to get back by imposing high fees. The only way to be sure is to check the fine print.

Ensure that your payments will be reported. Will your instant approval credit card report your payments to the three major credit bureaus? This is an essential feature if you want to build good credit. If the issuer of the credit card does not report to a credit bureau, you will not be able to improve your credit history even if you regularly use the card.

Know what to expect. If your application gets approved, you will still need to wait for a few days before you receive the actual credit card via post mail. Typically, it will take at least 4 to 5 banking days before your instant approval credit card is sent. Afterwards, you will need to call up the credit card issuer’s customer service number or activation number to have your account activated. You would be asked to provide some information to confirm that you are the owner of the account. Once the account is activated, your instant approval card is ready to use for payments.

Tips to Avoid The Dangers of 0% Interest Credit Cards

Allison May — Thu, 12 Nov 2009 18:39:03 +0000

There are lots of credit card companies offering 0% interest. Zero percent cards are very lucrative nowadays and people think it as a very good deal. It is, indeed. But you should take time to think things over and know everything about the offer before signing up the contract.

Never forget to weigh things before making a decision because if you will choose in a hurry, you might get yourself in a whole lot of trouble in the end. Ask around or do research from the internet to find the right card.

How to Avoid Paying High Fees With Your Credit Card

Allison May — Fri, 03 Jul 2009 03:02:07 +0000

Those who suffer from low credit scores often have lesser choices when it comes to credit cards since the best credit card deals are usually reserved for customers with good credit. Nevertheless, even if you’re only option is a bad credit credit card, you should not put up with unfair rates and fees. This article talks about tips on finding bad credit credit cards with reasonable costs.

Build Credit with Bad Credit Cards

Rebuilding bad credit doesn’t need to be an impossible feat. In fact, by applying for a bad credit credit card, a person with poor credit rating can work on improving his/her credit status one step at a time.

The most important step is to find a secured credit card that regularly reports payments to the major credit bureaus. See to it that this card has reasonable terms and conditions. Use the credit card regularly on important purchases and be consistent with submitting your payments.

The ideal credit card for bad credit must offer instant upgrade for its customers. The option to upgrade your secured account to a non-secured account will enable you to enjoy lower APR, higher credit limits, and more privileges. As soon as you’ve improved your score, request your secured credit card issuer for an upgrade.

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Avoid the High Fees

Credit cards for bad credit are expected to have higher interest rates than cards that require excellent credit history. However, this doesn’t mean consumers should settle for a card that doesn’t give fair privileges. Even if you suffer from poor credit status, you still deserve to be treated fairly particularly when it comes to imposing charges.

Shopping around can be easily done through the internet. Check out forums that discuss potential cards for bad credit. Read online reviews so you’ll know which secured credit cards in the market are worth considering. Once you have your picks, spend a little more time analyzing your choices.

It is also worth mentioning that secured credit cards usually carry annual fees. If this is the case, you’ll want to make sure that the yearly fee is within the reasonable range. Other costs that you need to closely examine are the over-the-limit and late penalty fees, transaction costs, cash advance APR, etc.

Ultimately, avoiding additional credit card fees would depend on how you manage your debts. If you’re going to charge monthly purchases to your card, you need to make sure that you can pay off your entire balance in full each month. Instead of paying for the additional APR, you can save this cost and use the money for more a valuable cause.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

Looking for the Best Low APR Credit Card Deal

Allison May — Tue, 30 Jun 2009 04:09:10 +0000

To attract more cardholders, many credit card companies introduce their own version of low interest rate credit card. Of course, who doesn’t want to enjoy a low interest rate? Nevertheless, a low APR doesn’t always mean you’re getting a good deal. Let’s consider some important points about credit cards with low APR offer.

Some of the Best Low Interest Credit Card Offers

If you do your search, there are credit cards with low introductory rate offers that last for 6 months to 12 months. Aside from a low introductory APR and a lengthy introductory period, the best cards usually comes with no annual fees, low penalty fees, and higher credit limit. There are rewards credit cards that offers a low introductory APR from time to time and these the ones to take advantage of.

Using Your Low Interest Credit Card Wisely

What should you look for in a low APR credit card? Don’t forget to check the length of the grace period that the card offers. It’s good to get a card with at least 25 to 30 days grace period since this gives you ample time to pay off your balances without getting charged with the interest rate.

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It’s important to remember that some low APR cards may not give a sufficient grace period. Add to this, even with a low interest rate, you should have the option to pay off your original balance without additional interest if you can pay it back on time.

Many card holders prefer to carry over a balance from one billing cycle to the next. However, such a habit means paying the extra APR cost every time. Take advantage of the grace period that you are provided by submitting your full payment on or before your due date. By not paying the extra interest cost, you can save as much as 8% to 19% from the total amount of your purchases.

Keep in mind that the 0% APR is just a temporary offer. Sooner or later, you’ll be charged with the regular interest rate. For this reason, it’s important to get to know how much the regular APR is once the introductory period ends. Make sure that the regular APR would remain at a reasonable range.

Last but not the least, use your credit card with discretion. Avoid using your credit limit to the full as doing so can badly affect your credit rating. Despite the privilege of a low interest rate, make sure that the expenses you charge to your card are well-worth it. To avoid penalties, see to it that you will be able to pay off those charges before your deadline.

Pay Your Credit Card Bills On Time and Save Yourself from Trouble

Allison May — Tue, 23 Jun 2009 10:32:16 +0000

Do you own a credit card? If yes, do you make it a habit to pay off your charges on time? Did you know that timely payment can save you from all the trouble that bad debt can bring? In this article, let’s discuss the causes why people are often trapped in credit card debt and you can stay away from the risk of bad debt.

Don’t Put Yourself At Risk

The longer you put off your credit card balances, the greater risk you’re in. Most credit cards carry interest rates that range from 10% to 20%. Credit cards with rewards usually carry higher rates than non-rewards cards.

Surprisingly, many cardholders do not realize that carrying over a balance from month to month costs them more than their actual purchases. Add the late penalty cost to your interest rate and your bill will surely be higher than it’s supposed to be. Yes, if you are a credit card holder, strictly submitting your payments on time can save you from the risk of bad debt.

What about submitting the minimum due on your card?

Even if your credit card offers the lowest minimum due payment, it doesn’t mean you’ve found a good deal. Submitting only your minimum payment each month doesn’t exempt you from your payment obligations. Remember, when you carry a balance in your account, you automatically incur the interest rate charge. This is how credit card issuers make huge profit from their cardholders.

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Do you own a reward credit card?

If you are a reward credit card owner, take note that you can get disqualified from redeeming your rewards if you keep missing your due date of payment. Credit cards with rewards usually have very strict rules particularly when it comes to timely submission of payment.

Add to this, let’s not forget that reward credit cards carry higher interest rates than their non-rewards counterparts. The best way to benefit from a credit card with rewards is to pay off your monthly balances in full each time.

Don’t Hurt Your Credit

Bear in mind that late payments can also badly affect your personal credit history. Payment history makes up 15% of your total FICO score. Yes, even a single late payment can deduct a few points from your total credit score.

To protect your credit history, see to it that you are always on time in submitting your payments. If you won’t be able to make it on your payment due date, call your creditor immediately and ask for an extension.

How to Keep a 0% APR on Your Credit Card

Allison May — Mon, 15 Jun 2009 05:43:35 +0000

Credit card companies introduced credit cards with zero interest rate in the market to attract more customers. This can be considered as a very effective marketing method as who wouldn’t like to enjoy a lower interest? Many people have signed up for a credit card to avail the zero- interest- offer even for only a limited time.

Can you really benefit from a credit card with a 0% APR even if the zero interest doesn’t last long? Below are practical strategies that you can do to make sure that you’ll enjoy the low interest from your credit card for a longer time:

Find the right zero interest credit card. Obviously, not all credit cards that offer 0% APR or low APR are worth signing up for. Consumers need to be very careful about making a choice. See to it that you can enjoy the 0 APR for at least 6 months or longer. More importantly, make sure that the regular interest rate would remain reasonable when the introductory period expires.

Get a 0 APR balance transfer card. Do you have unpaid balances from different credit card accounts? If so, why not apply for a balance transfer card with a low rate or zero interest introductory offer. Take advantage of the introductory period to pay off all your balances without the additional interest costs.

Keep your credit rating in excellent standing. A secret to enjoy the best deals from credit card companies and lenders is to maintain a good or excellent credit history. When the introductory period ends, call up your credit card issuer and ask for a lower rate. If you have an outstanding credit score, many credit card issuers would willingly adjust their rates to keep good paying customers.

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Take care of your credit card account. To continue enjoying the best interest rates, see to it that stay true to your payment obligations. Don’t exceed your credit limit. Pay your bills on time. Monitor your credit card account regularly to make sure that there are no unauthorized charges. Use your credit card only for important purchases that you know you can pay back on time.

Keep your credit-to-debt ratio low. Just because your credit card has a low interest rate doesn’t mean you should use it to the full. Maximizing on your credit line can badly affect your credit score. Ideally, you’ll want to keep at least 40% of your credit limit free from charges.

Request for a low rate. No credit card company would volunteer to lower your current rate unless you ask for it. If you have been a good credit card holder for years and you maintain a solid credit history, there’s no reason why you shouldn’t make a request. Even if your credit card issuer refuses to give in, it is still worth a try. Nevertheless, if you feel that your credit card isn’t giving you a fair interest rate, it’s about time to look for a credit card with more reasonable fees and conditions.

Reap the Benefits of Good Credit with a Low APR Credit Card

Allison May — Fri, 15 May 2009 05:30:43 +0000

Enjoying good credit history isn’t just about getting approved for loans and credit cards more quickly. Having good to excellent credit should give you the advantage that not other consumers enjoy- lower rates and better repayment terms.

Do you have good or excellent credit history? If yes, make sure that you’re reaping the benefits that you deserve for maintaining good credit.

Low APR Credit Cards Always Require Good Credit

Compare credit card deals in the market and notice how the best cards always require good to excellent credit. Consumers with less-than-perfect credit scores will surely get rejected if they try to apply for these credit cards.

Since consumers with low credit scores are seen as high risk credit card holders, credit card issuers offer higher interest rates and lower credit lines for them. On the contrary, credit card issuers will do anything to convince those with impressive credit rating to sign up with their company.

One way to attractive potential cardholders with good to excellent credit is by offering the lowest possible APR. Having a good credit history shows your capability to make payments and credit card issuers know that having you as a customer will solidify their standing in the market.

Maintain Good Credit Low Interest Balance Transfer Credit Cards

Do you own more than one credit card in your name? If you currently have unpaid balances on these credit card accounts, protect your credit history and keep your credit in good standing by getting a low APR balance transfer credit card.

Balance transfer credit cards are often accompanied by low APR or 0 APR that may last from 6 to 12 months, depending on the issuer. By transferring your balances over to a zero interest card, you can focus on your repayment without incurring the high rates of interest.

Most balance transfer credit cards with low APR or zero APR require good credit history. Before submitting your application, it’s best to check your credit report first to make sure that your application won’t be rejected.

Choose Your Low APR Credit Card with Care

Does this mean all credit cards with a low interest rate or zero interest rate offers are worth choosing? Just as you need to do research when looking for a regular credit card, you also need to do your homework to find the best low APR credit card.

Aside from a zero interest rate or a low interest, see to it that the rest of the fees (annual fee, transaction charges, balance transfer fee, late penalty fee, over-the-limit charges, etc.) associated with your card are reasonable. Do this by reading and understanding the complete Terms & Conditions of each potential credit card.