Be Careful when Consolidating your Credit Cards

If you’re thinking about consolidating your credit card debt, first consider some advice to keep you from getting into more debt. Jere’ Webb, author of If You’re Going to be a Bag Lady, make it a Gucci said people don’t like getting several bills in the mail, so consolidation seems like a good idea, especially if the new card has a lower interest rate.

“If we haven’t taken control of our life and control of our credit before we do that, what happens is we keep those other credit cards. They’re empty because we’ve transferred the balance but we still have the credit cards. And because we haven’t taken control, now we rack up the credit on those cards again, so the end result is – we’ve doubled our debt,” Webb said. If you do consolidate, never pay someone to do it for you, Webb said. Either work with a non-profit, or, just do it yourself. Also when looking at other credit cards to consolidate all your debt into make darn sure that it is a FIXED APR. Watch out for those teaser intro APR of 2% or 3%. That’s exactly the kind of non-sense that got our country into the trouble it is in today with adjustable mortgage rates! Take the time and read the fine print.

The Proper Use of Credit Cards

We hear a lot about how some people misuse their credit cards. This implies that there is a right way to use your credit card. So just what is the proper way?

First and foremost, your card needs to be treated like a loan. When you request a loan from the bank, you’re required to promise that you’ll repay it within a certain period of time.

This is also true of credit cards–except they have a shorter repayment time. For this reason, it’s important that you only buy things with your card that you can manage to repay. If you suspect you can’t repay the amount for these credit card purchases within the designated time, don’t buy those things!

Paying within the designated time means you must not be late on your payments This is a common cause of credit card debt, since this will make your minimum balance skyrocket.

Also, when making payments on your card balance, avoid the temptation to make only the minimum balance. By paying more than the minimum, you will reduce the amount ath you owe for interest.

These three simple suggestions will do a lot to make sure that you don’t become overwhelmed by your credit card debt.

Getting a Car Loan After Repossession

One of the events that puts a severe blemish on your credit record is a car repossession. And understandably, this can make it difficult to get another car loan in the future. Difficult, but not impossible. Here are some tips for getting that loan, even following a repossession:

1) Wait one or two years. if you try to get a loan immediately afterward, the lender is likely to charge a huge interest rate. Instead, try to get by with a $500 or $600 car that you can pay cash for, and then after your credit has improved over a couple of years, try getting a loan again.

2) Go to a “Buy here / Pay Here” dealer. You’re going to pay a bit more than with a standard loan, but your acceptance is guaranteed, and since they usually require weekly payments, they train you to get in the habit of paying off your car. However, ask around your community so that you can find a dealer with a good reputation; there are a lot of shady dealers in this business who will sell a car that they know is not even worth the down payment.

Can Bad Credit Be Good?

Can a bad credit score be a good thing? It might sound a bit offbeat to consider that possibility. And to be sure, you don’t want to actively try to get a bad credit score, since there are certainly many ways that a low score will hinder you in the future.

However, if you find that your score is low, rather than focusing on the negative consider the positive. Specifically, since it’s difficult for you to get credit, this means it is also difficult for you to get in debt. This means that you will be required, to a large extent, to live within your means without saddling yourself with a financial burden that might not be paid off for years.

One person I spoke with recently impressed me when a group he was with was discussing how much debt each had, and this gentleman said he had no debt. He said he owns his car, rents an apartment, and has no credit card bills. Everyone thought this showed great restraint on his part. Later I learned about his credit problems that forced him to live in this way. But then–is living that way really such a bad thing?

Back to School with Bad Credit

Have bad credit and hoping to go back to school? Private student loans are available, but finding on if you have bad credit can be tricky. Unfortunately, if you find a loan source, you will most likely pay back a higher finance rate or maybe even have to find someone to co-sign for you.

Once you have either found a co-signer or decided the higher rates are something you can deal with, then you need to find a lender. The best bet is usually to research all lenders and pick the one that best fits your situation. However, in this case, it is best to apply to multiple lenders and then see which one is best. Here are a few sites to check out.

www.wellsfargo.com/student/cosign .. With this site, you will need a co-signer. There is good information on this site, and after making the first twenty four payments on time, you may be able to remove the cosigner.
www.studentloan.com . This site will give you different options for a lower finance rate. Check it out and see what fits you best. As usual, a co-signer will also help you get a lower rate.
www.astrivestudentloans.com . A co-signer will help you be accepted on this site as well.
www.chasestudentloans.com . Chase is a well known organization, so the scam factor is out the window. A so-signer will also help here.

Your Credit Rating in a Bad Economy

Things are not looking too good here in the USA. The gas prices, unemployment, and debt are all rising, while credit scores are falling. A credit score is supposed to reflect the character of the person it belongs to, but there are many good people who have bad scores. These people are trying to live up to their responsibilities, but in this time of recession, they just are not able to in some cases.

Credit score can determine where you live. Without good credit, you may not be able to acquire a loan to purchase the house of your dreams, leaving you in a small apartment, which in some situations may not be achievable. Some apartment complexes use the total score of the applicants.

For instance, if one person has never missed a payment, but the other is not as perfect, then they may be denied. Housing is not the only problem. A person with a low score will find it tough to find financing for a vehicle as well. Then the option becomes paying cash for an older less reliable vehicle. Insurance companies are starting to check credit scores for their applicants as well.

Even employers are checking credit of their potential employees. Once bad credit is established, it is almost impossible to return to a good rating. Many people across the U.S. live with this everyday.

Student Loans on Bad Credit

Have bad credit and need a student loan? Think it might be impossible? Well, it’s not. Just take your time and you just might be able to find a loan just for you. At this point, you should have already tried acquiring financial aid through federal loans and state grants. If not, then try these options before you start this venture. Federal loans offer low fixed rates, and the Stafford loan doesn’t need a credit check.

These are the best options, just maybe a little heavy on the paperwork. If you go through a private lender, don’t accept the first offer, even if your credit is not up to par. These lenders will often compete for your business, which can drive down your interest rate, costing you less money in the long run. Make sure you have all of your financial information at hand, this will speed up the process, and make sure to tell these lenders that you are applying to other companies so they will compete against each other. This process will take some time, so start as early as possible to get the best results. As always, having a co-signer with good credit will also help you acquire a better rate.