Is There Such a Thing as an Overnight Construction Loan?

Construction loans are set up for those wanting to build a new custom home, while still living in their current home. They are short term , usually lasting around one year, and then they are converted into regular mortgage loans when the house is complete.

When thinking about construction loans, it is important to understand the meaning of shopping around. You can save a bundle of money by using a great construction loan officer and shopping around for the best interest rate.

You will want to apply for construction loans with multiple lenders. This will give you an array of choices and you should be able to weed out those companies that are strictly looking for your money in their pocket.

Another important part of securing a good construction loan is knowing how to read the small print. Some lenders may try to get you to lock into a high interest rate when you begin to build your home, even though the rates will probably fall dramatically by the time you move in.

Be aware that a difference in interest rates can have a huge impact in the amount of interest you will pay over the next 30 years. Even a tenth of a percent will have a notable change in the long run.

Your loan officer should explain the small print and help you get the best loan package together. The principal amount of the loan, any savings your decide to use as a down payment, and the current equity in your home will all go towards the loan package total.

It is advised that your loan package total exceed the bid of your new home by 5%. This will allow for any extra building costs that you and your contractor did not expect. You can also get that money back if you don’t use it to build the house.

As your new custom house is being built, the lender is handing out checks to your sub contractor so that they may pay those working on your new house, as stated on the affidavit.

You will be required to make interest payments as your sub draws money from the account. You will continue to make these interest payments until the house is completed and you move in. When you close, your loan will be converted to a regular mortgage loan, where you will make both principal and interest payments.

If you did your job of bargaining well before you began building your home, you should end up with a great competitive interest rate for the complete life of your mortgage loan. There are a few financial risks that come with building a new home, and there is one that is major above others.

If you have an existing home, you will be sitting on two homes while one is being built and the other is being sold. One idea is to sell your existing home before you begin the building process. This way you know exactly how much your existing home will bring in before you get in deep on a new home.

How Can I Minimize the Interest I Pay on My Signature Loans?

Wouldn’t it be great if we could all just pay cash for college, cars, and even houses? Well, that would be great, but instead we have the ability to borrow money to pay for these big ticket items.

When we borrow money to pay for a house, we take out a mortgage loan. not only do we get to pay back the amount we borrowed, but we owe much more in interest. In fact, as you begin to pay off your loan, you will notice that most of your payment is simply paying for interest.

A small amount is being put towards the principal, or the original amount of the loan. Many people wonder how they can pay off the principal amount of the loan sooner than originally planned and there is a way.

When trying to pay as little interest as possible, there are a few options to look at. You might consider talking to your lender about making bi-weekly payments in stead of monthly payments.

You lender will have you send in a payment every two weeks, instead of every month. This may not seem like much of a difference, but with this set-up you will end up making 13 payments instead of 12 over the course of the year.

Some lenders may require a fee to set up this system. In the long run, you could end up paying off your 30 year mortgage loan in around 24 years instead. If your lender is not willing to allow this, you can simple send in an additional payment sometime during the year.

Another option is to set up a system similar to those that are trying to eliminate all kinds of debt. In addition to making at least the minimum payments on all of your debts and loans, you will need to put every extra penny towards your loan with the highest interest rate.

A budget is a great way to look at your income and your spending habits. By creating an actual budget you can decide which areas can be cut out or changed to allow extra loan payments to take place. You may be able to cut down on entertainment and eating out, and be able to make that extra payment for the year.

If you enjoy a holiday bonus or a tax refund, you can apply that money directly to your loan as well. Always remember that when you make an additional payment to your lender you write “apply to principal” so that your extra cash won’t be held until your next payment is due.

If you are taking out a mortgage loan you should consider making a down payment or paying points. This means that you can eliminate paying interest by paying for it up front. Some lenders might require you to pay a certain percentage of the loan in cash, also known as points.

You should always consider starting a savings account, whether it be big or small it is always a good idea. By using your savings in stead of borrowing money, you eliminate paying interest altogether.

How Does My Credit Score Affect My Ability to Get a Signature Loan Overnight?

There are some important things to consider when you are looking into your finances and one of those is your credit score. If you aren’t really sure what this is or how it influences you and your decisions it is about time that you sat down and figured out just how much it really matters.

There are a lot of different factors that influence your credit score and so it sometimes seems hard to really know what you can or can’t do to make it better. There are actually some larger catergories that consist of small details that really make up your credit score.

Payment History Is Important

One of the biggest things that affects your credit score is your payment history. There are a lot of different small things that are important when it comes to your payment history. They will look at all the different types of accounts that you have had whether it be credit cards or banking accounts.

They will also take into consideration how many cases of delinquency or how many times you defaulted on payments. Now if you have only defaulted a few times but it was a long time ago, don’t panic because they will also be looking at the time that has passed since this last happened.

Amounts That You Owe

Another important factor into your credit score is your current debt that you have. They will take a look at all the debt that you have whether it be car loans, mortgages or credit cards. They will also take a look at the number of accounts that you have that have a balance due to determine your credit score.

A Few Other Important Factors

There are a few other important things that will help determine your credit score that may not weigh as heavy in the decision but they are still important. One of these is your length of credit history. This means they are looking at how long ago you opened up each account and what kind of activity you have.

Another thing that they will look at it is how many newly opened lines of credit you have too. If you have just re-established good credit history or also the proportion of the accounts that you currently have open. Another factor they are going to be looking at is what types of credit you have used in the past.

All of these are important factors and are things that you should really take seriously. If you have recently learned that you have a poor credit score then take a look at some of these factors and see how you can improve.

These are just some of the main things that are factored into your credit score. Keep in mind that these aren’t the only things, but just a few of them. There are many other tiny details that you normally don’t even think about that could effect your score. If you are nervous about your own score, then just remember to try to stay on top of all your financial matters.

Is It Possible For Me To Get a Signature Loan Overnight With Bad Credit?

These days it seeems like every tiny financial decision you make effects your credit scores. Sometimes it can seem overwhelming to try to even apply for loans, especially if you have bad credit. Every single decision you make effects your credit scores and it’s sometime hard to reverse what has already been done. But there are a few things that you can do to help that out.

First Things First

Always pay your bills on time! This may seem like a basic concept but surprisingly it is a hard one for a lot of people. You can save yourself a lot of money and worry if you just make sure your payments are always in on time. If you are having a hard with this then it is time to sit down and make a budget and plan to pay all of your bills when they need to be paid.

Even if you have to pay them early so you don’t spend the money somewhere else, then plan that into your budget. And then stick to it. The fastest way to turn your credit score around is by making sure all your payments are in on time and as scheduled. This will show the creditors that you are being responsible for your debts and that you can pay they off as was orginally set.

Taking The Next Step

If you have had financial problems in the past and you are trying to pick yourself back up then one of the first things you need to do is not get in over your ahead again. If you have had many credit cards in the past, try to just have one that has a small credit limit. That way you will never get behind and you won’t get too far behind with your finances.

Another good idea if you have just started to re-establish your credit is to look for lenders in your own area instead of lenders on a national or global level. Many local lenders may know you or your employer and being willing to lend to you based on that relationship of trust that you have already established with them.

Co-Signers and Credit Reports

Another good idea when you are trying to re-establish your credit or get a loan when you have bad credit is to find a co-signer who is willing to help you out. If this is one of the first loans that you have had in a while, try to make it smaller so that you will be able to easily pay it off and establish that good credit that you need again.

When you are looking for a co-signer, find someone that really knows you well and knows that they can trust you. Try to not betray that trust and as stated earlier, always complete with your payments. When you are trying to rebuild your credit, this is one of the most important things so that later on you can stand on your own and you won’t need to have co-signers.

Will a Credit Card Company Accept a Payoff of a Certain Percentage?

Usually, when a credit card company sees that a person is close to going bankrupt, they will allow a credit card holder to pay off a percentage of the amount they owe on their balance. This is only due to certain factors that the credit card companies take into consideration. There are certain qualifications and requirements that a card holder must meet before the credit card company will allow them to arrange a settlement.

The criteria that must be met before you can get a credit card to settle for a percentage of your debt will differ from company to company. Each credit card company will evaluate you and your credit situation differently, and may very well give you very different offers. Here are a few of the things that would qualify you for, or sway the creditor’s opinion on whether or not you meet the requirements to arrange a debt settlement.

1. Credit Crisis

The main thing that credit card companies look at when you request to make a percentage payoff is what kind of trouble you are in with your credit. If you owe a bunch of money on your credit card, and you have a credit history that reflects bad payment habits, they will be more likely to accept your request.

This will also determine what percentage they allow you to pay off. This plays a huge role because if you have had an easy time making your payments on time, you havea great payment history, and you have been easily paying your other creditors as well, the credit card company you are requesting a settlement from will assume automatically that you can just as easily continue to make the payments you are currently making.

2. Income and Assets

Credit card companies will take into consideration what kind of money you are making, and what items you have within your possession that are of a descent value. They do this, because, in the worst case, if they were to sue you for not paying your credit card bills, they would want to know how much they would be able to get. They may compare that to the amount you would pay them if they were to allow you to pay just a certain percentage of your debt. It is a morbid thought, yes, but it is still possible.

3. On the Verge of Bankruptcy

What credit card companies often see is that you are at a high risk of going bankrupt. Because credit cards will often choose not to sue, they would like to choose a debt settlement over bankruptcy. This is because, if you pay a percentage of your credit card debt, though it may not be the full amount, it is better than the amount they would get from you if you went bankrupt. If you chose bankruptcy over a debt settlement, they would not end up getting any money from you. So naturally, they would rather that you paid a partial amount of the debt you owe than none at all.

What Should a College Student Know About Credit Cards?

Getting a credit card, whether for the first time or not, while you are in college can be a burden and a blessing at the same time. It gives you something that you have to pay on each month and gets you into debt that you really do not want, but it can also help you to meet the demands of college life, like paying for tuition, books, rent, and food when they are required and in full. Still, there are a few things that college students should be aware of concerning credit cards.

Credit cards affect any person’s life, and starting out using credit cards in college can either help or hurt your future and your finances. Having what it takes to pay your bills, keep your debt low, and stay in a position where you can gain points on your credit score and not lose them takes a lot more skill and discipline than most young people think. The most important thing you can do with your credit card, especially at the difficult and money-tight time of your life, is to control it so that you do not accumulate debt that you cannot pay back soon.

Credit card debt has become a big problem for a lot of people. Many of the younger generation do not realize what a stressful and difficult life they can have if they get themselves into debt so far. The convenience is just not worth it.

One of the key things you need to have when you sign up for a credit card in order to better stay out of debt is a knowledge of the credit card agreement you are signing up for. There is nothing that will hurt you more than misunderstanding how your credit card works, how you will be charged interest, and what kinds of things you do with your credit card that can hurt your credit score.
Make sure that you read the details of the credit card application, call a representative if you have any questions, and make sure you know exactly what you are agreeing to before you agree to it.

What college students often may not realize is that your credit score can often times be a determining factor concerning your prospective employment. Many potential employers are allowed access and will use that access to check your credit score. This alone could possibly sway the employer’s decision about whether or not to hire you, so you want your credit score to reflect a good and disciplined credit history so that you can get the job that you probably desperately need, since you are working to not only put food on the table, but to go to school.

College is a very tender part of life when it comes to having credit cards. It’s good to have them so you can build on your credit score. Still, if they are misused, you will not only be deep in debt, but your credit score will suffer considerably.

What is Credit Card APR?

Credit card APR is the actual percentage of interest you will be paying yearly on your credit card. APR stands for Annual Percentage Rate. This is an estimate, and can be changed any time by the credit card company if you make late payments on your credit cards.

The Annual Percentage Rate is what will determine how much interest you pay through a year, rather than just the first flat interest rate that they often advertise, that will only calculate the interest from month to month, which calculation may be quite different from the yearly payment. The APR calculates the actual cost of the loan. However, it is dependent upon conditions concerning the payment regularity of the credit card holder and other conditions unique to the company.

One thing the APR does is it does not allow credit card companies the right to any hidden fees. It prevents them from giving you a freakishly low interest rate and then socking it to you in fees. A few of the fees that they are restricted from charging on the Annual Percentage Rate are: Escrow fees, notary fees, appraisal fees, recording fees, and transfer taxes. That is just to name a few.

How Annual Percentage Rates are calculated is a process that differs from credit card company to credit card company. There are several factors that contribute to this complex calculation, and each factor depends on the individual credit card company. One company may give you a great interest rate, but the APR could be totally out of your payment ability, when another company may give you the same interest rate with a lower APR.

There are certain fees that may be included and taken into consideration when credit card companies calculate your Annual Percentage Rate. These fees can also differ from company to company based on that company’s policy and your credit eligibility. Here are a few of those fees and how they work:

Origination Fees

Origination fees are charged to you for the work that is done by the credit card company in your behalf. It basically pays their employers for the time they spend handling your account and working with you to straighten out mistakes. This type of work they do includes checking your credit and preparing the legal documents that have to do with your credit card account.

Loan Processing Fee

This is the fee they charge you when you open an account. This is charged to you for the work they do to gather information so that they can process the loan, and the actual processing itself. This is also something that will affect the Annual Percentage Rate.

Underwriting Fee

Another fee they have is called the underwriting fee. This takes care of any of their expenses when considering you for a loan. It also takes care of the expenses they have for lending you the money on credit.

Should You Do a Credit Card Consolidation?

Credit card consolidation is when you have a large amount of debt that is branched out in several different credit cards, loans, mortgages, and other form of credit, and you take all of those forms of debt or credit, and you “consolidate” them into one big form of credit. In many cases, consolidating your credit card debt is not a bad idea, but in others, this type of solution only makes things worse.

Say you have three credit cards, all on which you have a balance within a seventy-five percent range of your credit limit. Besides that, you have a mortgage on your home that you are only six years away from paying off after a twenty year mortgage plan. You are thinking about debt consolidation, and you want to know what would be the best way to go about it. It is important to know what kind of debt consolidation possibilities exist out there, and to know just which one is going to get you out of debt faster with the least amount of risk.

Option 1: Low Interest Rate Credit Cards

When you think about consolidating your debt, this may be one of the best ways in which you could do it. Shop around for a new credit card that has a great interest rate that you could easily pay a large balance on. These kind of credit cards could be a great solution to your old, high interest rate cards if you are disciplined enough to pay your bills on time and not rack up the debt on this new credit card too.

Be careful, though, because sometimes these credit card interest rates are too good to be true. You need to know if the low interest rate you got on your card will change over an extended period of time, because sometimes these rates are only introductory. Credit card companies use teaser rates to get people interested in their cards, then eventually the new and wonderful card is not so wonderful anymore, leaving you in more of a tight spot than you were to begin with.

Option 2: Home Equity Loan or Line of Credit

This option can be very risky. By putting your credit card debt into your home, you basically say, “If I do not pay my bills, you can have my house.” Be careful when you consolidate your debt into your home, and be completely certain that you will be able to pay your bills on time and with ease. If you do this, consolidating your debt into your home equity line of credit will be a great solution, because the interest rates are usually much less in this case than with credit cards.

Option 3: Debt Consolidation Loan

Getting a loan may be the solution for you. However, you must know first if you will really be paying less. Because of your financial trouble, you may not be qualified for a low interest rate, therefore you end up paying just as much or more than you did before.

How Secure Are Credit Cards?

You have had credit cards for a while, you have a good credit score, you are pretty good at controlling and managing your debt, and you feel that you have handled credit cards and the responsibility that comes along with them fairly well ever since you started out. But how safe are credit cards? Despite the ability you have to keep your credit cards under control, is there anything outside of your control that could hurt you and your credit score?

The form of security differs with each secured credit card. Many credit cards do not have really great security. So when you are shopping for a credit card, make sure you know what you will be protected against and what kind of risks you will be taking.

There are several things that have improved about credit card security, and technology is one thing to thank for that. The security that protects you from getting ripped off has gotten better recently, and is continuing to improve. It is getting more difficult for thieves to get money off of your credit card without you knowing it. Here are few examples of the security that is being used to protect you against such fraud.

One way to protect yourself from getting your credit card misused by someone you do not even know concerns purchases made online. When you buy something off the internet, many places you buy from will ask for a shipping address along with a billing address. This makes it so that if someone who has stolen your credit card account number buys something online, they would have to pick it up at your home in order to get it at all.

Another form of security is basically a fake account number. This is also for online purchases. Certain credit card companies will provide an account number that is different from your credit card number, sending that number instead of your real one to the person you buy from. This allows only you and the credit card company to see and use your real account number, and no one else.

Once the transaction has been done with the fake account number, it is verified through your credit card company, then charged to your real account. A credit card thief would attempt to use the fake credit card number to make other purchases. This person would be denied access to your account, because once the transaction is finished, that number becomes invalidated.

There are these and several more forms of security that will protect you from credit card fraud. Many people out there can get away with purchases made on your credit cards that you end up having to pay for, but the amount of fraud in recent years has gone down considerably, and the credit card world is becoming a little safer. It is important, when you are looking for a credit card, to know what type of security it has, if it has any at all, and the things you should do in case you are a victim of credit card fraud.

How Do You Understand Credit Card Application Terminology?

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Applying a credit card is not easy to begin with, and the words they use that are difficult to understand are not helping any. The one thing you want most, when you are applying for a credit card, is to understand the details of the application and the terms and conditions of the credit card loan. But how could you possibly do that with all the seemingly foreign language they use in the advertisement alone, to say nothing of the actual details.

Knowing what you are reading on a credit card application is important. But sometimes, even talking on the phone with a representative from a credit card company, it can be difficult to understand and follow along. Here are a few words that may be useful to know, what they mean, and what they have to do with getting a credit card.

Collateral

Collateral is some sort of asset, or something that you own that is of value, that you are willing to secure a credit card loan with. It secures your loan so that if you do not pay your bills, whatever you put up for collateral will be taken by the credit card company. If you are applying for a secured credit card, you will be required to pledge something that you own that is worth a certain amount in case you fail to pay your bills, or if you take out bankruptcy.

Credit Scoring System

This refers to the complex equation and factors that are calculated into your credit score. Your credit score and your credit report will determine whether or not you will be approved for a credit card, and how much your interest will be.

Annual Percentage Rate

Usually this is written as APR. Annual Percentage Rate is the percentage of the principle you will be charged in interest per year. This amount compounds each month, so the APR should not be confused with the actual interest rate. They are two seperate calculations of interest.

Fixed Rate

A fixed interest rate is a rate that will not change unless you make late payments. A fixed interest rate basically stays the same if you pay your bills on time and do not incur other penalties on yourself. There are some fixed rates that only last for a certain period of time, but others last for the entire time that the credit card account is open and active.

Finance Charge

Basically, this is what they use to describe your overall interest. A finance charge is a charge or fee they require you to pay for borrowing money on credit. So when you see “finance charge” written on an application, that is the total amount estimated that you will pay in interest.

There are several things you may not understand when you are trying to apply for a credit card. Along with the hassle of applying, you should not have to worry about the terminology. Knowing what you’re getting into is essential, and can save you loads of money in the future.

Can You Do a Balance Transfer From Someone Else’s Credit Card?

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Transferring someone else’s balance onto a card that you carry is possible, but not always wise. It can either be very helpful for the person you are transferring the balance for, or it can be very hurtful to you if you take on the responsibility of someone else’s debt by transferring the balance from their card onto yours. Here are a few pros and cons.

Benefits

Some of the things you can get out of a balance transfer from someone else’s credit card to yours is that they have a much better annual percentage rate. Their credit card interest will go down considerably with a credit card balance transfer. The fact that you have paid your bills on time and have a good credit score and credit history will also be advantageous to them in more ways than one, especially if they have had a bad credit history themselves.

If the person that has recently been added to your credit card has a good credit history and is responsible with their spending, it will be a great benefit for you as well. Their good spending habits will reflect on your credit report as well as theirs, because the card is originally under your name. It is important to know if someone can be of benefit to you in this way before you allow them to transfer the balance of their debt onto your credit card.

Fallbacks

The biggest risk you are taking when you allow someone to transfer their debt onto you credit card is if they spend on your card unwisely and build their debt problem back up to where it was before. A lot of the time, when people get in trouble with interest rates because they have bad spending habits, it is very difficult for them to change those habits in order for it not to happen again. The part that makes the situation even worse than it was before is that it is YOUR credit card, and YOU are going to suffer along with them.

If you have bad spending habits, this will rack up their debt and interest rates as well. Say you just got a brand new credit card with a great APR, but you have had some trouble paying your bills in the past. The people you allow on your credit card are going to want to know about this in order to decide whether or not they will really benefit from joining their balance with yours. Just like they can ruin good interest rates for you, you need to be certain that you will not leave them stuck with higher interest rates than they had on their first credit card.

Tips

You finally decide that it’s safe to do the transfer. Now what? Just like shopping for any other card with low interest rates, you need to be careful of what cards you settle for. Be sure to get one with a low fixed rate, and know how much it may increase, when, and why.

Will Your Credit Score Improve if You’re an Authorized User On a Credit Card Account?

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Maybe your credit score is kind of lacking a high number, and you wish to do something about it. In fact, you want to know everything you could possibly do to help it get back into the high range as soon as possible. But how do you do that?

One way you could help improve your credit score is by signing as an authorized user on a credit card along with someone else. Though the good credit they currently have will not reflect yours, the fact that they will keep paying their bills on time will reflect on your score and make it improve. That is, only if you do not use that credit card account unwisely yourself.

If you were to sign with someone on a credit card, it is important that both of you agree to have good credit behavior. If you sign on with someone who is great with credit cards and has an awesome score, their good habits will reflect back onto your credit score simply because you share the same account. But if you use that credit card in a bad way, it will not only make your credit score even worse, but it will decrease theirs as well.

Being an authorized user allows you to gain a better credit score, but when it all comes down to it, you are not responsible for the debt. So, really, if you messed the credit card account up for the person you are signed up with, it is their responsibility, not necessarily yours, to pay the debt. Still, no intelligent credit card holder with a good credit score would allow someone who would inevitably ruin their credit and drag them into debt to be an authorized user of their credit card account, so you have to be trustworthy and try to break your bad credit habits.

You will not want to stay on these accounts any longer than you have to, especially if you are applying for a home loan. Though it improves your score, it can decrease your chances of getting approved for a home loan. So when you are signed on as an authorized user of someone else’s account, stay on only as long as it takes to improve your score enough to be on your own again.

One bad thing about being an authorized user on someone else’s account is that you put yourself at risk of being joined with someone who may not have the greatest credit history either, and who may not use the credit wisely. This will end up costing you even more of your credit score and leave you in a worse predicament than you were in to begin with. This is all usually determined by your judgement of the person who you are planning to share the account with, so you must be careful of who you associate your credit score with.

What Should a Letter to Close a Credit Card Account Include?

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Perhaps you have had your credit card either lost, or it has been stolen. Maybe you just do not feel that you need this credit card anymore, and you want to close it out so that you do not have the hassle of it anymore. Either way, you need to know how to properly cancel that credit card account.

Call

First you should call the credit card company and request that you have your credit card account closed out. This is the surest way to ensure that what you want gets done, because you can talk to a representative yourself and confirm through them that it has been done. Still, this is not the only step you should take.

Write

To ensure that your account gets closed, you should follow up your phone call with a closure letter to the credit card company. Make this as formal and professional as you can. Here are a few things that the letter should entail so that you can maximize the service you are given and make sure that what you request gets done right the first time.

The Basics

You should include the most important and the most obvious details in your letter, like your name, address, phone number, and credit card account number. It is the lack of this basic information that makes things difficult for the credit card company, and therefore for you, in getting your account closed as soon as possible. If the company knows who you are and the detailed information concerning your account, the faster, and the more smoothly this process will go.

Talk About the Phone Call

In your letter, you should state that you called their company to cancel your credit card, and when you do this, you should include the date on which you called and the representative you talked to. That way they can refer to that representative and that date, making the process of finding the information much faster. If you write a letter that makes it easy for them, they will make it easier for you.

State Your Request

If you want your credit report to say that you have cancelled out that credit card, tell them that. They should not have to guess what you want. Ask them specifically to make sure that your credit records reflect that you have closed out that specific credit card account and that it is no longer active.

If Your Card Was Stolen

Specifically, if your credit card was lost or stolen, you should make sure that they know that in the letter that you write to them. This will increase the speed at which they close your account so that no one who may have your card can make any charges on it that you do not want. If you requested over the phone to have that credit card account closed but a new card issued, you should include that information in your letter.

Should You Get a Secured Credit Card?

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When you get a credit card, it pretty much changes your whole life because it shows you how well you can manage the money you have, and even the money that you don’t have, but that you have to come up with eventually. Better yet, it determines how financially stable you will be in the future, because managing your credit card debt either wisely or unwisely can make or break how well off you are. So how exactly are you supposed to protect yourself from all the risk you are taking when you apply for a credit card? After all, a credit card is something most people really can’t live without in today’s world.

There are two types of credit cards to be considered when shopping for the right one: Secured or unsecured. Secured is basically one that you have to put money down on so that they can use that money if you do not make the monthly payment. An unsecured credit card goes completely on collateral, without any secure amount of money that ensures that you will pay it all back. Depending on who you are, what your spending habits are, and what type of credit history you have, you may be better off getting a secured credit card rather than an unsecured one. Here are a few things to know about secured credit cards that will allow you to know if you fall into that category.

The main thing you would need to ge a secured credit card for is if you have a bad credit history and need to repair it. Secured credit cards are a way to make punctual payments on a credit card and get rewarded for it by having your credit score go up, but this is only possible if your credit card company is willing to report your timely payments to the major credit bureaus. Make sure, when you get a secured credit card, that the company you are going with will report the payments you make on time, otherwise there is really no point in having a secured credit card.

A deposit is required for a secured credit card, as I said before. You must put a certain amount of money into a deposit where the credit card company has access to it, so that if you fail to make payments on more than one occasion, they can sometimes resort to getting it out of your deposit to ensure that it gets paid, one way or another. This is a bit more safe than an unsecured credit card, but with either one, making late payments will not improve, but hurt your credit score even more.

There are a few requirements that come with a secured credit card. These requirements can be things like your age, income, or whether or not you have some sort of bank account. Still, it is easier to get approved by a secured credit card than it is to get approved by an unsecured credit card.

How Should You Choose a Student Credit Card?

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There are specific details that you should pay attention to when it comes to credit cards. They can either help or hurt your financial situation, and being broke AND deep in debt during college is the worst tight spot you could ever be in when it comes to money.

It is important, when you are looking for a credit card to use while you are in school, to find one that will be beneficial to you. You need one that will not allow you to spend so much that you get far beyond your ability to repay in debt, but one that will let you get the things that you need to that you cannot instantly pay for in this scraping-the-bottom-of-the-barrel time in your life. Here are a few things you should pay attention to when shopping for the credit card that is right for you.

APR

Knowing what and how the APR works is important. The best kind of interest rate you would be looking for is a fixed rate, but those are harder to find than a variable rate, and may not be a very low fixed rate. Sometimes you will benefit just as much with a variable interest rate. Make sure you know which you will be getting with the credit card you go with.

If you are on a variable interest rate, it is important to know by what system your interest rate will go up. Of course, this information is more important only if you will be carrying a balance from month to month on your credit card. If not, or in other words, if you plan on paying your credit card off as you go each month, the interest rate will not be such a big deal for you.

Do not confuse the APR with the introductory rate. Some credit cards will offer you a great intro rate, but will end up charging you a much larger APR after the time given with the introductory rate expires. Make sure that you go for the lowest rate possible that will last you longer than six months.

Rewards Cards

The credit cards that give you rewards for the purchases you make are the best kind. These kind of cards allow you, in a way, to get a discount on the things you purchase on credit. Try to go for a credit card that will give you the kind of rewards that you will use, like ones with points that you can cash in for a numerous amount of items rather than just something like sky-miles that you may not use.

Penalties

Read the fine print carefully. You need to know how much your interest rate will go up, and what other kinds of charges they will be pouring onto you if you make a late payment or two. You may not plan on making late payments, but it is important, when you are shopping for a credit card, to know how much you will be charged IF you fail to make a payment on time, and what other credit card companies would charge you that might be easier on you.

How is Your Credit Card Balance Calculated to Figure Out the Finance Charge?

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You get your credit card bill every month, review it, and see that the interest has changed, yet again. You wonder how on earth they ever decide how the interest rates are figured into your expenses. Is it all a scandal or do they really havea formula for this type of thing?

Believe it or not, they do have some rhyme and reason for the differing amount of interest they charge you each month. It is based on the type of balance that is being figured. Here are a few of the types of balances that are important factors when it comes to calculating the finance charges that are charged by the credit card company you are with.

Average Daily Balance

First, your credit card company takes all the money you spent in one day and averages it out. After that, they average all the days of the month together so that they have the average daily balance for that certain month. Once they have that, it is multiplied by one twelfth of your APR. That is one method of coming up with the finance charges on your credit card balance.

Previous Balance

Some credit card companies will charge you more interest based on how much of a balance you carry over from month to month, rather than paying off your credit card debt completely. The beginning balance and the ending balance are both shown on your bill, and you will see how much you have left that you did not pay last month, or the last time you were billed. This amount of money from the previous month and the amount that billed to you this month combined will be what determines your finance charges for this specific month.

Daily Balance

The company will take the amount that you spent each day within the specified month and, rather than multiplying it by one twelfth of the APR, which fraction represents the months in the year, they multiply it by 1/365th of the APR. This, of course, represents each day in a full year. This method is based on how much you actually spend in a day, and therefore is more precise because it has more detail than an average daily balance, which only takes into account the possible average amount spent in a month.

Two Cycle Balance

This type of calculation of your finance charges is basically the same thing as your average daily balance, but instead of involving one month, it takes into account the last two months or billing periods. This can be difficult to handle if you carry a balance over each time. The interest rates build up and climb with each billing period.

How Can You Obtain A Russel Simmons Card?

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First of all, what is a Russel Simmons Card? A Russel Simmons Card is a type of prepaid card that allows you to buy things on credit when you do not have a bank account of any form. Other credit card companies will not allow you to get a credit card with them unless you do have a bank account. This is why so many Americans today benefit from the Russel Simmons form of prepaid card. But how do you get your hands on one of these cards?

How Does It Work?

A Russel Simmons card basically works like a debit card. It allows you to put a deposit in of as much as you want, and you are only allowed to spend that much. The best part about it is that it is safe, because you do not run up huge credit card bills that you cannot pay back.

You can buy things off the Internet and order things by phone, just like many other credit cards. You are allowed to get money out of an ATM anytime, and can use your card just about anywhere that Visa is accepted. This prepaid rush card is also less expensive compared to most cards, including other prepaid cards.

There are some fees that are incurred with the rush card. However, the fees are not as high as most credit cards, and even many prepaid cards. Perhaps you could shop around and decide what company you would like to go with based on those fees, such as processing fees and setup fees.

Having a Rush card is inexpensive, mostly because there are much fewer fees than a normal credit card company or a bank would charge, and you can benefit also because of the ability that card holders have to track their spending right up to date. You can also make payments on your bills and do other transactions online that, if you do not have a bank account, would cost you huge fees in other places.

How Do You Get It?

Getting a Russel Simmons card is basically like getting any other prepaid credit card. Everyone is eligible to apply for a Rush card, and no one can be turned down for not being employed, because you do not have to confirm on your application that you have a job. Another nice thing about it is that when you are being considered to have a prepaid Rush card, they will not check your credit report.

Whether or not a Rush card is right for you is basically your decision. It is a very helpful tool in getting you money that you need fast if you do not have a bank account. Banks can be a hassle because of their fees and contracts, but with a Russel Simmons card, you pay very low fees, which, by the way, include no monthly or annual fees, and you do not run the risk of getting into debt that you cannot escape.

Do You Need Credit Card Insurance?

There are several types of insurance in this world, and finding the right insurance policy for you that will cover you in all the risks you entail by living your everyday life is a difficult feat to accomplish. Still, having the right knowledge about the many different kinds of insurance policies out there will help you to decide which is best for you.

Having credit cards automatically subscribes you for a certain amount of risk. The biggest risks you take involve your money… how much you will be able to keep, how much you will lose, and how much you will not have when the world is demanding it of you and demanding to have it now. So what kind of protection can you receive for these kind of risks, that will allow you to stay within a reasonable debt range and keep a good credit score if your ability to pay your credit card bills suddenly goes down the drain? Credit card insurance is one option, and depending on who you are and what kind of insurance protection you need, it may be just the thing for you.

Types of Credit Card Insurance

Credit Property Insurance

This type of insurance applies when you have bought something with a credit card that you are still paying for, and suddenly one day that thing gets destroyed. Because you have credit property insurance, your debt on that object is cancelled and you no longer owe anymore money on that object. This is great for people who buy expensive things with credit cards that do not have a warranty.

Unemployment Credit Insurance

This is applicable when the card holder is laid off, or unexpectedly removed from employment. It only applies until the card holder finds other employment, and it does not include incidences when the unemployment was voluntary. Because you are unwillingly unemployed, the credit card company will pay the amount you owe on your minimum monthly payment until you can find another job.

Disability

This type of insurance is also only active for a short period of time. It is applicable only when you are medically disabled, and will no longer be active when your disability is over. This will also pay the monthly payment on your credit card, and applies only to existing debt, not to purchases made after the disability occurs.

Credit Life Insurance

This is the kind of insurance that is most helpful to credit card users. It makes sure that whatever you owe after you die is paid in full. That way, whoever you leave behind is not responsible for your credit card debt.

Disadvantages of Credit Card Insurance

Many times, other kinds of insurance will probably cover you in more cases and with more money than credit card insurance. Also, credit card insurance applies only to the specific credit card. If you have more than one card, you have to apply for all the different insurance policies for all your different credit cards, which may not end up saving you money anyway.

Who is Responsible for Your Credit Card Debt After Your Death?

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During a devastating time like this, the last thing you want to think about is money. Your spouse just died, but credit card companies do not necessarily consider how you feel at the time. All they have to worry about is whether or not your spouses credit card debt will continue to be paid, even after their death. So are you the one responsible for his debt, even at a difficult time like this?

Credit card debt is something that is sometimes necessary. We need it to buy some of the necessities in life. But what happens when you buy things on credit that you are paying for not only for years, but for a lifetime? What if yours or your spouse’s life does not last long enough for you to pay off the debt that extends beyond it? Who ends up paying the bills?

It depends on who you are, what kind of debt you have, and whose names were joined on the credit card account of the diseased. If yours or someone else’s name is on the contract along with the original card holder, you or that person are responsible for the debt they leave behind. That is why it is important to consider all the factors when you go to cosign on someone’s credit card agreement. When you agree to have a joint credit card account, you are agreeing to pay the debt that the card holder cannot pay, and the same goes for them.

If the credit card debt was in the diseased’s name alone, with no one else that agreed to take on the debt that was incurred by that specific card, then no one pays for it. The credit card company is required to just eat the debt that is owed, whether or not there is existing family to pay the debt or not.

Sometimes, if you are the only one living in your home or you are not married, or even if you are married, credit card companies will try to make up the money you owe by taking your assets. This type of payment is only applicable under certain circumstances, but it is one way that your credit card debt could be paid off after your debt.

If you are in debt and you are concerned about your family, knowing the facts about how much debt you will be leaving behind when you die and who will be paying for it will help put your mind at rest. Being able to know the ins and outs of the debt world and how it is paid when you can’t make the cut is important when it comes to you and your family. Knowing what will happen to your loved ones after you die will give you more comfort in life.

What Will Happen if You Don’t Pay Your Credit Cards?

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Your credit card has helped you buy things you never would have been able to have proper to you receiving it. It has gotten you through some rough times and has allowed you to get things that are essential but expensive. So you faithfully make your payments each month, no questions asked.

So you bought something pretty expensive on your credit card with a good feeling that you could pay for it. To your dismay, the credit card bills come and you discover that you not only owe money immediately if not sooner, but that you do not have the means right now to pay it on time. So what do you do now? How are you ever going to pay for this credit card bill if you can’t help but just get deeper and deeper into debt?

There are several options, none of which are extremely pretty. But depending on your circumstances, you may be able to lessen the consequences, put them off, or even perhaps avoid them altogether if you decide on the right option for you and your credit card company.

Consult the Company

Your creditors, if you call them and explain your circumstances, may be willing to make a special arrangement for you that will allow you to get your bills paid. If you tell them why you cannot pay them on time, and explain to them that you still intend to pay the bill, they may be willing to give you a different payment plan that will allow you to pay it in smaller increments over a longer period of time. That way, your income may be sufficient enough to get you through, but it will take you longer to pay the money owed.

Ignore it Completely

The thing about creditors is that they cannot threaten to put you in jail just because you will not make your payment. You could ignore the creditors completely, but that would only buy you time and get you into more trouble. Eventually, the credit card company could take you to court, and if you have no good argument to go on, they will win a lawsuit against you and gain permission from the court to take the money you owe out of your assets. This option is not only a bad idea because it just prolongs the grief, but it ends up costing you more in the end.

File for Bankruptcy

One way out of debt is bankruptcy. This is when all of your assets are liquidated and given to your creditors to satisfy your debt. You could lose several things like extra cars, furniture, and perhaps even things you bought with the very credit card that got you into this mess. The important thing is to just manage your credit wisely in the first place. You just have to make sure you can pay your debt in full and on time, and spend nowhere beyond those boundaries.