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Five Ways To Manage Your Credit Card

Credit cards are a great idea - they are convenient to carry around with you. Accepted in most stores and provide a fantastic way to pay for goods if you are waiting for payday. However, they can easily become a burden when the bills roll in and you do not have the means to pay them off in full. Many people have found out how easy it is to run up debts on their credit cards to their cost and now face thousands of pounds worth of debt. Unfortunately, this is the way society, and indeed the world, works at the moment and there is nothing we can do about it.

However, it is possible not to get into debt to begin with, which is the best option at the moment or so it appears. So the cost of living has risen and the lifestyles that we all lead far outweigh the amount the majority of us earn in a year, but only a few minor adjustments need to be made to ensure that we do not get into debt in the first place. The following are excellent ways to manage your credit card before it manages you.

1. Do not memorize your PIN number - If you know your pin number then it would be extremely tempting to spend on your credit card every time you go into a shop or are short of cash. The only way to stop this behaviour is to stop using your PIN number. The only way to stop doing that is not to memorize it in the first place. There is nothing wrong with spending money on it on the Internet when you can weigh up the options, but impulse buys are often what get us into debt in the first place. This also goes for the cash cheques that credit card companies send out to their customers. Just burn them as soon as you get them to stop yourself from using them.

2. Keep a track of your spending with a diary or spread chart - This allows you to track what you have spent in a month, what you are buying and thus allows you to see whether or not you can afford to pay off the bill and cut out any unnecessary expenses. It is easier to realise just how much debt you are getting into if you can track your payments.

3. Make use of online balance facilities - Many companies now have online tracking facilities or automated numbers that you can call for an up to date balance. Make the most of them because you will be better able to track how much you have spent in a different way to the above point. You can even use them in conjunction with each other. If you use Internet banking or the credit card facilities then you will also be better able to pay off as much as you like whenever you like.

4. Research any offers on your current cards - Some cards may have 0% purchase or balance transfer deals. Make the most of them if you are in debt or do need to spend on your cards. Others have anniversary deals as well so you can use them to manage your bills as and when the offers become available.

5. Reduce the number of cards that you have to one or two for emergencies only - If you only have one or two cards for emergencies only then you will be equipped for disaster but ready to avoid debt as well. The more cards you have the more opportunity you have to get in debt so cutting the amount down will give you a better sense of where you are financially.

Article Source: http://www.articlesbase.com/credit-articles/
five-ways-to-manage-your-credit-card-280229.html

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Credit Information – Truths Vs Myths

Credit Information – it’s one of the major search phrases typed into Google and Yahoo every day. Do you know your credit score facts? Or do you think you know them? We hear the words credit and credit report used every day and most people would tell you that they understand how credit works (they don’t). Truthfully about all they know is that if they flash a credit card at the store, sign a piece of paper and walk out with the merchandise. That’s what this article is about – Credit information on how credit works. Here are the most common facts and myths about credit:
Credit Information Fact (or Myth?): Negative items (even if they are wrong) will be on my credit report for seven years.
False. Nothing in the credit reporting law says an item has to remain on your report. It does say that the item(s) must be accurate and true.
Credit Information Fact (or Myth?): Rich people all have great credit.
Answer: also False. Having a lot of money doesn’t make you responsible with credit. Many people with money are consistently late with payments. Your credit history consists of a lot of things including your types of credit and payment history plus several other things.
Credit Information Fact (or Myth?): If I use a Consumer Credit Counseling service it will improve my credit score.
Answer: False. When you enroll in a credit counseling plan a statement is placed on your credit report for each item included in the plan. This may initially cost you some credit points (not a lot), and certainly not as many as you are losing by making late payments and having high credit card balances. However, your credit score will continue to improve over time as you make your payments and pay down the outstanding balances.
Credit Information Fact (or Myth?): I’ve never been late on a payment so I have great credit.
Answer: Truth AND Myth. Let me explain. Your payment history (whether you are on time or late) makes up only 35% of score. The other 65% are made up of several other factors. We have an excellent article on our site “How Credit Works.”
Credit Information Fact (or Myth?): I’m getting married so my wife (husband) and I will share the same credit.
Answer: False. HOW ARE YOU DOING WITH YOUR ANSWERS SO FAR? A lot of people believe this is true but it is not. Your credit report is based on credit that you’ve applied for with your own social security number. So while it is possible that you may share some credit items with your spouse if they are joint accounts (meaning you applied for the credit together, like for furniture or a car loan), each of you has a separate credit report and scores. So if your husband/wife is not as responsible as you then make sure not to combine your credit with theirs – and if you do make sure all the bills are paid on time to keep your credit score up and help to repair theirs.
Credit Information Fact (or Myth?): Once I have paid off old collection accounts, late payments, judgments, or anything else negative they are removed from my credit report.
Answer: False. I wish it were true but it isn’t. However as you build current credit these will be pushed further down and most creditors will look at the current history closer than an old debt.
Credit Information Fact (or Myth?): Credit repair is illegal.
Answer: False. It is very legal for you or anyone you choose to hire to challenge anything that is inaccurate, misleading, or unverifiable on your credit report. Once you write the letter challenging the item(s) the other party has 30 days to respond which means this can be a slow process. If you decide to do this yourself be prepared to wait and possibly be declined for removal. Many people have found that it pays to bring in a credit attorney for this. It is inexpensive, you pay a monthly fee and cancel when you want to, and you will get guaranteed results. Or visit our website under credit repair website. You’ll be surprised at how easy and affordable it is.
Credit Information Fact (or Myth?): I don’t believe in credit so I pay the entire balance each month. This should raise my credit score, right?
Answer: False. Part of your credit score is calculated by how promptly you pay your credit card. This was designed by the creditors to determine who paid on time. By paying the entire amount you are circumventing part of this process. If you want to show responsibility leave a small balance running (emphasis SMALL) and pay more than the minimum balance. Eventually pay the entire amount then start over again. This will positively affect your score more than paying the entire amount each month.
Credit Information Fact (or Myth?): Eliminating the number of credit cards I hold will increase my FICO score.
Answer: Variable - This may surprise you. If you have a lot of cards (over 5) and decide to eliminate some, get rid of the newer cards. DO NOT – I repeat – do not eliminate credit cards that you have held a long time. There are several reasons why.
Firstly, these probably have the largest credit limit and secondly, also the longest track record of payments. The track record of payments is one of the major things that affect your credit score. Get rid of the newer cards. Getting rid of the older cards can negatively affect your FICO score, sometimes by as much as 100 points because it eliminated a big portion of the “history report” piece of your credit.
That being said, it’s wise to keep only 2 to 3 credit cards. Too many open balances will also negatively impact your credit as “available balances” send up a red flag to potential lenders. If you’ve got cards totaling $50,000 in available credit, although unused, it is something you could certainly go out and run up tomorrow, which makes car and home lenders a little wary about loaning you money.

Article Source: http://www.articlesbase.com/credit-articles/
credit-information-truths-vs-myths-275372.html

http://www.1-800BadCredit.com provides up-to-date information for people
with bad credit. Providing auto loans, mortgages and refinance options,
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protection and advice & tips on saving, budgeting and getting out of
debt. Founded by Dewey & Leslie Kearney who understand bad credit
because they've been there too!
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About CreditGuide (Articles Publisher):
CreditGuide is my alias name for publish credit card,
financial, loan and mortgage articles on flixya dot com.
I'm interest to publish any useful articles.
For more articles visit my blog and web site below :

Computer Tips Articles Blog
Automotive Articles Blog
Information Technology and Mobile Phone
Credit Care Articles Blog
Chiang Mai Information Site
Hotels Reservation Thailand

How to Avoid the Pitfalls of Easy Credit

Fifty years ago, credit was hard to come by. Banks were hesitant to lend money without collateral of some kind or without significant net worth on the part of the buyer. Now, it seems banks are more than willing to throw money at us. They are gambling that we will use the credit and carry a balance – the fees and interest charged on the loans and cards are huge sources of income for the bank. The more we spend, the more they make. Today getting credit is easy, and getting in serious trouble with the credit is even easier.

Too Much Credit?
The average person can borrow over three times his income to purchase a new home – with little or no down payment. Car loans can be taken out for over five years to help buyers purchase expensive vehicles at a reasonable monthly payment. Credit card pre-approvals and applications arrive at the mailbox daily. With so much credit available, it can be very hard to resist, even for those who know how dangerous it can be.

A home loan should not be more than two times your annual income, before taxes. So why do banks offer you up to three times your income? Because they know you will do everything you can to pay your mortgage each month and because they know most people will spend as much as they are allowed. It takes a strong person indeed to spend only $200,000 when they are told by the bank they can spend over $300,000.

Cars lose value instantly when purchased, and the longer a loan, the less car you own each year. Considering most buyers trade in a car in less than five years, the banks offering the long loans are making a bundle on the long, drawn out interest charged over the years on a car that is seldom worth what a buyer ends up paying.

Credit card companies have a relatively safe bet that consumers won’t be paying off the balance each month. Balances on credit cards are subjected to very high interest rates. The higher the balance and interest rate, the more money the bank is making. And the less likely you are to ever have the card paid off again.

Credit Dangers
With so much easy credit, its no wonder the average consumer has over eight thousand dollars in debt. With incomes unlikely to rise at the rate of spending, the payments on all the debt cripple many households. House payments eat up half of the monthly income and car payments take out another large chunk. Minimum credit card payments total large amounts and every dollar sent to the cards is getting you nowhere close to debt free.

Using too much credit is a spiral that is hard to stop. The more you spend, the more you pay on bills. The more you spend on bills, the less cash you have, so the more you borrow. Of course this increases your bills further and finally, you owe more than you make. When this happens there are few outs other than bankruptcy or some form of debt counseling.

Protecting Yourself
Rather than trying to dig yourself out of a financial hole for years, it is far better to stay away from falling into one in the first place. Credit is a wonderful thing that helps us make large purchases and enjoy life, but it must be used wisely.

Be realistic with the amount you can spend and avoid temptation. Every dollar you borrow is costing you money, and the more you borrow the more money you are making someone else. If you can’t pay cash at the time, be sure you have the ability to pay more than the minimum on each bill. Pay your credit card statement in full each month and avoid high interest rates and long terms. Be aware of credit risks and use your money wisely – after all, you worked hard to earn it.

Article Source: http://www.articlesbase.com/credit-articles/
how-to-avoid-the-pitfalls-of-easy-credit-212074.html

Joshua Watson is the webmaster and author of Make Money Online and Life Settlements He had also authored a great How To Guides website and is looking for article submissions.