(57)Credit Card Hazards That Can Cripple Your Finances

You are pre-approved! Every time I check my mail there is at least one or two pre-approved credit card applications. You get them too, I'm sure. You can even have terrible credit and they still continue to flood your mailbox. And if you just filed bankruptcy you will get more of them than you know what to do with!
Credit card debt is so easy to get into--over and over again. Most people don't feel like they are spending real money until the bill comes, and then it's too late. The credit card companies know how to make it very tempting to fall back on any good habits we've created and just spend away. It's hard to get away from, but we have to resist temptation.
When establishing good credit, one of the things we're told to do is to get a credit card and then use it to spend wisely. Experts advise us to pay our bills on time and not to exceed the credit limit. However, no one really talks to us when we get that first card about how easily and quickly we hit that limit, or how easy it is to miss that first monthly payment. Once you get behind, it can be really hard to catch up. Oftentimes, credit cards come with introductory interest rates that are nothing or very low. But many times, those rates soon change and you can find yourself with a full balance on your card with an 18 or 20 percent interest rate! That interest rate can then put you over your limit, if your not paying at least the minimum payment, now making you susceptible to over-the-limit fees. Before you know it, you are getting bad reports on your credit reports for credit card debt on a card that you haven't even had very long.
Unfortunately, when times are hard, abusing credit cards is all too easy. When the economy is bad and cash is tight, it is all too easy to put your daily living expenses on your credit cards. If there is any kind of pattern like this in your credit card spending, it can build huge credit card debt pretty quickly. If you are not making your credit card payments, the credit card companies do inquiries to verify your address or other information. Every time they make an inquiry on your credit report, it makes you look like even more of a high risk, further worsening your credit history. All the credit card debt on your report, even if some of it is good, can make you look high risk for car loans or mortgages - especially if any of those cards hold high balances. Even worse, that bad credit report can keep you from renting an apartment or getting a job that requires a background check.
So keep in mind, as tempting as it may be to pay with a credit card, choose the "debit" option next time. It's normal to risk it all when times are tough, but doing so creates more problems later that can take you years to fix. Credit card debt has long term risks, but if you use credit cards wisely, you can build credit that brings rewards instead.

About the author:
If you would like to get more credit information you can visit our website which contains many credit resources. This article is copyright 2009, but can be freely reprinted, as long as no changes are made, including hyperlinks.
Written by: Dave Robinson
EA Builder

(58)Credit Report Scores - Why it is important for your finances

The airwaves these days seem to be full of advertisements for consumers to obtain their credit reports and also apply for credit cards. Apart from encouraging consumers to obtain their credit reports, consumers are not told and do not fully understand why it is that important. Most people, after all, can obtain a credit card with an interest rate of say, 24.95%, and can afford to make the repayments spread over a very long period of time. The emphasis seems to be on "yes, I can afford the repayment". And so many consumers start with one credit card and go on to two, then three, four, five, six and on and on it goes. There are consumers who have balances on more than twelve credit cards. They have literally surrendered their financial will to credit institutions that rule over their lives. The sad thing about this situation is that the more credit card balances you have the lower your credit score, and the smaller the chance for you to obtain a loan for an important purchase like a house.
The way credit reports and credit cards are touted these days by financial institutions, one would think that these two "entities" share a common positive association. Nothing could be further from the truth. Yes, you can establish an initial credit profile by applying for one or two credit cards. Nobody is going to argue with that position. When you start on your fourth credit card, that's when trouble begins.
Credit costs a lot of money. Obtaining a loan, any loan is not cheap, and will surely burn a hole in your pocket (take some time to examine and acquaint yourself with how much money your mortgage will cost you). How big a hole it burns depends on you; in other words, the interest rate that you are prepared to pay on the loan. This is what distinguishes the average "Joe" from a millionaire when they both obtain credit from the bank. The millionaire almost certainly has tangible collateral and constitutes less risk to the bank. Joe's tangible collateral, on the other hand, is non-existent.
In the eyes of the bank Joe's only collateral is his credit report and fico score. He is therefore more of a credit risk than the millionaire. Therefore, in terms of risk, do consumers have a deep understanding of how much of a risk banks see them when they have low credit scores as a result of bad credit reports? If I were the loan officer, Joe is surely not getting any loan from my bank! Or even if I were really kind and decided to approve, I would hit Joe with a high interest rate so that I recoup my "investment" as quickly as possible before Joe defaults. With this knowledge, why wouldn't the average consumer try to improve upon his credit score profile?
It is not only defaulting on a loan that would bring your fico score down. Any number of things could do that to you. A tiny piece of negative information on your credit report can ruin your fico score or credit score. Most of the time consumers are not even aware of this negative piece of information because they don't have copies of their credit reports to be able to fix errors. This is why providing basic information on credit report scores is so important.
Without making any assumptions about the financial sophistication of its visitors, Aba Online Credit ( presents information on the importance of credit report scores in very simple language so that it is not burdensome to the average consumer to read and understand. The website is full of information on nearly every important thing related to credit report score reports and even tells you how to achieve or even improve on your credit score (
About the Author

Written by: Kofi Assan

(59)Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills

For millions of homeowners, refinancing is the perfect way to consolidate debts. You can consolidate your debts, eliminate outrageous interest rates and fees, and make one low monthly payment. Credit cards, medical bills, and unsecured loans can all be combined into one monthly payment when you apply for a debt consolidation refinance loan. The time has never been better to apply due to the current low interest rates being offered by mortgage lenders. Information and quotes are free and you can apply to several lenders with one simple online application.

Refinancing your home in order to consolidate debts has tax advantages as well as lowering your monthly payments. You can roll all your debts into one low monthly payment and receive tax deductions on your refinanced mortgage. A debt consolidation refinance can give you extra money each and every month, eliminate high interest rates on credit card debts and unsecured loans, and give you a fresh start on attaining your financial goals. If you have overdue bills that never seem to get paid off and you feel as if there is no end in sight to the constant financial pressure and stress, a debt consolidation refinance loan is the perfect answer to your problems.

Information on a debt consolidation refinance loan is available to you immediately when you complete a short, simple online application. You'll be contacted by multiple lenders in as little as 24 hours who can give you expert advice on consolidating your high interest debts into one convenient, low monthly payment. The quotes are free and there will be no initial credit check. Simply review the offers and choose the lender that best suits your needs. You can avoid multiple inquiries on your credit report by applying to several lenders at once with one quick online application.

A debt consolidation refinance loan can enable you to eliminate debts and save money. Even if your credit history is less than perfect, you can refinance your home and consolidate your debts with one easy application. Multiple lenders who can assist you during each step of the refinancing process will contact you within hours after receiving your application. You'll get no-obligation quotes from lenders who are eager to advise you about the numerous options that are available to you. If you complete the short online application today, you will soon be on your way to a debt free existence, free from the stress and pressure created by those high interest debts.

To view our list of recommended debt consolidation companies online, visit this

About the Author
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans, with informative articles and the latest finance news.

Written by: Carrie Reeder

.(60)Deciding if the Time Is Right to Refinance

Choosing to refinance a loan can be a major decision, especially if that loan is a major loan such as a mortgage or automotive financing. If you refinance your loan too soon, you might end up doing more harm than good and not be able to do much to correct it... but if you wait you might end up missing out on a good deal that isn't likely to return.

Before you make the decision to refinance, you should take the time to make sure that you understand exactly what refinancing entails and should look at the various signs to determine whether or not the time is actually right for you to refinance your loan.

Below you'll find some basic information on what refinancing is as well as information that might help you to make the decision as to whether or not it's the right time to take that step.

What Refinancing Is

Though the name may suggest that refinancing a loan is simply a negotiation of the loan's terms, it is actually a separate loan that is used to pay off the remainder of the original loan at the new loan's interest rate and payment cycle.

Refinancing can be done at the bank or lender from which you received the original loan or at some other lenders; this can be beneficial if you're wishing to change banks or lenders but are worried about the outstanding loan that you currently have.

The refinance loan usually uses the same collateral as the original loan, though in some cases you can change the collateral and use the new collateral to attempt to get a lower interest rate.

Whatever collateral was used for the original loan will be free of lien should you use new collateral; the original loan has been completely paid off by the refinance loan, so any collateral or other factors that applied specifically to the original will not apply to the new loan.

There may be certain factors, such as the requirement by many lenders that you have homeowners insurance for mortgage loans, that may carry over to the refinance loan as well.

How to Tell if the Time Is Right

If you're thinking of refinancing, you should begin by looking at current interest rates for loans and trends in refinance lending. Many finance journals, newspapers, and tabloids will have information on whether national interest rates are likely to change soon and whether they will increase or decrease, so that is a good place to start.

You should also look at your current loan and how much of it has been repaid... unless you get a really good deal, it's generally not worth the trouble to refinance a loan unless you've been making payments for a year or more since the difference in the original amount and the refinance amount won't be significant.

Consider your current monthly payment and interest rate and determine whether you'll be likely to get a better rate and lower payment from a new loan, and then shop around at various lenders so as to find the best rates available.

Signs that the Time Isn't Right

Should you find that interest rates are at a higher level than what you're currently paying or that you haven't paid off a significant portion of the original loan, you might want to wait before refinancing.

It's possible to end up paying more in interest or monthly payments than your original loan when you refinance, so you should always take care to do a bit of research before deciding to commit to a refinance loan.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

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About the author:

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. website.

Written by: John Mussi

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