Hello everyone!
Hope you all had an enjoyable week last week. Today I want to address the issue about good folks that have had some credit problems in the past and want to recover from it and get a credit card again. Even if they lost it through bankruptcy or just have had a bad credit history for whatever reason.
The best way to recover and get another credit card is applying to a bank that has a secured card. What this simply means is that you send the bank money and they put it into a special savings account with an application you fill out.
The amounts vary what you can send to them. It usually is as low as $300.00. You can send in more if you have it and this amount will become your "credit card" limit. So if you send them let's say $700.00, they will give you a credit card with a credit limit of $700.00.
Many banks have secured credit card offers, but be careful and read the "fine print" in their disclosure statements. Some banks will charge you a high interest rate if you carry a balance and some will charge a monthly or yearly "membership" fee which can be a large amount also. Don't even apply to these banks.
They are just taking advantage of your poor credit situation. There are banks that do offer a reasonable rate and fee for a secured card and I will be giving those to you next week. Until then, have a safe a pleasurable week!
Michael
Tuesday, June 24, 2008
Tuesday, June 17, 2008
Raising Your FICO Credit Scores
Hello Everyone:
This week we will be looking into how to increase your FICO credit scores so you will have a better chance at getting an approval on your credit card application.
One of the items you need to do is not go out and apply for every credit card offer that crosses your table or mail box. If you submit a slew of applications, you will bring down your FICO scores in a hurry at the credit bureaus.
Each time you apply for a credit card or personal loan, that causes an inquiry to be posted to your credit report. This inquiry brings your FICO score down a good chunk. Especially if you submit or apply for many offers.
That is a "no no". What you want to do is find an offer that that appeals to your own personal situation. For instance, you might find a zero percent interest card for balance transfers or just getting a card that pays you back on purchases you make.
Another thing you can do to increase your credit score is to raise your credit limit on a card if you have one already. This doesn't mean that you should use the increase. If you max out the card, that will bring down your score because your credit limit was maximized.
Example: you have a card with a $1000 limit on it and you call the bank to increase your credit limit and they approve you for another $1000 on it, do not use that increase! Only use 1/2 your limit on the card. That way you will only be showing on your credit report that you are only using 50% of your card limit.
You will get "dinged" for an inquiry though. Sorry, that's how the system works, but you will win in the long run.
I've rambled enough for this week, so I will be addressing some issues with folks that have bad credit and how they can get a credit card to start rebuilding their credit.
See you all next week!
Michael
This week we will be looking into how to increase your FICO credit scores so you will have a better chance at getting an approval on your credit card application.
One of the items you need to do is not go out and apply for every credit card offer that crosses your table or mail box. If you submit a slew of applications, you will bring down your FICO scores in a hurry at the credit bureaus.
Each time you apply for a credit card or personal loan, that causes an inquiry to be posted to your credit report. This inquiry brings your FICO score down a good chunk. Especially if you submit or apply for many offers.
That is a "no no". What you want to do is find an offer that that appeals to your own personal situation. For instance, you might find a zero percent interest card for balance transfers or just getting a card that pays you back on purchases you make.
Another thing you can do to increase your credit score is to raise your credit limit on a card if you have one already. This doesn't mean that you should use the increase. If you max out the card, that will bring down your score because your credit limit was maximized.
Example: you have a card with a $1000 limit on it and you call the bank to increase your credit limit and they approve you for another $1000 on it, do not use that increase! Only use 1/2 your limit on the card. That way you will only be showing on your credit report that you are only using 50% of your card limit.
You will get "dinged" for an inquiry though. Sorry, that's how the system works, but you will win in the long run.
I've rambled enough for this week, so I will be addressing some issues with folks that have bad credit and how they can get a credit card to start rebuilding their credit.
See you all next week!
Michael
Tuesday, June 10, 2008
Proper Use of Credit and Credit Cards
Hey Everyone:
This week our topic is the proper use of credit and credit cards. If you are a person that has a fairly decent credit history you still need to pay attention. If your credit just plain sucks, you need to pay special attention, too.
Nobody should carry no more than 3 major bank cards to their name period! If you currently have more than 3, you are setting yourself up for trouble down the road.
To correct your situation now is to pay down and pay off any major card accounts that you have and not to close those accounts. Like I mentioned before, no more than 3 major cards!
You should not have more than 1 or 2 major department store cards either. What you are setting yourself up to accomplish is to improve your FICO credit scores. If you don't know what that is I'll tell you here.
Your FICO credit score is a number between 300 and 850. All three credit bureaus use this number to rate us at how well we use and handle our credit obligations. If you have a credit score that is somewhere below 600, you will be consider by most banks and lenders as a "high risk" person. All that means is that your chances for getting an approval on a personal loan or applying for a credit card will most likely be denied.
Your best chances at getting an approval will be working at raising your credit scores. I will be addressing this issue next week. Until then stay cool!
Michael
This week our topic is the proper use of credit and credit cards. If you are a person that has a fairly decent credit history you still need to pay attention. If your credit just plain sucks, you need to pay special attention, too.
Nobody should carry no more than 3 major bank cards to their name period! If you currently have more than 3, you are setting yourself up for trouble down the road.
To correct your situation now is to pay down and pay off any major card accounts that you have and not to close those accounts. Like I mentioned before, no more than 3 major cards!
You should not have more than 1 or 2 major department store cards either. What you are setting yourself up to accomplish is to improve your FICO credit scores. If you don't know what that is I'll tell you here.
Your FICO credit score is a number between 300 and 850. All three credit bureaus use this number to rate us at how well we use and handle our credit obligations. If you have a credit score that is somewhere below 600, you will be consider by most banks and lenders as a "high risk" person. All that means is that your chances for getting an approval on a personal loan or applying for a credit card will most likely be denied.
Your best chances at getting an approval will be working at raising your credit scores. I will be addressing this issue next week. Until then stay cool!
Michael
Monday, June 2, 2008
Applying Online vs Snail Mail
Hi everyone:
This week we are going to answer the question that many of you have asked. Is it better to apply for a credit card online or by filling out an application and placing it into the mailbox.
Trusted credit cards offered by major banks are very easy to apply for using your own computer. All major banks use secured settings on their websites, which means that you can apply online without fear of your personal information being stolen.
You just need to make sure that you see the little "lock" icon on their website somewhere.
If you feel more comfortable with filling out an application at home and sending it out by mail, then I would recommend that you do it that way.
We have a website that can help you find the best credit card offers from major banks. This site is at: http://www.trustedcreditcards.us/
If you are looking to apply for a gas credit card, they are at: http://www.trustedcreditcards.us/
If you are looking for a corporate credit card offer or an application for a business credit card, they can be found at: http://www.trustedcreditcards.us/
One of the advantages of applying online is that once you submit the application, you will know within a few moments whether you have been approved or not.
If you are looking to re-establish your credit, have bad credit or just good credit and are looking for a card that offers rewards or 0%APR you can find them at: http://www.trustedcreditcards.us/ also.
The bottom line is that you have to be comfortable with how you handle your credit. Next week we will be discussing the proper use of credit and credit cards and how to avoid over extending yourselves that can get you into trouble.
Until next week,
Michael
PS: Have a topic you want to discuss or question about credit cards in general just post your comments below!
This week we are going to answer the question that many of you have asked. Is it better to apply for a credit card online or by filling out an application and placing it into the mailbox.
Trusted credit cards offered by major banks are very easy to apply for using your own computer. All major banks use secured settings on their websites, which means that you can apply online without fear of your personal information being stolen.
You just need to make sure that you see the little "lock" icon on their website somewhere.
If you feel more comfortable with filling out an application at home and sending it out by mail, then I would recommend that you do it that way.
We have a website that can help you find the best credit card offers from major banks. This site is at: http://www.trustedcreditcards.us/
If you are looking to apply for a gas credit card, they are at: http://www.trustedcreditcards.us/
If you are looking for a corporate credit card offer or an application for a business credit card, they can be found at: http://www.trustedcreditcards.us/
One of the advantages of applying online is that once you submit the application, you will know within a few moments whether you have been approved or not.
If you are looking to re-establish your credit, have bad credit or just good credit and are looking for a card that offers rewards or 0%APR you can find them at: http://www.trustedcreditcards.us/ also.
The bottom line is that you have to be comfortable with how you handle your credit. Next week we will be discussing the proper use of credit and credit cards and how to avoid over extending yourselves that can get you into trouble.
Until next week,
Michael
PS: Have a topic you want to discuss or question about credit cards in general just post your comments below!
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