How can I build up credit.?

How can I build up credit.?
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I try to apply for cards from stores ( kohls, target..etc..) but never get approved. I just recently purchased a used '95 van and got a loan i am always on time and always pay more than i should pay. My credit score is 630 ( or a lil' higher ) but i never seem to get approved. I pulled my credit up and it states that i don't have any " revolving account''?!?Can anyone help?!?
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The Answer : If you're a young person just starting out in life and have never financed a car loan, a computer, or other major purchase, how do you begin to establish credit? First, consider applying for a credit card issued by a retailer, such as Sears. Retail and gas cards are much easier to get than a Visa or MasterCard. Many people, including the author of this article, started their credit history at the age of 18 by applying for a Sears card and a gas card.
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Note that, although gas cards are easy to get, don't try to establish your credit history exclusively with a gas card (e.g., Texaco, Exxon, etc.) -- they rarely report credit histories to the credit bureaus; however, you can use them as a reference on a credit application. You must be at least 18 years old to be approved for a credit card.
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Why? Because under contract law, a minor can rescind a contract at will in most circumstances. If a credit card issuer were to give a credit card to a minor, the minor could charge up to the credit limit and then rescind the contract and refuse repayment. Minors wanting to have a credit card in their own name must have a parent, guardian or other adult over the age of 18 contract for the credit card. You Must Have An Income.
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This does not really need an explanation. Would you lend money to someone who had no means of repaying it? The good news is that you don't have to have a particularly high income to qualify for many standard credit cards. Whether your income is sufficient to be approved for a credit card depends on the issuer since each has their own minimum income requirement. Your credit line will be very small if you have a small income, but you must start somewhere. If you make your payments on time, your credit line will be increased after periodic reviews.
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You Must Have a telephone number in your name. If you don't have a telephone number at all, you will not get unsecured credit. Likewise, if you can be contacted only from a telephone number that belongs to your Uncle Joe's second cousin, this will make lenders very nervous and they will be much more likely to decline to give you credit.You Should Have Checking and Savings Accounts. There is a reason that you are often asked if you have a checking or savings account when applying for credit.
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This is used to score your credit worthiness. Answering "yes" boosts your odds of getting credit; answering "no" does the opposite. Just don't answer falsely; it is an act of fraud to give false information when applying for credit. You can open a checking account for as little as $100 in many places and increase your credit score a little bit.Stay in one place. If you move from apartment to apartment or city to city, this will send up red flags all over the place. Lenders are concerned about you disappearing and not being able to locate you.
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Living at the same address for a long time adds points to your credit score. The longer you stay at one address, the better.Stay at the same job. Moving from job-to-job is frowned on by lenders, too, because it shows instability and makes them less likely to approve your application, particularly when you have no credit history. If you can't keep a job and you have no credit history, you're at a much higher risk of being unemployed and, consequently, unable to pay your debts.
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Working for the same employer for a long time adds points to your score.Pay Your Bills on Time. Once you have been issued credit, it is very important that you are not late making payments or even worse, miss making a monthly payment entirely. Missing a single payment will damage your credit rating for years, and being late several times will come back to haunt you. If you are late making your payments now, you can be sure that in the year 2003 when you apply for a car loan, you'll be asked about the late payments you made back in the year 2000 and you will be paying a higher interest rate on the car loan because of it.
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Be sure you don't damage your credit rating needlessly -- always send your payment in at least 10 days before the due date to give plenty of time for your payment to be received. The credit card companies report delinquent and missed payments automatically to the credit bureaus by computer every month. If you're payment hasn't been received by the due date shown on your statement, you automatically get a negative entry placed on your credit report. And it isn't fun trying to get negative entries removed from your credit report. So don't adopt the attitude that, "I'll pay that bill when I'm good and ready!" because you are only hurting yourself.Don't spend more than you can pay off each month.
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Keep in mind that when you are issued your first retail credit card from Sears or whomever, your purpose is to establish an excellent credit rating so you qualify for the Visa or MasterCard that you really want. Use your Sears card to buy necessities, such as shoes and clothing, and pay your balance off each month. Don't run your Sears account up to its limit -- department store cards come with a significantly higher interest rate than Visa or Mastercard -- around 20% or 21%. Another good reason to pay off your balance each month or frequently -- it shows you're a better credit risk. When you're ready to apply for that Visa or Mastercard, your credit report will reflect that you paid off your Sears (or other card) regularly.
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Once you have established a good payment history with a single trade account (e.g., Sears card, gas card), and you have sufficient income, you'll probably qualify for a standard credit card.If you have bad or no credit, the only credit card you are likely to be approved for is either a secured credit card or an unsecured credit card with very high fees and interest rates. This latter type of card is a bad choice, but is often picked by those with bad credit because the idea of sending in a security deposit to obtain a credit card is somehow beneath them. Too many of the credit cards being offered to those with bad credit are outright scams.
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For example, many bad credit cards come with a $500 dollar credit limit, but require a $125 initiation fee; a $100.00 annual fee; $20 monthly fees; and a $250.00 registration fee. So what is left over after you apply and get this credit card? A few dollars and a lot of debt. Companies who market this type of credit card claim they must charge such high fees and such in order to compensate for the high default rate of their customers, but critics argue they are just taking advantage of the poor and those who can't get legitimate credit cards.
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It is always a better option to get a secured or partially secured card from one of the top credit card issuers in the country. Most of the "Top 10" credit card companies, such as Capital One, Bank of America, Bank One, etc., offer secured cards to those who need to rebuild their credit. Applying for and getting these types of cards is definitely worth sending in a deposit to secure your credit limit. Establishing credit with a "Top 10" credit card issuer will also guarantee that (1) your excellent payment history is being reported to one, but probably two, of the three major credit bureaus, and your credit score is being improved; and (2) if you "behave yourself" and always pay as agreed, a Top 10 company will one day offer you an unsecured credit card with a respectable limit, which you can use to go on trips and such (but please don't run up a big balance on it that you can't pay off within two months).
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It just doesn't make any sense to get a credit card for those with bad or no credit that charges you $200 or more per year in ridiculous fees. Why not send in a $500 deposit to a Top 10 credit card issuer and pay a $29 or $39 annual fee? Note that with a secured card from a legitimate credit card issuer, you will one day get your deposit back (provided you live up to your end of the agreement and don't default on the account), plus a small bit of interest earned while the issuer holds your money as collateral. You will never get back the hundreds of dollars in application fees, set-up fees, monthly fees, maintenance fees, and initiation fees paid to a fly-by-night unscrupulous credit card issuer.
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Watch out for terms like "guaranteed approval", "zero introductory rate", "get the card right now" language when shopping for an unsecured credit card because the sign-up fees will be very high. Always read the terms and conditions of the credit card to determine how much you will have to pay in assorted fees before you apply for the credit card.

Where is the best place to start on repairing credit?

Where is the best place to start on repairing credit ?

The Answer : The best place to start repairing credit would actually be to know what makes up your credit score:

1. Payment history-35%

2. Total debt owed vs. available credit-30%

3. Length of time establishing credit-15%

4. Inquiries and New accounts-10%

5. Types of credit established-10%Now with that said, you can see what's affecting your credit the most, and in this case late or missed payments, since it affects your score the most. If you haven't gotten one already, you should open a checking and savings account.

This does many things; it establishes a banking relationship which as an accountholder will make it easier to gain access to their products like loans and credit cards, it helps you manage your money, and finally it gives you the most powerful tool in building credit, a means of paying on time. Make sure to start paying on time on open accounts and make arrangements to take care of delinquent accounts.

Try to negotiate a "pay to delete", which is a payoff, sometime which usually can be a full amount in exchange for getting it removed from the report altogether. While paying off a debt in collections can reduce the total debt you owe (#2), it still may not be enough because the derogatory listing on the account which is still hurting the score. Here's a series of links that shows how to negotiate

http://www.creditinfocenter.com/debt/set...

http://www.creditinfocenter.com/debt/neg...

http://www.creditinfocenter.com/debt/Can...

http://www.creditinfocenter.com/debt/Act...

Also, this would be a good time to look over the report and check for any accounts that might not look familiar and any other inaccuracies that may appear, It happens all the time, inaccurate information causing scores to be much lower than they should. Just because you think you have bad credit, doesn't necessarily mean that it has to be THAT bad. So with that said, dispute incorrect items with all 3 bureaus.

If you have any open accounts, to correctly build credit takes more than just paying on time. It also means to paying down balances as well. The next thing that affects credit is having high balances and low limits on credit cards. The scoring system allows 25-35% of combined available credit to be used at any given time. So, it's impotant to stop using the cards and pay down the balances. Now what I mentioned earlier is if there any credit cards that were still open.

If that's not the case and you're needing to start with new cards, then start with a secured credit card. There's a reason for this. Now you would have to put a deposit upfront that would be used as collateral, but it would secure you a line of credit, which is important to get approved for a credit card that you can easily get becuase it's like a catch 22: regardless of whether you're approved or not, when you apply for credit, it creates a "hard inquiry" that lowers your score(see #4).

By getting a secured card, you give yourself the best chance of getting approved without burning up points trying to apply for credit that you nornally won't get with a low score. Now some tips with secured cards: 1. PAY ON TIME 2. Make small purchases a month (like $20/month), and pay it off, and 3. Increase the credit limit by adding to the deposit, which looks good on a report, because you need to create a cushion between the total debt owed and the available credit (see #2).

Usually after a year or so, the card either converts to a regular card or a better card is offered altogether and more importantly, the deposit is no longer needed and is given back. You could repeat the process with another secured card if you like, but as long as you have at least 3 open credit card accounts, you should be fine. Another thing you should do would be to try to open an installment account. You could do this by opening a secured loan with a bank.

It works just the same as the credit card the only thing it's a loan. The proceed from the loan should go into a short-term certificate of deposit. The length of the CD should be slightly shorter than the length of the loan, so the money would be avaiable in the event it needs to be paid off. I would try to do small amounts, like $500 for example, but no more than a $1000. That would be another way to build new credit.Hopefully my answer will point you in the right direction

Good Luck!

Can i request debt validation from the creditor?

Can i request debt validation from the creditor?
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I would like to send a debt validation letter to the creditor or there attorneys but can this be done. The creditor is the one taking me to court thru an attorney.
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The Answer : I'm glad you asked this question. And I have the perfect sample letter you can use. And it is your legal right under the Fair Debt Collections Practices Act and the Fair Credit Reporting Act
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You sure can. Please google the phrase "debt validation letter."There are lots of free letters on line. Once you get the letter customize it to fit the debt in question and send it to the company.Really the best way is to send it and require signature as proof of receipt.
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The company will send you a response with in an allotted time, I think they have 30 days.I am told by our credit rehab dept it is better to go this route then show a dispute on your credit report and still owe the debt. Sometimes lenders see the dispute on that debt as a fraudulent allegation.... a result of a quickie credit repair company trying to clean your record.

New credit lowers score?

New credit lowers score?
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I aquired 2 new credit cards in June (BP and Home Depot). My score immediately dropped from 702 to 641 (FICO). As of today my score has not risen 1 point ! True Credit states the reason is I aquired the cards in too short of time. Now had I been denied the cards my score would have not dropped. My banker says I should cancel the cards and it should go back up. Since the score hasn't risen at all in 4 months I'm pondering doing just that! Any thoughts?
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The card limits are only 400 and 700. Debt to income is 10% ( moot point since credit bureau does not factor that norr is privy to your income. My other credit cards have a total limit of 10,000 and I only owe 220.00. 1 car loan never late on anything , no collections.
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Transunion does not use FICO any longer, they use Vantage.I owe nothing on theses cards. I owe 3% of my total available credit. One of my credit cards show my score each month. I also have a friend that ran my credit thru his car dealership.. all scores are within a 5 point differential, so they can't ALL be wrong. Point is how long before my score starts going up? Been 4 months now
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The Answer : This is some important things to know:
1. Payment history- 35%
2. Total debt owed vs. available credit-30%(debt to income ratio)
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%With that saidThe 2nd poster's correct about what your banker not knowing what he's talking about.
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Just by applying for those 2 cards alone, it dropped your score because of the inquiries when you formally applied for credit, regardless if you're approved or not. Cancelling the cards at this point is not going to bring your score up. It can take anywhere between 6 months to a year for your score to even show signs of raising when it comes to new accounts. Opening up the cards also shortened the average age of accounts that you have. You've already done the damage. You'll need to pay on time and keep the balances low in order for those accounts to help your score.

Credit Scores

Credit & Loans

Credit card question.?

Credit card question.?
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Okey , so I have never had a credit card. I actually just wanted one for emergencys or in case I was running low on cash between pay days for things like gas. So I was just approved for one with no annual fee, 0% fixed apr, and a variable apr of 14.24%. So I have a few questions. If I dont use the card at all one month, will I have a charge? If I charged say 50$ onto the card in one month what would my bill roughly come out to after all of the charges? Can I cancel it at any time? Thanks!
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The Answer : If you don't use it, you don't have to pay, as long as the balance is 0. But the downside to that is that if the card is not used, then there is no credit history to report, which doesn't help build your credit. The best way to use the card would be to spend no more than $20/month, something that you can pay off every month. That way, you show activity on the account, and minimize as much interest as possible. You can cancel at any time, but you would need to make sure the balance is completely paid in order to do that. But you hurt your credit score when you cancel cards, so my advice to spend no more than $20/month would be your best option.

Amazon Gift Certificates

In attempt to rebuild my credit, what type of card will I most likely be approved for?

In attempt to rebuild my credit, what type of card will I most likely be approved for?
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Should I apply for a credit card through my bank or should I try to get one from a department store? I've had my bank account for about 5 years. I have had a couple of overdraft issues but have taken care of them within a matter of 2 or 3 days. No overdrafts in the last year though.I don't want to go through the trouble of applying just to get denied and have that show up on my credit report.
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The Answer : You may want to check with your bank to see if secured credit cards are offered. Secured credit cards are the easiest credit cards to get mainly becuase you have to place a deposit upfront as collateral to secure a credit line. For example you place a deposit of $300, your credit line would be $300.
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By being able to add to the deposit to increase the credit line, it gives you more control over your credit line, while also allowing you to create a savings for yourself. Since the deposit is usually tied to a savings account or a CD, the deposit would gain interest while you're building credit, so you could think of this as an investment.
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As long as you maintain a low balance by making small purchases ($20/month) that can be paid off on time every month and add to the deposit as much and as often as possible, usually after a year the card either converts to a regular card, ora better card is offered, and most importantly, the deposit is no longer needed and is given back.
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Not only will you have built your credit by custom building a high limit credit card, but saving money also in the process.Department store cards are somewhat easier to get than regular cards, but since the number of inquiries (credit apps) count 10% of your score, whether you're approved or declined, it's important to make each application count. So that's why I stress the importance of getting a secured credit card. While you would be using your own money, you would be building credit and creating a savings for yourself

Bad Credit Payday or Cash Advance Loans - No Credit Check Required

Bad Credit Payday or Cash Advance Loans - No Credit Check Required
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If you are in need of extra cash until pay day, you may want to consider applying for a pay day or check loan online. A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify you from qualifying for a pay day loan. You can use the money for what ever purpose necessary and the money can often be deposited into your checking account the very same day you apply. All you need is a checking account, and a steady source of income and you can get up to 1000 dollars or more deposited directly into your checking account.
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A pay day loan is designed to fulfill your short-term financial needs and should not be used as a regular lending source. The fees charged for pay day loans can be higher than a traditional loan from your bank and should only be used to solve temporary or emergency financial crises. Repeatedly obtaining pay day loans can cost you a lot of money if you extended your pay off date numerous times or if you continually borrow against your next pay check. If a short term pay day loan is the best choice for you, you can be approved and have up to 1000 dollars or more deposited into your checking account sometimes as soon as the very same day you apply.
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Pay day loan interest rates vary from company to company. Some lenders offer discount rates for new or returning customers. After supplying the pay day loan company with the required information, usually your name, address, employment and banking information, you can be approved in as little as one hour and the funds can often be in your checking account the very same day. Occasionally you may be required to fax your last pay check stub and bank statement prior to approval, but the funds can still be deposited into your checking account very quickly.
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Bad credit should not stop you from applying for a pay day loan. There will be no credit check, only the verification of the information you supply. Pay day loan companies do not check your credit report or contact your employer, except as necessary to verify employment. Applying and getting approved is quick and convenient. Online lenders can approve you application quickly and you'll have the cash you need as soon as the very day you are approved.

How does it work when you want to get a car loan on your own from your bank?

How does it work when you want to get a car loan on your own from your bank?

The Answer : You have to go chose a car. Take the paperwork about the car to your bank/credit union/loan office. Present these papers along with your last two months worth of check stubs from work. You will probably have to have very good credit on the credit check. No judgments or outstanding problems. They may require collateral if you fit into that category of people.

Need help finding a personal loan for people with bad credit!?

Need help finding a personal loan for people with bad credit!?

The Answer : There are plenty of places that offer loans for people with bad credit with no-hassle applications and easy requirements. Some of these lenders even offer 1 minute approvals, and have both secured and unsecured loans, depending on your need and situation. Check the page listed below, it has information and bad credit lenders listed off and on.

http://www.axalda.info/bad-credit-loans.html

When You get a credit check done does it bring your credit score down or up.?

When You get a credit check done does it bring your credit score down or up.?

The Answer : It sure does. Whenever you officially apply for credit, it creates an inquiry that drops your score 5 points, and the inquiry lasts 2 years, however it doesn't have an effect on your score after a year.

Everytime a company checks your credit it DROPS your scoreso applying for alot of credit cards, or car dealerships or apartments, each inquiry will DROP you score, so be very choosy!

Each inquiry brings your score down. But if you have multiple inquiries for a mortgage or car within a 14 day period, it only counts as one inquiry for score purposes. This is done because it's not fair to penalize someone who is shopping for a good interest rate. The reason the score is affected at all is because someone with multiple inquiries is viewed to be applying for mutiple credit cards, etc, which can be a red flag for unwise credit choices, which leads to delinquency.

Don't worry, your credit score is fluid, and changes over time. As time passes, your score will come back up (provided you pay on time, and are not close to the limit on your credit lines.) BTW, when I say "inquiry" I am referring to a "hard inquiry" when you APPLY for credit. If you check your own credit score, or if one of your creditors checks your score but you did not apply for additional credit, or if the credit bureaus sell your credit report to potential creditors who are looking to send offers to people with good credit, then your score is not affected at all. These are called "soft inquiries." HTH

Bad Credit Payday or Cash Advance Loans - No Credit Check Required

Bad Credit Payday or Cash Advance Loans - No Credit Check Required !!!

If you are in need of extra cash until pay day, you may want to consider applying for a pay day or check loan online.

A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify you from qualifying for a pay day loan. You can use the money for what ever purpose necessary and the money can often be deposited into your checking account the very same day you apply. All you need is a checking account, and a steady source of income and you can get up to 1000 dollars or more deposited directly into your checking account.

A pay day loan is designed to fulfill your short-term financial needs and should not be used as a regular lending source. The fees charged for pay day loans can be higher than a traditional loan from your bank and should only be used to solve temporary or emergency financial crises. Repeatedly obtaining pay day loans can cost you a lot of money if you extended your pay off date numerous times or if you continually borrow against your next pay check.

If a short term pay day loan is the best choice for you, you can be approved and have up to 1000 dollars or more deposited into your checking account sometimes as soon as the very same day you apply.
Pay day loan interest rates vary from company to company.

Some lenders offer discount rates for new or returning customers. After supplying the pay day loan company with the required information, usually your name, address, employment and banking information, you can be approved in as little as one hour and the funds can often be in your checking account the very same day. Occasionally you may be required to fax your last pay check stub and bank statement prior to approval, but the funds can still be deposited into your checking account very quickly.

Bad credit should not stop you from applying for a pay day loan. There will be no credit check, only the verification of the information you supply. Pay day loan companies do not check your credit report or contact your employer, except as necessary to verify employment. Applying and getting approved is quick and convenient. Online lenders can approve you application quickly and you'll have the cash you need as soon as the very day you are approved.

Is it better for your credit score to pay a settlement or to pay the full balance on a charged off account?

Is it better for your credit score to pay a settlement or to pay the full balance on a charged off account?

I owe $865 on a charged off account but the company has offered to settle the account for $515. Is it better for my credit report to pay off the full 865 or to pay the settlement

The Answer : The only win-win situation in your case is that if they'll settle for $515, in return that it will get removed from your report. I would strongly suggest pushing for that. It's a possiblity that they may do it, then again they may not, or they may require the full amount in order to do it. If you're able to get them to do it, don't send a dime until you receive something from them in writing on their company letterhead stating they'll remove it.

Or : You should be ok if you pay the amount they are willing to settle for. It's already been reported to credit, so the damage is done. Paying the whole thing off is not going to be any better than paying the settled amount.

How Bad Credit People Can Get Personal Loan

How Bad Credit People Can Get Personal Loan

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Bad credit is like an ongoing battle for many loan borrowers. Bad credit has many repercussions for the people when they apply for personal loans. You usually are branded as a bad credit borrower if you have anywhere in your credit history terms like late payments, county court judgments, bankruptcy, foreclosures, charge offs etc.

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As bad credit personal loans borrower, you should know that though credit check is fundamental to loan borrowing, it is not the only deciding factor. Regular income, stable job history, equity, savings, and collateral will all have a say in getting bad credit personal loans approved. You recent credit history, if it is positive, will promise great returns while looking for personal loans for bad credit. Being honest with personal loans lender about your credit situation will enhance your credibility as a borrower.

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Bad credit borrower when applies for personal loans usually face the liability of higher interest rates. This is. When you make late payments on your loans, it is a negative sign with respect to loan borrowing. It is termed as bad credit on your credit report. The loan lender sees this and charges you more because your credit report indicates a paradigm of risk. It suggests that you might make the same mistake again.

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Bad credit personal loans are optimized for the benefit of the loan borrower. Bad credit personal loans are categorized into secured bad credit loans and unsecured bad credit loans.
1. A secured personal loanA secured personal loan for bad credit is reliant upon the borrower providing the collateral to ensure payment. This implies that if you have placed your home as the collateral, then in case of non repayment the loan lender will take possession of your property.

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Getting a secured loan is much easier because the lender does not have to assume as much risk as with an unsecured loan. They will still check credit reports and require borrowers to meet certain criteria; however, the whole process is much easier than with an unsecured loan.

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Bad credit secured personal loans not only are a remedy for bad credit but also help building positive credit status. Bad credit personal loans plans have the ability and the potential to construct once more a good credit status.

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2. An unsecured personal loan An unsecured personal loan is a loan that has no collateral attached to it and because of this there is usually a limit on how much you can borrow. However, with unsecured loans for bad credit act you don't have to worry about repossession.

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So, if you have a bad credit history you can have a personal loan and you can even use this loan to help increase your credit score. The way to do this is:
1. Make sure that all of your payments are on time.2. Pay a little more than required each month, if you can do so. This also means that the total cost of your loan will decrease because you'll pay off the loan faster, thus paying less interests.

What company will give you a credit card when you have no credit?

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What company will give you a credit card when you have no credit?

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I am 19 years old with little to no credit history. I was able to get a credit card through a department store but was declined for a credit card through the bank (where i work none the less!) and for another one through a store. I am not desparate for money.

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My reasoning is to build my credit score. I would perfer not to take out a loan to build credit until i actually have something i need a loan for. So... Does anyone know of a credit card company that will give someone like me credit card? I dont want to keep applying if I am just going to get rejected everytime. Thanks!!

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The Answer : Capital One One currently reports the current balance as the credit limit giving the appearance that the account is at the limit, which isn't good for a credit score. This has been also made public, and Capital One will not start reporting correct credit lines until later this year or the beginning of next year. I understand in your question that you applied for a credit card through your bank and was declined.

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You may want to check with your bank again to see if a secured credit card is offered. Secured credit cards are easy for people with little credit to get approved for mainly because they require a deposit usually tied to a savings account as collateral to establish a line of credit. The deposit isn't used to pay for the balance on the account unless it's severely delinquent and/or it's charged off.

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2 major benefits of secured cards is the minimal chance of getting declined and also the ability to control the credit line by adding to the deposit. In a sense, you could very well "customize" a credit card by adding to the deposit to increase the limit, which looks good on a report. If you're saving for a major purchase let's say like a down payment on a car or a house, a secured card not only helps you save that money, but you can also build credit at the same time.

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Another benefit of a secured card is that the deposit gains interest just as a savings account would while you're building credit. A good practice in using the card would be to make a small purchase ($20/month) that can be paid off on time every month while adding to the deposit to increase the credit line.

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Usually after a year of doing this, the card either will convert to a regular card or a better card will be offered. and more importantly, the deposit is no longer needed and is given back. Now not only you would have a high limit credit card, you'd also have a nest-egg saved up as well. Something to think about. Hopefully this answer will help

Good Luck!

is better to pay off two smaller credit card debts or pay a big chunck of a card with a larger debt?

is better to pay off two smaller credit card debts or pay a big chunck of a card with a larger debt?

Suppose you were given $500 (friendly relative), you have three cards with debt. On two of them you owe $250 and the last you owe $3,000. Is it better to pay off two credit cards that are $250 each,or pay the minimum on those cards and the rest towards your $3000 debt?

The Answer : Thats funny you mention this question on here, becuase I'm going through the same thing myself. I have 3 credit cards that I'm paying down, and I'm coming into some money that would pay off 2 completely and a portion of the 3rd, or ½ of the larger one and none of the other 2. It would depend on how much you're at the limit on each card.

If you're maxed on all 3, what you may need to do is split the $500 between all three. $175 each on the $250 ones, and the rest towards the $3000 one. At least on the 2 $250 accounts, you would only need to pay $75 each and then you're done with those cards. But in all reality it's up to you on which way you want to go.

Even if you pay $500 towards the $3000 one, your minimum payment would be at least $75 in addtion to paying the minimum on the other ones. At least by paying at least 70% on the 2 smaller ones, it gets you closer to paying both of them off and then focusing your attention on the bigger one. If the bigger one has a higher interest rate, then it may be in your best interest to pay it down.

But like I said, it's really up to you how you want to do it. Pay off 2 and then concentrate on another, split it up between the 3, or pay on the big one and leave the other 2. It your money, therefore it's your choice

I Don`t Have any Credit ?!!!

I Don`t Have any Credit ?!!!

I am 19, i rent my own appartment with my boy friend, i have a pretty good job and make pretty good money. i am a home health aid. i pay my owm bills such as cell phone and cable bill. i dong have good or bad credit. i have no credit. no credit card companies want to give me a credit card because i have no credit. WELL HOW AM I SUPOSED TO GET CREDIT IF NO 1 WANTS TO GIVE ME CREDIT!

The Answer : I got the perfect plan for you. Read on...

When you don’t have a credit history, it can be difficult and frustrating when trying to obtain a credit card or other type of loan. Establishing your initial credit history can be a Catch-22. If you don’t have credit, not many places are willing to give you credit, yet how can you ever establish credit if nobody is willing to give you any?Understand What Lenders Are Looking ForSince you are looking to establish credit for the first time, lenders can’t look to your FICO score to determine whether or not to lend you money.

In these situations they have to examine other factors that can help them decide if you are a credit risk or not.Bank accounts. You don’t need a credit score in order to open a checking account at your local branch.Since it doesn’t require credit to open, it also doesn’t get reported to the credit bureaus to establish any credit. Even so, your account history can be a vital component when lenders consider giving you a credit card or loan for the first time. Employment history.

Another important factor lenders look at is your employment history. They want to see if you are able to hold a job or if there are periods of unemployment. Your ability to hold a steady job can improve the likelihood of getting approved.Residence history. Lenders will also look to see how often you move and whether you rent or own. As with employment history, it pays to have a stable residence. Owning a home, even if just jointly with a spouse, carries some weight as well.

Utilities in your name. Even without a credit history, it is possible to sign up for many utilities in your own name. Having an electric or gas bill, telephone, cable, or water service in your name also helps. Just having your name on these accounts won’t establish a credit score, but it can be helpful for first-time borrowers.Start With Your BankThere are a few things you can do that can help in your quest for establishing credit. The first thing you should do is open and maintain a checking and possibly even a savings account at a local bank.

This is helpful in two ways:When you have active bank accounts in good standing, you are proving that you can manage money. While bank accounts aren’t typically a part of your credit score, lenders can use this information to determine whether or not you are a credit risk.Establishing a relationship with a bank will improve your chances in obtaining a loan or credit card through them. If you already do business with a bank, they should be the first place to look.

They know you and they value your business. This existing relationship should carry some weight when seeking credit.Consider a Department Store CardYou’ve probably been shopping at the mall and been asked if you’d like to sign up for their store credit card to save 10% on your purchase, but politely declined. Generally, store cards are a bad idea because they lure you in with that up-front discount, and then the ongoing interest rate is very high.Avoiding these cards is typically a good idea, but the ease in obtaining one may actually be a good thing if you’re having trouble establishing credit.

If you have struck out at the local bank, you may want to consider checking with one of the local department stores and see what type of cards they offer. Whatever you do, make sure you find out whether or not they report to the credit bureaus. If they don’t, it will do you no good.If you are approved for their card, you need to be disciplined and use it properly. Don’t treat this new purchasing tool as free money, but only as a means to establish good credit. The limit will probably be low anyway, but you should make an initial purchase with it and subsequently pay the balance off in full. Once the card is active, it should begin to be reported to the credit bureaus.

It is now important to maintain a good payment history on this card so your credit history can build upon it.When All Else FailsIf you’ve tried the bank, department store, or even credit card companies directly and failed, not all is lost. Secured credit is a last resort, but it is much easier to obtain than unsecured credit.When a credit card or loan is secured, it means that there is an asset linked to the account that the lender can take if you fail to make payments.

When you have a mortgage or auto loan, these are secured loans. If you fail to make payments, the lender will take your house or car in order to satisfy the debt.You can establish the same thing at most banks with a secured credit card. You can pledge money you deposit in an account to secure the credit card. For example, you could obtain a secured credit card with a $500 limit if you put a $500 deposit in the bank that is linked to the card. If you fail to make your credit card payments, the bank takes your deposit.

Again, you want to check and be sure that this secured credit is reported to the credit bureaus, but if so, this can be a useful tool to establish that first piece of credit history. After you maintain that account in good standing for a while, you may be able to obtain a regular credit card or loan.Establishing Credit is Only the First StepEstablishing a good credit history takes time. There are no shortcuts or tricks that can take you from no credit at all to a high score in a matter of months or even a few years. Your credit score is based on a number of factors such as payment history, length of time you’ve had credit, and much more.

So, while it is important to initially establish credit, it is even more important to take the time to do the right things to maintain good credit.taken from: http://financialplan.about.com/od/credit...Also, since you have a cell phone and a cable bill, you can report those payements as "alternative credit" with a new credit bureau called PRBC. Keep reading....PRBC is America's Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus: Rent Cable Phone DaycareInsuranceElectricNatural GasCell PhoneThe only time your payments for these bills are reported to the other credit bureaus is if they're missing or late.

With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.

OnLine Mortgage Lender or Bank ?!!!

When in the market for a new home, or when it's time to refinance, which is better - an online mortgage lender or the local bank? There was a time, not too long ago, that the only choice a borrower had was to visit their local bank and apply for their mortgage loan in person. In the last several years, more people have opted for an online mortgage lender, but is this a better choice than the local bank?
To discover which one is best for you, let us take a look at the advantages and disadvantages of each .

Online Mortgage Lender

Shopping for a lender online may seem like a scary prospect, but understanding a few basic facts will make you feel much more comfortable. When exploring the website in your search, be sure to look for a physical address and telephone number where you can contact a live human. Do not fill out an online application which asks for your Social Security number.

Although you will eventually be providing this information to your online lender, you will want to make sure you are comfortable with the person on the other end of the internet connection or phone line before you do. Websites that advertise that they will let the lenders compete to get your business are actually lead providers that sell your contact information to multiple brokers. The idea that several lenders will be bidding for your loan is only true in the advertisements, it is not reality.

Online mortgage lenders do however have access to hundreds of bank mortgage loan products to choose from. This is a huge advantage to you, the borrower, because you benefit from shopping at hundreds of banks while only working with one point of contact. It is like driving to every bank in the country and asking the bank officer to show you the bank's best loan products.

The rates available to you online will usually be the same as the local bank, and many times they are even better online. An online mortgage lender or broker will generally charge the same origination fee as the local bank, so the cost for you should be the same online as at your bank. You should never feel like another number in the system, but should be treated with respect and have all of your questions answered to your satisfaction. Do not feel obligated to continue to work with any loan officer who makes you uncomfortable in any way.

Local Bank

Do not confuse the big box national banks with smaller locally owned banks. The big box banks are the ones with branches throughout the state, or even throughout the country. Locally owned banks as a rule only have branches in and around the city, usually do not have branches in other cities, and especially not in other states. The national banks originate a huge number of mortgage loans due to their size and number of locations. In addition to offering their loans to their regular banking customers, big banks market their loan products in the wholesale market. This means that they market their loans to the consumer through brokers, many of whom are online.

In either case, they sell a great majority of their loan portfolio to the secondary market and do not hold onto the mortgage for the entire term of the loan. In a nutshell, this means that they bundle a large group of mortgages together into many millions of dollars worth of mortgages and sell them to Wall Street investors at a discount and keep the difference as a profit. Once the group of mortgages has been sold, the bank takes the money from the sale and loans it out again, starting the cycle all over again. Because they will be selling the loans, the big banks must keep the group of loans as clean and conservative as possible to make them marketable to Wall Street investors, which tends to limit their flexibility in underwriting.

Locally owned banks certainly can and do sell some of their loans also, but in many cases they will keep the loans all the way through to maturity. Because they do not have to be as concerned about making their loans sellable to Wall Street, they have the ability to be a bit more flexible when underwriting their loans. The bank may have decided to market to certain niche markets which the big banks are not comfortable working with.

Some of the common niche markets are first time home buyers, small business owners, or individuals looking to purchase investment property.
For borrowers who play golf with the bank president, have longstanding banking relationships with a local bank, or who have a considerable amount of money on deposit, the local bank may be the first place to start when shopping for a mortgage loan. For the rest of us, the best bet is to go online and find an online mortgage lender you are comfortable with and let them do the work for you.

Which is Better for Your Credit ?!!!

Which is Better for Your Credit ? ( See Details )

I Have greatly improved my credit after a bankrupcy four years ago. I really don't have any huge expenses and a need for credit cards, but I've used credit cards and a small car loan to build back my worthiness. (You see, I may want to buy a home in a few years)My question:The very first card I got post-bankrupcy was an ORCHARD BANK mastercard which is known as a credit repair type card.

So............... now that I have the other better cards with bigger limits ($6000+) does it look worse for my credit profile to close the ORCHARD account that I have the longest history with (or) does it look worse having a credit repair type card open??????????

The Answer :

1.Payment history- 35%
2. Total debt vs. available credit- 30%
3. Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and new accounts- 10%Since you established the Orchard Card first, closing that account would disrupt #'s 1,2, & 3. You shorten active payment history for open accounts, the available credit which would give the appearance that you owe more than you're able to borrow, and also shorten the average age of accounts giving the appearance that credit's been established more recently than it has.

I also have an Orchard Card for sometime now, and I've managed to work my way up to a better card. It doesn't matter on your credit report what kind of card you have, the most important part is that you're paying on time. So, follow the advice that everyone else has mentioned and don't close it.

Regarding Credit !!!

This is a 2 part question regarding credit.?

First I am trying to find out what is the best way to improve my credit score for a mortgage approval to purchase a home for the first time. Currently, i have two judgements from old credit cards totaling a balance of 3k. Those have both been paid to law firms this week.

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In addition i have approximately 1000 to 1500 in various and numerous collection accounts approximately 10-15 accounts depending on which report you look at. some of them are six years old some are less than two years old and the highest balance on any one of them is $300.

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Being that i just paid off the judgements i dont have a lot of other cash lying around to pay anything else. I also have a secured credit card with a 500 limit that i never pay late or carry more than $125 on. only had that account since june. Also an auto loan just opened last month for 5k that is current and will continue to be paid on time. my scores are anywhere from 587 experian to 630 equifax and 617 transunion...how do i get over 700?




The Answer : Okey , here's the real....

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But first, to give you an idea of what you're working with, I'm going to break down what makes up your score:

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1.Payment history- 35%

2. Total debt owed vs. availalble credit- 30%

3. Length of time establishing credit- 15%

4. Types of credit established- 10%

5. Inquiries and New accounts- 10%Having said that, here's what you need to work on.

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1. Paying those judgements off will help, but it would help more if they were either changed to a favorable rating or removed altogether. Keep in mind that those judgements even though paid, will stay on your report 7 years.

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2. As for the collection accounts, there's several ways that you can go with this. You mentioned that some of the debts range anywhere from <>

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If a debt is older than 5½-6 years, there's no sense in paying it since the SOL will expire and it will stop reporting after year 7. The more recent debts, you may be able to settle. Here's a link on how to settle debts that you may find useful.

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http://creditinfocenter.com/debt/settle_...


http://creditinfocenter.com/debt/neg_rat...


http://creditinfocenter.com/debt/CanCred...


http://creditinfocenter.com/debt/ActualD...

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Now as for the accounts that you have, the car loan will help since it's an installment loan, and the secured card will end up being your ace-in-the-hole. Reason I say that is that 30% of your score depends on how much you have available versus your total debt.
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A secured credit card can help you change that because you can increase the credit line by adding to the deposit. One thing that would help your score tremendously would be to aggressively start adding to the deposit. This money would also serve as a down payment toward the house.

A credit card with a high limit and a low balance definitely helps your score. As long as you keep the balance manageable, when it comes time to convert to a regular card, you'll keep the limit you built with the deposit, which you'll get back anyway with interest attached.
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And another thing to think about is this, with the recent situation with mortgage lending, I would strongly suggest waiting some before pursuing buying a house, at least a year, if not 2. The mortgage industry's going back to what's called "common sense" lending in which other factors besides credit score will be taken into consideration.Hopefully my answer will have shed some insight for you

Good Luck!

Closing Out Credit Cards Paid in Full Lower Your Credit Score !!!

Will closing out credit cards that are paid in full lower my credit score?

I have about 3 credit cards that are paid in full and there just sitting there. i was always told that having open lines of credit available could pose a threat to future lending loans.
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i have older ones that i would keep open and i may use from time to time, so i would still have some credit to work with, but im not sure should i close the paid in full ones or not. any advice would be great.

The Answer : I am Going to break down what makes up your score:
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1. Payment history- 35%
2. Total debt owed vs. available credit- 30%
3. Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and new accounts- 10%Having said that, now this is what happens...
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When you close accounts, especially when they're paid off, you shorten the payment history, and even worse the available credit, which give the appearance that you owe more than you're capable of borrowing. Also, it shortens the average age of accounts giving the appearance that you've established credit more recently than you have.
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Keep in mind, you can make a small purchase (like $10/month) and pay it off, to show activity every month. Remember, the more available credit, the better it reports on your credit.

Get Visa Card !!!

How Can I Get A Visa Card ?!!!

I`m 18 years old, just finished high school and frequently I find myself on the internet wanting to buy cheap things in the $20-50 range, and I was wondering how and if I can get a $500-$1000 visa.

I would probably only touch $100 of it and then keep my card and not use it to obtain good credit.How would I go about this? I know that you can apply online but I'm not sure how or where...Also, how long does it usually take to get accepted and get your card.

The Answer : Secured cards are the easiest to get approved for reason being that you would place a deposit upfront as collateral to secure a line of credit. Where you bank like bdancer mentioned may offer these, a lot of the major banks (Citi, Bank of America, Wells Fargo, USBank) do.

You can think of this as building credit with a savings account, because that's basically how it works. That deposit is usually linked to a savings account or CD that gains interest while you build credit. The 2 major advantages of secured cards are the easy approval and the ability to increase the credit line yourself by adding to the deposit. For example, if you deposited $300, your credit line would be $300.

These "starter" credit cards are a perfect way to custom build a high limit credit card and save up money while you're building credit. You could very well apply for a regular card, but also run the risk of getting declined because of a lack of credit history. With a secured card, you make your history as you go, and you have more control. A good way to manage the card would be to make small purchases ($20-50 monththat can be paid off on time every month while adding to the deposit to increase the credit line as this would be extremely helpful in building credit.

High credit lines show responsiblity with credit as well as provide yourself a considerable cushion between what you owe and what you're able to borrow. Usually after a year or so of paying on time and keeping the balance low, if not 0, the card either converts over to a regular card, a better card's offered and more importantly, the deposit's no longer needed and given back.

Keep in mind that the deposit is gaining interest while you're building credit so when it does convert, you'll have interest attached when it's given back to you. I've posted several links to some secured card companies that should work for you. Hopefully, this answer helps

Good Luck!

Car Reward Credit Cards - Earn a New Vehicle Now

Car Reward Credit Cards - Earn a New Vehicle Now

With a car reward credit card, your credit card spending could be earning points towards a new car or vehicle related rewards. What reward is better than a brand new car? Here is a comparison of some of the top car reward credit cards.GM Flex Card - 1% Cash Back or 3% Towards a New GM

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•A full 1% cash back option

•Earn a full 1% toward any new vehicle

•Triple your Earnings to 3% toward an eligible, new GM vehicle

•No Annual FeeThe GM Flex Card has a name that speaks for itself. It has the flexibility of either cash back on all purchases or a vehicle rebate. You can use the rebate as 1% towards any non-GM vehicle, or 3% towards any eligible new GM vehicle.

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GM Business Card from Chase - up to 3% cash back & rebates on GM vehicles

•0% Introductory APR for up to 12 Months*

•No Annual Fee

•3% Earnings on fuel purchases, restaurants, office supply stores, and authorized GM dealers on

•GM parts and service

•1% earnings on all other purchases

•No caps or limits

•Free cards for employees

•$600 statement credit with every purchase or lease of new GM vehicle through GM Business Choice programThe GM Business Card from Chase is aimed at businesses that require company vehicles. Even if your business doesn’t plan to buy a GM vehicle, this credit card could be used to save on gas, office supplies or meals.

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The Subaru® Platinum MasterCard® from Chase - Earn SubaruBucks

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•0% Introductory APR on purchases and balance transfers for up to 6 months

•No annual fee

•3% Rewards on all purchases (up to $500/yr)

•Redeem for Subaru merchandise and servicesThe Subaru® Platinum MasterCard® from Chase can used to save towards a new Subaru or Subaru parts & service.

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The annual reward limit of $500 is still high as that is over $16000 in annual credit card purchases. The rewards program is restrictive unless you plan to purchase a Subaru or if you actually go to the dealership for service.

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Volkswagen Platinum Visa® Card with Rewards - Flexible Car Reward Credit Card

•0% Introductory APR for up to twelve months

•No Annual Fee

•2 points for every dollar on VW purchases

•1 point for every dollar spent on all other purchases

•Redeem points for VW cars, gear, service, and other rewardsThe Volkswagen Platinum Visa® Card with Rewards allows you to earn points towards a new VW, parts & service or even non-VW rewards. Other rewards include airline travel, hotel rebates, car rentals or gift certificates. You can even use your points towards an existing VW lease or loan.

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Car Reward Credit Cards Comparison The GM Flex Card is probably the best car reward credit card. It lets you choose cash back or vehicle rebates. Plus it has the lowest APR rate among these consumer credit cards. The Volkswagen Platinum Visa® Card with Rewards is a close second with a rewards program that might be even more flexible than GM’s.

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It just didn’t offer as high a vehicle cash rebate percentage. The Subaru® Platinum MasterCard® from Chase offered up to 3% rebates, but the rewards are restricted to Subaru related purchases. The Subaru credit card only has a 6 month 0% introductory rate compared to 12 months for VW or GM. For businesses,

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the GM Business Card from Chase is a good deal, especially if you purchase GM vehicles.Most car reward credit cards are very good deals. Ideally a rewards credit card offers rewards relating to your interests. So if the vehicle you drive or plan to drive offers its own credit card, why not apply? If you’re proud of your vehicle, show it with your credit card. It could earn you special discounts, cash back and other perks. Most car reward credit cards have no annual fee either. So apply online today.