Credit Card Watch

If you are online looking around for a credit card it is important that you know this list of things first.

1. First of all, know or have an idea of what type of credit you have so you don’t go out applying for the wrong types of card.

2. Do not keep applying for a card if you keep getting declined. Example: If you applied for an American Express credit card and you go declined, chances are you don’t have strong enough credit yet. If you keep applying for cards in that category, you may keep getting declined because their criteria is probably similar to the others you have been applying for. This results in many inquiries on your credit report and will decrease your score quite a bit if you keep applying in such a short amount of time.

3. Once you know or have an idea of what your credit score and/or credit history is, find cards that will fit into that category.

4. When it comes to credit cards, they basically have 4 main categories: Good, Fair, Bad and None. So if you have bad credit, you may want to stick with that category of cards. There are many cards out there for people with bad credit. If you have no credit, you could possibly get approved for a bad credit - credit card. They also make prepaid cards too if you are just looking for a card that you can use for convenience and a lot of them now come with a FREE built in credit-builder system that can report your payment history to the bureaus if you choose to. That will help you on your way to either build or rebuild your credit history.

5. When applying online, carefully read the terms and conditions for each credit card that you apply for. Be responsible when applying for a new card. Some come with attractive rates and fees while others don’t. Typically the cards with the highest rates and fees are designed for people with bad credit because they are considered h Read the rest of this entry »

When it comes to credit report charge offs, there seems to be a lot of confusion amongst consumers. ‘Charge-off’ is just a term lenders use to classify non-performing assets for tax purposes. However, that does not dismiss or relieve the consumer of the debt. Lenders report charge-off to the credit bureaus to reflect your payment history. Depending on the lender’s policy, their next step is usually to sell the loan to a collection agency.

If the collection agency decides to report the collection account to the bureaus, which they usually do, you now have two negative marks on your credit report from one account. These accounts can be reported for 7 years from the date of last activity. Such accounts can destroy your credit and prevent you from getting just about any type of loan. They can even prevent you from getting a job or an apartment.

Did you know that even a “paid charge-off” on your report is considered negative? This is probably the most confusing to consumers. Most people try to repair their credit by paying off old debts; assuming that they will be removed from their credit reports. The truth is, paying off old charge offs can make the negative account remain on your credit report for even longer!

It’s unwise to pay off old debt without first getting an agreement in writing from the creditor reporting the account. The agreement should state that once the debt is paid, it will be removed from the credit report immediately. This credit repair technique is called “pay for delete”.

You can also dispute charge offs and other negative items on your credit reports. This is done by sending a dispute letter to the bureau that’s reporting it. Credit bureaus are notorious for not cooperating with consumers. Fortunately, there are credit repair services that know the law, know their tactics and are willing to fight Read the rest of this entry »