We deal with building better financial futures.
We deal with building better financial futures.
Understand the Cards that is available
|Posted by Percy A Lowe on September 29, 2013 at 7:00 AM||comments ()|
How much do you really know about the kinds of credit cards out there? If you keep just a few days of todays mail that comes in advertising credit cards, you now there are many types and styles of credit cards offering a number of different services and perks to those who use them.
Deciding which credit card is best for you is easier once you know the types out there and what they have to offer. This information can be used to decide which one will best suit your needs.
Standard Credit Cards - The type of cards that are the most common are standard credit cards. These cards allow you to make a purchase, on credit, and pay it back over time with interest tacked on at monthly intervals. You will see many of the offers you receive are 0% APR or low fixed interest cards with balance transfer options. These offers are normally sent to you based on your credit score.
Premium / Reward / Cash Back Cards - Credit Cards that offer something in return for your usage fit into this category. These cards offer special incentives where in which the more you charge, the more you get back in regard to reward points or cash back. These returns on your money could be in the form of points you collect to get gift cards, cash back, airline miles, or a number of other perks. Generally most people that use rewards credit cards will pay off their balances each month but use the reward credit cards to pay for almost all of their monthly expenses thereby building up enough points to use to pay for complete vacation packages by the end of the year. This is a very smart technique if done properly.
Secured Cards - For those with bad credit, or parents who don't trust their children with uncontrolled credit cards, secured credit cards are the way to go. These cards have to be 'charged' with money before they can be used, and are much like using credit cards. Many student and bad credit cards fit in this category. This can be important for students when they get out of school to have a credit history built up using a regular student credit card verse a prepaid card. It really depends on how responsible that student is in managing their money on which type of credit card they should carry. It also helps the consumer who master the use of a Secured Credit Card with their life needs. For the best secured credit cards available to build your credit score visit: coveringyouwithwealth
Pre-Paid Credit Card- This card is secured with a fee to load the card. It acts just like your bank debit card but the money has to be pre loaded on the card. This card comes with lots of extra fees you have to read in the privacy statement. Also, when using the card some cards freeze your funds on certain purchases. The card can be used where a visa and master card logo is used. You cannot build your credit score numbers with a prepaid credit card.
Business Cards - Businesses get extra perks when it comes to credit cards. Often lower interest rates are attached to business credit cards, as businesses are not seen as a high risk, and individuals are. Additionally, business credit cards often have larger spending limits to allow businesses the money they need for capital improvements. A good business credit card can also build points over time that can offset expenses in regard to office supplies and travel by building up airline miles.
Charge Cards - For people that spend a lot of money each month, but pay it all off at the end of the month, charge cards could be the best bet. These cards have no credit limits, but must be paid, in full, each month. American Express is one of these companies that has cards with unlimited spending limits but that must by paid off each month. This allows a credit card user the availability of a large amount of credit on the spot when making large purchases without have to write a check or carry large amounts of cash. You also do not pay interest on these credit cards since the balances are paid each month.
Once you know the general type of credit card that is best for your financial situation, you can start to narrow down the perfect card by comparing the different types of options for you.
Before ever entering into credit card agreement, make sure to look at more than just the type of credit card. Scrutinize annual fees, interest rates and other terms attached to a credit card to make sure it is the best choice for your spending future.
Secured Credit Card
|Posted by Percy A Lowe on September 28, 2013 at 7:00 AM||comments ()|
Credit card is a part and parcel of modern life. The credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. The secured credit card is however, not without its disadvantages, the main one being high interest rates charged on it. You have to do your secured credit card research for the best cards. You would like to have secured credit cards that give you total control. You should be able to find these cards on: coveringyouwithwealth.
How would you rate your capacity to purchase a home or the car you want or the loan you simply need? How significant is it for you to have a good credit rating? In order to establish and spruce up your credit score, the best possible option is to have a secured credit card are a relationship with a credit union. Where you can borrow against your extra cash and raise your credit score. A secured credit card is in effect the opportunity to regain a sound financial position.
Due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. A credit card is often denied to you when you do not have a credit history. This is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. It can also occur in the case of divorced people who have never had a credit card in their name.
Secured credit cards [http://www.coveringyouwithwealth.com] thus provide the best means for anyone to establish a credit history. The secured credit card by virtue of being secured by your own money allows the issuer to feel safe, ensuring their money back in case you default. Since the issuer is also holding your money, they persuade you to make your payments regularly instead of losing your security deposit on the secured credit card.
Secured Credit Card – Drawback is when you pull money off the card and when you over spend on your deposit
Very often when you rent an apartment, the landlord will ask you to deposit an amount equivalent to a month's rent into a special account. This amount acts as security and is not used till you move out. When you move, this money along with interest is returned to you. You will not owe the landlord any money if you leave the apartment without any damages. The same rule applies to the secured credit card. In a secured credit card you have to deposit an amount as low as $200 and high as $3000 to establish a credit limit in a special account with the credit card issuer. The credit card issuing company will provide you with a secured credit card which is used like a regular credit card. The only difference being that only you and your credit card issuer know that the secured credit card has attached to it a security deposit.
Provided you use your secured credit card wisely, the security deposit will not be used. This means that the secured credit card will be used to make reasonably priced purchases and the monthly bills will be paid regularly and fully as far as possible. To increase the credit available to you on your secured credit card, you can both increase your security deposit and pay a fee to raise your limit. Please make sure you read your privacy statement before acquiring your secured credit card.
The interest rates on secured credit cards are some time based on your annual fee. In the event that you have been rejected for credit by some companies you will be thought of as a significant credit risk. The issuing companies are taking a huge risk in lending you money through secured credit cards, and these interest rates are based on these risks.
A secured credit card is not suitable for people with a solid and established credit rating as they can acquire credit cards with lower rates, rewards and other benefits. A secured credit card is for people who have had a bad credit or no credit to start with and need to mend their credit scores through a responsible show of credit card handling.
By Percy A Lowe
Credit Score Range
|Posted by Percy A Lowe on September 27, 2013 at 7:00 AM||comments ()|
There are countless articles out there that will all tell you different things about what the credit score ranges actually are. This is because every institution decides for itself what these numbers mean to them. That doesn't mean we need to go in blind though! Based on overall reactions we can make some general statements about ranges and what this all amounts to.
Whenever you apply for anything where your finances are judged like loans, rental applications, insurance, or anything else where they do a credit check you will want to have an idea of your score, and what it all means. To get a wider idea of your actual situation you'll want to look at your credit report. When you look at this, fix anything that you can and that should help get your score to the best it can be for when you need it most. If you find this diffuclt to accomplish look for a credit restoration company that is very transparent with their services.
Do you remember when life was simple back in high school? You probably knew what your grade point average was down to the hundredth of a place.Well your credit score has been called your "adult G.P.A."And just like a 4.0 was an excellent grade point average, you can tell how you're looked at financially by your credit score ranges.
Credit scores were developed in the mid 1989 as a tool for the mortgage industry. Learn more about Credit at: coveringyouwithwealth
You don't just have one number though, you have three. Each of the reporting bureaus - TransUnion, Equifax, and Experian - calculate the score a little differently, sometimes using different information. Often mortgage professionals will pull all three reports and use the middle numbers, but most of the time, the creditors just pull one number, so you need to know what all your numbers are.
I like to introduce you to the ne VantageScore: was available at the end of 2006. Now if you never herd of VantageScore and it is 2013 you are 7 years behind. Yes, 7 years but your credit repair are credit restoration companies should have been teaching you and providing some materials on VantageScore. So, if you plan to get yoru credit fixed and the person are company can help educate you on what is going on between; Experain, Equifax, TransUnion, MyFico, and VantageScore. I advise you to run real fast becaue I am sure they don't know what they are doing.
Hopefully all this information has given you an idea of where you stand financially. It can be hard sorting all this out, but knowing the credit score ranges can help you take control. But having some credit education is so important on the ways you can affect your credit report card. Please visit coveringyouwithwealth
10 Step to improving and maintaining your credit socre
|Posted by Percy A Lowe on September 25, 2013 at 7:00 AM||comments ()|
Here are ten tips to raise your credit socre and maintaining your score above the state average.
1. Start with your Credit Report and Credit Monitoring.
A. make sure you get your credit report from a source you can read well.
B. get help with reading the credit report and credit monitoring
2. Create a Monthly Expense Sheet
A. this sheet is used to see how much you have to use to raise your score
B. where you can make some financial adjustments as well that will help
3. Take your life needs with the right secured credit or unsecured credit to build your score
A. taking your lights, water, gas, insurance, vehicle gas bill, and etc to build your score
B. Do a full secured credit card search and research if you are alone are connect to: coveringyouwithwealth
4. Pay you account bills on time
A. your existing accounts you have open pay them on-time
B. if you fall into a financial hardship situation you need a letter drafted to explain the financial hard ship
5. Use your extra or discretionary income as leverage with a Credit Union or Local Bank
A. put your extra income or discretionary income in a savings account with a credit union or local bank
B. this is how you build a relationship of trust with a credit union and local bank
6. Pay down your debt
A. fully amortize your debt to pay them down wisely
B. be on-time while paying them down
7. Don't close Credit Cards or Revolving Accounts
A. try not to close out the account with one huge payment
B. remember that the lenght of time is important
8. Apply for Credit Sparringly
A. watch openning up new accounts
B. don't open account you don't need
9. Stay away from Department Store Cards
A. try to stay away from department store cards
B. some department store cards are useless and some are good for rebates
10. Stay away from mail-in and email credit card offers
A. stay away from pre-paid debt cards as well but the best pre-paid card is Wal-Mart green dot card
B. just throw away the mail-in and email credit cards
C. reframe from using your bak debt card for purchases you are losing money
There is more to learn on: coveringyouwithwealth
By: Percy A Lowe
How to build your credit score part 1
|Posted by Percy A Lowe on September 24, 2013 at 7:00 AM||comments ()|
Often enrolling into a debt settlement program for one basic reason to seek immediate relief from the requirements of having to pay extremely high monthly minimum payments on their credit cards. Sometimes is the best solution for saving your credit score.
The requirements of having to manage the life needs bills and minimum payments on credit cards, loans of any type that are rendered virtually useless because of being over extended financial with debt has proved to be a huge burden on the public.So, going through some debt management are debt settlement program helps save your credit from time to time.
Inherently when the public suffers through some type of financial hardship they become unable to pay, and get reported to each of the credit bureaus as delinquent. A 30 day, 60 day, 90 day, and 120 day late payment can do a lot of damage to your credit score. That is why you need to offset those late payments with some positive payments by using your life needs to help during time of distress. You can learn to use your life needs and banking techniques to help save your credit from total damage from: coveringyouwithwealth.
At some point things usually change for the better with time and in particular after enroll ling into a debt settlement program that will lower your monthly bills. Then, it is time to figure out a way to repair your credit. Before you even enter into a debt settlement program you should have been using your life needs to build up your credit score. You pay those bills on-time every month. So, since you do why not reward yourself instead of allowing your money to go without reward. We as consumers have to learn are become educated on ways we can use our money wisely on our life needs.
The building of your credit is the essential proof to a future lender that you are a worthwhile borrower. As they say, past performance is indicative of future results. In other words make your monthly payments by paying your bills on time without fail, no excuses. A good payment history is the single most important thing you can do to increase your credit score. Stop let's think you have two set of bills you pay in life one is your life needs they is never reported to the credit bureau as good payments towards your credit score. Secondly, you have items that you have acquired because at some point you had a worth while credit score that the lender saw as credit worthy. In which the lender will report your positive payments to the credit bureau's as good payments for you. So,that you can have a good credit report card for future use.
The positive payment history gets reported to the credit bureaus and that will go a long way towards increasing your score. Now, let's look at this what if their was some way to get all those life needs bills added to your credit score as good payments as well. Think what would your credit score be like since you been paying those bills on-time for the last 20 years of your life. That is why you need companies like; coveringyouwithwealth to open new educational ideas that can go a long way in your families financial education.
One of the easiest way to ensure a good payment history is to apply for and open up a secured credit card. A quality secured card will allow you to deposit a set amount of money onto your card similar to how a pre-paid or debit card works. For example, you deposit $200 on to your card and that becomes your limit. Every time you participate in a transaction using your own capped amount of money it will get reported positively to the credit bureaus by the creditor. That is a great way to get started repairing your credit. Although there is a lot more to know about secured credit cards. So, just don't go applying for secured credit cards without some type of education because all the cards has their own way and system.
Another way to increase your credit score by obtaining positive trade lines is to request to be added as an authorized user. Seek out a family member or friend who has good credit and who trusts you. Build their trust by demonstrating a capability to be responsible in other areas of your financial life. If that person contacts their creditor and adds you to their credit card as an authorized user every time they make a payment on time on that card it gets reported positively for you as well. Next, you can use your extra income to build your own credit without being added to someone else credit file you can learn this as well from coveringyouwithwealth you want to build your credit just as well as a relationship with a local bank and credit union.
By Percy Lowe
Debit Card facts Part 2
|Posted by Percy A Lowe on August 15, 2013 at 5:00 AM||comments ()|
Who Cares? You should care since you fit the bill.
So far, you may be unimpressed. Who cares how each transaction is processed? You might not, but banks and retailers do. When you do an offline transaction and simply sign a charge slip, the retailer has to pay a small percentage of your total purchase – perhaps 2%. This fee goes to the bank that issued your debit or credit (card as an interchange fee).
What about online transactions? Retailers can get those done for a lot less. They might only pay 10 cents or so per transaction. Why would Retailers pay for my transaction fee? Have you even thought about that are you didn't know.
As you might imagine, 2% of every purchase adds up to a lot of money. The banks and credit card companies would love for you to choose credit because they get 2% of every dollar you spend. So, if the banks and credit card companies get 2% of all the debt card purchase fees. How much money would that add up to be? Remember you are also, using a pre-paid debt card with a visa or master card logo on it. Then you have a load fee and others fees. Have you just thought about sitting down and adding up all the money you pay out on fees. Retailers, on the other hand, beg to differ. They’d prefer that you choose debit so that they don’t have to pay a hefty interchange fee (but in some states they can add credit card surcharges that pass that fee back to you). There are ten states that doesn't use credit card surcharge fees. So, if ten states don't allow the retailer to charge you fees you need to ask yourself what is the retailer doing. Well I am glad that you are thinking they just mark the price up.
In order to maximize revenue, banks give you an incentive to choose credit (or a penalty for choosing debit, depending on how you look at it). They may charge you a fee for online transactions – usually in the ballpark of one to two dollars. Once you discover these fees, you’re more likely to choose credit next time. In addition, they may offer rewards (such as airline miles or entry into a sweepstakes) each time you choose credit.
Of course, somebody has to pay the 2% interchange fee. Some retailers don’t pass it on to you as a transaction cost, although in some states they are allowed to add a credit card surcharge. However, it has to come from somewhere – they have to build it into the price of the products and services you buy. So, all you debt card user who feel you have been alright not using a major credit card. Well you are getting the fees as a major credit card though. Now, let's change our thinking and get a secured credit card that reports to al three major credit bureau's. So, that now your monthly spending goes towards your credit score. So, the fees you are paying don't bother you know because you are using your money wisely. Now, you are getting a reward just like the banks, credit card companies, and retail stores. Your reward is a better credit score which means your credit character headed towards A paper client.
Click the link below and learn how to switch from a debt card to a secured card:
Debit Card facts Part 1
|Posted by Percy A Lowe on August 14, 2013 at 6:00 AM||comments ()|
When you purchase with plastic you’re often asked if you’d like to make it a debit or credit transaction. What’s the difference? The choice you make determines how your purchase is processed, who pays the bill for that processing, how long it takes, and what your rights are. This page covers how interchange fees work and just how important your choice is.
When you use a debit card, you can sometimes choose how the purchase is processed. It can either be an online transaction or an offline transaction. If you punch in your personal identification number (PIN), it’s an online transaction – it gets completed electronically and it’s done pretty quickly. If you don’t use your PIN and you sign a charge slip instead, it’s an offline transaction. Offline transactions are processed much like plain-vanilla credit card purchases.
Even though you use a debit card, offline transactions are very much like credit card transactions. Your debit card might have a Visa logo on it, for example, so it runs through the Visa network. It’s not a credit transaction, but it uses the same infrastructure.
Click the link below and learn more about using a debit card:
SECURED VS PREPAID CREDIT CARDS PART 1
|Posted by Percy A Lowe on March 18, 2013 at 7:00 AM||comments ()|
We get quite a bit of email asking about the differences between these two categories of credit cards so I decided to write a short article to explain the basics of each category. Each of these cards will require funds to be deposited in advance before using them, so what's the difference? The truth is there are some distinct differences that may work better for people from different walks of life. I have listed these differences below.
Prepaid Debit Cards - Prepaid debit cards are a descendant of the secured credit cards that you are probably familiar with. Prepaid debit cards are just that, debit cards that have the Mastercard or Visa logo on them and are accepted worldwide. Much like your bank debit cards they deplete funds in your account as you use them, they do not require monthly payments and do not charge interest.
The major difference is how you qualify for one and how much it cost to use the card. Prepaid debit cards are not concerned with having card holders qualify for their cards. Most issuers do not verify employment, credit, addresses or even legal residency. This makes these types of cards very popular with immigrant workers in the United States illegally.
Debit cards are also more fee intensive than traditional secured credit cards. They have fees that are usually measured by transaction. Other fees include, loading fees, transfer fees, check deposit fees, annual fees and more. This is the price people have pay for convenience and anonymity. These cards will not report cardholder transactions to the credit bureaus, which is not ideal for those who are trying to establish credit.
In our society it is virtually impossible to live without some type of visa or Mastercard, debit cards fill this void. They offer a "de facto" banking system for those unable to qualify normally. They offer direct deposits for paychecks and many other features to a segment of society that traditional banks have left out in the cold. All in all, prepaid debit cards are pretty cool for some people.
Are you Interested in building your credit score
|Posted by Percy A Lowe on March 9, 2013 at 11:00 PM||comments ()|
In today's time the credit score has became the key factor to not waisting money. When you can achieve the things in life with no money down, zero interest, and no deposit. Then you are starting off on the right track ahead of your debt. Now, that how you carry out your wyas of handling your debt effects your credit score. One of the major keys is understanding the credit score model. No, one teaches the model to consumers to help educate them.
If you're interested in building your personal credit profile you have made an excellent step in the right direction. Those that carry the highest credit score are much more favored and preferred than those with lower FICO scores. The benefits can include lower interest rates, higher loan amounts, longer periods of an amortized loan, and many more advantages that can save you hundreds of thousands of dollars.
A big untold secret comes from the tip to always pay down your credit card every month. This is only partially true. It is important to service you debt every month and pay off the minimum payment but you must actually keep debt on your card! This is shocking to many but it's true. The more you can show lenders that you can handle debt, the more responsible and credit worthy you are perceived. If you're going after the highest credit score, you'll want to use this helpful time regularly.
Even if you are only carrying $1 per month, it will still work. I carry $1 every month after paying down my card. This way I do not have to pay interest to the creditors and I can still show that I carry a debt on a monthly basis and service my cards properly.
The next most important tip for building the highest credit score is to always check your credit report on a regular basis. This way there is no way you can get cheated by random credit decreases, higher interest rates, or identity theft. These problems happen on a regular basis and are very unpredictable yet highly common.
Having a better credit score is essential now days
|Posted by Percy A Lowe on September 19, 2012 at 9:45 PM||comments ()|
What is a secured credit card?
Most credit card obligations are unsecured; that is, no property or funds are pledged for repayment of the credit card debt. However, some credit card issuers have programs where the credit card obligation is secured by a deposit account (bank account) savings or checking. The target population for secured cards has historically been people whos credit scores are below average. The target populations for unsecured credit cards are most people who have maintain above adverae credit score. Those who credit scores dropped below average and have bankruptcies can use secured credt cards to boost their score back up. There is no risk to the secured credit card holder because of the deposit account. With education a secured credit card can be very helpful for life. Everyone think of the bills you pay that never gets reported to the credit report as good payments. How would you think your credit score would look if you could get everything you pay on reported to the credit bureau for good payments? Well don’t think no more I have the solution right on the site you are on right now. Please check out the Secured Credit card link to your left. If you have any question please leave an inquiry and make sure you become a membr as well.