Prepaid debit cards sometimes a necessity but very effective

Prepaid debit cards are one of the more safe methods of building credit for a consumer, as well as one of the more safe methods of issuing credit for a bank. The basic commonality all prepaid cards have is that a deposit of some kind must be made by the person before the bank will grant them credit. Card varieties differ in the amount of credit given based on the deposit, but the typical limit is 100% of the deposit. Over time, some issuing companies will permit the consumer leniency and increase the amount of credit given in proportion to the deposit. Why, you may ask, is this necessary? Prepaid debit cards sound like a way to give your money to someone else before you spend it. From outside the perspective of the world of credit, yes, it does seem redundant. But take a look at this hypothetical situation, from the perspective of a consumer, and hopefully some light will be shed on the usefulness of prepaid debit cards. Carl was living it up. He had a six-figure salary, a wife to make all other husbands jealous, a new Land Rover, and an upscale apartment. The thought of credit issues was laughable at this pristine moment in his life. But something happened. Carl's luck began to turn. His beautiful wife, an amateur tennis fiend, was taking far too many lessons with her 25 year old Italian instructor, specifically at his private retreat where her cell phone curiously could not get reception. Carl's company hadn't made the mark for the quarter, and people at corporate were hunting heads. Carl's head, recently bald because of stress from the Mrs., must have stuck out, because he was the first one fired. Then the divorce started, and while Carl was quite sure that he wasn't to blame for his wife's infidelity with someone half his age, she none the less made off with the car and apartment, and some serious alimony payments to come from Carl. Carl's credit score plummeted as he defaulted on his bills. He was left a broken, unemployed, bald man who could never watch tennis again. When things leveled off years later, Carl wanted to rebuild his credit, though no credit card companies would accept him. He needed to find a way to transfer his cash into the world of credit, just so he could show that he'd make good on some payments. As you can guess, Carl's answer is a prepaid debit card. He can show the bank that he's legitimate, in a way that only giving them cash can. The bank put credit on his card; Carl purchased Rogaine and a low-powered anti-depressant; and bingo, his credit began to return. So, if you find yourself in such a situation, needing credit but inspiring no confidence from issuing companies, prepaid debit may be the way to go. Additionally, on a more serious note, pre-paid debit cards are increasingly used by those with relatively good credit as a method of controlling their spending. If there is not enough balance available for a charge, the charge will be denied. And there is no mandatory payment due at the end of the billing cycle.

Bad credit home loan mortgage services what to consider when applying for a mortgage

Most new homebuyers are unfamiliar with how mortgage loans work. Because of this, several people accept bad loans. This results in homebuyers paying more than necessary. If you have bad credit, accepting a mortgage with good terms is a must. Many lenders prey on those with bad credit. Their objective is to charge higher fees and boost their profit. Before applying for a mortgage loan, consider the following factors. What is the Mortgage Interest Rate? The interest rate that a homebuyer accepts on a mortgage loan is very important. Mortgage rates can be as low as 3.9%, and as high as 9% or 10%. Obviously, those with a high credit rating will pay less interest. Having bad credit does not always mean getting the highest rates. Thus, it is important to research various lenders, and keep an open eye on current mortgage rates. Many lenders have wonderful loan programs designed for bad credit people. The rates are reasonable, which means affordable mortgage payments. Which Mortgage Loan Term to Choose? Because of the varying home loans available, homebuyers have several choices in regards to loan terms. If you are hoping to payoff the mortgage quicker, a 15-year or 20-year mortgage term may be suitable. These terms do involve slightly higher payments. However, if you can afford a higher mortgage, a shorter term is ideal. Traditional mortgage loan terms are 30-years. However, many lenders also offer 40-year mortgage loans. This is a plus in areas with a high cost of living. Keep in mind that shorter terms have lower mortgage rates. Thus, homebuyers save money when selecting a shorter mortgage term. Be Prepared to Pay Closing Costs Getting approved for a mortgage loan and shopping for a home is the fun part. However, before the loan is finalized, homebuyers must pay their closing fees. All mortgages involve closing costs. The fee varies depending on mortgage lenders. Yet, you can expect to pay a few thousand dollars. This covers the cost of title search, appraisal, home inspection, points, loan origination, and so forth. If a homebuyer is unable to pay such a large amount, having the closing fees included in the mortgage loan is doable. In fact, many homebuyers choose this option. This approach makes it possible to buy a new home without additional expenses.

Disadvantages of prepaid credit cards

: When you are using prepaid credit cards and enjoying all the advantages offered by it you should also be aware of the disadvantages associated to it. So you need to go through these aspects and make better decisions while using these cards. When you use prepaid credit cards online, it is also important that you are aware of where you are shopping because some websites can befool you and you may pay for the products and services that you don’t receive. Therefore shopping online using prepaid cards without having sufficient security information about the website is not advisable. In case you go out for shopping you should check the balance of your credit card so that you are sure enough of getting what you want. You need not stand in a long queue waiting to buy something and when you get to the cashier you realize that you don’t have the enough money could lead into humiliation and frustration. Another disadvantage of using prepaid credit card unlike cash is that there is no way for you to look in your wallet to check how much you have to spend and it becomes important to go online and check your balance and transactions. Another disadvantage is that many shops and at many places, these credit cards are not accepted especially when you are traveling to other countries. Many a times, small restaurants and shops in foreign countries accepts only local currency. Sometimes prepaid credit cards are commonly abused by merchants and very often people complain that when they make a purchase at a restaurant or store, the merchant shall take out more money than they are supposed to. One more issue is that when you use prepaid credit card you are not able to use your own money and many times people get frustrated when they are not able to withdraw the money from ATM machines when they need it the most. For more information, visit credit-card-debt-consolidation-guide. info

Why getting your credit report can save you from bankruptcy

If you have bad credit are not really sure if your credit score is good or bad, you should get a copy of your credit score. The average person will have to get a copy of their credit report sooner or later if they want to get pre approved for a mortgage loan or a car loan. Getting a copy of your credit report can mean the difference between you getting approved or rejected. So many people these days do not think to check their credit report they try to get a loan and that can be a big mistake, and quite an embarrassing one at that. Your credit report will be able to keep you fully informed with how your credit stands. An excellent credit report has a credit score that is between 700 and 800 which is the where your credit score starts. The average has a score of 650 and lower. These low credit scores are what keep many people from getting approved for credit cards, mortgage loans can car loans. If you are planning to own your own home one day, this can be a real problem. Smart people will get a copy of their credit report before they even seek a loan of any kind so that they can correct any mistakes that are made or so that they pay off some of the debts that are listed. Doing this before you seek credit can change the outcome of the application. If you are interested in getting a copy of your credit report you can go to equifax for a complete copy, or any other website that will let your get you credit report. You can get a copy of your credit report from thousands of different online resources or you can get one directly from the government instead. Some websites will give you a free copy of your credit report for even more convenience, but many of the free copies are inaccurate or not detailed enough to fully understand them. It is best to pay for a copy of your credit report because at least then you can rest assured that the information is correct. Equifax will sell you a copy but it is also a trusted resource for credit reports. Your credit report will be your best weapon in making sure that your credit stays good before you have to worry about being bankrupt. The best defense against declaring bankruptcy is to keep your credit in good standing in the first place. Having a copy of your credit report is the best place to start because you can correct any errors and know exactly where you stand and then fix it.

Cash back on everything you buy can add up

Maybe it isn't so bad to be broke while in college, I hear that's what you're supposed to be. None the less, I still feel like maybe something is out of place when 8 year olds have better cell phones than I do and spend more in Dairy Queen than I do in a grocery store. I find myself yearning for more cash in my pocket. Actually that's a lie. I'm yearning for any cash in my pocket. I've thought of a few ways to acquire said cash, but the problem is most of them involved working more. Call me lazy but I feel like holding three jobs is enough already. That leaves me with two possibilities. Get real good at gambling real fast, or get a cash back credit card. Seeing as how I can't lose as much money with the cash back card, I'm leaning towards it. Though I bet if I defaulted on enough payments it would be pretty pricey for me, but I get to keep my knee-caps intact. Besides, Vegas is a long way from here and I don’t have a Flyer Miles card either. But I digress. Cash back cards work pretty simply. The customer spends money, and gets some percentage of it back. The typical return rate on such a card is 1% on most purchases, and 5% on selected purchases. What the selected purchases are depends on the card. Some offer the 5% for things you buy from the company's partners. Many are targeted at gas station purchases, supermarket purchases, or drugstore purchases. It varies, and its best to buy according to your own tastes. Think of how much money you spend in a month. Rent, phone bills, internet bills, television bills, utilities, groceries, gas. Let's say your rent is $500 a month. Phone is another $25. Internet, $25, cable, $25, $100 on utilities, $200 for food, and $125 for gas. So we'll pretend that your bills add up to $1,000 per month, disregarding a vehicle, car insurance, your membership to that one website, yes that one, etc. If you had the minimum cash back percentage, over one year, just on these bills that are probably much smaller than anything in the real world, you could receive $120 back only for using a particular credit card. Odds are you use one already, so what is there to lose? And the main reason for getting a cash back card is, of course, the cash. Although you will probably never actually see the cash, you will receive a check or credit to your card and not have to endure the embarrassment of paying for your date’s dinner with a gift card. I could go on for pages with scenarios showing how much a person could benefit from a cash back card. Or I could save my fingers and your eyes and not do that. Instead I may just apply for one. I recommend you do the same if you are also made fun of by small children with bikes that cost more than your car. Or if, you know, you just want some more cash. Either or.

Spot the most rewarding credit cards

Chase Travel Plus Platinum With Chase TravelPlus Visa® card, your purchases will earn points that can be redeemed for a variety of travel rewards including airline tickets, hotel stays, cruises, and car rentals. Travel domestically or internationally with no blackout dates. Chase Travel Plus Platinum Visa Card is especially designed for frequent travelers. Card members are given one mileage point for every dollar they spend on general purchases. These points can be redeemed for a free travel ticket from your choice of airline. There are over 250 airlines to choose from so it’s guaranteed that your favorite airline should be on the list. If you want, you can also exchange your points for to rent a car, take a free hotel accommodation, or a free cruise. Hilton HHonors Platinum Card from American Express Hilton HHonors is a hotel rewards credit card that also gives its card members the opportunity to earn mileage points for a free travel with not just one but 50 different airline affiliates. There are over 2, 800 participating Hilton hotels that you can stay with and earn your points wherever you are. This hotel credit card is great for frequent flyers and for often who often have to spend days in hotels and inns. With HHonors’ Double Dip® Earnings Style you can surely get the most out of your reward points and choose the reward you like. Members are also allowed to change the Double Dip Earnings Style they’ve chosen. There are three Double Dip Earnings Style that you can choose from. Chase PerfectCard MasterCard This is a great gas reward credit card for consumers who are often on the road. It gives a generous 6% rebate on ALL gas purchases at ANY gas station for the first 90 days and 3% rebates on ALL gas purchases at ANY gas station afterwards. It also gives 1% rebate on general purchases. You can also enjoy a 0% APR for up to 6 months. Capital One Business Platinum with No Hassle Miles SM This card is especially created for business owners who want to maximize the benefits they can get from their card usage. It has a 0% introductory APR on purchases until December 2008 and some very exciting reward options. As a Capital One Business Platinum with No Hassle Miles cardholder, every dollar you charge to your card entitles you to one mile point. You can collect as many mile points as you can without worrying about blackout dates at all. It doesn’t limit you to a single affiliate airline so you can fly any airline you prefer. Another great thing about this travel reward card is that you can exchange your miles to cash back, gift cards or merchandise rewards instead of travel. Other great features of this business credit card are free supplementary cards for your employees with individual spending limits and an annual summary of your account for free. It also has no annual fee and allows a credit limit of up to $20,000. Advanta Platinum with Rewards The Advanta Platinum with Rewards Card is a great cash back business reward card. It has a 0% introductory APR on balance transfer for 15 months and a low fixed APR of 7.99% afterwards. It gives a business a high credit limit, a $0 fraud liability protection, has no annual fee, no limits on the rewards you can earn, and the option to choose between cash or travel rewards. Your company name will also be printed on your credit card to enhance your business image. Reminder These are just some of the most rewarding credit cards available in the market. Remember to check out the complete Terms and Conditions of each reward credit card we’ve discussed here before submitting your application.

Fraud on credit cards

Credit card fraud has become a major problem in modern society and it continues to steadily worsen. Credit cards are used in such a variety of ways, it makes it extremely easy for an offender to steal your card. There are precautions that can be taken, however, to prevent yourself from falling victim to credit card fraud. You should have your credit cards always with you for safe keeping. It is wise to tote your credit cards around in a vehicle besides your wallet. Enclose them in something separate such as a business card holder, small container or little pouch. Here is a fact you may not know: Not every card involved in credit card fraud is actually physically snatched. Some thieves will use only the credit card number in their illegal ventures. Make sure you are alert with each credit transaction you make, and get your card back immediately after it is finished. Cyberspace has become a breeding ground for credit card fraud. You need to be cautious about the online companies and website that you supply your credit card number with. Refrain from entering your credit card information into websites that you are linked to through emails. The best thing to do is to avoid giving out your credit card number online at all costs. If you must make an online payment, there are several reputable services that will allow you to pay without supplying your credit card information to a third party. Some larcenists will sink to any level to gain entry into your credit card information file. Many will rummage through garbage cans searching for credit card receipts or bill stubs with the complete account numbers on them. These numbers are then used to purchase things over the internet or to create a new credit card using your number and credit information. Any document containing your credit card account number should never be left lying around, and although it seems a bit extreme, should never be thrown away unless completely destroyed. Checking your credit report periodically will alert you to any unusual activity happening with your credit cards. If you do find that unauthorized charges have been made to one or more of your credit cards, there are choices to be made and steps to be taken. First off, you should call your credit card company and let them know that your credit card or credit card number may have been stolen and you want the card canceled. Now, the person who has taken your card cannot make any further purchases. Calling immediately will lessen your chances of having to pay for the charges made to your card and limit the amount of harm that has already been inflicted to your credit.

Analyze reward credit cards thoroughly

Travel has its payback in the form of reward credit cards. Choosing the best reward credit cards for yourself can be intimidating, and you should be guided by some factors that are personal to you. How do you choose and analyze THE travel reward credit card that suits your needs and lifestyle best? How do you, in fact, analyze reward credit cards in the first place? Reward Credit Cards Should be Tailor Made for You For one thing, the travel rewards companies work on the assumption that you want something – and they can give it to you. The problem is that most of us don’t know what that ‘something’ is and tend to lean towards fat, attractive packages that we may never use. For example, a travel reward credit card that offers you discounts on airfares might not be very attractive to a traveler whose airfare is paid for by his company. Then again, a reward credit card that offers exotic holiday cruises may remain unutilized in the hands of someone who does not enjoy sailing! On the other hand, a frequent traveler might actually benefit from free upgrades on board if his card gives him that facility. Choosing a card according to how you would use it and benefit from the rewards would be most important. Are the rewards offered suited to your lifestyle? Best Reward Credit Cards Offer Value and Usage To begin, analyze your travel patterns. If a particular airline gives you special privileges on a particular rewards credit card, and if you frequently use that airline, it makes sense to go in for that credit card. Being faithful to a particular airline would result in accruing rewards that might actually result in much higher value in the form of points, cash back etc. Other credit cards may offer fancy rewards on airlines that you would prefer to avoid or which do not service the destinations you frequent. So choose a reward credit card where the value increases with usage. Hidden Costs of a Reward Credit Card The hidden costs need to be worked out too. Travel reward credit cards often come with hefty fees attached. * Does the reward that you are likely to earn over a year cover the cost of maintaining the credit card? * Are you going to be able to cash your rewards? * Is there a time limit for earning and cashing the rewards? * How easy is it to redeem your reward points? * Is there a complicated process or is there an online or phone-based system? The answers to these questions will dictate the kind of card you want. Research Reward Credit Cards Do not hesitate to ask such probing questions to the sales rep of the card company. Most prospects will not hesitate to ask for references from existing cardholders. Check forums and blogs online about the public opinion about the card. Do everything in your control to ensure that you are signing up for what you expected. Reward credit cards come in several shapes, sizes, colors, and forms. It is easy to be tempted by a ‘once in a lifetime offer’. However, try to keep a sensible view of what YOU need from the reward credit card of your choice. The bottom line is - if you are going to travel you might as well make it work for you through the best reward credit cards you can find for yourself. Truth is, if you do not make a reward credit work for you, you may soon see that is working against you. Then, a reward credit card becomes almost equivalent to a penalty card – which should be avoided at all costs.

Things to know about credit cards

: A credit card is a card that allows you to borrow money for paying your purchases but bound to a certain limit. At the end off every month either you have to repay the whole amount or a minimum amount. A planned credit strategy will enable you to improve your credit worthiness. The most obvious thing, which can be done for building a good credit history, is repaying your bills on time, taking measures to protect your credit standings and making your credit report accurate and flawless. Before making the choice of the credit card there are various points, which are to be kept in mind: Annual Percentage Rate is the amount of interest you pay every year on your borrowings. The higher APR will make you pay more finance charges. The minimum repayment you make is basically the interest but paying a little more will help you in the reduction of your past balance. APR is one thing that can burn a hole in your pocket. So keep it as low as possible. Introductory rates: When you sign for the card you are offered with a low or 0% rate of interest for an introductory period.

You must keep in mind that this interest free period is applicable on purchases and balance transfers as well. This will reduce your bill considerably. Gold and Platinum cards: If you are a high-end earner and lavish spender then these two cards can work wonders for you. These cards have lower interest rate, high or no credit limit and are accompanied with several services and benefits. Grace period: This is also known as interest free period in which you can repay your amount without added interest. This helps you with your debt burden.

Cash back and Rewards: There are various credit card companies which entitle you with the reward points which can be redeemed against free air miles, cash back or discounts. Keep a look that these points are viable for you like for example there is no use of collecting air miles if you never fly. Balance transfer rates: This is the option, which is hunted by the people who are having a huge outstanding amount. Many cards offers lower rate of interest. Thus, if you transfer your balance from one card o another with lower interest it can help you with your debt problems and save a lot of money. Late payments: This feature is the main stay of any credit card for careless spendthrifts.

The interest keeps piling when you delay your payments. Thus, at one point of time the interest amount exceeds the principal amount. So it is advisable to check the charges levied on the late payments.

All these features and offers compile in to form a good credit card and you should be aware of your credit card well.

Find the best cash back credit cards

If you are not a frequent flyer or interested in gift certificates to stores you rarely visit, then cash may be much more appealing to you. A cash back credit card can get some of the money you spend right back into your wallet. Sounds rather funny that a credit card company would offer you cash back on purchases that you make. In fact, some offers are rather hilarious. But picking the best cash back credit cards can be sticky business. But knowing what to look out for can leave you running to the bank with extra cash in hand. Read Between The Lines Let's take a look at examples of what cash back credit card companies often offer: Card one: "Earn a full 1% cash back on purchases at your local gas station." Card two: "Earn up to 1% cash back on purchases at your local gas station." These two cash back credit cards see to offer the same, but look at them again closely. Earning "a full 1%" sounds almost the same as "up to 1%." Consider this illustration... if you spend $1000 at your favorite store, you will earn $10 back from card one. If you do the same with card two, your cash back could be anywhere from $1 to $10. You are not guaranteed $10. The "up to 1%" may involve restrictions that require you to reach specific spending amounts. Here's another example: Card one: "Earn 5% cash back on purchases." Card two: "Earn 5% cash back on all purchases." Again, these two cash back credits cards appear to have the same cash back terms. However, one generalizes "purchases" while the other specifies "all purchases." What could this mean? Well, cash back credit card issuers sometimes pay for money you spend at any place of your choice. However, other card companies will credit you with cash back only if you make a purchase at designated locations that they specify. Before signing up for any cash back credit cards, be sure to read between the lines -- or more appropriately, read the fine print. Cash In On The Best Cash Back Credit Cards Most cash back credit cards offer actual cash as rewards for purchases. When considering different offers, be sure that cash is what you get, rather than gift certificates or points that are redeemable only at specific stores. Some cash back credit cards offer a single percentage option that you can earn in cash back. Others may offer more than one. For example, you might earn 1% on all purchases, but 2% if at a particular retail outlet affiliated with the credit card company. So, if you spend $1000, then you'll get back $10. Spend $1000 at the special location and earn $20 cash back. Try get the most cash back by cashing in on the higher percentages. In addition, a cash back credit card might specify that you may earn "up to" a certain amount or percentage - this may mean that you won't necessarily get a full 1% cash back unless you make a larger number of purchases. There might also be a limit on the amount you can get back. And lastly, many cash back offers give you a limited time in which must qualify for any cash back amounts. If you plan on taking advantage of these offers, make sure that you do so well within the timeframe specified or you may lose your benefits. When evaluating any cash back credit card offers, be sure to pay close attention to the wording use in advertising. And before applying for a card, read the fine print to be sure that you are getting one of the best cash back credit cards.

Five factors to consider when selecting a personal credit card

Nowadays many credit card companies offer perks to lure new customers ranging from introductory offers with zero percent interest for transferred balances, Reward Programs offering airline mileage and cash back, and discount programs with select merchants. While these offers may be very enticing, there are five key factors, none of which include perks, that you should consider when choosing a credit card. FEES One of the first factors to consider when selecting a credit card is the number of fees associated with using the card and the totality of all of them if incurredpanies can charge a variety of fees with the most common being annual, closure, over-the-limit and late fees. Because, not all companies charge the same fees and the level of the fees can also differ, it is important to read all of the fine print and details that accompany any credit card offer. Annual Fee An annual fee is a membership or participation fee that is charged for having a card. An annual fee can range from $25 to $50. Closure Fee Some companies also charge a closure fee when an account is closed. This fee also falls within the $25 to $50 range. Over-the-Limit Fee An over the limit fee is assessed when the sum of your purchases and fees exceed the amount of credit you have available for new charges. Generally speaking, this fee is around $25. Late Fee Late fees are charged when payments are past due. Some companies assess late fees as early as one day after the payment due date. Late payments can also trigger an increase in your annual percentage rate. ANNUAL PERCENTAGE RATE The annual percentage rate (APR) is by far one of the most important, if not the most important factor to consider when selecting a credit card. The APR, which is stated as a yearly rate, is the interest rate applied to outstanding balances. Low rates are preferable since this means you will be paying less to use a credit card. One single credit card can apply a different APR for balance transfers, cash advances and purchases. CREDIT LIMIT You should also consider the level of credit that is being offered when selecting a credit card. A credit limit is the amount of money that is available for purchases, cash advances, balance transfers, fees and finance charges. Credit limits can start as low as $200 for department store credit cards and go into the thousands for major credit cards (Visa and MasterCard) depending on your credit rating and income. SECURED VERSES UNSECURED CARDS Another factor to consider when selecting a credit card is whether the card is secured or unsecured. Users of secured credit cards pay a deposit to obtain credit. These offers often appeal to two classes of individuals, those who are very young and are having a difficult time establishing credit and those who have blemishes on their credit reports that prevent them from obtaining unsecured credit. The credit limit for secured credit cards is usually determined by the amount of your deposit. Unsecured credit cards are by far the most widely held cards and tend to have higher credit limits. GRACE PERIOD The final factor to consider, the grace period, is the length of time you have to pay your credit card balance in full without accruing interest charges. The ideal card will have a grace period of 25 days or longer. If you carry a balance from month to month you will pay interest regardless of how many days are in a grace period with only new purchases being exempt for 25 days. The grace period is usually not applicable to cash advances and balance transfers. PERKS AND REWARDS While not one of the five key factors, I still felt it necessary to write a blurb on perks. Many credit card companies offer perks as an incentive to lure new customers and reward loyal ones. Perks can include a Rewards Program that awards you with airline mileage and cash back on your purchases. Some cards also offer discounts at select merchants and credit card registration, which protects you if your card is lost or stolen. Unless you are a frequent user of credit, perks should be the last item you consider when selecting a credit card because the biggest payoffs tend to go to the biggest spenders.

How to improve your credit record legally

If you have a history of late payments, unpaid bills, or accounts sent for collection, your credit record will suffer. A bad credit record gives you a low credit score and makes it difficult for you to get needed credit or loans for things you really need. Your credit history Most everything you do with credit, both good and bad, is reported to a credit reporting agency. A history of paying late, or not paying at all, is sent to credit reporting agencies. Bankruptcies, judgments and liens also find their way to your credit report and hurt your credit rating. The good news is that positive information is also sent to credit reporting agencies. To keep track of your credit standing, you should review your credit report at least once each year. You can correct errors and clean up any wrong information that might be on your report. Review your credit report and correct errors. How to improve your credit rating Here are some of the best ways to improve your credit rating: Pay bills on time. Late payments really hurt your credit standing. It is best to pay the entire balance on your credit cards each month. If you can’t, be sure to at least be pay the minimum payment on time. The more you pay each month, the less interest you’ll be charged. Don’t go over your credit limit. Some credit cards allow you to go over your credit limit. They usually charge you extra in penalties for doing so. In addition to paying penalties, going over the limit hurts your credit score. It tells companies that get your credit report that you aren’t paying attention to the limits of your account. If you don’t exceed your credit limit, you won’t have to pay penalties. This allows you to pay your balance down sooner. Cancel some of your credit cards. Having lots of credit cards can hurt your credit score. When you apply for new credit, the company checks your credit report. One of the things they look for is how much your combined credit limits are and how much you owe. As you get closer to your credit limits, your credit score goes down. Applying for lots of credit cards lowers your credit score. One bank card and a department store or gasoline credit card is all you really need. Cancel the others. Deal directly with creditors. Some businesses (creditors) you owe money to may be willing to take negative information they reported off of your credit report if you pay some or all of the money you owe them. Creditors must report payments you make, but they are not required to take negative information off your report unless they agree to do so. You will have to speak with each creditor individually to see what, if anything, they are willing to do. If a creditor agrees to take information off of your report in exchange for full or part payment, get their promise in writing before you pay. If you pay the balance, even without an agreement, they must update your credit report to reflect a paid-in-full status. If you discharged debts in bankruptcy, those items can still be included in your credit report. Avoid Scams Credit repair companies promise to improve your credit. They may also promise to get you a loan or a credit card. They lead you to believe that they have special ways to get negative information off your credit report. They don’t. Credit repair companies have no special powers to improve your credit. There is nothing they can do for you that you cannot do yourself. Paying them leaves you less money to pay your current bills and past debts. Because of the problems with credit repair companies, strict laws were passed to regulate their activities. For example, they must provide a written contract that you can cancel within five days. They can’t require payment in advance and all promised services must be completed in 90 days. They must also register with the Department of Justice and file a $100,000 bond with the Secretary of State. Be aware that very few credit repair companies follow the law.