How to Check Your Credit Score Also Online

How to Check Your Credit Score Also Online

You can check your credit score in a large number of ways. First, it is important to understand that there are three separate for-profit credit agencies. You can check just one score or all three, but they will likely be very similar. As a result, checking just one score will usually be enough. Consider the following options to do so.

Annual Credit Report

The Federal Trade Commission (FTC) supplies one free credit check each year for every individual through AnnualCreditReport.com. This is the only totally free, government-provided option. It is wise to start with this service and to use a paid service only if you need more assistance.

Credit Agency Direct Checks

You can contact any one of the three credit agencies directly for assistance in viewing your credit score. Typically, there will be a one-time viewing fee up to $30. This fee may be waived if you want to see only a portion of your report, but viewing the report in full will likely be your best option. You may have the agency monitor your credit for a monthly fee.

Third Parties

In recent years, a number of for-profit credit monitoring services have been founded. For a monthly fee between $5 and $20, these companies will provide you with a glimpse at your credit score or full credit report. This kind of service is best for someone with a large need to monitor reports from all three agencies. For example, if you are recovering from bankruptcy and need a credit report each month to determine how your recovery is coming along, one of these services will be a good resource.

Credit history rankings play a essential role within our lifestyle as if you have excellent score in that case you can meet the requirements for loans at excellent interest levels and also lower monthly fees. A fine credit ranking might also support in business options as well as obtaining residence on rent as well as some other equivalent needs.

Maintaining superb credit ranking reviews tell debt collectors and financial associations that you pay your financial obligations having a feeling of liability and in time. Regarding them now there is less risk throughout extending financial to you are when compared to individuals that possess minimal credit status rating. If you are in the 720 and beyond credit score range then it could be quite effortless for you to apply for loans or house loans with quicker approval. And so it is of highest importance that you realize what your FICO rating is and perform in direction of boosting it.

A person’s credit scores is identified by simply the 3 credit rating offices researching at many factors such as your current entire credit history, amount of credit accounts with outstanding balance, obligations concerning existing personal loan accounts, any charge offs, missed monthly payments, collections, foreclosures, decision taking and financial loan defaults. If you make payments to your creditors on time in that case you can easily count on to possess a fine credit rating rating.

Nevertheless still with on time monthly payments you may discover that your ranking is actually not as good as you expect to have. To find out it is so you may have to take a copy of your credit history report and check the particular entries which are actually found inside the statement. It might be that you are a victim of id fraud where somebody seems to have utilised your Social Security Number as well as other private credit account details in order to open a credit bank account and ceased making payments.

The other factor that can be hurting your credit score rating could be lender records that you have already paid off yet the lender has not yet noted them to the credit bureaus. In these situation what you may conduct is to send a notification asking them to post the current information about your own account to the credit rating bureaus so that it can get resembled in your bank account and assists in bettering the ranking.

The credit score could not be reflecting the actual value since there may be some items in the credit report which you have disagreed yet have not been recently eliminated yet from your record and as soon as most of these are taken out from the particular report you may count on to discover an improvement in the credit rating rating.

Does Credit Card Help From the Government Exist? Find Out How to Get Your Debts Erased by 50%!

 Does Credit Card Help From the Government Exist? Find Out How to Get Your Debts Erased by 50%!

If you are looking for credit card help from the government, then you are in luck. Many people are not aware that the US government has actually made provision for anyone who has past due balances.
But there is one small catch. You need to have at least $10,000 in unsecured debt to qualify for credit card help from the government. This is a predetermined amount that is constant with each company that works within the stimulus bill.
Many Americans are not aware that the real reason you can get credit card help from the government is because the stimulus bill helped to funnel ten of billions of dollars into our economy. As this money helped to save your creditors, they were able to extend more loans to people who began fresh accounts. The reason that many of these companies were on the verge of bankruptcy is because of the amount of bad debt that they were carrying that was not being paid by the average consumer.
Now, once the credit industry received their bail out, many American families were able to get their debts erased? Why is this? Are these companies just being nice? Not hardly.
Once these companies were bailed out from the stimulus package. A secondary benefit came to those who had over $10,000 in debt that they were not able to pay. Your credit company will not phone you to let you know that you can do this however. They are happy to take your interest payments every month, but this is not necessary because you now have a way out if you qualify for the benefit of the recent bill passed in congress.
So how do you know how much you can get erased and how much do people with 10K or more credit debt get erased? Generally the average is around 50% and as high as 60% or more.
Remember, credit card help from the government does not come around too often, so if you have more than 10k, getting free information from the companies that work within the stimulus package can help save you a lot of money and heartache and most of all, a bankruptcy filing. The time that this debt erasure can take place had not yet been determined, so it could stop or the requirements could change at any time.
If you are in debt because you had no choice like many Americans, this "Rescue ship", has now been set aside to help those who are suffering in debt and have no means of paying it back.

Did you know you can erase your credit debt?

It is now perfectly legal to Erase Credit Debt according to the new stimulus package if you have over $10,000 in debt.

They give out free information to help you erase your credit card debt once according to the new stimulus package.

Demographics Credit Cards

Demographics Credit Cards

Asian-American

• Nearly two in three Asian-Americans reported having at least two credit cards. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009)
• Just 19 percent of Asian-Americans reported not having a credit card. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009)

African-American

• About one in three African-Americans -- 35 percent -- reported having at least two credit cards. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009)
• 49 percent of African-Americans reported not having a credit card. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009)
• 26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent.  (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
• In 2004, of those with credit cards, 84 percent of African-American households carried credit card debt compared with 54 percent of white households. (Source: Demos.org, "Borrowing To Make Ends Meet," November 2007)
• Over 90 percent of African-American families earning between $10,000 and $24,999 had credit card debt. (Source: Demos.org study, November 2007)

Elderly

• About 50 percent of households headed by someone between 55 and 64 carry credit card debt. And 37 percent of those headed by someone between 65 and 74 carry credit card debt.   (Source: Federal Reserve, "Survey of Consumer Finances," February 2009)
• in 1991, people 55 and older accounted for 8.2 percent of bankruptcy filings. By 2007, that number had almost tripled to 22.3 percent.  (Source: AARP, "Generations of Struggle," June 2008)
• Three in four cardholders age 60 or older always paid their credit card in full in the past 12 months. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009) 
• 80 percent of Americans 65 or older indicated they used a credit card in the month preceding the September 2008 survey. That's 13 points higher than any other age group. They also used debit cards far less than other age groups. Only 47 percent of those over 65 said they had used a debit card in the month before the survey, 19 points lower than any other age group. (Source: Javelin, "Credit Card Spending Declines" study, March 2009)
• In the fourth quarter of 2008, consumers over 60 had an average balance of $763 per open bankcard or retail accounts. A year before, that balance was $746. The year before that, it was $735 -- meaning the average has jumped about 4 percent in 2 years. (Source: Experian marketing insight snapshot, March 2009)
• Individuals older than 60 have a significantly higher credit score than younger consumers. The U.S. average VantageScore® is 769. The average score rises to 837 when looking solely at the over-60 population. (Source: Experian marketing insight snapshot, March 2009)
• In the fourth quarter of 2008, consumers over 60 had an average of 5.6 open bankcard and retail accounts. The U.S. population as a whole had an average of 5.4 cards. A year before, those over 60 had 6.1 open cards and the population as a whole had 5.5. The year before that, those over 60 had 6.2 open cards and the population as a whole had 5.5. (Source: Experian marketing insight snapshot, March 2009)

Gender

• Women were 26 percent more likely to be victims of identity fraud than men in 2008. (Source: Javelin Strategy & Research, February 2009 study.)

Hispanics

• About half of Hispanics -- 44 percent -- reported having at least two credit cards. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009) 
• 42 percent of Hispanics reported having no credit cards. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009)
• 58 percent of Hispanics have not used a credit card in the past 30 days. (Source: Experian Consumer Research study, November 2008)
• 42 percent of Hispanics don't like the idea of being in debt. (Source: Experian Consumer Research study, November 2008)
• 31 percent of Hispanics typically pay cash for their purchases. (Source: Experian Consumer Research study, November 2008)

Young adults

• The average person under the age of 35 got both their first credit card and their first debit card when they were about 21 years old. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• 41 percent of cardholders from the ages of 18 to 29 made only the minimum required payment on a credit card in some of the past 12 months. (Source: FINRA Investor Education Foundation, "Financial Capability in the United States," December 2009) 
• Just 51 percent of Americans aged 18 to 24 indicated they had used a credit card in the month preceding the September 2008 survey. 71 percent of that age group said that they had used a debit card in the same period. (Source: Javelin, "Credit Card Spending Declines" study, March 2009)
• Only 2 percent of undergraduates had no credit history. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Eighty-four percent of the student population overall have credit cards, an increase of approximately 11 percent since the fall of 2004. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004’s $946 to $1,645. Twenty-one percent of undergraduates had balances of between $3,000 and $7,000, also up from the last study. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Half of college undergraduates had four or more credit cards in 2008. That's up from 43 percent in 2004 and just 32 percent in 2000.  (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Since 2004, students who arrived on campus as freshmen with a credit card already in-hand have increased from 23 percent to 39 percent. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• In spring of 2008, only 15 percent of freshmen had a zero balance, down dramatically from 69 percent in the fall of 2004. The median debt freshmen carried was $939, nearly triple the $373 in 2004. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Seniors graduated with an average credit card debt of more than $4,100, up from $2,900 almost four years ago. Close to one-fifth of seniors carried balances greater than $7,000. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Nine in 10 undergraduates reported paying for direct education expenses with credit cards—and the average amount they charged more than doubled since the last study. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Ninety-two percent of undergraduate credit cardholders charged textbooks, school supplies, or other direct education expenses, up from 85 percent when the study was last conducted, in 2004.  (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Nearly one-third (30 percent) put tuition on their credit card, an increase from 24 percent in the previous study. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Students who used credit cards to pay for direct education expenses estimated charging $2,200, more than double 2004’s average of $942. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Sixty percent of undergrads experienced surprise at how high their balance had reached, and 40 percent said they have charged items knowing they didn’t have the money to pay the bill. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Only 17 percent said they regularly paid off all cards each month, and another 1 percent had parents, a spouse, or other family members paying the bill. The remaining 82 percent carried balances and thus incurred finance charges each month. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Two-thirds of survey respondents said they had frequently or sometimes discussed credit card use with their parents. The remaining one-third who had never or only rarely discussed credit cards with parents were more likely to pay for tuition with a credit card and were more likely to be surprised at their credit card balance when they received the invoice. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Eighty-four percent of undergraduates indicated they needed more education on financial management topics. In fact, 64 percent would have liked to receive information in high school and 40 percent as college freshmen. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• One-fourth of the students surveyed in US PIRG's 2008 Campus Credit Card Trap report said that they have paid a late fee, and 15 percent have paid an "over the limit" fee. (Source: U.S. PIRG, "Campus Credit Card Trap")
• 74 percent of monthly college spending is with cash and debit cards. Only 7 percent is with credit cards. (Source: Student Monitor annual financial services survey of current college students, 2008)
• The average college graduate has nearly $20,000 in debt; average credit card debt has increased 47 percent between 1989 and 2004 for 25-to 34-year-olds and 11 percent for 18- to 24-year-olds. Nearly one in five 18- to 24-year-olds is in "debt hardship," up from 12 percent in 1989. (Source: Demos.org, "The Economic State of Young America," May 2008)

Other

• 76 percent of Americans aged 25 to 34 indicated they had used a debit card in the month preceding the September 2008 survey. 63 percent of that age group said that had used a credit card in the same period. (Source: Javelin, "Credit Card Spending Declines" study, March 2009)
• Americans older than 50 are more likely to have a credit card than those 25 to 49 years old, but tend to use them less frequently. (Source: AARP payments study, 2007)
• In 2005, older consumers were significantly less likely to be victims of the ID frauds covered in the survey. While 15.4 percent of those who were between 35 and 44 years of age were victims of one or more of the frauds in the survey, the rate falls by to 11.0 percent for those between 55 and 64 and to 10.4 percent for those between 65 and 74. Of those who were at least 75 years of age, only 5.6 percent were victims. (Source: Federal Trade Commission survey, October 2007)
• Hispanics were 50 percent more likely than non-Hispanic whites to have been a victim of fraud in 2005, with 18.0 percent of Hispanics estimated to have been a victim of one or more frauds. (Source: Federal Trade Commission survey, October 2007)
• Discussing credit card debt is highly taboo. The topics at the top of the list of things that people say they are very or somewhat unlikely to talk openly about with someone they just met were: The amount of credit card debt (81 percent); details of your love life (81 percent); your salary (77 percent); the amount you pay for your monthly mortgage or rent (72 percent); your health problems (62 percent); your weight (50 percent). (Source: CreditCards.com research, January 2009

Consumer debt

Total debt

• Total U.S. revolving debt (98 percent of which is made up of credit card debt): $852.6 billion, as of March 2010 (Source: Federal Reserve's G.19 report on consumer credit, March 2010)
• Total U.S. consumer debt: $2.45 trillion, as of March 2010 (Source: Federal Reserve's G.19 report on consumer credit, May 2010)
• Average credit card debt per household with credit card debt: $16,007* 
• Average total debt in 2009 (including credit cards, mortgage, home equity, student loans and more) for U.S. households with credit card debt: $54,000. (That's down from $93,850 in 2008.) 
• Average total debt in 2009 (including credit cards, mortgage, home equity, student loans and more) for all U.S. households: $16,046. (That's down from $35,245 in 2008.)
• Total U.S. consumer debt (which includes credit card debt and noncredit-card debt but not mortgage debt) reached $2.45 trillion at the end of 2009, down sharply from $2.56 trillion at the end of 2008. (Source: Federal Reserve's G.19 report, March 2010)
• Total U.S. consumer revolving debt fell to $866 billion at the end of 2009, down from $958 billion at the end of 2008. About 98 percent of that debt was credit card debt. (Source: Federal Reserve's G.19 report, March 2010)
• The mean, or average, unpaid credit card balance last month was $3,389. The median is $90. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• About 56 percent of consumers carried an unpaid balance in the past 12 months. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• About 45 percent of consumers said their unpaid credit card balance had gotten "lower" or "much lower" in the past 12 months. Only 26 percent said it had gotten "higher" or "much higher." (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• Slightly more than half of Americans -- 51 percent -- said that in the past 12 months, they carried over a balance and was charged interest on a credit card. (Source: "Financial Capability in the United States," FINRA Investor Education Foundation, December 2009)
• The average balance per open credit card -- including both retail and bank cards -- was $1,157 at the end of 2008. That's up from $1,033 at the end of 2006, a growth of nearly 11 percent in two years. (Source: Experian marketing insight snapshot, March 2009)
• As of March 2009, U.S. revolving consumer debt, made up almost entirely of credit card debt, was about $950 Billion. In the fourth quarter of 2008, 13.9 percent of consumer disposable income went to service this debt. (Source: U.S. Congress' Joint Economic Committee, "Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery," May 2009)
• "As household wealth has declined in the downturn, more American families are facing financial distress due to high debt burdens. In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income." (Source: U.S. Congress' Joint Economic Committee, "Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery," May 2009)
• In 2007, the average balance for those carrying a balance rose 30.4 percent, to $7,300. Meanwhile, the median balance -- meaning half owe more and half owe less -- for those carrying a balance rose 25.0 percent, to $3,000. These increases followed slower changes over the preceding three years, when the median increased 9.1 percent and the average climbed 16.7 percent. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
• In the fourth quarter of 2008, consumers over 60 had an average balance of $763 per open bankcard or retail accounts. A year before, that balance was $746. The year before that, it was $735 -- meaning the average has jumped about 4 percent in 2 years. (Source: Experian marketing insight snapshot, March 2009)
• In 2007, credit card balances made up 3.5 percent of the total debt for all U.S. families, including those with and without credit card debt. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
• In 2007, fewer than half of U.S. families (46.1 percent) held credit card debt. That's virtually unchanged from 2004's 46.2 percent number. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
• Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004’s $946 to $1,645. Twenty-one percent of undergraduates had balances of between $3,000 and $7,000, also up from the last study. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)
• Balances on bank cards accounted for 87.1 percent of outstanding credit card balances in 2007, up from 84.9 percent in 2004. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
• Of the 73.0 percent of families with credit cards in 2007, only 60.3 percent had a balance at the time of the interview; in 2004, 74.9 percent had cards, and 58.0 percent of these families had an outstanding balance on them. (Source: Federal Reserve Survey of Consumer Finances, February 2009)
• "Total bankcard debt per bankcard borrower" is $5,710. This was alternately described as the total balance of bank-issued credit cards per consumer. (Source: TransUnion, December 2008)
• The average American with a credit file is responsible for $16,635 in debt, excluding mortgages, according to Experian. (Source: U.S. News and World Report, "The End of Credit Card Consumerism," August 2008)
• Among the 35 percent of college students with credit cards that do not pay their balances in full every month, the average balance is $452. This is down 19 percent from 2007. Moreover, this balance is approximately one-third the size of the average balance for active nonstudent young adult accounts and one-fourth the size of active accounts for older adults. (Source: Student Monitor annual financial services study, 2008)
• As of 2007, the majority of U.S. households had no credit card debt. (Source: Federal Reserve Board survey of consumer finances, February 2009)
• When you take a snapshot of how much an individual bank cardholder has in debt on a given day, and ignore whether that debt will be paid off in the grace period, Alaska is the state whose cardholders have the highest debt: $7,827. Alaska is followed by Nevada at $6,636 and Tennessee at $6,568. At the other end of the scale, the states whose citizens carry the lowest card debt at a given moment are Iowa ($4,277), North Dakota ($4,403) and West Virginia ($4,517). (Source: TransUnion, December 2008)
• About 40 percent of credit cardholders carry a balance of less than $1,000. About 15 percent are far less conservative in their use of credit cards and have total card balances in excess of $10,000. When you look at the total of all credit obligations combined (except mortgage loans), 48 percent of consumers carry less than $5,000 of debt. This includes all credit cards, lines of credit and loans -- everything but mortgages. Nearly 37 percent carry more than $10,000 of nonmortgage debt as reported to the credit bureaus. (Source: myfico.com)
• The typical consumer has access to approximately $19,000 on all credit cards combined. More than half of all people with credit cards are using less than 30 percent of their total credit card limit. Just over one in seven is using 80 percent or more of their credit card limit. (Source: myfico.com)
• The average college graduate has nearly $20,000 in debt; average credit card debt has increased 47 percent between 1989 and 2004 for 25-to 34-year-olds and 11 percent for 18-to 24-year-olds. Nearly one in five 18-to 24-year-olds is in "debt hardship," up from 12 percent in 1989. (Source: Demos.org, "The Economic State of Young America," May 2008)
• More than 90 percent of survey respondents believe they had the same amount -- or less -- debt as the average American. (Source: CreditCards.com survey, June 2007)
• Miami residents are the biggest overspenders, one study says. The 50 largest U.S. metropolitan areas were ranked in terms of percent of median yearly household income owed to credit card companies and Miami residents owed 22.61 percent. Tampa (17.1 percent) and Los Angeles (16.81 percent) came in second and third, respectively. (Source: Forbes.com, Equifax and US Census Bureau, April 2009)

What is a Credit Card Balance Transfer?

What is a Credit Card Balance Transfer?

Opening a new credit card may seem like the last smart thing to do when faced with mounting credit card debt. In one case, however, this may make sense and wind up saving you a lot of money as well. This special exception is a credit card balance transfer, and is oftentimes available to anyone with a mailbox and social security number.

Credit cards are a big business today, with many companies making a fortune off finance charges. The average annual percentage rate is about 16% on most credit cards. With that kind of interest, it's tough to pay down a credit card, because it is consistently charging interest and adding to the principal. Even hot stocks are pressed to grow at 16% a year. Luckily, companies are so anxious for your business the balance transfer was invented.
In an effort to lure consumers to their credit card, many companies offer free balance transfers from your old credit card. Once the money is safely owed to the new company, they will often provide a grace period where they charge far less on the transferred balance. Finding two, one, or even zero percent interest is possible. Oftentimes this introductory rate lasts for around six months to a year after the balance transfer takes place.

For folks who have a balance on their credit card, there are few deals more tantalizing than 0% interest on balance transfers. Why? Because for a period of time, typically six to 12 months, the credit card company is lending you its money for free. That can mean big savings on interest charges for those with revolving balances.

It's not unusual for American households with credit card debt to carry balances of $10,000 or more. Typical U.S. families pay more than $1,000 in interest charges on credit cards each year. And rates on most credit cards are locked firmly in the double digits -- quite a bit higher than 0%.

Those stats explain why these balance transfer offers are seductive enough to make many consumers skip over the fine print before signing on the dotted line. If you're considering such an offer, you'll want to take a hard look at whether it's such a good deal after all.

Who is eligible?Typically, these offers are available to consumers with very good credit, but even if you qualify, you might want to think twice before applying. If you're someone who struggles to meet a deadline and doesn't think ahead, you're sure to end up with a shocking rise in your interest rate before you've had a chance to switch to a different card.

Likewise, this is a loser's gamble for someone with a compulsive spending habit. All that a 0% balance transfer offer will do for shopaholics is convince them that they have even more "free money" with which to overspend. Somewhere along the line, they'll have to pay the piper -- and odds are, the piper's interest rate will be much higher than 0%.

The best candidate to play the balance transfer game is someone who is serious about paying off his debt and has a plan for paying it off within the grace period. If that sounds like you, read on for more tips on winning the balance transfer game.

What you need to know:

• You have a tough competitor. Credit card companies aren't making these offers out of the goodness of their hearts. They are gambling that they'll win, based on experience and hard numbers. "Winning" for them means that you'll fail to pay off your balance or neglect to switch your balance to another credit card before the grace period is up.
• There are few guarantees. Just because you're offered a teaser rate, it doesn't mean that you are guaranteed that rate, especially if your credit history is anything but spotless. Make sure that the 0% offer stays at 0% when your card comes in the mail.
• Look for 0% on both balance transfers and purchases. Some cards offer 0% on balance transfers but not on subsequent purchases. In addition, they require that you pay off the balance transfer amount first, leaving the new, higher-interest-rate charges buried underneath. For example, if you transfer $10,000 to take advantage of a balance transfer offer, and then charge $15 on the new card for that cute shirt you saw on sale, your payments will go toward the $10,000 first, while the $15 is accumulating interest charges at the normal (translation: outrageously high) interest rate.
• It pays to be choosy. Don't let the teaser rate make you turn a blind eye to the card's other features. You'll still want to shop for a credit card with no annual fee, for example, as well as looking at perks like cash-back plans and fraud liability coverage. If you decide to hold on to the card when your balance is paid off, you'll be happy you shopped around.
• Make sure "free" means free. Some credit card issuers charge fees for each balance you transfer to their card. Again, you'll want to check the fine print on the offer.
• Pay on time. Pay late even once and your low teaser rate will take a hike, leaving you with a new and much less desirable rate. You may also be slapped with a nasty penalty fee. To be absolutely sure you hold on to your good deal, you may want to set up automatic bill payment. Be sure you're paying more than the minimum monthly payment, however, so you can whittle down the balance.
• Stay organized. Take note of the date your 0% deal will end and mark it on your calendar. Now back up six to eight weeks and make another note on your calendar to shop around for another balance transfer offer just in case you haven't yet paid off the balance. Don't rely on the credit card company to remind you.
• Know when to fold 'em. Credit card companies know that you're trying to outfox them and will recognize a pattern of hopping around. That may hurt you in the long run by damaging your credit or causing all those low-introductory-rate offers to dry up. Credit card issuers simply won't want to waste their time on someone with a proven track record of cutting and running

Payment trends

Payment trends

• About 6 percent of consumers have used a prepaid card in the past months. About 9 percent have used one in the past year. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• About 69 percent of consumers have used a credit card in the last month. About 73 percent have used one in the past year. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• About 56 percent of consumers carried an unpaid balance in the past 12 months. (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• About 45 percent of consumers said their unpaid credit card balance had gotten "lower" or "much lower" in the past 12 months. Only 26 percent said it had gotten "higher" or "much higher." (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• "More consumers now have debit cards than credit cards, and consumers use debit cards more often than cash, credit cards, or checks individually." (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010)
• Nearly one in three Americans -- 29 percent -- said that in some of the past 12 months, they paid only the minimum payment on their credit cards. (Source: "Financial Capability in the United States," FINRA Investor Education Foundation, December 2009)
• More than half of Americans -- 54 percent -- said that in the past 12 months, they always paid their credit cards in full. (Source: "Financial Capability in the United States," FINRA Investor Education Foundation, December 2009)
• 41 percent of cardholders from the ages of 18 to 29 made only the minimum required payment on a credit card in some of the past 12 months. (Source: "Financial Capability in the United States," FINRA Investor Education Foundation, December 2009)
• Three in four cardholders age 60 or older always paid their credit card in full in the past 12 months. (Source: "Financial Capability in the United States," FINRA Investor Education Foundation, December 2009)
• 26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent.  (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
• The average credit card-indebted family in 2004 allocated 21 percent of its income to servicing monthly debt compared to the 13 percent dedicated to debt payments among all households. (Source: Demos.org, "Borrowing To Make Ends Meet," November 2007)
  58 percent of Hispanics have not used a credit card in the past 30 days. (Source: Experian Consumer Research study, November 2008)
• 31 percent of Hispanics typically pay cash for their purchases. (Source: Experian Consumer Research study, November 2008)
• When finances are tight, 59 percent of people would pay their credit card bills last. A majority -- 52 percent -- would pay the mortgage first and 38 percent say they would pay for utilities before paying other obligations. (Source: CreditCards.com survey, December 2008)
• 41 percent of college students have a credit card. Of the students with cards, about 65 percent pay their bills in full every month, which is higher than the general adult population. (Source: Student Monitor annual financial services study, 2008)
• 27 percent of U.S. families had no credit cards in 2007. (Source: Federal Reserve Board Survey of Consumer Finances, February 2009)
• One in six families with credit cards pays only the minimum due every month. (Source: Experian national score index study, February 2007)
• Of every $100 spent by consumers, nearly $40 is in a form other than cash or check. (Source: Visa USA internal statistics, 4th quarter 2006)
• 28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult. (Source: Javelin Strategy & Research, "Credit Card Issuer Profitability in a Difficult Economy," July 2008)

Identity theft, fraud

Identity theft, fraud

• The number of U.S. identity fraud victims rose 12 percent to 11.1 million adults last year, the highest level since the survey began in 2003. (Source: Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010) 
• The average fraud resolution time dropped 30 percent to 21 hours. (Source: Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010)
• Nearly half of fraud victims now file police reports, resulting in double the reported arrests, triple the prosecutions and double the percentage of convictions in 2009. (Source: Javelin Strategy & Research, "Identity Fraud Survey Report," February 2010)
• The number of U.S. identity fraud victims increased 22 percent in 2008 to 9.9 million adults. However, the total annual fraud amount jumped just 7 percent to $48 billion. The report said this is because "consumers and businesses are detecting and resolving fraud more quickly." (Source: Javelin Strategy & Research, February 2009 study.)
• Women were 26 percent more likely to be victims of identity fraud than men in 2008. (Source: Javelin Strategy & Research, February 2009 study.)
• 71 percent of fraud incidents "began occurring in less than one week from when the data was first stolen, up from 33 percent in 2005." (Source: Javelin Strategy & Research, February 2009 study.)
• "Lost or stolen wallets, checkbooks and credit and debit cards" made up 43 percent of all ID theft incidents in which the "method of access" was known. (Source: Javelin Strategy & Research, February 2009 study.)
• Credit and debit card fraud is the No. 1 fear of Americans in the midst of the global financial crisis. Concern about fraud supersedes that of terrorism, computer and health viruses and personal safety. (Source: Unisys Security Index: United States, March 2009)
• Arizona leads the nation in identity theft complaints per 100,000 people. In 2008, the state had 149 complaints about ID theft per 100,000 people. California (139.1), Florida (133.3), Texas (130.3) and Nevada (126.0) rounded out the top five. (Source: Federal Trade Commission, February 2009 survey)
• South Dakota has the fewest identity theft complaints per 100,000 people in the nation. In 2008, the state had 33.8 complaints about ID theft per 100,000 people. North Dakota (35.7), Iowa (44.9), Montana (46.5) and Wyoming (46.9) rounded out the bottom five. (Source: Federal Trade Commission, February 2009 survey)
• Brownsville-Harlingen, Texas, is the metropolitan area with the largest number of ID theft complaints per 100,000 people. In 2008, the area had 366.8 complaints per 100,000 people. Napa, Calif., was second with 351.3. (Source: Federal Trade Commission, February 2009 survey

Credit Cards In Islam

Credit Cards In Islam

Credit Cards is a very convenient method of making purchases without carrying cash. This convenience has has caused their proliferation, and almost everyone has one.

The way a normal credit card works is that you make purchases using your card and the bank issuing the card will pay on your behalf to the merchant providing you the product or service.

The bank deducts a certain percentage (2.5% normally) from the merchant in return for processing the transaction and adding the money to the merchant's account.

From the customer side (the card holder), he is given a loan for that amount and given a grace period (normally 26 days to a month) to repay the amount interest free. If the card holder decides he does not want to pay the full amount, he pays the minimum (printed on the monthly statement), and the rest of the unpaid balance gets deferred in the form of a loan with compound interest.

Many consumers have gotten used to this, and use the card asa loan machine.

Apart from being convenient, credit cards offer other benefits,such as frequent flyer miles, donations of a certain amount orpercentage to your favorable charity, consumer protection (canrefund the price of a faulty product), extended warranty, ...etc.All depending on the specific card in use.The largest issuers of Credit Card worldwide by far is VISA followed byMasterCard. Thereare lots of others as well, including Diners Club, American Express,Disover (USA only), JCB (Europe), and others.

There are certain services that one cannot get without a Credit Card,including Car Rentals in North America, and many internet services.

Another feature of Credit Cards is that you can get Cash Advancesusing it at bank outlets and Automatic Teller/Banking Machines (ATMs/ABM). This is treated as a loan, and interest is to be paidon it. Therefore a Muslim should avoid this, unless it is anemergency, where such an exception would be premissible.

In short, this has become a very pervasive aspect of our modern life.

For the Muslim, a Credit Card can be had, but extreme care must betaken not to be late in paying the statement balance in full, so asnot to incurr interest. If you travel on a regular basis, you maymiss a statement, so maybe you want to talk to your bank about thisand explain that you travel and make other arrangements.

Also note that because you are paying during the grace period on aregular basis, you will eventually be "flagged" as an unprofitablecustomer to the bank (you use their money for a month, and generateno interest revenue for them). There has been reports of some CreditCard Issuers in the USA asking customers to pay an annual fee to compensate for this "loss of revenue". If this is the case, findanother credit card company to do business with, there are toomany of them

Customer satisfaction, Bankruptcy/delinquency And Business Cards

Customer satisfaction

J.D. Power and Associates 2010 Credit Card Satisfaction Study Rankings 

1. American Express
2. Discover
3. US Bank
4. Wells Fargo
5. Chase
6. Barclaycard
7. Bank of America
8. Capital One
9. Citi
10. HSBC

(Source: J.D. Power and Associates)

 

Bankruptcy/delinquency

• U.S. credit card 60-day delinquency rate: 4.27 percent. (Source: Fitch Ratings, April 2010)Business credit cards
• Credit cards are now the most common source of financing for America’s small-business owners. (Source: National Small Business Association survey, 2008)
• 44 percent of small-business owners identified credit cards as a source of financing that their company had used in the previous 12 months —- more than any other source of financing, including business earnings. In 1993, only 16 percent of small-businesses owners identified credit cards as a source of funding they had used in the preceding 12 months. (Source: National Small Business Association survey, 2008)

Credit Card Debt Elimination

Credit Card Debt Elimination

When you try to eliminate credit card debt using magic you will quickly learn that it is much easier to make the debt collector "disappear" because he believes he is the magician and he is going to pull money out of your bank account and make it vanish into thin air but we all know it is going into his pocket.
Your actual credit card debt "disappears" after you stop paying for six months. The bank is then required by federal law to "write off" the debt and that is the end of your account. Your debt has actually vanished, however your account information is sold to a collections company.
So now the "magic" is to make the debt collector vanish into thin air. There are some steps you must do to make the trick work and when you do each step, it lessens the probability that the collector can get money from you.
The first thing you should do is say the magic words "communicate with me in writing only" and hang up the phone when a collector calls. Never give him any information whatsoever not even your name or address. The less information he has, the better for you.
The second step is to answer any written communication from the collector by demanding validation or proof that you owe him money. You can find information on how to do that at the Fair Debt Collection Practices Act under article 15 USC 1692 (g). You will be demanding that he show proof that you owe him money and he cannot do it.
The third step is to file a "sworn denial" with the clerk of court in your county and this step is only necessary "if" you are being sued by the collector. This is an important step because it will force the debt collector to produce a witness that is "familiar" with your account.
This witness will never be able to produce a contract with your signature, they will have never seen you before and they will have no knowledge of you or your account until the debt collector hands it to them which means they have no "personal knowledge" of you or your account.
When the debt collector is unable to produce a witness with personal knowledge of your account, he has no proof! Without proof, case dismissed! Never let fear of the unknown hold you back. If you do "nothing" you will lose!
You do not need "smoke and mirrors" to eliminate credit card debt and make a collector disappear. You do need knowledge and the courage to stand up for your rights to make it happen!

and down load the free e book Control Your Creditors to begin educating yourself with the wisdom to stop any debt collector in his tracks. Find out why collectors will gladly accept 10% of what you owe just to get rid of you or go away altogether. Learn the secrets to improve your credit score 60 to 120 points after you stop paying and learn money mastery for life to stay out of the debt trap forever

What’s Different About a Variable Interest Rate?

What’s Different About a Variable Interest Rate?

A variable interest rate is tied to another interest rate, usually one that moves with the economy. The variable interest rate is a certain number of percentage points above the index rate. (The difference between the two rates is called a margin.) For example, the variable interest rate on your credit card might be prime + 13.79%. In that case, the margin, 13.79%, is added to whatever the prime rate is at the time to come up with your interest rate. Prime is currently 3.25%, making your interest rate 17.04%.

Your variable interest rate will go up and down as the underlying rate goes up and down. Credit card issuers don’t have to send you an advance notice when your variable interest rate goes up because the underlying rate has gone up, so you won’t know if your interest rate has changed unless you pay attention to your credit card billing statement. If your credit card issuer increases the margin portion of your variable interest rate, the fixed interest rate increase rules apply. Your card issuer will be required to notify you in advance of the chance, giving you the chance to opt-out

How Credit Cards Work

How Credit Cards Work

Have you ever stood behind someone in line at the store and watched him shuffle through a stack of what must be at least 10 credit cards? Consumers with this many cards are still in the minority, but experts say that the majority of U.S. citizens have at least one credit card -- and usually two or three. It's true that credit cards have become important sources of identification -- if you want to rent a car, for example, you really need a major credit card. And used wisely, a credit card can provide convenience and allow you to make purchases with nearly a month to pay for them before finance charges kick in.

That sounds good, in theory. But in reality, many consumers are unable to take advantage of these benefits because they carry a balance on their credit card from month to month, paying finance charges that can go up to a whopping 23 percent. Many find it hard to resist using the old "plastic" for impulse purchases or buying things they really can't afford. The numbers are striking: In 1999, American consumers charged about $1.2 trillion on their general-purpose credit cards.

In this article we'll look at the credit card -- how it works both financially and technically -- and we'll offer tips on how to shop for a credit card. (Experts say this should be a project on the scale of shopping for a car loan or mortgage!) We'll also describe the different credit-card plans available, talk about your credit history and how that might affect your card options, and discuss how to avoid credit-card fraud -- both online and in the real world.

Let's start at the beginning. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or services to his account -- charges for which he will be billed periodically. Today, the information on the card is read by automated teller machines (ATMs), store readers, and bank and Internet computers.

According to Encyclopedia Britannica, the use of credit cards originated in the United States during the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II. The first universal credit card -- one that could be used at a variety of stores and businesses -- was introduced by Diners Club, Inc., in 1950. With this system, the credit-card company charged cardholders an annual fee and billed them on a monthly or yearly basis. Another major universal card -- "Don't leave home without it!" -- was established in 1958 by the American Express company.

Later came the bank credit-card system. Under this plan, the bank credits the account of the merchant as sales slips are received (this means merchants are paid quickly -- something they love!) and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or in monthly installments with interest (sometimes called carrying charges).

The first national bank plan was BankAmericard, which was started on a statewide basis in 1959 by the Bank of America in California. This system was licensed in other states starting in 1966, and was renamed Visa in 1976.

Other major bank cards followed, including MasterCard, formerly Master Charge. In order to offer expanded services, such as meals and lodging, many smaller banks that earlier offered credit cards on a local or regional basis formed relationships with large national or international banks.

How to Avoid Credit Card Traps

How to Avoid Credit Card Traps

When in search for a credit card, you will be confronted with a lot of choices. And with so many options available, selecting the best one can be tough. The new credit CARD law was created to protect consumers against unexpected changes in the terms and conditions. However, the new law does not prevent credit card issuers from making their offers more enticing to the public. In this post, we talk about the most common credit card traps that consumers must watch out for:
Indistinct words or phrases.
Credit card deals may sound attractive at first. But if it includes the phrase "up to" or "as low as", you should take a closer look at what the deal truly entails. Perhaps you see reward credit cards that offer "up to" 5% rebates or "as low as" 1% interest rate on purchases. Sounds like a great deal? Check the fine print and you'll see that maybe it's not so great after all.
Phrases like "up to" and "as low as" are often conditional. For instance, you can earn the maximum 5% rebates or enjoy "as low as" 1% interest rate but only if the conditions stated in your contract are met. You may discover that in order to qualify, you must purchase from affiliated merchants. Upon closer look, these affiliated merchants could turn out to be high-end shops that only sell expensive goods.
Stringent rules on giving rewards.
Because many reward cards are competing for the same market, many issuers make their rewards even bigger to attract customers. But these issuers find subtle ways to get back what they give. How? Many reward today impose blackout dates. Some reward cards have shorter expiration period as well so you can easily lose your points if you fail to redeem them on time. The rules on collecting reward points may have also become more rigid, making it difficult for the cardholder to get rewarded.
Unreasonable fees.
Credit cards with zero percent interest rate offers can seem to be the most amazing thing. However, don't forget to check out the rest of the fees. For instance, some balance transfer credit with zero introductory rate can be used for consolidation. But how much would you pay each time you want to transfer a balance from another card? Some cards impose as high as 5% of the balance being transferred. Imagine paying 5% charge each time you need to make a transfer. Before signing up, consider this: will the transaction fees defeat my purpose for acquiring with 0% APR?
Perks are not free after all.
If you want a reward credit card, be sure to examine the interest rates and fees. Next, understand the rules of the reward program to make sure it fits your lifestyle. Read the fine print and pay special attention to details. For instance, most credit with rewards offer various perks and privileges for their holders. However, not all perks may come for free. You may need to pay for some services if you choose to get them

Credit Card Features

Credit Card Features

Do you know anyone who doesn't have a mailbox overflowing with credit card offers? Open any of them up and you'll find in large print just what makes this card perfect for you. At first glance, this all looks good on paper, but it's the small print that you don't pay attention to that will come back and bite you in the end. All credit cards offer a variety of features. Knowing and understanding these features will help you to decide which card is right for you.

Fees

Most credit cards charge fees for various things, and it is important to know what these fees are and how to avoid them.

The annual fee

Some credit card companies charge you an annual fee just for using their card. Because of stiff competition, you can often negotiate this fee away if you call and speak to a customer service representative.

Cash Advance Fee

Most credit card companies will charge you a fee for cash advances. These fees can vary but are usually somewhat hefty. Not only will they charge you a one-time fee, but the interest rate for this money will be at a considerably higher rate. Plus, unlike a regular purchase, where interest begins accruing after some grace period passes, cash advances accrue interest charges from day one.

Many card companies are competing for your business and are now offering an introductory cash advance and balance transfer rates for a specific amount of time. This lower rate can be applied to any balances you may wish to transfer from another card. Although it sounds good, some companies will charge you a fee for the transfer. Know what the fee is before you transfer any balances.

Miscellaneous Fees

Things like late-payment fees, over-the-credit-limit fees, set-up fees, and return-item fees are all quite common these days and can represent a serious amount of money out of your pocket if you get whacked for any of these fees.

Incentives

Since there are so many credit card companies, competition is stiff. Adding incentives to their offers is one of the more popular ways to tip the scales in their favor. Incentives like rebates on purchases, frequent flyer miles on certain airlines, and extended warranties on purchases are just a few of the bonuses that card companies will now offer.

For those of you who collect and use your frequent flyer miles, they also have added incentives like travel insurance and car rental insurance for your convenience. Of course, they are hoping that with all this traveling, you are using their card to foot at least some of the bill.

Rewards

Many card companies are looking to keep your business and are therefore making it worth your while to use their card. Just simply by using their card you can accumulate points that will in turn earn you rewards. What kind of reward depends solely on the amount of points you accumulate. Since you can't accumulate these points without charging things on your card, this is a classic case of 'you have to spend money to save money.'

Bottom line is this: Know what you need and what you don't. No sense in paying for any features that you won't use.

Top 10 Things You Can Do Today to Improve Your Credit

Top 10 Things You Can Do Today to Improve Your Credit

The most difficult part about beginning a new exercise routine is getting your butt off the couch to go to the gym. Yes, those endless reruns of "America's Next Top Model" can be quite hypnotizing, but think about how great you'll feel once you see the results of your hard work take shape in the form of rock-hard abs!

Similar to getting your body back into shape, rebuilding or repairing your credit isn't something that happens overnight. It will take a lot of hard work and perseverance, but in the end the results are always well worth the time spent.

If you're having trouble finding the motivation to get started, here are some simple things you can do right now to begin improving your credit. And the best part is most of these don't even require removing your butt from the couch!

1. Commit to living within your means
   
   In other words, make a promise to yourself that you will spend less than you make. This may seem obvious, but the reality is most people struggle with this principle throughout life. If you can master the art of living within your means, you will be well on your way to excellent credit.
2. Take the Latin phrase "Maxima Enim, Patientia Virtus" to heart
   
   Latin for "Patience is the greatest virtue", this phrase has been shortened over the years and is better known today as simply "Patience is a virtue". Your patience will most certainly be tested as you seek to improve your credit using the methods recommended in this article. However, remember that consistency is really what it takes to win the credit game. Continue paying off your debts, and over time you will see improvement in your credit.
3. Obtain a free copy of your credit report
   
   How can you fix something if you don't know what to fix? The bottom line is you should know your credit history better than anyone else, so click here to obtain a free copy of your credit report from each of the three major credit bureaus.
4. Dispute errors and clean up your credit reports
   
   Credit bureaus make data entry mistakes all the time, so it's important that you check your credit reports often. If you find incorrect information, begin by following their directions for disputing inaccuracies and clean up the errors on your report before you tackle any other issues.
   
   In addition, there are numerous credit monitoring and identity theft protection services that can help you keep tabs on all the activity associated with your credit report.
5. Catch up on overdue accounts
   
   Payment history affects your credit scores more than anything else because lenders are most concerned about whether or not you pay your bills on time. In fact, it accounts for about 35% of your credit score.
   
   Extra cash might be hard to come by these days, so do some cleaning around the house and look for anything you could sell on eBay or Craigslist. Use the money to pay down your highest-rate debt first and free your home of clutter at the same time!
6. Don't close those unused accounts!
   
   Did you find old credit card accounts on your credit report that you completely forgot about? If so, you may be tempted to immediately pick up the phone and close out accounts that are no longer used or delinquent.
   
   Don’t do it before further investigating the negative effects on your credit score. If it happens to be your oldest credit card, you want to leave it open forever in order to retain the length of your credit history. In addition, if you close out a card that still has an overdue balance, your total available credit will be lowered to zero and it will look to lenders like you have a maxed out card.
7. Determine your credit utilization
   
   Credit utilization measures how much you're spending of your available credit limit from all cards combined. For example, your credit utilization is 10% if your combined monthly credit limit is $10,000 and you spend $1,000 per month.
   
   Run a quick analysis of how much you're spending of your available monthly credit limit from all your credit cards. This number should ideally be somewhere between 10-30% of your combined credit limit. If your credit utilization is higher than 30%, try calling your credit card company and requesting an increase to your credit limit which will immediately reduce your debt ratio.
8. Set up automatic bill pay with your bank
   
   The best way to prove you are a reliable credit risk is to always make payments on time. If you find yourself forgetting when your credit card payments are due, take a few moments to set up direct debits for all of your cards from one central checking account.
   
   Now you will only have to remember one thing—make sure you have enough in your checking account to cover the payments each month! Your personal bank should be willing to provide minimum balance alerts or overdraft protection in case of an emergency.
9. Negotiate with your creditors
   
   Creditors are in business to earn a profit, and it directly affects their bottom line when you don't pay your bills. You may be surprised that your creditors are quite willing to negotiate a reasonable resolution to your financial situation if you contact them in good faith as soon as the problem arises. Your goal is to keep them from turning over your debt to a collection agency, which will only lead to more problems and a lower credit score.
10. Seek help from a professional
    
    You have the power to get off the couch and go to the gym, but you may be the type of person that needs to hire a professional trainer. Likewise, you have the power to repair and build your own credit. However, if you feel overwhelmed by your financial situation, there are credit repair services that can help. You can also contact the National Foundation for Credit Counseling (http://www.nfcc.org/) for further guidance and support.

9 Ways To Build Credit From Scratch

9 Ways To Build Credit From Scratch

Establishing a good credit history has never been as important as it is today.It's not just that you'll need good credit to get decent rates when you're ready to buy a home or a car. Your credit history can determine whether you get a good job, a decent apartment, a deal on your cell phone and reasonable rates on insurance. One seemingly minor misstep -- a late payment, maxing out your credit cards -- can haunt you for years.

If you're just starting out, you have a once-in-a-lifetime opportunity to build a credit history the right way. Here's what to do and what to avoid.

Check your credit report

You'll first want to see what, if anything, lenders are saying about you. That kind of information is contained in your credit report at each of the three major bureaus: Equifax, Experian and Trans Union. 

Credit reports are used to create your credit scores, the three-digit numbers that lenders typically use to gauge your creditworthiness. Lenders also may look at the reports themselves, as may the landlords, employers, insurers and utility companies who use credit to evaluate applicants.

Can you have a credit report if you've never had credit? Maybe.

Somebody else's information could be mixed in with your report, either through a credit bureau mistake or because of identity theft; i.e. someone using your personal information to open bogus accounts.

If that's happened to you, you'll need to clean up your credit report before trying to apply for new accounts. The Federal Trade Commission's identity-theft site has information that can help

Establish checking and savings accounts

Here's a basic step that's sometimes overlooked by people seeking credit. Lenders see bank accounts as signs of stability.

Opening checking and savings accounts is also one of the few things you can do as a minor to start building a financial history. While you can't get a credit card in your own name until you're 18 and can be legally held to a contract, many banks have no problem letting you open an account.

If your bank balks, look around for another bank or consider opening a joint account with an adult.

Understand the basics of credit scoring

You need to know that the two most important factors in your scores are:

• Whether you pay your bills on time.

• How much of your available credit you actually use.

It's essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you're never, ever late. All it takes is a single missed payment to trash your credit scores -- and it can take seven years for the effects to completely disappear.

You also don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits (10% is better) will help you get the best possible credit scores -- and should help keep you from getting over your head in debt, as well.

Finally, you don't need to carry a balance on a credit card to have good credit scores. Paying your bill in full each month is the best way to keep your finances in shape and build your credit at the same time.

Piggyback on someone else's good credit

The fastest way to establish a credit history can be to "borrow" another's record, either by being added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.

Having a co-signer can allow you to qualify for loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit scores.

If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.

Being added as a joint account holder also has its risks, for you as well as the person giving you access to the card.

If your father adds you to his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. You become responsible for any debt on the card, and it's difficult to get your name removed. Any late payments or other problems could make it harder for you to get future credit than if you'd established your history without help.

Being added as an authorized user to a credit card will no longer help you build a credit history. After credit-repair companies took advantage of the system and lenders protested, score-keeping companies are ignoring authorized-user information.

Apply for credit while you're a college student

Credit experts used to warn college students away from those booths set up on campus by credit card lenders -- the ones that promise free stuff for signing up. It turns out, however, that there's no easier time to get a card than while you're a college student, said Gerri Detweiler, author of "The Ultimate Credit Handbook."

Lenders are willing to take risks with you that they won't once you graduate, probably because they know that your parents' willingness to bail you out will end once you get your sheepskin.