Auto Loans For People With Poor Credit

Todays owning a car has become a necessity as well as a status symbol. Poor credit people also want to buy a car but financial crisis and poor credit record does not support them to buy their dream car. In this situation the financial insufficiency can be easily fulfilled by the help of bad credit car financing.

Generally poor credit auto loans are a secured from of loan. Lenders who offer this type of loans will require some collateral against the money. The security can be the brand new car which the borrower is going to buy with the loan amount or any other valuable asset like home, jewellery, insurance documents, any other valuable documents, etc. When the borrower repays the loan amount within time, they can easily get back their valuable assets without any hassle. Poor credit people can improve their credit rating by repaying the loan amount regularly and in time. The loan amount depends on the value of the car and repayment ability of a borrower.

In poor credit car financing a heavy down payment can reduce the rate of interest. This loan is available in the market without any trouble. One can avail this loan from offline lenders as well as online lenders. Offline lenders require some paper works which is time consuming but if the borrowers apply the loan from online lenders, they can get the best deal by a little search in internet.

Getting Credit Cards Back After Bad Credit

So you had a bad time in your credit past. It happens to the best of people. A few bills get out of hand and then there is a snowball effect with more and more of your finances becoming a mess. While this is not something you wanted to have happen to you, you can't just sit there and pout about it. You have to pick yourself up.

Maybe you thought the way to do that was to get a new credit card and start over. So you started applying for cards, but kept getting rejected because of the messes in your credit past. Each time you get a rejection you send out another application hoping this time you will get accepted.

STOP!

Sending in a stack of applications for credit cards is a bad idea. Every time you send in an application for new credit cards, it comes up as a blip on your credit report, since the credit card companies look at your credit. In actuality, the more times you apply for a card, the more damage you are doing to your already ailing credit rating.

Unfortunately, most credit card companies don't tell you this. They'll just let you keep putting in applications and doing more damage to your credit rating.

Getting Things Back in Order

Start with getting your finances sorted out. The only way you are going to get credit cards to look at you is to make sure your credit report looks a little better.

Start with making a note of all the debts you have right now. Whatever bills you haven't paid and creditor notes you may have piling up, you need to sort through. You need to start paying them down and get those debt items back in line before you can expect the credit card companies to allow you to open a new line of credit.

Get to Work

If you don't have a solid job right now, you need to get one. Credit card companies want to know that you are working so you will have a way to pay for any debt that you put on their cards.

Bad Credit Credit Cards

Once your credit starts looking better, you need to look into bad credit credit cards. Bad credit credit cards are not fancy rewards cards that a lot of people like, but are instead cards that are meant for people recovering from bad credit times. Bad credit credit cards are going to have higher interest rates and most likely lower credit limits than other cards, but if you use them wisely, and pay them off on time, they can help to build your credit rating back up to where you can get any credit card you want.

Prepare For Financial Emergencies to Protect Your Credit Score

Financial emergencies happen to almost everyone at some point and they can have devastating impact in your credit. This is particular true in today volatile economy conditions.

Many people have to declare bankruptcy due to huge financial disaster such as sudden unemployment, huge medical bills, a lawsuit or divorce. If they have prepared for such emergency, the adverse effect will be dramatically reduced.

If you want to keep your credit score in good shape, you should start planning what you would do in case of an emergency. Put your plan down in written form so you can review and refine as time goes on.

Here are some items that should be on your financial emergency plan:

1) A list of all assets you could convert to cash quickly. An example will be gold.

2) A list of all extras which will not affect your life during an emergency. This includes magazine subscriptions, cable television, Friday nights at the movies, spa and others.

2) A list of resources you can turn to could to in case of an emergency. This includes insurance or professionals such as a lawyer who deals in financial facets of the law or a severance package in case of retrenchment. Whatever it is writes it down.

3) A list of ways you could raise money in the short term, which includes renting part of your house, mowing lawns for others, giving tuition and so forth.

You should also consider overdraft protection for your bank or credit accounts. This will prevent you from getting a negative record on your credit report or a charge for insufficient funds. In most cases, you have a day or two to add funds into the account to cover the excess withdrawal. Some credit cards companies also offer a similar service, which can protect you in case you lose your job, and are unable to pay for a few months.

Another area to consider is insurance. You should have some form of insurance for your own health, your car, your home, and for liability incurred from an accident or other sudden financial problems. For a small monthly fee, you are covered against unexpected events that can drain your finances and leave you with a huge debt.

If you do not have a plan yet, start today. It is never too late to prepare for emergencies. You will thank yourself should you ever encounter a financial disaster in the future.

5 Ways to Avoid Credit Card Fraud

It seems every day there is a new story about identity theft and credit card fraud somewhere. Sometimes there are hundreds of these stories in a day. With so many people out there desperate to take our credit card numbers, how do we keep them save? Here are five tips that will give you a good start.

Keep your Numbers Private

Your credit card is a personal card that is meant for you. While it may just seem like a piece of plastic, you should not freely lend your card out to people you know, or give out your credit card number for no good reason. Even when you have to pay for something at a restaurant or other location, you should try to keep an eye on what is happening to your card to make sure someone isn't copying down your numbers to use later.

Shred Receipts

Receipts are not supposed to show more than the last four digits of your credit card, but many of them do. They also have a lot of your other personal information on them. Once you are done using your receipts, or filing them away for taxes, you should shred them instead of putting them in a regular trash can. Don't make the information easy to find for someone who may be up to no good.

Shred Application

Credit card applications come in as much as other pieces of junk mail. You may see them so much that you no longer care about them and toss them in the trash without a second thought. That is not a good idea. That application has some of your information on it. You should always shred credit applications to make sure someone else doesn't fish them out of the trash and try to open a line of credit in your name.

Use Secure Websites

If you do a lot of online shopping, make sure you are using a secure online site. Look for that little padlock logo in the corner of your web browser so you know the information you are entering is secure and only going to those you want to be giving it to.

Watch Your Card Statement

The best thing you can do to keep your credit cards secure is keep a close eye on what is happening on them. If you do online banking, you should check your credit cards regularly to make sure all the charges coming through are ones you put there. If you wait until the statement comes, make sure to look at it as soon as it comes and call if you see anything that is suspicious.

Credit Bureau Report Repair Tips

As the economy continues to go through major upheaval, banks are becoming increasingly reluctant to loan money - even to each other! The lending boom in which banks and lending institutions loaned money indiscriminately has led to a huge rise in home foreclosures, financial upheaval, and near disaster.

The $700 billion bailout has been turned down, and the everyday person is left to wonder, "What's next?" It's true - there may very well be a new bailout proposal that might pass in the future and it keeps happening - first the car industry, then the credit and banking industry. Expect more bailout proposals in the coming years.

And as with everything, this financial crisis will pass. But what is bound to linger is the fact that right now, and most likely in the future, it will be very difficult to get a loan for anything unless you have a good credit bureau report.

The days of securing a loan even with bad credit are over. If you want to finance a car, a home, a boat, a pool for the back yard or much of anything else, you must have good credit! So what do you do if your credit is less than stellar?

How are you ever going to be able to finance anything ever again? Your first step has got to be to repair your credit and make sure your credit bureau reports are correct. This might take a while to do, but if you get started now, you'll be in good shape for future purchases on credit. Here are the credit bureau report repair tips you will need to use:

1.) Get a copy of each of your credit bureau reports from the three major credit bureaus - Experian, Equifax and TransUnion. Without your credit reports, you can't move forward with fixing your credit.

2.) Review each report thoroughly. If you see errors, make a note of them. If any reports are missing good credit information, make a note of those as well.

3.) At this point it will be handy to start a filing system, perhaps folders, for each creditor that you need to contact to either fix faulty information or to add favorable information to you credit reports. You can keep your notes, letters you write to creditors and reporting agencies and other important information organized this way.

4.) If there are errors or omissions in your credit bureau reports, write letters to both the reporting bureaus and the creditors involved and provide them with as much detailed information as possible. You will want to include copies of any supporting documents and you might even want to include a copy of the credit report with the item in question circled if you are requesting a correction in a reporting error.

5.) Once you've contacted your creditors and the bureaus in writing, get copies of your credit reports again (you should wait 30 to 60 days to give them time to correct their errors). If the corrections you've requested aren't showing, write them again. It may be necessary to repeat this step a few times - the squeaky wheel will get greased most quickly.

6.) If you don't get the changes you've requested, you can contact the Federal Trade Commission and make your case known to them. Under the Fair Credit Reporting Act, they can help you get results.

7.) Be sure that once you've fixed any errors or omissions, you keep monitoring your credit report on a regular basis and that you always manage your money wisely to keep your credit score top-notch.

Making certain that your credit report is accurately reporting your credit history is your first step to credit repair. By using these credit bureau report repair tips, you will be forming the foundation for rebuilding your credit.

RPT-UPDATE 2-U.S. House passes credit-card reform bill

The U.S. House of Representatives on Tuesday passed legislation that would limit surprise interest-rate increases and fees for credit-card users, but the bill faces an uncertain fate in the Senate.

The House passed the bill, 312 to 112, but it was not expected to advance in the Senate as Congress tackles the Bush administration's $700 billion Wall Street bailout plan before adjourning as soon as Friday.

Credit-card issuers like Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) and Citigroup (C.N: Quote, Profile, Research, Stock Buzz) could still face restrictions from the Federal Reserve, which is expected to finalize similar rules by the end of this year.

The bill would prevent banks from retroactively increasing interest rates on an existing credit-card balance unless the cardholder is more than 30 days late. Banks would have to give a 45-day notice of any interest-rate increase.

It also would give cardholders more time to pay by requiring banks to mail bills 25 days before the due date, rather than 14 days.

"For too long card issuers have been allowed to do whatever they want for any reason," said New York Rep. Carolyn Maloney, the bill's sponsor. "No other industry is allowed to raise the price of a product after a consumer has bought it."

Banks oppose the bill, which could limit their credit-card revenue at a time when they are already reeling from a credit crisis brought on by the collapse of the U.S. housing market.

House Republicans called the bill a distraction from the bailout effort that could lead to higher interest rates and restricted credit for consumers.

Unfair and deceptive practices are better addressed by the Fed, they said.

"This is not the way to do this, nor is it the time to do this," said California Rep. John Campbell.

Democrats worry that banks could water down the Fed's proposals.

The White House has said it opposes the bill.

Among the biggest credit-card issuers are JPMorgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz), Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz) and Discover Financial Services (DFS.N: Quote, Profile, Research, Stock Buzz). (Reporting by Andy Sullivan; Editing by Brian Moss)

Consumer groups ask FTC for tougher gift card protections

Consumer groups filed a petition Thursday asking federal regulators to do more to keep consumers from losing money on gift cards from bankrupt retailers.

The petition was sent to the Federal Trade Commission and spearheaded by the California office of Consumers Union, which was joined by the Consumers Federation of America, National Consumer Law Center and U.S. PIRG. The request follows a tough year for stores -- and those left holding their gift cards. "The issue has come to light following recent retailer bankruptcies and millions in lost gift card dollars for consumers," the press release says. Earlier this year, Sharper Image customers were initially left holding worthless gift cards when the gadget retailer declared Chapter 11.

When a store runs into trouble, its gift cards can quickly become little more than pieces of plastic.

"Bankruptcy courts treat unused gift card funds as a debt and determine whether or not the retailer must pay it. It's up to the retailer to petition the court to allow it to continue to accept its gift cards," the press release says. "Consumers may lose the value of their gift card if the retailer doesn't make such a request or if the court denies it. In these cases, the only remaining option for consumers is the cumbersome task of filing a claim as an unsecured creditor to the bankruptcy proceeding." That means consumers have to get in line behind other creditors when a store goes belly up.

Consumer groups don't think it should come to that. "We made the filing to try to upgrade consumer protections on cards that are poorly protected," says U.S. PIRG consumer program director Ed Mierzwinski, adding that the goal is to eventually bring all card products up to the Truth in Lending Act. "People think all plastic is the same -- it isn't," he says.

Among plastic payment forms, credit cards offer consumers the best protections, while stored-value cards (including gift cards) are the worst, Mierzwinski says. Among that category of stored-value cards, "the worst gift cards, in general, are the gift cards issued by a bank," he says. Some mall gift cards may actually be issued by a bank, Mierzwinski warns.

The petition asks that the FTC:

* Take part in bankruptcy proceedings and ask that the court require the bankrupt company to accept its own gift cards at full value while the retailer's doors remain open.
* Create and keep a new FTC registry on bankrupt retailers' gift card practices.
* Require stores to update the new FTC registry within one day of a bankruptcy filing.
* Force bankrupt companies to halt gift card sales no later than the date of the bankruptcy filing.
* Compel retailers to tell third-party vendors to stop selling any bankrupt retailers' gift cards.
* Require third-party vendors to immediately stop selling bankrupt retailers' gift cards.

Mierzwinski says eventually his group and others plan to ask Congress to improve protections on all forms of plastic. As for the petition currently under consideration, "We're looking forward to the FTC's action on it," he says.

Understanding Your Credit Score and How it Was Determined

You probably already know that your credit history is kept in detailed records by three major credit bureaus. What you may not know is that in addition to all of that data, each credit bureau also assigns you a number, known as a credit score. That credit score is one of the most important factors in whether or not you can get a loan and if so, how much you will pay in interest. This article aims to help you understand your credit score and how it affects your ability to qualify for loans and lines of credit.

In theory, your credit score can run anywhere from 300 - 850. The average American's credit score is 692 and scores above 700 are good. Your score is calculated using a secret algorithm developed by Fair Issac Company, which is why the term credit score is nearly synonymous with FICO score.

The credit scoring system takes in to account many different factors of your financial history. The bulk of your score comes from your proven ability to pay bills on time. Late payments and failures to pay will seriously damage your scores. Next, the score considers your outstanding lines of credit and how much you still owe. Keeping low balances on credit cards is a good way to avoid loosing points for being overextended.

The length of time that you have had credit is also considered in your credit score. Young people with less of a credit history typically loose points in this area. It's important to establish some credit as early as possible and to maintain that well to prove over time that you can be trusted with larger loans.

Lastly, your credit score considers the types of credit that you have. A credit card is not the same as an auto loan which is not the same as a mortgage loan. You gain points for having a good history of well managed larger loans.

In actuality, because there are three different credit bureaus each with their own database, you have three different credit scores. Typically a lender will take the one in the middle or an average of the three when determining whether you qualify for a loan.

Each lender uses their own guidelines, but here's a standard break down of what your score means:

730+ - Excellent credit
700 - 729 - Good credit
670 - 699 - Average Credit
585 - 669 - Higher risk
Below 585 - Very High Risk

If you have average credit or above, you shouldn't have any trouble getting a loan. Those with good and excellent credit will pay less in interest than those who have smaller scores. If you fall in to a high risk category, it is a good idea to consider seeking help to repair your credit as you may find it difficult and costly to get any type of loan.

American Express Tops Credit Card Satisfaction Survey for Second Straight Year; Discover Ranked Second

American Express ranked first in overall credit card customer satisfaction for a second straight year, according to J.D. Power survey results released yesterday, with Discover Card holders being the second happiest customers. The survey asked over 7,000 credit card customers to rate their card company or companies in 5 areas: interaction; billing and payment process; fees and rates; reward programs; and benefits and services. American Express received a score of 783 out of a possible 1000, and Discover had a score of 751.

Rounding out the top eight, in order, with point totals: National City (721), Chase (719), U.S. Bank (716), WaMu (712), Citi (710), and Wells Fargo (709).

Other major issuers did not rank so well. HSBC (667 points), Capital One (678), Target National Bank (issuer of the Target Visa, 682 points), GE Money (683) and Bank of America (692) significantly lagged the competition.

The survey noted that just over 70% of credit card holders have reward programs associated with their cards, and the level of satisfaction with a card is dramatically higher when a reward such as cash back, travel, etc. has actually been awarded to the customer.

MasterCard “Contactless” PayPass Technology Now at Rite Aid Stores

MasterCard announced yesterday that most Rite Aid drug stores are now accepting its PayPass “Tap & Go” contactless credit & debit cards for payment. The technology, which allows consumers to pass their cards quickly in front of a special reader instead of swiping it through a machine, is designed to speed up the sales process.

Rite Aid has installed the readers at the front counter of 3,800 of its more than 5,000 stores across the country.

The PayPass-enabled MasterCards also allow consumers to pay without signing a credit slip for transactions under $25.

China Merchants Bank Chooses IAM to Meet Credit Card Crunch

China Merchants Bank's thriving "All-in-One Card" credit card and rapidly growing online retail banking business is the result of creative marketing supported by extremely successful technology-driven development initiatives. China Merchants Bank, in cooperation with Olympic sponsor Visa, launching a credit card with the Chinese character of "He" highlighting "harmony" (he), the same theme as the spectacular and globally well-received opening ceremony in Beijing, is just a recent example of how the bank grew this segment of its consumer credit business from 5 million credit cards on issue in 2006 to over 20 million entering 2008 and today is the largest issuer of credit cards in China.
The dilemma accompanying this success, however, was China Merchants Bank found its CardLinK credit card application was hard pressed to turn a daily processing cycle on schedule. "Our business is growing very fast. Business data is growing fast as well. So, [naturally] batch jobs, take longer," explains Mr. Tao Ming Ming, China Merchants Bank (CMB)'s Mainframe Systems Manager.
Looking for new ideas to handle the growing overload of its CardLinK credit card processing application, China Merchants Bank found its solution in IAM, a VSAM application performance enhancement solution, from US-based INNOVATION Data Processing.
"Already providing high performance throughput for customers around the globe, as a transparent performance accelerator for VSAM CICS and batch applications under z/OS, INNOVATION is extremely proud to have China Merchants Bank as an IAM customer in China," said Thomas J. Meehan, INNOVATION Data Processing, Vice President Technology Advancement.
With the credit card market one of the fastest-growing segments of its consumer credit businesses, "Batch jobs couldn't be finished in the batch window," said Mr. Tao. "Jobs took too much time accessing the VSAM files which they were accessing frequently."
"Using IAM we can reduce the executing time, it is easy to use and we don't need to make a lot of changes to our applications," added Mr. Tao.
The CMB IT department supports the bank's credit card business with CardLinK running under the z/OS operating system on an IBM z9 mainframe processor with IBM storage. CardLinK, from Atos Origin, a leading international IT services provider, is a modular system that supports all the principal functions of payment card management -- application, issuing, acquiring, authorization and collection. Running on the IBM mainframe platform CardLinK provides the bank with a high degree of flexibility, interfacing with Visa, MasterCard and JCB networks to ensure the bank meets the demanding business requirements of the payment card industry.
Consulting with application specialists from Atos Origin's Beijing China Headquarters, China Merchants Bank chose IAM from INNOVATION as a solution to the undesirable situation they had found themselves facing, after evaluation tests showed IAM cut CardLink job run times by an average of 52%, reducing elapsed run times from between 20% to 80%. "IAM is a good tool for z/OS. It can improve the performance of VSAM processing and reduce I/O when a big job is running. Installation [of IAM] is quite easy. It is easy to use and we don't need to make a lot of changes to our applications. As the result, [using IAM] we can reduce the executing time for critical batch jobs," Mr. Tao concluded.

About China Merchants Bank
Founded on April 8, 1987 with its head office in Shenzhen, as the first commercial bank wholly owned by public shareholders, today China Merchants Bank is China's sixth-largest bank by assets, widely regarded as China's most profitable commercial bank, has won awards and recognition from Euromoney, The Asian Banker and Finance Asia magazine among other press organizations as 'The Best Bank in China', 'The Best Retail Bank in China', one of 'the Top 10 Public Companies in China', is ranked in the top 200 among 'the world 1000 banks' by British financial journal "The Banker" and is the largest credit card issuer in China.

About INNOVATION Data Processing
INNOVATION Data Processing is a single source for business resiliency solutions providing high performance, data protection, non-disruptive business continuance and privacy information protection solutions, to thousands of enterprise customers around the world for over 35 years. INNOVATION Data Processing is represented in Asia/Pacific by Computer Supervisory Services based in Sydney, Australia. For further information on INNOVATION Data Processing and its offerings email sales@fdrinnovation.com, visit http://www.innovationdp.fdr.com or contact Computer Supervisory Services at +61-2-9665-1104 or email information@css.au.com.
IAM is a service mark, trademarks and/or registered trademark of Innovation Data Processing Corporation. IBM and z/OS are trademarks or registered trademarks of International Business Machines Corporation. All other service marks, trademarks or registered trademarks are the property of their respective owners.

Credit card proposal may get vote in Congress

Deepening economic distress and concern over consumer debt could help legislation that would overhaul practices of credit card companies get voted on in Congress as lawmakers return this week from summer recess.

In the waning weeks of this Democratic-controlled Congress, with lawmakers looking to show consumer-friendly results to voters before the November election, there could be momentum for the credit card legislation _ more likely in the House than the Senate, backers of the proposal say.

"It's a sign that the lock that the credit card industry has had on Congress is loosening," said Travis Plunkett, legislative director for Consumer Federation of America. "I think there's a very good chance it will pass the House this month."

Yet some congressional aides say chances remain slim of passage in the short time remaining in the session, and that a bill may have to await the new year and new Congress.

The legislation has drawn the strong support of consumer groups and vigorous opposition by the banking industry.

Amid the stumbling economy, many consumers are using credit cards to pay the higher costs of groceries and gasoline, and Americans now are weighed down by about $900 billion in credit card debt, according to Federal Reserve figures.

A bill authored by Rep. Carolyn Maloney, D-N.Y., cleared the House Financial Services Committee in July and pointed toward the floor of the House. It would, among other things, require credit card issuers to give account holders 45 days notice of any increases in interest rates. Monthly bills would have to be mailed at least 25 days before the due date, up from the current minimum of 14 days, and fees could not be charged on the remaining interest-only balance of a customer who has paid their bill on time.

A similar yet more stringent Senate proposal, by Sens. Carl Levin, D-Mich., and Banking Committee Chairman Christopher Dodd, D-Conn., faces dimmer prospects because of the slimmer Democratic majority in that body.

No committee hearings in the Senate, nor votes in either chamber have yet been scheduled.

Industry critics maintain that credit card issuers' practices are abusive and confusing for consumers and can push them deeper into debt.

The industry's response: If customers are unhappy with the rates or terms and conditions of their credit card, there are thousands of other card issuers that would be glad to have their business.

Five big financial companies _ Discover Financial Services LLC, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Capital One Financial Corp. _ issue around 80 percent of all U.S. credit cards, according to congressional investigators.

The financial institutions fiercely compete with each other and more than 6,000 other institutions that issue credit cards, the American Bankers Association says.

What Makes a Good Credit Report Score?

The FICO standard scale ranges from 350 all the way to 850. So, you're probably wondering- what exactly is considered a 'good' credit report score? In this article we will demystify credit ratings and discover what level you should aim for to increase your borrowing power.

Establishing what constitutes a "good" credit score is pretty easy; matter of fact, it's a standard formula. Once upon a time, prospective lenders used to carefully examine credit reports, weigh the pros and cons, contrast this with income and make a decision that was far more 'organic' than it is today.

In the 1990's, Fair Issac made the process an entirely formulaic matter, which assigned values to various points of data that resulted in an overall "score". the exact formula used to create this score remains a highly guarded secret, but it is know to make use of a variety of factors. The "score" in question is called a FICO and it has massive impact on your ability to borrow, be it credit cards, car loans or mortgages.

The FICO standard scale starts at 350 and goes to 850. So, you're probably wondering- what exactly constitutes a 'good' credit score?

Here's how the scores typically break down.

730+ - Excellent credit
700 - 729 - Good credit
670 - 699 - Average Credit
585 - 669 - Higher risk
Below 585 - Very High Risk

Well, starting at 730, you're considered in the 'excellent' credit range. Here, you will receive the best interest rates for mortgages or loans, the lowest credit card fees and ultimately, will have access to more credit and borrowing power than people with a lesser score. If your score is above 730, don't worry. You've 'arrived' in the credit world and at this point, you can't really do any better. The functional difference between a 730 and a higher score is nominal, if not non existent.

If your score is in the 670 to 730, you will still be able to quality for credit lines, but you will pay a higher interest rate than those in the 'prime' credit range. Here, the actual score itself matters; the lower your score happens to be, the higher interest rate you will need to incur in order to borrow, so improvements in this range are worthwhile. For example, an increase as low as ten FICO points can save you thousands of dollars over the term of a 30 year mortgage.

If your score is below 670, you are in what's called the 'subprime' range where you will pay the highest rates with the least access to credit lines- if credit lines are extended to you in the first place.

People with scores below 670 should promptly start rectifying this, as the interest rates and limited access to credit suffered at these levels can have a substantial impact on your ability to borrow and as such, your overall financial life.

Getting a High Limit Credit Card

Getting a credit card with a high credit limit is not a very straightforward process. When you apply for a credit card, whether online, by phone or through the mail, the credit card company first determines if you are approved and then determines your credit limit. Unfortunately, no credit card company can provide information on what your limit will be until your application has been processed. However, there are a few steps you can take to increase your odds of getting the amount of credit your desire.

First, apply for a credit card that advertises high lines of credit. Some credit card companies only offer lines of credit up to $10,000. Others offer limits of $25,000 or more. If the credit limit you are given is a major factor in your decision, your chances of getting the credit line you desire will be increased if you apply for cards that advertise higher limits.

Once you submit your credit card application, it can take anywhere from a few business days to a few business weeks to receive your credit card and learn of your credit limit. Because of this, there are a few steps you can take to make sure you get the credit you desire in a timely fashion.

If simply getting credit is your main concern, applying for multiple credit cards may be the best option. You may not get the credit limit you want on a single credit card, but your combined limit may meet your needs. Additionally, applying for multiple cards expedite the process of getting your credit card in hand.

Another benefit of applying for multiple credit cards is the option of choice. You may receive drastically different credit limits, interest rates, and 0% introductory offers from different issuers. If you apply for multiple credit cards, you can pick the card or card you want to use armed with the specific information you need to save you the most money on interest while providing you with the credit limit you desire.

Business going well for Provident Financial

Well known doorstep lender Provident Financial has reported healthy figures for the first half of this year both for its loans division and its credit card division. The lender operated that sub-prime credit card, Vanquis, and has seen a healthy rise in borrowing on the credit card according to recent reports. It has also seen a massive 34% rise in loans for the first half of the year.

It is thought that these healthy figures stem from many consumers being unable to get credit cards and loans via more traditional routes such as High Street banks because of the tighter credit conditions that have come into play since the onset of the global credit crunch.

One official from Provident said: “I am pleased to report a strong set of half-year results. We have continued to expand customer numbers in both businesses and our responsible approach to lending means this growth is both sound and profitable. Whilst market conditions continue to be favourable, we have been responding to the pressure on household incomes from price inflation and a weakening economy.”

He also said: “Our decision to be increasingly cautious in our approach to granting new credit over the last 12 months has resulted in the group’s businesses delivering high-quality customer and profit growth. The group’s strong funding position leaves it well placed to continue doing so through the second half of 2008.”

Kids could learn better financial management with prepaid credit cards

According to a recent report many parents may find that prepaid credit cards are a good way to teach their kids effective financial management and responsibility, and this could help to increase the prepaid credit card market in terms of popularity and value.

Reports have indicated that the prepaid credit card market is already growing quickly, with many people turning to these cards if and when they cannot get a standard credit card due to tighter credit conditions stemming from the global credit crunch or if they want to enjoy the convenience and ease of credit card use without the risk of getting into huge levels of debt.

One industry official said: “Because most adults qualify for credit and are comfortable purchasing with credit cards, they aren’t necessarily the ideal target for prepaid debit cards. But teenagers, who may not qualify for traditional credit cards and whose parents are likely uncomfortable with them spending on credit, are the perfect target for prepaid debit.”

Another stated: “Because prepaid cards are a safe way to give teens experience using plastic, they appeal to both parents and teens alike. Card issuers and banks might look at prepaid debit as a way to build brand loyalty and trust from an early age, tapping into teen spending today and adult spending and credit tomorrow.”

Paypal brings out prepaid credit card

Online payment service Paypal has brought out a new prepaid credit card, which could help many people to enjoy the convenience and ease of using plastic to make payments but without the risk of falling into debt as they might with a standard credit card.

An increasing number of people are enjoying the benefits of prepaid credit cards, which have to be loaded with credit before they are used. This means that the cardholder will only be able to spend money that has been loaded onto the card, and therefore cannot really get into debt with the prepaid card.

An official from Paypal said: “Our new card will give PayPal customers more confidence to shop online with retailers that don’t currently accept PayPal.” He continued: “Over one in ten of our customers told us that they’re looking for ways to manage their spending. The Top Up card allows people to control their spending.”

There are a number of ways to reload the card with cash, such as via the Paypal website, at a post office, or through Paypal retailers. The card can be purchased through the Paypal website for a cost of £4.95, and will allow consumers to shop online and by phone, as with other plastic payment cards.

Prepaid Cards

Have you ever used a credit card? If you have, there may have been several different outcomes. One possibility was that you were very responsible. You used the card for all of your expenses so that you could get the rewards your card offered. You never bought anything you didn't really need because you knew whether you could afford it or not. Every month you get a bill and you pay it in full. You reap the benefits of your reward program month in and month out because by paying off your balance, you owe no interest. You've built your credit history up to an exceptional rating of 'excellent' and feel confident that you could get a loan whenever you need it.

Another possible response has a very different outcome. You too use your credit card for everything because you want the cash back or rewards points. One huge difference is that you use your card for everything including things you don't need which often are things you can't afford. Whatever you see that you want, you buy. You charge to your card left and right just thinking about all the rewards you will get. Come bill time, you realize you don't have nearly enough to pay your bill and end up just paying the minimum. The money you don't pay then begins to collect interest and the amount you owe grows faster than you can handle. Your debt skyrockets and your credit score drops fast. You've gotten yourself into a huge mess.

If you are the first person, I would like to congratulate you. You know how to use credit cards to get the most benefit for you. If you are the latter person, you do need some help. Until you get your credit history up, you really can't have a card. This can cause a lot of problems for some people. It will probably keep you from ever buying things on the internet because you don't have a credit card, and it forces you to carry cash all the time, even in large amounts, which isn't always safe.

If this is you, there is a solution. You can get a prepaid card. With a prepaid card, you can still purchase over the internet and use it just like a credit card at shopping malls and restaurants. Instead of giving you credit to spend, you load your own money on the card. This way you can never spend more money than you have. If you have $100 on your card and go to spend $200, the transaction will not go through. Also, anyone can get a prepaid card. You don't have to worry about applying and getting denied because of bad credit.

In order to fix your credit and get rid of debt, you need to learn how to manage your money. A prepaid card can help. It will keep you from spending too much and help you keep track of what you are spending your money on. You may find that a credit card isn't even necessary in your life and a prepaid card can fill the void a lack of credit card leaves.

Smart ways to use credit cards

Imagine if someone suddenly took away all of your plastic. Credit cards are so much more convenient and safer than carrying cash, it's hard to imagine life without them. As the credit card industry has evolved, new products and features make using credit cards even more appealing -- if you know how to play the game.

Here are four ways to get the most out of your plastic.

1. Build a good credit rating.
Pay your credit card bills on time, stay well within your credit limits and be careful not to take on too much debt with too many cards and you'll begin to establish an excellent record on your credit reports from all three credit reporting agencies. That information, in turn, is used to calculate your credit score -- a number that tells potential lenders how likely you are to repay your debt. Use your cards to boost your credit score and you'll not only qualify for zero and low-interest rates on competing cards but you may also be eligible for a better deal on your mortgage and auto insurance. Check out "3 steps to boost your credit score."

2. Protect your big purchases.
If you buy something that's damaged or defective and you used a credit card, you have the right to withhold payment under the Fair Credit Billing Act. You do need to make a good-faith effort to solve the dispute with the merchant. But if you can't, your credit company will investigate the problem. If after contacting the merchant you are unable to settle and the card company sides with you, the charge won't be added to your bill. Purchases made with debit cards are not covered under the Fair Credit Billing Act. In addition, some cards offer extended warranties and other protections for large purchases made on the card. Check with your credit card company.

3. Make online shopping safer.
The Fair Credit Billing Act also covers online purchases, making a credit card the best way to pay in cyberspace. If you're worried about security, many credit card companies offer a one-time use account number for large online purchases that keeps your real account number off of the Web.

4. Use your card for a low-interest loan.
Robert Manning, research professor of consumer finance at the Rochester Institute of Technology and author of "Credit Card Nation," once used a low interest rate credit card to buy a car. The fixed-rate on the card was better than what banks were offering on auto loans and he didn't have any of the application hassles. (Of course, this only makes sense if you qualify for a very low interest card and a very high credit limit -- and you can afford to pay the big balance off quickly.) Manning even suggests young people strapped for cash use a low-interest card to fund their 401(k)s in some instances. "Say you borrow $4,000 to contribute to your 401(k)," explains Manning. "Maybe your company makes a 50-percent match. Last year the stock market went up 10 percent. The free money from the match and the stock gains will far outweigh the interest on the 'loan' you made to yourself if you pay off the card responsibly."

With the ongoing credit crunch constantly burning holes in our cash holders, the cash borrowing deals we are currently being offered are not what they

With the ongoing credit crunch constantly burning holes in our cash holders, the cash borrowing deals we are currently being offered are not what they used to be. This is due to the lenders tightening their criteria for borrowing money with the deals we are used to now becoming a thing of the past.

First it was the 100% mortgage and now it looks to be the 0% interest on credit cards which could now be coming to an end. These deals usually enable us to survive comfortably financially, but with things changing, our options are being reduced more and more making it harder to prolong our financial stability.

With our options limiting and the need for cash at a high, we are being cornered into making pressured decisions with no thought. Subsequently this is landing us into more trouble.

Doorstep lenders have seen an increase of 34% in loans taken out for the 1st half of the year. This is due to people being refused for loans elsewhere, also, the fact that people need to take out additional loans to combat the rising interest rates.

The largest rise this year came from a leading high street lender who increased their interest rates by 5% resulting in a total interest rate of 12.9%.

People who are taking out additional loans to pay off the increased rates are now also turning to car finance companies who have seen a huge increase in business this year.

If you are looking to borrow money you need to source quotes online. This will help you save as much money as possible in this financial harvest.

Credit card shaving: Scammers go low-tech with trick

Forget high-tech hacking. One new credit card scam relies more on X-Acto knives and glue sticks than wi-fi and laptops, but helps criminals steal your money just the same.

Shaving is a low-tech form of card theft where thieves sort through sets of 16-digit numbers to find one that matches an existing card, and then verifying that number either by trying to make a purchase online or by phone. The scammers can also buy a list of valid credit card numbers from black market sites online. Once they have their hands on a valid account number, they then create a new card with those numbers by shaving the numbers off of gift cards or expired credit cards and gluing them onto a defunct or stolen card. The magnetic strip is gouged with a knife or pen so that a store clerk has to manually enter the account number on a keypad, and the charge goes through.

If they're successful, months can pass before a cardholder discovers the fraud. After all, if your wallet hasn't been stolen and you haven't misplaced a card, you may be puzzled to discover that your card has been compromised even though it's safely tucked away the entire time.

While it might not be the simplest way to commit an identity theft, card shaving is on the rise. "Desperate times mean desperate measures," said Robert Siciliano, CEO of IDTheftSecurity.com and author of "The Safety Minute: Living on High Alert." "In this economy, we are seeing scams of all kinds resurfacing, including credit card shaving."

Both merchants and consumers are gatekeepers
Card shaving's growth comes partly as a reaction to increased high-tech credit card security steps, experts say. "As regulati­ons and security tightened on electronic credit card processing networks, it became increasingly difficult for hackers to penetrate them," says Shyam Krishnan, an industry analyst with the Smart Cards group at Frost & Sullivan, a high-tech research and consulting firm. And so they turned to other low-tech scams, such as card shaving.

Because the scam requires clerks to enter the card number manually, merchants are the first line of defense in catching the perpetrators. These fraudulent cards usually look suspicious to begin with -- the numbers and letters often haphazardly glued on -- and that alone should raise red flags with store clerks and cashiers. However, many shaving scammers primarily use the cards in busy bargain stores where clerks are too harried to pay much attention and verification systems are so outdated that they don't require a matching ZIP code or other personal data.

"If merchants physically inspect all cards, they'll minimize the incidents of counterfeit cards being used," says Tom Harkins, chief strategy officer at Secure Identity Systems.

It's in the merchant's best financial interest to keep a watchful eye. After all, any charges made with the number would likely be disputed by the card's rightful owner, leaving the merchant with little option but to absorb the loss through a chargeback. That's why Siciliano recommends that merchants refuse service if the card doesn't scan. "Manually typing the card number in when there is even a hint of suspicion is risky," he says.

Merchants should also turn the card over and ensure the back of the card has the proper marks. For sales conducted without a card for online or phone transactions, Harkins advises merchants to protect themselves by requesting the three-number security code on the back of the card (four digits and on the front of American Express cards). "If it doesn't match, ask additional questions or investigate the customer before completing the transaction," he says.

Inevitably, some of the scammers will succeed, and unless the cardholder has a firm handle on his or her account, the crime can go entirely unnoticed. Experts say this further reinforces the need for cardholder diligence on a regular basis. "It's vital to check your balances and accounts on a regular basis and report any suspicious purchases to help identify the theft quickly," says Krishnan.

Disposable card numbers are one solution
Another way consumers can fight shaving is with a credit card account that generates a new number for every new transaction. Citibank offers Virtual Account Numbers to cardholders for online purchases while PayPal provides the Secure Card in the form of a MasterCard debit card. While these can only be used online, Qsecure is rolling out a SmartStripe credit and debit card that looks like any other card. However, a chip embedded in the card's magnetic stripe automatically generates a different number for each purchase.

Credit card minimum payments rising

Huh?

Under pressure from federal regulators, MBNA, Citibank, and Bank of America have announced they are increasing minimum monthly payments on credit card balances and others are expected to follow suit in the near future. To some cardholders that could be seen as a good thing. To others it could be devastating.

If you can handle the increased payment it's good. Let's face it, if you pay only a 2-percent minimum each month, your debt would probably last longer than most marriages. Hiking your minimum might put you back on the financial straight and narrow. Ostensibly designed to help consumers get out of debt faster, the increased minimums will force cardholders to pay off fees, interest and at least a portion of the principal each month.

But if you simply can't make that increased minimum month after month, it could put you and many other debtors in over your head.

Cause for change
Over the past few years, low minimum payback rates of between 2 and 2.5 percent have encouraged Americans to spend, spend, spend -- and to rack up an average credit card debt of close to $10,000 per household. For the estimated 40 percent of cardholders that carry a balance from month to month, the low minimums free up cash. But paying off a big charge little by ever-so-little also means that a $1,000 debt can turn into a 22-year commitment -- and that you'll accumulate thousands more in interest in the meantime.

"People are now in a revolving debt cycle that they'll never escape," says Adam Brauer, a debtor advocate and in-house counsel for Debt Settlement USA in Scottsdale, Ariz. "So the government nudged credit card companies into saying, 'This isn't working.'"

Specifically, regulators with the Office of the Comptroller of the Currency began pressuring credit card companies to hike up minimum payments. Another incentive for change: The newly enacted Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which requires credit card companies to post a kind of Surgeon General's warning on monthly statements that notifies consumers about how long they'll be in debt if they make minimum payments.

Help for big spenders
Although increased minimum payments aren't a panacea for consumer debt, most financial experts think they'll help.

"If you pay more per month, you'll get out of debt quicker and you'll pay less interest," explains Mike Peterson, vice president and co-founder of American Credit Foundation, in Midvale, Utah.

Take the $2,000 Hawaiian cruise you charged to a card with an 18-percent interest rate. If you faithfully make minimum payments and never add another dime to the balance, it'll still take you about 30 years to pay off the trip -- and you'll end up forking over almost $5,000 in interest. By making 4-percent minimum payments on the same debt, you'll finish up in 10 years, and your interest payments will be around $1,100. "It's a huge saving in time as well as interest," says Peterson.

Another way increased minimums may cut debt is by forcing buyers who think in terms of monthly installments to take a second look at what they can afford. The new minimums will effectively double the monthly price of a purchase, turning a $40-a-month payment for a new sofa into an $80-a-month one. "People charge up to the point that they feel they have room within their budget to afford those payments," Peterson explains. "If I'm trying to figure my budget based around what my credit card payment is going to be, I'll be able to carry less debt."

Bad news for big debtors
Of course, if your finances are already squeezed to the breaking point, the rate hike is a bitter pill to swallow -- good for you in the long run, but hard to take right now.

"If you're living paycheck to paycheck and your minimum payment goes from $200 to $275, spread over five cards, that's an extra $375 a month," says Brauer. "A lot of families can't come up with that." The banks already know that and are planning for it. Bank of America, one of the first to raise minimum payment requirements, worked an extra $130 million into its 2005 budget to cover projected losses from defaulting cardholders.

But default isn't your only option if your new payment seems out of reach.

"I always tell people there are two sins: not paying, and not paying as agreed," says Cate Williams, vice president of financial literacy for Money Management International, in Chicago. Most creditors would rather opt for the latter, so give your credit card company a call to see if you can either negotiate a reasonable payment arrangement or reduce your interest rate. Otherwise, missing a payment can quickly have you fielding calls from collections agencies -- and at that point, no one will be willing to listen to you, says Williams.

Coming up with the cash
If you've been carrying a big credit card balance and suddenly need an extra $300 a month to make your minimum payments, now's a good time to re-examine your finances. With some smart spending shifts and careful planning, virtually anyone can dig an extra 10 to 15 percent out of their budget.

Here are some ways to get started:

* Pay less to Uncle Sam. In 2004, 80 percent of taxpayers got a refund -- on average, $2,400 a pop. By adjusting your withholdings, you can keep that money in your own pocket and put an extra $200 a month toward your debt.
* Curb your spending. Even small changes, like brown-bagging lunch or renting one DVD a week instead of three, can free up to 10 to 15 percent of your income, says Peterson. To find expenses you can shave, track your spending for seven days. You may be surprised at how relatively small expenses -- like 75 cents for a Diet Coke from the vending machine -- add up over time.
* See a credit counselor. The new bankruptcy law mandates at least two financial counseling sessions during the bankruptcy process, but if you see a counselor now you may be able to avoid reaching that point altogether. For help finding one, visit the Web site of the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling.
* Control your cards. Paying down a big debt is hard enough without adding more fuel to the fire. To avoid the temptation to spend, "Take every credit card except one out of your wallet," recommends Williams. "Lock them away. People have frozen them in bowls of ice or given them to a trusted friend. I'm concerned about people walking around without some means of emergency cash. But we all agree what an emergency is, and a shoe sale at Nordstrom is not it."

Credit Card Companies Are Playing Dirty This Summer

Credit card companies have imposed 'astonishing' interest rate rises as families head for their holidays.

It's a very dirty card to play, but the big companies know that with the state of the economy at the moment many British families will be funding some, if not most if their holiday with a credit card.

Brits are expected to spend £22billion on credit cards during this summer. With 13.8million customers regularly failing to pay off their balances each month, the rate increases will bring a cash bonanza for the card companies.

Not only have credit cards increased the APR but there are extra charges for using your credit and debit cards abroad along with withdrawing cash from an ATM.

Despite the fact that the Bank of England has dropped the base rate to 5%, some credit cards have hiked the APR to a staggering 34.9%. That's effectively double the original amount some customers were expecting to pay. Customers with outstanding balances may well find this unmanageable.

With APR's not being shown on statements, just the monthly rate which can be confusing in its self, customers may not be unaware of the amount they are now being charged.

Research by the UK's largest online comparison site, shows that 31 per cent of cardholders have had their APR raised in the past year. Egg, Capital One, Lloyds-TSB and Barclaycard have all raised rates.

The biggest shock will come to those coming off an introductory 0% deal and expecting to pay 15.9% you may now find that you will actually be paying an outrages 27.9%

The Hidden Costs of Credit Card Debt

In order to be able to care for your finances well, it is very important to learn the facts about how people get into and out of credit card debt. This will enable you to better prevent credit card debt from stacking up around you.

Credit Card Statistics: The Facts

The facts about credit cards and credit card debt should have you seriously considering charging just any old purchase you make. Statistics show that the average card has a balance of $1,000, meaning that it would take twenty-two years to pay off that debt while making minimum two percent monthly payments. As those twenty-two years pass, interest charges will add $2,300 onto the original $1,000. That means that you would end up paying more in interest charges than you did on the purchase itself.

A typical American family is currently about $8,400 in debt. Even an entire lifetime of minimum monthly payments of two percent will not be enough time to pay off that amount of debt once you tack on the interest charges that will be accrued. You should keep these statistics in mind before you rush to slide your charge card at the store.

You will be in a better position to prevent yourself from getting overwhelmed with credit card debt if you know the facts about how credit card debt happens to people. Unfortunately, it is all too easy to get stuck in debt. For that reason, it is extremely important to try to use the facts about credit cards to help you manage impulsive spending tendencies.

Another fact about credit card debt is that you should pay more than your minimum monthly payment if you plan on really staying out of dangerously high levels of credit card debt. Only make purchases that you know you will be able to pay for in their entirety within a couple of months.

Credit card debt becomes especially serious when you realize that many Americans are in the habit of spending more money with their credit cards than they earn in an entire year.

By investing just a little bit time in learning the preventative steps that you should take to keep yourself debt free, you will save yourself from experiencing many of the problems associated with credit card debt and enable yourself to make wise choices financially.

The Basics of Earning Credit Card Reward Points

Credit card companies offered many incentives and rewards for their cardholders. These incentives and rewards are very effective in enticing their customers to use their credit cards in their everyday purchases as well as big-ticket items.

Different credit cards have different ways of providing rewards and benefits to their users. Some of the common rewards include:

1. Air miles
2. Discount for grocery purchases, petrol, fine dining, etc
3. Priority alert or admission to special events
4. Free movie tickets
5. Cash rebate

Each time you make a purchase with your credit card, you will earned and accumulate reward points. The more expensive the item you purchase, the more points you earned. To check how much point you have accumulated, just check your monthly card statement. Alternatively, you can call up the customer service hotline or go online to check if they are available.

Most likely you will also have received a catalog of rewards from your credit card company. This catalog will provide details on how many points are needed for each type of reward and how you can redeem them.

Take note that the reward points have expiry date. The validity of the points usually lasts for one year only but it differs from card to card. If you did not accumulate enough points to redeem any reward before the expiry date, these points will be forfeited and you have to start all over again.

In the case of special reward like air ticket, you cannot redeem right out of the box. Instead, you have to convert your points to the corresponding amount of air miles and the exchange rate may not be one to one. This means that 1000 reward points does not necessary mean you can exchange for 1000 air miles. The exchange rate is determined by the credit card companies and airline involved and there is no standard exchange rate.

With the exception of special rewards like air miles, most of the rewards can be redeem quite easily. Most of the time it involves just filling up a reward redemption form and fax or mail it to the credit card company. You can also call up the customer service hotline to get your request process. If you have Internet access, you can also do the redemption online if the service is available.

In some cases, you can even redeem the reward right on the spot at the merchant venue. For example, you have enough point to redeem a movie ticket. All you have to do in pop by the cinema ticket counter and tell the staff you wish to redeem a movie ticket. Just present your credit card and the cinema staff will take care of the rest. No form to fill and very little waiting time. Sadly, this type of instant redemption is not very common at the moment.

While some of the rewards can be very tempting, you have to keep in mind to use your card responsibly. It is dangerous to keep making purchases after purchases just to accumulate enough rewards points to redeem the item you want. Doing so can put you into some serious debt problem. As long as you use your card wisely, getting free gifts regularly can be a rewarding experience.