Getting Online Credit Card Approval

With the advent of the Internet, the way we run our businesses has changed dramatically. It has made the world spin faster and no one wants to wait for anything anymore than few seconds to few minutes. Waiting for 300 seconds too long and it is frustrating. The  credit   card  industry tries to exploit this growing weakness of the society to market its products. They try to attract customers through instant online  credit   cards  and online  credit   card  approval schemes.

How does online  credit   card  approval system work?

Once you fill your application online for your choice of  credit   card  your  credit  details will be verified by the system; if you have your  credit  history anywhere between good and excellent then you are certain to get your  credit   card  application approved and you will be notified of your status through email. In case of poor credit, your application will be declined and this too will be notified of the status of the application.

Is it safe to apply online?

You have to be careful while you apply for online  credit   cards ; stories on online  credit   card  scams never cease. Try to identify reputable  credit   card  companies before you apply for your  credit   card . If you suspect that the application is requesting unnecessary information then be warned and try to check on other online application forms to see whether they request similar information. Secondly, be cautious of the terms and conditions; double check everything before you submit the details. Many online  credit   card  approval schemes demand security deposits. The range of security deposits vary from $200 to $600.

Is online  credit   card  approval really useful?

The answer would be yes and no. It is useful because you know the status of your application for the  credit   card  instantly, you will know whether your application has been approved or not. You save yourself from the painful period of waiting and also the frustration when your application happens to be declined. It is lot more helpful to be updated of the status even if it is going to be declined so that you can start checking out for other options.

Besides that, online  credit   card  applications to a great extent seem not to worry about the  credit  history. There are people who have got their application approved even without a good credit history. However, we are not sure whether those are some exceptional cases or whether that is the general trend with online  credit   card  applications. For some strange reasons there are also people with good credit history whose applications have been declined. This can be due to various possible reasons including the inability of the system to access the credit history of the applicant at the time of the application submission.

Even though your application gets approved instantly you have to wait for your  credit   card  to reach you through mail before you can start using it. This is yet another marketing gimmick from the  credit   card  industry.

Full Service Banking Or Just Credit Card Debt?

If you deal with institutions that only profit out of credit cards, chances are they won’t want you to consolidate your debt. Thus, you need to understand why full service banking is best for you and what are its advantages.

Credit card debt is one of the biggest financial issues Americans have to face every single day. The accumulated credit card debt of the average American adds up to $8000 and is the main cause of bad credit, delinquencies, default and eventually bankruptcy. In order to avoid this situation it is smart to count on the aid of financial institutions.

Consolidating your debt with your bank will show them that you are willing to honor your obligations and thus, they will be more flexible.

Debt Consolidation Is Complex

Consolidating your credit card debt into the wrong kind of loan can cause you more travels than the solutions it may bring. You need to understand fully the consolidation process and the options available to you in order to make the right decision. Full service banking can make things easier because you won’t need to resort to a different lender like you need to do when you deal with credit card banks only.

There are full service banks that offer credit cards, checking and savings accounts, mortgage loans, personal loans, car loans, consolidation loans and many more. Most of these products get pre-approved when you hire their services and thus are immediately available once you request them. This is a great advantage because you don’t have to suffer those long credit verification processes. The bank knows exactly what your income is, how you spend it and so on.

Credit Card banks on the other hand, know only how you spend with their products and don’t offer additional financial products, thus, if you need to consolidate your credit card debt, you have to resort to other lenders that require credit verification and income proof which you may or may not pass. Thus, full services banks are always the best way to go.

Debt Consolidation Programs

Most banks debt consolidation programs are benevolent with their clients and agree with them longer repayment schedules so as to make things more bearable for them. In most cases debt consolidation is instrumented through a debt consolidation loan that is granted on condition of being used for repaying the client’s debt with the bank. In the long run, the bank profits from the operation because the longer repayment program guarantees repayment and higher amounts in terms of interests over the whole life of the loan.

The client on the other hand, gets relief for his budget as the monthly payments are a lot more affordable and he will have more income available for other expenses. The only drawback is that debt freedom will take a lot longer as the client is tied with a loan to the bank for a long period of time that can range between 2 to 30 years.

Credit Card Resources and Information

 Credit   cards  are readily accepted around the world and come with many perks depending on the individual card you choose. They can have a variety of different credit limits and interest rates that they charge. If your balance is paid in full each month there is usually no interest rate charged. Most  card  issuers reserve the right to change the terms or conditions of your  credit   card  contracts whenever they want without warning. Besides interest rates there are several other costs that can be charged to your account, for example late fees, spending over your limit, bounced checks and many others. It is advisable to register your cards so that if lost or stolen you can easily report them and have all the accounts froze while they issue you new cards.

 Credit   cards  are different than debit cards. Debit cards use the actual money that you have available in your checking or savings account to pay for items purchased, every time you use your debit card money is removed from you account. It’s a good idea to keep close records of all your debit card transactions, it’s very easy to forget the quick lunch you picked up the other day or the tank of gas you purchased on the way to work. Before you know it your account balances won’t match with you checkbook and this can lead to overdrafts and penalty fees being deducted from your accounts. More and more debit  cards  are being accepted everywhere  credit   cards  are taken.

When you use your  credit   card  to purchase something you are agreeing to repay the card issuer. There is usually a grace period in which the card holder can pay the balance due in full, if the balance is not paid in full there will be no grace period with the next statement sent out. There are  credit   cards  that of low interest rates and even 0% interest for a pre-determined length of time. Many people have taken advantage of these offers to transfer their higher interest rate cards to them and pay more on the principle of the balances while the 0% interest rate offer is in effect, you can save hundreds of dollars doing this.

There has been some controversy over  credit   cards  in recent years. Some major credit companies have been charged with targeting younger people, college students in particular who are already in debt with college tuition and student loans. Nine out of ten students have a  credit   card  or two that they use to purchase books, meals and other materials needed. With many students new to the use of  credit   cards  and the ease at which it makes making purchases many are getting in way over their heads and are unaware at how making late payments or even no payments a month is effecting their  credit  scores. It is usually later in life when they are about to make their first large purchase of some type that they realize how important protecting their credit is.

Anytime a  credit   card  is lost or stolen it should be reported to the card issuer immediately. They will then put a hold on the account and reissue new cards for the cardholder, the account will not become active again until the cardholder has activated his or her new cards. It is always a good idea to cut up you old  credit   cards  before disposing of them, the same goes for you statements. With identity theft at an all time high you can never be to safe or cautious. There are a couple of different ways to go about signing your new cards, one you can just sign them as stated and in small print write “SEE ID” under your signature. The second way is to simple write “SEE ID” in the signature box, either way you choose when a cashier asks to see your  credit   card  for whatever reason they will also ask to see your ID to verify everything. Usually your ID has a picture of yourself on it and it just makes it much harder for a theft to use.

When you begin your search for a new  credit   card  make sure to shop around. Not all  credit   cards  are created equally. Some have higher fees and interest rates, while other offer low introduction rates but after the introduction time is up charge a much higher interest rate than one offering no specials. Some offer cash back bonuses while other offer rebates and rewards that you can use to make purchases with or even earn flying miles that are redeemed when you have accumulated enough miles. While you can always do a search online and get hundreds of results to search through on  credit   cards  you may find it easier to just go through the financial institution where you bank first to check out what they have to offer.

Visa, MasterCard, Discover, American Express, Diners Club to name just a few of the major  card  issuers out there all offer great  credit   cards  with a wide selection of interest rates, fees, services, rewards and options. It is to your advantage to do you research first and know what you want before you sign your name on the dotted line. Used wisely these cards can be a great safety net for you in time of emergencies. They are very convenient and great to use while traveling or on vacation, they eliminate the need to travel with large amounts of cash. They are easy to have replaced if lost or stolen while on vacation or traveling, just remember to have all the information you will need to verify your identity.  Credit   cards , don’t leave home without one!

Debt Settlement – Doesn’t it Hurt Your Credit Score?

Debt Settlement Causes Credit Scores To Jump 74-130 Points!

First an example of two clients:

James and Anne of Laguna Hills, California, who cut their $55,000.00+ of  credit   card  debt down to just $29,817 (including fees) through debt settlement. Only 18 months after starting their debt settlement program, they were debt free with over $2,100.00 a month in CASH FLOW back in their pockets!

Perhaps even more liberating was checking their credit scores shortly after graduation. James saw his credit score jumped 74 points while Anne’s score jumped 130!!

Can You Imagine…

Going from a 520 score just before starting her debt settlement program to a 650 immediately after graduating?

How could this be?

Let’s take a look…

How Credit Works

Understanding “how credit works” seems to elude most people. I think creditors and banking institutions have purposely made it difficult for the average person.  It is very complex.

There are three main factors that make up your credit score:

  • Payment History
  • Debt-to-Income Ratio
  • Debt-to-Credit Limit Ratio

Each of these factors make up about 33.3% of your credit score, and any of them can ruin it.

Make sense?

The Truth About Payment History

Payment history is exactly what it sounds like:  the record of timely, regular payments of at least the minimum due.

If you have a perfect payment history, you have something to lose in this area of your credit. With the very first late payment, your credit score drops dramatically.  Each additional late payment has less negative impact.

So if you have at least one late payment on your credit report (you’ve fallen more than 30 days behind in recent times), you’ve already taken the major hit to your payment history.

Debt settlement, while causing additional late payments, will not have nearly as severe of an affect on your credit score as it would if you have never missed a payment and maintained a perfect payment history.

Debt-To-Income Ratio – If this area is weak, it can ruin your credit worthiness.

This is how much debt service you pay (what you’re obligated to pay towards debt) each month verses your net monthly income.  How do you get this number?

Add up all payments you must make each month, including  credit   cards , medical bills, student loans, mortgage, auto loans, etc. Divide the total amount into your NET (after tax/take home) income.

You want to keep this ratio at or below about one-third (35%), otherwise it becomes a negative factor that hurts your credit score and worthiness. If your debt-to-income ratio is over half (50%), then you’re CRIPPLED and regardless of your credit score you will have great difficulty obtaining any financing for major purchases.

NOTE: In the past year because of  troubles in the mortgage industry, underwriting guidelines have tightened, bringing down the maximum debt-to-credit ratio to 45% in most cases.

Through debt settlement, you eliminate your unsecured debt ALONG WITH the monthly payment obligations you have, thus improving your debt-to-income ratio.

Take your minimum payments on unsecured debt and subtract them from your debt-to-income ratio to see how big  an improvement debt settlement will have.

The Least Known (But Just As important) Factor: Debt-To-Credit-Limit Ratio

The third lactor is your debt-to-credit-limit ratio or “utilization.” This is how much your current balances are compared to your credit limits.

The way this works is very interesting. This is probably the least known factor that affects your credit.

Basically, each account you have has a credit limit and a current balance. If that current balance is less than 50% of your credit limit, that’s a positive factor.

Now, if you have an account that’s over 50% utilized,  that hurts your credit, becoming more severely negative if it gets over 75% of the limit. If your balance gets to the limit, or over the limit, it becomes a crippling factor.

Again, you can have a perfect payment history, always making your payments on time or early, but if you’ve got a maxed-out or over the limit account you’re stuck.

Through debt settlement your account balances are paid to a zero balance, wiping out any over-utilization and improving this area of your credit.

So How Will Debt Settlement Affect Your Credit Score?

To make it simple for yourself, look at each of these three areas… And determine which are strong and which are weak for you at this time.

No one can say exactly how debt settlement will affect your credit score, but after working with thousands of people for over seven years, here’s how I see it:

If all three areas are strong ,  your credit will take a hit.  The question then becomes which is more important: keeping good credit or being debt free? Credit or cash flow?

It’s up to you.

If you have a perfect payment history and 700+ credit score, and keeping your credit is more important than eliminating your debt and freeing up your monthly cash flow ASAP,  avoid debt settlement.

However, if you have one or more weak areas, remember that overall, debt settlement will only hurt your payment history. It doesn’t hurt it  much if you’ve already fallen behind in the past, but debt settlement also IMPROVES the second and third areas, optimizing your ratios.

The worse these factors are for you going into debt settlement, the greater debt settlement will improve your credit, especially for the long term.

Credit is indeed important, but remember:  Cash is KING!  Cash flow RULES!

Keep in mind the “BIG IDEA”:        STOP paying interest and START EARNING interest, ASAP!

This is critically important if you ever want to retire, and makes all the difference between a life of wealth or a life of slavery to interest (seriously).

Choosing A Frequent Flyer Credit Card

Out of all the different types of reward  credit   cards  available on the market today, frequent flyer  credit   cards  are amongst the most popular. People who fly on a frequent basis find these cards to have great money saving rewards and allows them to get more out of the money they spend. In most cases, businesses that require their employees and executives to travel a lot take advantage of these cards the most.

The great thing about frequent flyer cards is that they allow you to earn air miles free for every dollar you spend when using the card. However, in some cases, such as special purchases or using the card at specific retailers, you can earn double or triple the reward. How do you find the right card for your needs? Well first, you have to compare the rewards.

Does one frequent flyer  credit   card  offer more rewards than another? Do they have special rewards for retailers you use most often? How many air miles are required before they can be deemed useful to you or your business?

Many cards are focused on specific airlines. Therefore, if you prefer to fly with a specific airline such as Delta, United, or American, you should look for a card that offers air miles when you make purchases at that specific airline. These types of  credit   cards  offer more miles if you use the card to book your flights, upgrade, or use other travel services offered by the airline.

It is important to make sure you understand all terms and conditions as they apply to the frequent flyer cards you are considering. In some cases, blackout dates will apply when using miles. Additionally, some airline cards will have miles that expire if they are not used in a specific period of time.

Basically, you have to choose airline mileage cards that offer you the biggest advantage. If you do not accumulate frequent flyer miles enough to use them before they expire, then that type of  credit   card  will not be beneficial to your needs. If you need to travel at any given time, but the program has blackout dates, you should choose a card that does not apply blackout dates.

It really takes some comparison shopping and finding out exactly what you need to choose the right air mile  credit   card  for you or your business.

Finding the Best Credit Card Offer

If you have a bank account, you should check with your local bank to find out if they have the best credit card offer available. Otherwise, visit the World Wide Web where banks post charge card offers daily. You can compare cards easier by shopping online.

Both secured and unsecured offers are posted on the web, which gives consumers many options. Secured cards are designed for those with bad credit, and unsecured cards are for those with good credit scores. Right now if you have good credit, you can receive a 0% introductory APR for up to 18 months on selected cards.

These offers are available online and include no annual fees, excellent reward systems, and you can be approved in as little as one minute. If you have bad credit or no credit, offers are available to all applicants online.

Some offers include monthly credit reporting, fast and easy applications, and instant response. To apply, you simply fill out an application online. Some vendors are offering free direct deposit for tax refunds, paychecks, and anticipation loans.

The cards incorporate a free credit builder solution and account tax alerts. You do not have to pay monthly fees with most cards, and there are no hidden fees. Compare cards online and apply for only the ones with the best terms and rewards.

If you apply for several cards at once, a point is taken off your credit score. If you already have bad credit, the last thing you need is more points deducted from your score. If you have bad credit and are applying for a card, keep in mind that most banks do charge processing fees.

Compare your options to save money and time. If you have good credit, you should not have any problem getting an unsecured card. All you need to do is select the best credit card offer online and apply.

If you are applying for a secured card you can find 100% approval offers online. The company may accept all credit types and offer reports from the three major credit bureaus monthly. You can find deals on an introductory APR as low as 6.99%, and pay around 13.99% after six months. Initial fees may apply, and fees vary depending on where you apply. Initial fees may be reimbursed by some companies so compare your options.

Whether you are applying for secured or unsecured credit cards, always check the terms and conditions and look at the fine print to make sure there are no hidden fees. To find the best credit card offer, surf the Web and check out features, APR, interest rates, and other specifications involving both secured and unsecured credit cards.

Credit Repair Tips – How to Dispute Credit Report Errors

Despite modern technology’s best efforts to keep your credit report accurate, errors are still quite common. Sometimes it is something minor such as a paid-off debt that shows up as unpaid. Other times errors are more serious such as someone else’s debt on your report because of a Social Security Number error or even worse, identity theft. Errors can seriously hurt your credit score and it is well worth your time and effort to investigate and fix them.

If you do not have a current copy of your credit report you have legal right to request a free credit report once per year. If you discover discrepancies you can request that those errors be corrected. However, despite what some credit repair services may tout you cannot remove legitimate debt, court rulings or liens.

Here are four things you can do to correct legitimate errors on your reported credit:

  1. Contact the credit agency that reported the error and request an investigation. The credit bureau has a legal obligation to look into the situation and correct the information, if their findings agree with yours, within 30 days. After one credit agency corrects the error it will be reported to all credit reporting agencies. Once they correct the errors you have the right to request a free updated copy of your credit report.
  2. If the agencies’ investigation does not correct the problem, you can request that the dispute statement be included with your credit file. You can also ask them to send the statement to potential creditors that have requested your credit report before the error was discovered.
  3. You can also contact your creditor directly and submit a dispute. Be sure to include copies of your support documentation, such as statements showing payment history, copies of bank or  credit   card  statements that prove payments and so on.
  4. In addition, keep copies of all paid-in-full statements, so you can show a potential creditor that a specific debt has been paid on time or paid in full, even if it does not show that on your credit report. Having these statements may help you get a loan or pass a rental credit background check; however, it will not raise your credit score.

There are a few ways you can request your free annual credit report:

Online: At annualcreditreport.com

By Phone: 1-877-322-8228

By Mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281 or through a reporting agency: You can also request a free report through a major reporting agency such as Experian, Equifax or TransUnion by signing up for their free trial programs.

Repairing credit errors does take time and patience and can sometimes be frustrating, but your effort will pay off in the end. Fixing errors on your report will raise your credit score and increase your chances to be eligible for better financing.

8 Easy Tips For Fixing Credit Score Problems

There are many  tips  and hints available for fixing  credit  score problems. Unfortunately, if you aren’t quite sure what you’re doing, you could potentially make your issues worse instead of better. Understanding how your credit score works isn’t difficult. The Credit Reporting Bureaus put together a summary of your borrowing history, your debt levels, the types of credit you have and your repayment history, which is then calculated to give a score. Lenders and banks access your score to determine how you’ve managed your financial obligations and responsibilities in the past. A higher score tells them you’re likely to be a good paying customer, while a lower score tells them that you’ve had some financial difficulties in the past. If you need to work on fixing  credit  score problems, here are some easy  tips  that can help to boost your score.

1.  Order a Free Copy of your Credit Score

Before you begin working on fixing your credit score, you first need to know what it looks like today. Order a free copy of your credit score from all three Credit Reporting Agencies. You’ll find that there can sometimes be a discrepancy in your total credit score between each agency. When the report arrives, read through the listings carefully. You should notice that any credit inquiries you’ve made in the last few years are shown there, along with any missed payments, defaults, judgments, liens or any other issues you might have had. Once you have a clear idea of what is affecting your current credit score, you’re in a stronger position to work on fixing any problems.

2.  Remove Incorrect Listings

If you notice any listings on your credit report that don’t belong to you or any listings that should have been removed, make a careful note of them. Incorrect listings can be disputed and if the Credit Reporting Bureau can’t verify your claim, the listing will be removed. You should be looking for entries that weren’t made by you. These can include listings for people with similar names to your own or listings made fraudulently by someone using your identity. You should also look for any listings marked ‘unpaid’ or ‘past due’ by the lender that you know you have paid in full. These can be amended by your creditors easily once you’ve verified that the account has really been paid.

3.  Clear Up Past Due Debts

Once you fall behind on repayments it can be difficult to catch up again. Unfortunately this creates a negative spiral where your lender may be charging you penalty interest rates and overdue fees, which make it even harder to catch up. If you’re serious about fixing credit score problems, then you’ll need to look into ways to catch up those past due debts and pay off debts as soon as possible. You might consider a debt consolidation loan or a balance transfer  credit   card  that offers a lower rate than you’re paying now to clear those old debts. If you don’t qualify for these options, then you may need to negotiate a realistic payment plan with your lender to help you get back in front.

4.  Negotiate a Payment Plan

If you have no way of raising enough cash to clear any overdue payments, call your creditors immediately and negotiate a payment plan. Where possible, try to make sure your payment plan is realistic and that you can afford to keep up with the amounts you’ve agreed to pay. While you’re talking to your creditors, it can’t hurt to ask if they’re willing to negotiate a lower interest rate with you, or perhaps an adjustment on the penalty fees and charges you’re paying. Once you’ve set a payment plan that is designed to pay off the overdue amount, be sure to add even small amounts extra on top of the payment due. Even an extra $5 per month can have a huge benefit to putting you back in front. When you’re past due payments are caught up, call your lender again and ask them to amend the negative listing they placed on your credit report. A paid default listing is far preferable to an unpaid debt listing.

5.  Repayment Frequency

An entire 35% of your total credit score is based on your repayment history. As this is a major portion of your total credit score, it makes sense to focus on this aspect to give your score a quick boost. Take a look at how often you pay your  credit   card  bill right now. If you’re like most people, you’ll make the payment once a month on or around the due date. However, if you don’t have the cash to make an entire monthly payment when the due date arrives, you risk being late with your payment. Your lender will report this late payment activity and this could affect your credit score adversely. To help avoid this problem from happening, try to make your repayments on a more frequent basis. For example, if you receive your income weekly, pay one quarter of your regular monthly repayment each time you get paid. You’ll be paying four smaller amounts of money each month that still add up to the minimum payment due. Keep your  credit   card  bill so you can make payments when you want to make them. If you have personal loans, call your bank and see if they can arrange to make more convenient payments. Your creditors will be happy that your payments are on time and you’ll find it’s much easier to budget this way. It’s also much harder to fall behind on your payments.

6.  Re-Structure Your Finances

An entire 30% of your credit score is calculated based on the balances you have outstanding as they relate to the credit limits available. Unfortunately, this has led people to try and shift existing balances around between other  cards  in an effort to reduce  credit  score. While the theory sounds good, the reality is most people will simply begin to spend more once they have the extra credit available. An easier way to fix this aspect of your credit score is to restructure your finances. A good example of this could be to try and consolidate some outstanding  credit   cards  or store cards into a personal loan or consolidation loan. You should find that the interest rate charged on these types of loans is often lower than you’re paying on  credit   card  balances, so you could be saving money on interest as well as reducing your monthly payments. While you’ll still have the same amount of debt to start with, as you make each payment, the amount you owe is reduced. This is because the payment structure on loans is dramatically different to the payments due on your  credit   card  balances. As your debt level drops, your credit score will begin to improve with it and you can starting working towards that perfect credit score you’ve always wanted.

7.  No New  Credit   Cards 

The worst thing you can do when you’re working on fixing credit score problems is to keep building more debt. This can be challenging at first, especially if you’re used to paying for all your purchases on  credit   card . Instead of adding more debt, ask yourself if you really want to pay off a pair of shoes or a night out at 18% for the next couple of years. If you really want to buy a more expensive item, try putting it on lay-away and pay it off each time you get paid instead. It’s interest-free this way and won’t harm your credit score.

8.  Mix and Match

By mixing and matching these tips to suit your own budget, you should find that it doesn’t take long to regain control of your finances again. Stick to your plans and work on keeping up with your payments. If you find you have a couple of extra dollars left over at the end of the month, put the extra into your repayments to help you even further.

In Final

Fixing poor or average credit score issues doesn’t have to be difficult, but if you still find you’re unable to make any difference on your own, don’t be afraid to seek out professional help.

Build Positive Credit – Two Methods

An effective method to improve your credit score is to have an open unsecured mastercard or visa. This card should carry a monthly balance of about 10% of your credit limit.

In other words if your limit is $1,000 then try to keep the balance around $100. This shows the credit bureaus two things:

1. Your credit is being used.

2. You have a good ratio of available credit to debt.

In other words you have available credit at your disposal. The credit bureaus weight this factor heavily when they calculate your score.

By showing you have credit that is not being used; your score will get a bump. This method is most effective with a revolving line of unsecured credit.

If you have trouble getting approved for new lines of credit, then consider being added as an authorized user. Find a friend or relative with good credit and ask them to add you as an authorized user to their credit card account.

This is called piggyback credit. There have been policy changes to discredit authorized users from receiving the benefits on the credit report.

However because of the size of the credit bureaus and how difficult it is to change credit scoring between all three credit bureaus this change will take time to implement. It is estimated that the authorized user will still receive a benefit for the next 6-8 years.

Make sure to use good judgment when choosing a friend or relative. The account will show both positive and any negative information that can be reported. So if the account became delinquent it could hurt your score.

It is very easy to be added as an authorized user. The account holder calls the credit card issuer and says they want to add you as an authorized user. It can all be done over the phone.

You then will have a copy of the credit card with your name on it mailed to your house. I recommend returning the credit card to the account holder.

All the details on the account will then be reported on your credit and the account holders’ credit. This is an opportunity for your credit to reflect on time payments and available credit.

It is in the works to discount this method as a way to build credit. However right now it works and it’s very cheap and easy.

Credit Education

Many of us as adults had to learn the hard way the importance of credit and maintaining a good credit score. In America our financial success or lack of can in many cases can be contributed directly to our credit profile. I have been in the financial industry for the last 8 years and it amazes me how little people understand or know about the credit industry. It almost makes me wonder that if someone has good credit are they just lucky? It certainly wasn’t because they new how the credit industry works. If someone had bad credit were they just unlucky?

I realize there are many reasons for a person to have bad credit; loss of a job, medical issues (with no insurance), divorce, and the list goes on and on. But in some case credit education may have helped the situation.

The bottom line is that I have seen so many good people be denied the opportunity to achieve a higher degree of financial success do to a lack of credit education. Something has to be done to educate or the youth in this country to try to prevent them from having the same financial struggles we may have had or are currently experiencing do to a lack of financial and credit education. I believe that it starts at home. When I was growing up in the 60’s and 70’s, finances and credit scores where not a topic of discussion around the dinner table. I had to learn the hard way.

Today things have changed as far as the types of things that can be discussed with your children. Kids today are a lot more aware of or are exposed to a lot more things through the media. I don’t believe it is a good idea to shelter our children from these types of topics. Teaching our children the importance of credit and financial responsibility is one of the most important things we can teach our children.

Our school systems as well need to help by offering if not making mandatory some type of classes that deal specifically with the credit industry, credit or personal finance.

If you are experiencing credit or financial problems it has to be a family effort to help resolve the situation. If not, what ever you are doing well not work. All parties, wife, husband and children need to understand that there has to be a change in the way finances are being handled so that credit rating can be restored to a level that will make life easier for everyone. By including all family members then perhaps this will help everyone to learn and understand the importance of credit and personal finances.