| Identity Theft Suit Against Discover Card Issuer Goes Forward Texas Lawyer (subscription), TX - ... credit card purchases. According to Fritzhand, he responded that he did not have a Discover card, and the calls eventually stopped. ... |
Small Business Credit Cards
So what do you look for when applying for a credit card for your small business? One thing is for sure, wasting money isn’t an option because it can make or break your business. Things to look for are low interest rates and good customer service.
Ask around for companies with good customer friendly service. Some will let you off late payments time after time while others will come down like a ton of bricks. You need them to be flexible as you never know when you may run into problems.
Make sure you don’t go with one because of a low introductory offer. You want a long term one as you may not have time every six months to be jumping from one to another. Before signing up for one read the small print, remember it could save your business.
Look out for special bonuses companies offer. Some times companies such as Visa or American Express join with other companies to save you money on anything from shipping or office supplies
Here are two small business credit card options but look around for more and weigh up the benefits for each one
American Express Business Gold Card
No annual fee for the first year,
No pre-set spending limit
Save at known brands, such as Staples, FedEx and Hertz
When you enroll in the Membership Rewards program, you earn points virtually every time you use your eligible, enrolled Business Card.
Online Account Management
Car Rental Loss and Damage Insurance
CitiBusiness® Platinum Select® Card
The CitiBusiness® Platinum Select® Card is the card built for small businesses and includes:
A generous credit line
Low rate on purchases
Additional cards for employees
Free quarterly and annual account summaries
Free ‘Ask the Experts’ service
Free 24/7 Concierge Service
Consumers often have the first credit card that they ever applied for, never really analizing how the interest rate affects their payments, but many other options exist and can help consumers decrease their payments and achieve financial stability.
With interest rates on some credit cards rising to over 23%, even low balance credit card debt can be crippling. One of the first research elements a prospective borrower should look at is the interest rate on transferred debt. This interest rate is often lower than the usual interest rate for the credit card, and can be an especially good deal for borrowers who have debt already. Another element to consider is the interest rate on new purchases – this rate will be the main concern in the years to come, as this new credit card will probably become the most heavily used. Borrowers often worry about annual fees, but these are often temporary. Getting a credit card with low interest rates will save a borrower significant sums, usually much more than the annual fee. Plus, once good credit is established, the annual fee may later be waived.
Another interest rate will usually apply, as well – the rate for cash advances. Cash advances are usually limited to a couple hundred dollars, but credit card companies often insist that when paying back the balance, the credit portion must be paid back first, then the portion that the cash advance applies to. So if you are going to keep a balance on your credit card, be aware that cash advance interest rates are higher than the regular interest rates. Cash advances can be incredibly helpful in emergencies, though, when a credit card cannot be used.
Visa and MasterCard are by far the most commonly accepted credit cards, so less commonly used cards such as American Express and Discover often offer special rates for new customers. These rates are worth attention, even if you think that you may not be able to use the card as easily as your previous credit cards, because transferring the balance to these new cards to obtain the lower interest rate may significantly lower your payments. While your AmEx or Discover Card may not be accepted as often, they can be a good tool to achieving your financial goals.
Even less commonly used are credit cards that are store specific, such as gas cards or department store cards, but these cards can offer incredible deals on interest rates. They rely on the fact that consumers will often switch their spending patterns to the new gas station or store, and this increased revenue makes up for the lower interest rates. A slight change in your habits, such as consistently using the new credit card at the new gas station, can lower payments and improve credit scores.
Researching new credit cards can seem daunting, but by comparing the four main factors, which are the regular interest rate, the rate on transferred balance, the rate on cash advances, and the annual fee, you can reduce your credit card payments significantly.
The author runs the finance website http://www.pawninfo.com about short-term loans and payday loans, and any or all of this article may be reproduced in any form as long as there is a link to the website. The HTML is Pawn Shops and Short Term Loans
Dynamic growth in credit cards seen
Published: Sunday, 10 July, 2005, 01:20 PM Doha Time
Business Reporter
THE credit card market in Qatar is witnessing dynamic growth, according to Commercialbank general manager Andrew Stevens. This is attested by the cards association comprising Visa and MasterCard, he said.
With local banks heightening their marketing campaign for credit cards some might think there is a rapid explosion of credit cards in Qatar, he said.
“No, the market has not gone haywire. I can tell you this from the figures issued by the cards association,” Stevens told Gulf Times.
He said a vast majority of cards in circulation now are debit cards. “I guess they constitute about 70% of all the cards issued.”
Credit cards are now being designed for different market segments, such as businessmen and frequent travellers.
“Some 16 years ago, we were the first Qatari bank to issue credit cards. And that was done through a company in Bahrain. We continue to innovate,” he said.
Debit cards now allow users to make purchases at Points of Sale (POS). Commercialbank controls 85% of the POS network in Qatar.
“Certainly cheques are going out of fashion in the banking industry. The advent of credit cards and electronic payments are the way forward in the banking industry,” Stevens said.
He said cards formed a staple part of the bank’s business. Commercialbank has a major slice of the credit cards market in Qatar. It is not only a major issuer but also acquirer of cards.
Additionally, Commercialbank holds the exclusive franchise for Diners Club in some eight countries in the region. In Egypt alone there are over 15,000 Diners Club members.
Answering a question, he said Commercialbank did not hold the franchise for Diners Club in Oman, where the bank has a strategic tie-up with National Bank of Oman (NBO). “Diners Club is already accounted for in the Sultanate. Our partner NBO issues both Visa and MasterCard credit cards. They also have an exciting co-brand product with Oman Air. We will sit together and see how the position can be developed further,” Stevens added.
And here is the late news on Diners Club
By TERRY McCRANN on Sunday
26jun05
READ your credit card terms and conditions’ fine print!
And anyone with a Diners Club card, take it out and immediately cut it in half, return the pieces to Diners and cancel your account.
That is, unless you want to leave yourself open to the most outrageous gouging I have ever seen from a purportedly mainstream financial institution.
And the ANZ Bank should be ashamed of itself for tipping its customers into Diners cards. Unless it wants to be tarred with the same disgraceful brush, it must immediately cancel its co-branding arrangement with Diners.
These are the two big lessons to be learned from my Diners experience.
For somebody supposedly financially astute, I have to admit to not reading that fine print. Although, in the case of Diners, you have to read the fine print within the fine print.
I only did that when the monthly statement arrived with a hefty $365 charge — under the customer unfriendly term of “liquidated damages”.
What on earth did that threatening term mean? What was the claimed basis on which Diners was punitively charging me?
Indeed, I shouldn’t have got a “monthly statement” in the first place, as I had cancelled my card with payment in full on the previous month’s statement.
That’s a slightly separate, but equally disturbing, story because it appears my card was still “live” as recently as Friday. Not acceptable. I had returned it cut in half six weeks ago.
On first reading, it seemed Diners was charging me an invalid fee. But that was because I only read the “normal” fine print.
The payment on which Diners purported to hit me with $365 in “liquidated damages” had been recorded, by them, as being received 17 days after the issue date of the statement.
Their basic terms and conditions state that the late fee can be charged only if payment is not received by Diners by the 21st day after the statement issue date.
Ah, but I had a “frequent flyer” card, and separate terms and conditions for that type of card state that the late fee is charged after 14 days.
That’s an outrageously short period when you consider the impact of weekends, and the gaps between statement date and when you receive it; and between when you post your payment and Diners receives it — when it records it as received. You had better make that payment pretty damn quick.
That is if you are silly enough to have a Diners card in the first place.
Arguably, every Diners card should be required to carry a cigarette-like warning in big print. Something along the lines of “Warning: Possession and use of this card could be damaging to your financial health.”
Because the Diners late fee — whether after 14 or 21 days — is the most outrageous gouging I have seen.
The “liquidated damages” Diners charges is the greater of $30 and 3 per cent of the overdue amount.
The $30 doesn’t sound too bad, at least relatively. That’s about the late fee charged by the banks on their credit cards.
The 3 per cent is a different matter. It’s bad enough that it’s a punishing 36 per cent annual rate — actually, closer to 43 per cent on a properly calculated annualised basis, as Diners charges late fees on late fees.
But in dramatic contrast to the banks, which charge interest on outstanding amounts at a high, but not utterly outrageous, annual rate, Diners charges that 3 per cent as a flat rate irrespective of how late the payment is.
In my case, the payment was three days late — more correctly, Diners claimed it was three days late.
If it had been a bank credit card, I would have been charged, say, a $30 late payment plus interest of about $18. A total of about $48.
What Diners effectively did was to charge me penalty interest at a staggering 364 per cent rate. If my payment had been one day late — claimed by Diners to be one day late — the effective penalty interest rate would have been more than 1000 per cent! Yes, not 100 per cent, but 1000 per cent!
It gets worse. Because to use the Diners card in the first place, to buy airline tickets, I had had to pay a 3 per cent fee, adding about $354.
And, as they used to say in the ads, ‘Wait, there’s more’.
When you make a late payment, to stress, even one day late for payment of your entire balance, even though Diners is hitting you with an exorbitant charge, it does not credit the frequent flyer points for the spending.
So, for about $11,800 of purchases, Diners has levied $720 in fees and not credited the points.
Read the fine print. Easier, just destroy your Diners card.
MasterCard opens ‘contactless’ payments
2005/7/13
By Carmen Russell The China Post
MasterCard International yesterday held the first day of a two-day seminar to introduce their new OneSMART card, a multi-functional card.
The OneSMART card employs a computer chip to offer an integration of payment, ATM and electronic wallet services.
Attendees were also versed in the technology and opportunities regarding MasterCard’s Paypass contactless payment system and the state of chip migration in Taiwan.
Vice Minister of Economic Affairs Shih Yen-shiang addressed the seminar and said that by the end of March, chip migration in Taiwan already reached 78 percent. Shi said that the people of Taiwan have welcomed the chip migration because the new technology lets them feel more comfortable about using their credit cards.
Mastercard literature has identified Taiwan as a leader in changing credit cards over from the traditional magnetic strip used for decades to a the relatively new EMV standard which employs a computer chip to hold account information. EMV stands for Eurocard, MasterCard and Visa, the three major card issuers which cooperatively use the platform.
Following Shi’s address, the seminar went on to discuss the new payment system with seminars declaring it more secure and efficient. Seminars helped participants better understand the technological advancements behind the EMV standard.
“Moving from the Magstripe to the chip platform enables us to provide secure payment solutions,” said Richard Fletcher, MasterCard International, Mobile/Wireless Center of Excellence.
Representatives from financial institutions in 40 countries around the world including the Asia Pacific, Middle East, South Africa, Europe and North America attended the discussions.
In addition, MasterCard officials introduced the PayPass “contactless” payment system in which users holding the cards can simply wave it in front of a card reader for payment, making transactions smoother and more efficient than the traditional credit card with a magnetic strip.
MasterCard officials noted that they have licensed PayPass technology to competitors such as Visa in order to create a more side-ranging system.
“Sometimes with a tear in our eye, we have licensed our technology to competitors so that our members can use it system-wide,” noted Toni Merschen of MasterCard’s Chip Center of Excellence. “From MasterCard’s perspective, that competitors come to us to use our technology to build a common platform is a testament to our leadership, but we do also want to over unique competitive products.”
MasterCard was chosen by the Kaohsiung City Government to create a payment solution for southern Taiwan’s transportation system. The company yesterday introduced the world’s first MasterCard OneSMART PayPass combination card which southern Taiwan will implement into their payment system for pubic transportation services.
Residents of southern Taiwan will be able to easily pay for transportation usage on intercity coaches, local buses, trains, harbor ferries, and public car parks. Officials have said that upon completion, Taiwan’s High Speed Railway, the KCG Rapid Transit system and other transportation application systems will also be integrated.
According to materials issued by MasterCard, the MasterCard OneSMART PayPass Chip Card will be powered by the MasterCard M/Chip 4 payment application, as well as by MasterCard PayPass, the company’s contactless payment solution. M/Chip 4 is at the core of the MasterCard global smart card program and represents the latest generation of EMV payment applications.
The PayPass technology utilizes a small antenna built into the plastic which transmits data when within range of a card reader.
While PayPass has been undergoing trials in other markets, MasterCard officials note the leadership of Taiwan in employing non-proprietary payment system and says that they are looking to expand the availability.
“It’s clear this is a global product,” said Merschen. “We have the global reach to turn what we’re launching in Taiwan into a global product.”
However, they also note that different markets have tended to adopt the technology in different ways.
“We’re not selling technology, we’re using it to meet business needs,” says Merschen. We attach technology to our cards and our members make business decisions where the technology makes the most business sense.”
However, the company noted that general merchandise is the overall goal.
Prepaid Mastercard Tickles Nigerians
July 17, 2005
Posted to the web July 18, 2005
Managing Director of Naston Engineering UK Limited, Mr. Kole Funsho, has welcomed the introduction of the revolutionary electronic payment system, the prepaid MasterCard and Visa cards.
Mr. Funsho, a Nigerian living in the United Kingdom said that the e-purse is very essential for business travellers offering them the convenience and flexibility.
Prepaid MasterCard and Visa cards present very effective way of carrying cash with a lower risk. The cards were introduced by Bocal United Kingdom, a major representative of MasterCard, the world’s leading payment solutions company.
The prepaid MasterCard and Visa cards are designed for everyone in mind and users can load with as little as $10 (N1,350) and above and can be used to pay for almost everything from hotel bill to airfares to purchases over the internet.
The cards are completely private and a secure pin based cards, it is used on the Internet, at banks and anywhere MasterCard/Visa is accepted and offers easy round the clock online Account Management.
Unlike the debit cards flaunted by some companies and banks in Nigeria, the prepaid e-purse by Bocal is dollar-denominated and acceptable as a means of payments for goods and services in over 210 countries at more than 22 million locations worldwide (from shops to restaurants, hotels, internet and over 350,000 Automated Teller Machines (ATMs).
Embossed, convenient, flexible, fast and easy to use, the electronic payment systems, was introduced into the country. Already, an upwardly mobile local company, Flexivalues.com has been appointed by Bocal to license and deal directly with all companies and merchant outlets wishing to acquire the resellership in the country.
Flexivalues.com is a secure link to the world’s generally acceptable payment networks rendering services to the general public which enables them to securely, make payments across the globe without any geographical or political limitations using the universal electronic payments systems.
Because they are prepaid cards, spending limits are set by the amount of money users’ load onto the cards and you can add more money on a regular basis or whenever the money runs low.
Consumer Confidence Holding Up Well in Asia Pacific says MasterCard MasterIndex of Consumer Confidence
Search ASIA Travel Tips .com 19 July 2005
MasterCard’s latest MasterIndex of Consumer Confidence, a bi-yearly survey, reveals that consumers in most Asia Pacific markets continue to have an optimistic economic outlook for the next six months despite economic challenges.
“Consumer confidence over the outlook for the rest of the year is relatively strong in the region, especially seen in the context of worries over the price of oil, economic slowdown in Europe, rising interest rates, and persistent stock market volatility,” said Dr. Yuwa Hedrick-Wong, economic advisor to MasterCard International in Asia Pacific.
“Strong income and employment growth is certainly a key factor behind the solid consumer confidence observed so far, especially in a market like Hong Kong. But the overall confidence level masks significant differences within the region.
“While Korean consumers have stopped being pessimistic about the future, levels of optimism have dropped in Australia and New Zealand. These divergent trends clearly reflect how the current business cycle is unfolding at very different ways in the region. Going forward, even greater complexity should be expected. However, at least for 2005, positive consumer sentiments should support double digit growth in retail sales, outbound travel, and household expenditures in general,” added Dr. Yuwa.
Of the 13 markets surveyed, 10 had an optimistic MasterIndex score. Vietnam and Hong Kong topped the list of markets with a highly positive outlook; other optimistic markets include China, Indonesia, Singapore, Malaysia, Thailand, Korea, Australia and New Zealand.
The latest MasterIndex survey was conducted from 3 May to 29 May 2005 and involved 5,440 consumers across 13 key Asia Pacific markets. Five variables are measured; employment, economy, regular income, stock market and quality of life. MasterIndex respondents are asked about their sentiments on these five variables for the next six months.
American Express Settles with State Regulator
Company agrees to pay $7.4 million to New Hampshire.
By Tamiko Toland, Money Management Executive
July 18, 2005- American Express Financial Advisors (AEFA) has reached a settlement with the New Hampshire Bureau of Securities Regulation regarding undisclosed conflicts of interest in mutual fund sales between January 1999 and March 2003. The company has agreed to pay total fines, penalties, reimbursement and restitution of $7.4 million, which includes $5 million in state fines and penalties, up to $2 million in restitution to New Hampshire investors, and reimbursement of $375,000 for the cost of the investigation.
“New Hampshire investors were paying American Express financial advisers to evaluate their unique financial needs and design the best possible portfolios accordingly,” says Jeff Spill, deputy director in charge of enforcement. “What we found instead was a pervasive effort within the company to sell cookie cutter plans heavily laden with American Express mutual funds, without disclosing to clients how this behavior financially benefited the company and its agents.”
The state discovered the situation through the course of branch audits, during which Jonas Cutler, staff attorney and lead counsel for the investigation, noticed that accounts were consistently loaded with AEFA funds. Cutler also discovered e-mails that pressured agents to sell AEFA funds, even though these funds often underperformed other available products.
AEFA has also agreed to retain an independent consultant to review its practices regarding the sale of proprietary mutual funds and the use of model portfolios. The consultant will also look at the company’s training related to the issue and help determine the amount of restitution that will go to state investors.
American Express Company Plans Live Audio Web Access to Investor Conference Call Following Second Quarter Earnings Announcement
Monday July 18, 11:29 am ET
NEW YORK, July 18 /PRNewswire-FirstCall/ — American Express Company said today that it plans to host an investor conference call on Monday, July 25, 2005, at 5:00 p.m. (ET) to discuss second quarter earnings results, operating performance and other topics that may be raised during the discussion. The company’s earnings results are scheduled to be announced earlier that day. Live audio of the conference call will be accessible to the general public on the American Express web site at http://ir.americanexpress.com. The Second Quarter Earnings Press Release and Supplement, as well as a replay of the conference call, will also be available that day at the same web site address. American Express Company, founded in 1850, is a global travel, financial and network services provider.
American Express Middle East launches Bahrain’s first Smart Credit Card
American Express Middle East marks a key milestone in its payment card offerings today, announcing the launch of its new American Express Gold Credit Card.
Bahrain: Monday, July 18 - 2005
The new Gold Credit Card was designed for people who seek premium lifestyle experiences, exceptional service, peace of mind, and financial flexibility.
The new Gold Credit Card is a Smart Credit Card with an embedded Chip featuring ‘ID Keeper’. ID Keeper is an innovative application on the Card’s Chip which allows Cardmembers to securely store their favorite website addresses, personal details, passwords, user names and auto-fill online shopping order forms. This enables Cardmembers to shop online more securely, swiftly and conveniently.
Gold Credit Cardmembers are automatically enrolled in the global award winning Membership Rewards® programme. This loyalty programme enables Cardmembers to accumulate Membership Rewards points through their everyday purchases. The points can be redeemed for free car rental, shopping vouchers, flights, hotel nights, and many other lifestyle rewards. Cardmembers may also donate their points to charity. Membership Rewards points do not expire and there is no limit to point accumulation.
The new Gold Credit Card enables Cardmembers to live out their dreams with its unprecedented lifestyle benefits including Airport Lounge Access whereby Cardmembers and one companion gain complimentary access to airport lounges across the Middle East, regardless of their airline or class of travel, simply by presenting their Gold Credit Card. Plus, the International Airline Programme, whereby Cardmembers receive exclusive airline offers when tickets are purchased with their Gold Credit Card.
The Card also provides Retail Protection Insurance, protecting Cardmembers purchases against theft or accidental damage for up to 90 days and Online Fraud Protection Guarantee, enabling Cardmembers to shop online with complete peace of mind knowing that they are protected from any unauthorized purchases. Whilst online and from any location worldwide, Cardmembers can check their account balance at www.americanexpress.com.bh and even review their Card statements for the previous 12 months via the Online Account Access service.
To add to its numerous privileges, the new Gold Credit Card features Travel Inconvenience and Accident Insurance, worldwide Emergency Assistance, and Express Cash.
The Card is billed in Bahraini Dinars, making it ideal for everyday purchases. Cardmembers enjoy up to 56 days interest free credit and the flexibility to pay their bill over time, with a minimum monthly payment of 5% of the outstanding balance.
Mr. Trevor Stokes, President and CEO, American Express Middle East commented ‘The launch of the new Gold Credit Card is illustrative of American Express’ commitment to bringing the most innovative products to Cardmembers in Bahrain and across the Middle East. Moreover, it supports our Cardmembers’ lifestyle aspirations through offering a host of financial, travel and lifestyle related services.’
Mr. Paul Saks, American Express Country Manager - Bahrain highlighted ‘We are excited to offer the Bahrain Community a wide range of innovative Cards each packed with benefits and features meeting their specific needs. The Gold Credit Card is particularly unique because of the Smart Chip - enhancing transactions security; and with the ID Keeper application - providing a convenient way to navigate and shop online.’
The new Gold Credit Card is the first American Express Card with a Smart Chip to be launched in the Middle East and North Africa.
About American Express:
American Express Company is a diversified worldwide travel, financial and network Services Company founded in 1850. It is a world leader in charge and credit cards, Travellers Cheques, travel, financial planning, business services, insurance and international banking.
AMEX (Middle East) B.S.C. (c) - AEME established its presence in the Middle East in 1959 and set up its first office in Bahrain in 1977 as a joint venture company owned by Mawarid Investment Limited and American Express.
Operating in 18 markets in the Middle East and North Africa region, AEME issues dollar currency Credit and Charge Cards: Personal (Green), Gold, Platinum as well as Company and Corporate Cards. Since 2001, with the introduction of its first local currency Credit Card in the United Arab Emirates, AEME has been introducing a range of local currency Credit Cards across the region.
American Express Cards are accepted at millions of locations in more than 200 countries and territories worldwide.
Congratulations college freshman! You’re about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.
One thing they may have not warned you about is how quickly you’ll be bombarded with credit card offers. You’ll find them in your textbooks, in your mailbox, and on every campus bulletin board. You’ll be offered free DVD’s, t-shirts, music downloads, and more in return for completing an application for credit.
Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD’s, cigarettes, books, etc. - those small purchases can add up quickly.
Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.
Here are 7 tips to help you manage your college credit card needs:
1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.
2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.
3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can’t pay off the balance, always make more than just the minimum payment.
4) Pay your bills on time, otherwise you’ll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.
5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.
6) Less is better. You don’t need more than one or two cards at the most. The more you have the more tempted you’ll be to use them or to “max” them out.
7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.
Using a credit card is a big responsibility whether you’re a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.
Courtesy of http://www.yourfreecreditreportnow.com
Many homeowners are lucky enough to find a house that represents exactly what they want in a home. They buy it, make the payments on it, and live more or less happily ever after. Others are not so fortunate. Some buyers who live in a pricey market may have to settle for less house than they need, hoping to find a solution to their lack of space later. A third group of buyers may find that their housing needs change over time, as their family size increases. What can be done in these situations?
A common solution to these problems is to add on to the house, often accomplished by converting a garage to a room, adding a room over the garage, or simply adding a room somewhere else on the property. For these projects, a home equity loan is a great source of financing. The home itself is used as collateral for the loan, and the addition actually increases the value of the house. As most of these projects involve a fixed cost, the payments can be structured at a fixed interest rate over a specific period of time. But what about the do-it-yourself project? What if the problem with the home isn’t a lack of space, but a lack of taste on the part of previous owners? Is there a better financing choice in these situations?
If your problem is gold appliances, lime green carpet, and smiley face wallpaper, you may be looking at a remodeling project of indeterminate duration. For such a project, a better financing choice would be a home equity line of credit, or HELOC. A line of credit offers greater flexibility, both in interest rates and repayment terms, than a traditional line of credit. The loan amount is based on the amount of equity in the home, but the funds aren’t dispersed all at once. Instead, the borrower is given a checkbook, a special credit card, or both and can use them to draw upon funds at his or her leisure. Payments only apply when money is actually borrowed, and the repayment plans can be arranged with both fixed and adjustable interest rates, depending on the lender. This is ideal financing for someone who has purchased a fixer-upper home that needs a variety of changes, repairs, or modifications. The credit card can easily be used to purchase paint, drapes, flooring, appliances or whatever the homeowner requires to make the home fit their needs.
If you just need to hire a contractor to add a gameroom to your home, a traditional home equity loan would work well. For ongoing projects with indefinite timeframes and budgets, a home equity line of credit may be the best choice.
Courtesy of http://www.end-your-debt.com/
Finding solutions to reducing your debt takes some thinking and research on your part. You have some good choices available to you and we shall list these key debt reduction solutions for you right here:
1. Home Equity Loan or Home Equity Line of Credit. Your 21% charge card can be reduced to nearly 6% over night. How? By taking out a line of credit or equity loan against your home. Equity loans and lines of credit are available at low rates and banks are very willing to extend this service to you as your home is your collateral. Pay off all of your credit card debt with the loan and you will achieve debt reduction solutions immediately.
2. Replace high interest credit cards with low interest cards. Yes, in this day of low interest rates, many credit cards carry high interest rates. Ask your credit card issuer to reduce their rate closer to market rates. If they refuse to budge, consider applying for a low interest rate card from another provider. Transfer your balance to the provider offering the best rate.
3. Debt reduction solutions can be realized through the selling of other assets including: an extra car, antiques, jewelry, extra property, renting out property, or liquidating some other assets. Check around your home and see if there is something that you owe that can be sold on eBay or locally at a yard sale. Take the proceeds from your sale and pay down your debt, starting with the biggest debt first.
4. If you do not owe a home, or the home you do own has negligible equity built up then you cannot get equity from your home. Still, depending on your income, you may be eligible for mortgage refinancing below market rates. Check with your bank or local housing authority to see if you qualify for a low or moderate income loan. The savings you realize through reduced mortgage payments may help you pay down your debt.
Finding debt reduction solutions that work for you is an important first step in eliminating debt. Make a plan and stick with it and you will soon be living a debt free/care free life.
Courtesy of http://www.fast-debt-settlement.com/
It is quite common for someone, who is having trouble getting credit, to approach a friend or relative to act as a guarantor or co-signatory for a loan. They’ve seen that new car they would dearly love, but have one problem. For one reason or another they are a credit risk, and cannot get a car loan on their own. It may seem simple when they say that all you have to do is sign. That’s it! The trouble is, that is only the beginning; at least, if things go wrong, signing for the loan is not “all you have to do.”
The Reality Of Co-Signing A Loan - What You Should Know
Before you finally co-sign that loan application, there are a few things you ought to know. In reality, it is not just a matter of signing the loan application. You will be entering a serious loan transaction, in which you will have responsibilities, just as if you were applying for the loan yourself. If your friend does not keep up the repayments on that car, or other, loan, the lender will seek the best way to get the money. Their first port of call? You!
If you are asked to co-sign a loan application, here are a few points for you to take into account. Stop and think about them. Ignoring them could lead you to lose a lot of money yourself, and possibly fall out with your friend.
1. Your Friend Is Probably A High Credit Risk
If someone is asking you to co-sign a loan, that means that the lender is unwilling to take a risk on them on their own. This means that their past credit performance has been so bad that the lender doesn’t believe your friend will pay back the loan. Do you want to be the fall guy; the one who carries the risk? You are not a professional lender, and your judgement may be impaired because this is a friend.
2. Impact On Your Credit Report
You have probably worked hard and responsibly to keep your credit report clean. Your friend would benefit from that if you co-sign the loan, but did you know that if your friend becomes delinquent with his payments, it could affect your credit report? All your good work down the drain because of your trying to help a friend.
3. Your Legal Responsibility
By placing your signature in the co-signatory’s spot, you will be guaranteeing that if your friend does not make the payments, you will. Do you really have the spare money each month to cover the loan if it came down to that?
4. The Collection Process
If your friend defaults on the loan, and it goes into the collection process, it is possible the lender will bypass your friend and come after you first. After all, they knew he was a risk, and you are the one with the better credit record and more likely to have the money. The law will vary between countries, but in the US this is true in most states, and it would be important to find out where your own state stands on this policy before.
In addition, you should be aware that by co-signing for a loan you may actually reduce the amount of credit you will be able to get yourself. Your friend’s loan will count towards your total debt owed.
5. If You Decide To Go Ahead And Co-Sign For A Loan
If you do finally decide to co-sign for a loan, here are a couple of steps that you should take in order to protect yourself as much as possible:
Firstly, it is wise to request that you will be notified in writing, should your friend miss or be late with a payment. By learning of any problems early on, it will help you keep the potential damage to your own credit report from getting out of control.
Next, make sure you also get copies of all the loan documents, plus the repayment schedules. Ask for a copy of everything that your friend gets, in case there is ever a dispute. Then you will know what legal rights you have.
Being a co-signatory for a loan is a serious responsibility, and is something that you should think long and hard about. Even if it is your best friend who is asking you, think seriously about the consequences. It is not just the potential financial loss to you; your friendship could be on the line. Friendship and money often do not go well together, so beware.
Courtesy of http://www.eliminate-credit-card-debt-now.com/
