Don’t Dodge The Credit Card Debt Collectors!

If you take no other piece of advice from this site on credit cards, take this: you do not want to dodge the credit card debt collectors at all. First and foremost, if you know that the debt belongs to you outright and there’s no one charging up your credit cards, then you have a moral obligation to pay the debt that you owe. Anything less than that is simply selfishness and you don’t want to go down that road. After all, if someone owed you money, you would want to make sure that you had the debt paid back to you, wouldn’t you? The credit card companies are the same way. They just want to make sure that they are going to be paid as soon as possible.

One of the first things that a credit card company will do is make a courtesy call to your phone. This call can usually be pretty polite, especially if you’re not even 30 days past due yet. The later calls can escalate in severity, especially as you near the 90 days past due mark. This is usually the point where a credit card company realizes that you aren’t going to pay them, and they try to turn you over to a collection agency to see if that will cause you to pay your debts. Of course, since there’s a lot more information on credit cards now than ever before, some people still don’t pay their bills.

You have a lot more power if you decide to step up and actually deal with your creditors than if you were to dodge all of their phone calls. If you have a valid reason why you’re not paying your debt, you need to make sure the credit card company knows this. Of course, it has to be said that this is not something that you should conduct over the phone. Naturally, this is what a lot of people do, but it’s not as effective as you think. It’s very easy to lose phone records or to have them entered incorrectly by the representative that answered your phone call. Customer service can be something that’s very sporadic and difficult, which means that you will need to make sure that you take matters into your own hands. You can’t expect the credit card company to help you unless you’re serious.

Credit Card Debt Collectors

The best way to show that you’re truly serious is to make sure that you handle yourself in a professional manner. Instead of running from the calls, you will want to make sure that you open a line of communication that’s less intrusive than the phone calls: the mail. If you have a stable mailing address, you might want to send a cease communication order to the credit card company. Explain that the phone is no longer a valid way of contacting you, and you prefer to handle everything through the mail. Make sure that you send this letter to them through certified mail, while requesting a return receipt. This means that you will have verification that they have actually received your letter and not thrown it away. This will help you take matters into your hands in case you have to go to court later.

Now, keep in mind that if you ask the credit card company to talk with you only through the mail that you will need to communicate with them regularly. You will need to let them know the reason why you aren’t paying the bill, and ask if there are any alternate programs that they can assist you with.

Of course, if you are still open to talking on the phone with credit card representatives, then you can augment your letter campaign with a few phone calls. This will make your campaign more targeted because you’re not relying on the phone — you will have a paper trail that you can turn to in case the credit card company argues that you’ve never made attempts to handle your debt properly.

At the end of the day, no one can force you to deal with the credit card debt collectors. However, you will find that the company will handle you much differently if you strive to talk things out and work towards a solution. Running will only make your problems worse, and it certainly won’t improve your credit score in any way. Use the tips in this guide to push forward, and remember: don’t give up; a brighter credit future is around the corner!

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How to add another user to your credit card account

If you want another user to have access to your credit card account, you can request a second credit card for that user. You can request that second credit card when you first complete your application, or you can go back later and add another authorized user. Keep in mind, however, that you are ultimately responsible for any and all charges made by that new user.

Credit Card Application

You can easily request another card when you first apply for your credit card. The bottom of the credit card application includes a special section you can use to add a second authorized user to your account. Simply fill in that portion of the application and submit it for processing. You need to provide the Social Security number of the applicant, as well as that applicant’s signature. When the application is approved, both you and the second user will receive a credit card in the mail.

Credit Card Application

Watch For Special Mailings

After you have your own credit card in your possession, you may receive special mailings from time to time encouraging you to add an authorized user to your account. If you have a rewards card, you might even be offered reward points for adding a new user to the card. If you do receive one of these special mailings, you can simply enter the name and address of the new user on the form and send it back in the postage-paid envelope.

Go Online

If you do not receive a mailing encouraging you to add an authorized user to your account, you can log on to your account online and request an additional credit card for another user. You need to provide the full name of the new user, as well as the address the card should be sent to. You may also be able to add an authorized user over the telephone, although not all banks provide this service. Keep in mind that you are ultimately responsible for all charges on the credit card, including those made by the new user, so only issue extra cards to people you trust.

Fraud Alert

In some cases the addition of an authorized user could trigger a fraud alert on your credit card, so it is a good idea to contact the issuer and let them know that you have requested an additional card for another user. Taking this step can head off any fraud alerts or automated processes that are set up to prevent identity theft and protect your account from unauthorized use.
It is generally quite easy to add a new user to your credit card, especially if he/she is part of your family. The tips listed above will definitely help you make it quick and safe.

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Are you abusing your credit card

Have you ever considered the possibility that you may have become a credit-card abuser? Well, if you whip out your credit card for every purchase you make without even considering the dollar amount, then it is likely that you have joined the growing number of consumers who have taken their ability to use credit cards over the limit. While this type of behavior might increase your level of debt, it certainly won’t lead to incarceration unless you begin to commit criminal acts in order to pay off your credit-card debts.

Nonetheless, using your credit cards more than you should might lead to financial trouble. Abusing your credit card privileges can lead to exorbitant amounts of debt. Coupled with the inability to pay off this debt, credit-card abusers can find themselves in a precarious position. As interest charges add upon unpaid balances and the spending continues, credit-card users face the possibility of not being able to pay off their debts anytime soon.

Fortunately, credit counseling is available for those consumers who want to seek help. These counseling agencies provide guidelines designed to show credit-card abusers how to regain control over their spending habits so that they can reduce their credit card debts. Some of these changes will be difficult to implement, especially for consumers who whip out their credit card for everything from coffee in the morning to dinner at night, each and every day.

Credit-Card Abuser

How Do You Know if You Are a Credit-Card Abuser?

Some of the signs that might indicate that you use your credit cards too much include:

– You no longer carry cash in your wallet;
– You have more than one active credit card;
– You use a credit card nearly every day to make a purchase;
– You cannot pay the full balance listed on any credit card;
– You are struggling to pay the minimum amount due on one or more of your credit cards;
– You are no longer embarrassed when charging amounts that are less than $5.00;
– You are experiencing problems in other financial areas of your life.

Once you recognize that you are abusing the privilege of owning a credit card, it is important to find a way to get your spending under control. While you can try to control your spending on your own, you might achieve better results by joining a self-help group or a credit-counseling agency. Overusing and abusing your credit cards is never a good thing, and in the long run, there’s a high risk that you’ll get into more trouble than you can handle. If you caught yourself doing most of the things listed above, it might be time to reconsider how you use your credit line.

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Fight Back Against Credit Card Interest Rate Increases!

Imagine this: you start out with a great credit card. Yes, there is such a thing as a great credit card, especially if it has a good interest rate and lets you make your life easier. Contrary to popular belief, credit cards really aren’t as evil as you might give them credit for. Unfortunately, there does come a time where you might look at your statement and realize that your interest rate has gone up.

There are a few reasons for that. The most obvious is that you made a late payment or a series of late payments. However, credit card companies have a lot of fine print that you need to read. One such clause in a lot of contracts is called the universal default clause. It means that you can get your interest rate raised simply because you paid another bill late. To the credit card company, it indicates a possibility that you’re starting to become riskier to have on hand, and they have to adjust their interest rate they offer you accordingly.

At this point, a lot of people just stop in their tracks. They see the high interest rate and think that there’s no way that they can do anything against the big bad credit card company. Thankfully, reality is often better than we assume. This means that if you’re really thinking about fighting back, you definitely should.

Here’s how to do it.

First, you will want to see if you can resolve it by phone. Call your credit card company’s customer service department and see about getting the interest rate changed. If you’ve never been late on anything to the company, then this shouldn’t be too painful. You can cite that you know that you’ve been late on something else, and if there’s a good reason why that happened, then you can let them know. The more temporary the reason, the better your case. You might get some pushback at this point.

If that doesn’t work, your next step is definitely going to be looking around at getting another credit card. Now, it might sound drastic to take this measure, but hey — if you know that you can get another deal, then you should definitely pursue it. It’s something that just makes sense in a big way.

Once you’ve found a credit card with a lower interest rate, you will want to make sure that you sit down and write a letter. You need to write a letter to your old credit card company and point out that you’ve been approved for a card with a lower interest rate, and you’re considering taking it, unless they can get you a better deal. Some guides suggest just threatening to do so, but you want to show that you really mean business. Anyone can bluff, you want to show that you’re really not afraid to get up and go do it.

That’s where you attach the approval letter inside your correspondence. If there’s something that you need to block out with permanent pen, then you can do that as well. When you send your letter, you don’t want to just stick a stamp on it and mail it out first class mail. That works for regular things, but when you really want to show a business that you’re being serious, you want to make sure that you send all correspondence certified mail, return receipt requested. That way you have proof that you sent it, and they can’t deny that you never contacted them if you call them on the phone. Every company has a department that they accept mail to, so do a little research and see where you need to write the company at.

This may sound like a lot of work just to get your interest rate lowered. However, you must remember that if you don’t take the time to do it, you’ll be stuck paying that higher interest rate for things that might not even be your fault or issue. After all, the company reserves the right to raise your rates anytime they see fit, for any reason. That’s in your contract.

If you stick to your guns and follow the advice in this guide, you should have no problem claiming the low interest rate that you rightfully deserve!

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Credit Cards Give You the Power to Turn Any House Into a Home

Everyone loves owning a house, but even if you’re renting a house there are naturally things that you will want to do in order to turn it into a home that you can be proud of. Unfortunately, in order to complete this mission you’ll need money, but not just any money. You will need to have enough extra to cover not only your decorating ideas but also the other responsibilities of everyday life.

Does it really have to always be a question of one over the other? In other words, do we only become successful homeowners and tenants if we skip the fun and only focus on the bills? This is truly not the case at all. In fact, if you really think about it you’ll find that you’ll be able to get both aspects of your overall agenda completed with the addition of a powerful tool: credit cards, of course.

credit_cards

Now, a lot of people think that credit cards are evil and that’s just not the case at all. You have to understand that credit cards are designed to make your life easier, not harder. You are essentially taking out a loan with the credit card company, to be paid back within 30 days. This gives you time to have the money up front for all of your purchases, and still plenty of time to take care of the bills that follow.

Why would you want to dip into your savings when you already have credit cards right there waiting for you? Your savings should be used for emergency items that need large sums of cash right away. That type of liquidity is precious. If you can leverage someone else’s money to get what you want, then you should definitely do that.

There are limits, of course. You want to make sure that you don’t bite off more debt than you can handle. That road only leads to trouble, because you will struggle to pay everything back within a certain amount of time.

Indeed, you want to keep your amounts low enough that when it comes time to pay the credit cards, you can offer much more than just the minimum payment due — that’s actually how people get themselves into trouble to begin with.

Overall, if you’re really thinking about trying to turn your house into a home, credit cards are definitely the best way to go — why not use yours today? Even if you don’t have a credit card, going to your bank is the fastest way to get a great credit card with a good, modest interest rate. Don’t be afraid to apply today!

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New Year’s Resolution – To Start a Credit History

There are a lot of guides out there about re-building your credit history after you’ve had a few credit mistakes, but there’s one mistake that a lot of people make without thinking about it: they refuse to play the credit game altogether.

It’s not quite their fault, really. You see, a lot of financial “experts” are now advocating a cash only lifestyle, which means giving up credit cards no matter what your reasons are. This might work for people that are incredibly wealthy, but the reality is that most people can’t live without credit cards. They’re a great tool, when they’re used properly. You shouldn’t have to feel like you won’t be able to build a credit history just because you might not have one already. After all, everyone started out where you are and some people have a lot of credit behind them!

It helps to build credit when you’re employed, so that you can prove that you’re actually a relatively low credit risk. In other words, you should be in a position where you will always be able to pay back any of the credit cards and/or loans that you get from other people. You don’t have to feel like it’s impossible to get your credit history rolling forward.

In fact, it’s just a matter of following a few steps:

First and foremost, you will want to make sure that you start as well as possible. You don’t want to feel like you have to take out massive loans at the very beginning. Sometimes, you can just go down to your bank and get a signature loan. As the name implies, this is a small loan that is essentially guaranteed by your signature. You will need to pay it back, but other than that, you will have no other issues that you need to think about.

Sometimes people group signature loans together to create a real ladder that they can use to get further than if they just took out one loan, but you’ll need to just watch your credit report as you go along.

Speaking of monitoring your credit report, this isn’t a bad idea for a few reasons. For starters, you will be able to immediately tell if someone is trying to use your identity to open credit in your name, and you will also be able to watch your score grow over time. It’s really the best way to go if you’re really serious about building solid credit for the long run.

Now, you might be tempted to try to sign up for as much credit as you can get in a  short period of time, but you really don’t want to do this either. For starters, it’s going to make it hard for you to maintain a proper credit score, because you will lose points for having so much credit generated in short time.

It’s much more important to make sure that you pay on time for the credit lines that you have. You shouldn’t strive to add more than one new line of credit a year. Again, this is only if you can afford it — you do not want to end up being unable to pay for the credit lines that you have currently.

At the end of the day, you have to remember that it can take a lifetime to really build a solid credit history. However, most of the work is actually done for you. As long as you maintain your payments and handle things o n time, you will see your credit score get better over time. There’s no need to feel like good credit is impossible. With a little bit of work, you can have a great credit score that you can truly be proud of!

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Alternative Measures You Can Take to Protect Your Credit Cards

Protecting your credit cards is something that can really take a lot out of you. It seems like every time you turn around there’s always some sort of policy that has to be addressed, or some story in the newspaper about a credit card scam ring being broken — with consumers paying the ultimate price.

However, those are not the only things that you will have to protect yourself from when it comes to credit cards. You will also need to protect your credit cards against your own spending habits. Far too often, people think that credit cards automatically mean that you will be on a one-way trip to the poorhouse, but this isn’t the case at all. You are the ultimate person in charge of your credit cards, and if you spend too much money, you will end up making it that much harder to get your finances in order. Letting your credit cards spiral out of control will only make it harder to get credit in the future.

Depending on where you are in life, you might not think this is a bad thing. However, if you’re ready to buy a car or if you think that you will want to buy ah house in the future, this is definitely something that you will need to think about. Both of these purchases are highly likely to require you to have credit. Even though people do buy cars as well as house in cash, this requires a lot of upfront money. Even if you were suddenly wealthy, wouldn’t you rather have your own money to do with whatever you pleased, instead of having it tied up in a car or a house? These are just questions that you will need to ask yourself when it comes to your credit — it’s a lot more permanent than you might imagine.

Thankfully, there are more methods and techniques that you can look into in order to really keep yourself from overspending on your credit cards. First and foremost, there are credit cards that actually let you put extra limits on your card. For example, if you have a credit card that has a thousand dollar limit, you can set it up so that there are warning flags triggered for going over say, 500 dollars. It’s really up to you to determine just what type of credit card limitations that you would like to set up.

Don’t forget that you can monitor your credit cards online most of the time. If you use a service like mint.com, you can look at your balances in virtually real time. These services also break down your spending, so you can actually see what expenses you’re putting on your credit card. When it comes time to trim your spending, this will help you identify the first set of expenses that need to go.

Overall, protecting your credit cards from being put to the limit and hurting your credit score is definitely a good thing — follow these steps and see how fast your money grows!

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