Entries Tagged 'Finance - Credit' ↓

I sit at my desk completely frustrated with Advanta. I opened up a business credit card with them 3 years ago and made a purchase of $6500 to help build my business credit for Rapid Recovery Solution, my Collection Agency. I have paid more then the minimum every month, on time. November 2008 I noticed that my interest rate seemed a little high. No where on my statement did it say the actual interest rate so I called the company. After 10 min or so I get a live rep on the line and they tell me it is 36.1%. Are they kidding, this must be a mistake. I have over a 750 score and never missed a payment. They said they sent me a notice in Aug that they are doing this due to a change in there lending methods. It turns out this is the second time this year they did this. I went from 8.99% in Jan 08 to 18.99 in Feb 08 to 36.1% in Aug 08.

Now, being in the industry for over 10 years I know that I need to watch my credit. I look for charges I didn’t make and it is tough to scam me. I have seen it all but this takes the cake. They told me I am now at a high risk for default so that is why they raised my interest rate? That doesn’t make any sense. They should lower my rate if they think I will default on my credit card. How will an increase in what you are charging me keep me from defaulting. Luckily, I have the ability to pay off this card today but I want everyone to realize that these companies have you by the short-n-curly’s. Watch your statements and lookout for this scam.

FYI, In NY, the maximum interest rate is 30%. They are charging me more then the maximum allowed in my state. I will send a letter to the BBB, the NY Attorney General, the UT Attorney General and the Department of Consumer Affairs.

As a nation we are in deep trouble. If a credit card company can just raise my rate because they feel like it I am positive that 99% of their customers are also paying 36.1%. How many other credit card companies are doing this to innocent people? We need to fight back. I am going to tell as many people as I can.

Unfortunately, there is nothing we can do except payoff the card. I was told I am a high credit risk. I paid the bill in full after I realized the rate was so high and the next month I received another bill for more finance charges for about $255. I paid that bill in full. I just received another bill in the mail for $5.65 and my rate was changed to 37.99%. Another point higher.

I had a few minutes so I called again to see why the rate went up again and they said “Sir, you have been classified as a very high credit risk and as a company we can’t risk you not paying your bill with us.” I said “I just paid my bill in full with your company, I have never had a late payment with your company in three years, I have one mortgage on my house for $290K, 25 years left at a fixed rate of 5.375% and it is worth over $500k and almost zero credit card debt personally. I am in the fastest growing industry right now, CNBC expects the debt collection industry to grow at 25% a year for the next decade. What else would I have to do to receive a better rate?” The extremely rude lady said “Sir, you would need to send a letter to Santa Clause and maybe he can help you out.”

The Government should put a maximum rate in place for the next year or so on all credit card debt. If the credit card companies are truly worried about consumers defaulting on their obligations, wouldn’t it make more sense to lower the rate so we can continue to make the payments? By raising the rate, it only makes it harder to pay and more likely that a consumer will default. The credit card companies are preying on the weak right now hoping you don’t pay so they can pound you with the highest interest rate. When you do default, they now have a higher balance to sell to a collection agency. In my eyes, this is a crime.

The Government doesn’t care either. Instead of giving the banks 350 billion dollars, They could have sent $1151.98 to each US citizen to pay towards credit card debt. The banks still get the money but we the people get a little break on our bill. The average family of four would receive $4607.92 to pay off a credit card. They reason that the banks need the money so they can lend money again to us? Are they crazy? All the banks did was raise the interest rates on our cards and pocket the money without ever having to say what the money went towards. No accountability!

Now the geniuses in Washington are considering giving billions to the auto industry so they can produce more shit cars that we can’t afford. How about giving the money to everybody with a current auto loan so we can pay for the car we already have. The money would still flow to the banks and auto makers via we the people.

Good luck America, your gonna need a miracle.

I feel better now. I was very upset prior to writing this blog. I hope everybody reading this realizes that if it can happen to me it can happen to anybody.

John Monderine Rapid Recovery Solution, Inc.

It may take a bit of work until you get the idea of how to amend your credit score. Your credit score is a determining factor of your fiscal status, and this is very crucial when you wish to take a loan from a lender. Having a low credit rating will ensure you have trouble getting your credit application sanctioned as you would have wanted.

Your ranking tells loaners of how dependable you are as a borrower. This usually furnishes the lending originations an insight into your financial standing. The reason for this is that credit evaluation is done by using some mathematical convention after taking into consideration a persons borrowing and repaying habits as well as assorted other factors. A formula developed by the Fair Isaac Corporation (FICO) is usually used to calculate the score which is why your credit score is also usually referred to as the FICO score.

When you have a low-level ranking, it tells the lender right away that you are not a very great candidate as a borrower. This may be based on your past credit accounts from which you may have defaulted on, late payments of debts, bankruptcy or foreclosure issues that you may have in the past and other similar factors. The higher your score, the more attractive you are as a borrower in the eyes of the loaners which might mean that your credit application is more likely to be approved.

There are plenty of ways to improve your credit rating and one of them is to analyze your current credit status. If you do have outstanding credit to take care of, it would be good to pay your accounts on time because delinquent payment of your outstanding debts has a major negative impact on your credit ranking. The quicker you clear your dues the better your credit history.

In case some older payments have been missed, bring the situation up-to-date by paying up the old dues. To have a great credit rating, you need to stay current with your credit accounts. The worst part is that all the instances of neglected or late payments would remain in your credit report for a long 7 years. This remains as a stark reminder of your delinquency even when you have cleared all your dues.

If you find that you are unable to handle the outstanding situation anymore, it makes sense to contact either the creditors or takes professional advice from a credit counselor. This cannot dramatically amend your credit rating, but the sooner you start clearing your past dues, it starts getting reflected on your improved credit rating.

When you improve your credit rating, you automatically become suitable to take that loan or mortgage which you wanted. This is extremely humiliating when you apply for a loan which does not get sanctioned simply because you have a low score. Improving your credit score can also assure you that you have better credit options particularly during times that you might need it most.

In today’s Internet age, there are numerous ways to earn cash back when you are shopping online. You will be surprised by how easy it is to earn some extra money with the click of a mouse. Particular types of sites that allow people to earn some fast cash include those of Internet games, financial products, grocery shopping, and movie rentals.

Besides being enjoyable, playing computer games can earn game participants some additional money. A couple of computer game site owners provide players with a 100 percent cash match on the deposits they pay. This is done to stay in line with all of the competitors for online games.

Financial products provide ample opportunities for people to earn some cash back online. For instance, as an incentive for someone to open up a new credit card or checking account, he or she can be offered a cash reward. People just need to be circumspect about such offers, as they are typically accompanied by credit checks. If someone has a good credit score overall, going after too many of these cash back offers can potentially have an adverse affect on his or her credit rating.

Food shopping websites provide another area where individuals can earn cash back from things that they buy. Given how food is a necessary purchase, this specific cash back incentive is definitely worth looking into. These food sites particularly offer people coupons or discount codes, which come directly from online retailers. People who buy food online on a consistent basis can possibly earn a lot of extra cash on a long-term basis.

Movie sites also provide a good source for people to earn cash back on purchases. The Internet has transformed the world of movie rentals. People can rent their favourite films and have them shipped to their homes at no cost. Movie sites have started to offer cost free trials to people given the amount of competition out there today. Movie lovers who sign up with a movie rental site that offers cash back rewards can enjoy these trials while at the same time earning money. It is a win-win situation.

In closing, there are a number of ways that individuals can earn cash back by making online purchases. Websites oriented toward online games, financial-oriented products, groceries, and video rentals all typically offer cash back rewards that are worth looking into.

Recently the CARD act took effect, which means that cardholders will be able to get relief from double cycle billing and arbitrary rate increases. In addition, the CARD act promises that credit card bills will be much easier to read. However, with the new act comes a new series of rules and regulations that savvy consumers should know about.

First,there is a possibility that consumers may find that they are being slapped with a variety of charges and new fees. This is because creditors have already been implementing new fees aggressively or raising ones that already did exist to try to make up for any revenue that could be potential lost as a result of the CARD Act.

Some examples of these fees are Discover’s new 2% fee on all purchases made outside the United States, and a bump from 3% to 5% fee for rolling over a balance from one credit card to another.Because there are absolutely no restrictions on the types of fees creditors can hit you with, cardholders are cautioned to pay extra close attention to the “Terms and Conditions” section of their statement so they know what exactly they are being charged for.

In addition, credit will be harder to come by. The amount of credit that was available to consumers by card companies went down about 7% between March and September of last year. And it will only tighten further. According to the CARD Act, credit card companies are going to be extremely restricted in their marketing techniques that target college students, which can potentially cut down on an important part of their business.

So, consumers with a mediocre or bad credit history will find that it is much more difficult to obtain a card or have their credit limit extended.

Fewer rewards are also expected. Issuers are becoming more cheap with their rewards in an attempt to save money. For example, American Express told its consumers recently that they would not be able to accumulate reward points on their purchases if they were late with a payment. To avoid missing out, analysts caution that consumers should carefully read any notices they get from their credit card company about changes to their rewards or loyalty program.

One day a collections letter appears. Then another, more aggressive collections letter appears. All of this followed by phone calls, some warning you about bad credit reports and potential legal action.

Collection agencies are often hired by creditors to retrive debt. Because many of these companies work for commission, the collectors are more likely to go after the money owed with gusto. Although this may all seem intimidating, it is important for you to know your rights.

Collection agencies in reality do have the right to report your debt to credit bureaus. Satisfying the debt will not result in it being removed from your credit reports. Instead, it will be marked off as “paid.” Collection agencies also can request a debtors credit report to analyze the person’s financial situation, or to get an updated address and phone number. Furthermore, although collection agencies do not like to send many accounts back, there are specific incidents where they will refer their account back to the creditor and recommend filing a law suit.

There are codes and procedures by which collection agencies must abide. Letters should appear in ambiguous envelops that do not reveal the intent of the letter. With phone calls, a collector can’t disclose the reason for the call. One example would be if a collector reaches an answering machine. they cannot explain why they are calling, all they can do is leave their name and a number where they can be contacted.

Although collection agencies are permitted to contact a debtor’s place of employment, they absolutely cannot get a debtor fired from their job. They are not able to make any kind of information concerning the debt public, although they can communicate openly with credit bureaus. Despite the fact that many people believe that a collection agency could legally seize a debtor’s bank account, paycheck and assets, the company cannot unless their has been a successful law suit ordering them to do so. Under no circumstances can a collection agency threaten a debtor with violence.

Even though some collections companies attempt to practice illegal strategies to get money, there are also a large number of reputable ones. With financial issues like debt, it is always crucial that you know your rights.

Credit scoring is an essential aspect of life. Paying your accounts on time, informs employers and business concerns that you are a healthy fiscal risk and will give you a healthy reference mark. Info the likes of this may be utilized by many establishments. From job chances to purchase a home or a car and acquiring a charge card, a person must have a healthy standing in their credit account.

To be able to purchase a new motorcar or home, an individual must have a good standing in their credit history. If you have damaged your credit history recently, then you must take measures to repair the trouble fast. This will enable you to use your charge card to purchase luxury items like holidays. You can find this information without too much trouble and the good news is it’s free.

The World Wide Web is a happy place to start as they are business concerns that will give you your exact credit score for free. People can check their credit mark each year from these types of companies. You are able to view your credit grade or any outstanding debts by answering a few easy questions, which most people would be able to answer. If a person sees that they have horrible credit or the credit marking will not allow them what they desire, there are several methods to correct this situation.

One of the first things an individual can do to step-up their credit grade is to clear any old debts. Even if this was for 10 years ago, it will help in credit individual’s credit marking vastly. A no credit or bad credit Master Card can be obtained as soon as individual’s bills are wiped clean. This will be helpful for a person to begin gaining a good credit grade and be able to purchase their dream house or vehicle. This can help an individual to increase their credit grade, which will enable them to purchase a new car or their dream house. Paying off any old debts will aid a person increase their credit mark and aid them to purchase luxury items on the credit.

It is very easy to get a bad credit grade against you, but it can take some time to get your good credit score back. Begin by buying one or two items on the new credit card and then paying it off immediately. By doing this you will show your charge card company that you are a happy risk, this usually will assist you get a higher balance on your card and at the same time Increase your credit rating.

Everyone has troubles like this in their lifetime. An individual may not be able to afford all their bills one or two months. Suddenly your credit history starts to fall; this is when many individuals have troubles with debt. There are many ways that an individual can increase their credit grade to a level where they have no problems in purchasing items on credit. A few bad months out of life does not need to detour a person from eventually getting excellent credit for the things they desire in life.

Those who are thinking about filing for bankruptcy in the state of Michigan might be wondering what they can expect out of the process. While bankruptcy is not a cure-all for financial problems, it is sometimes the best option. Here is some handy information about how one qualifies for and goes about filing for bankruptcy.

Some people may think that bankruptcy is a way to erase all debts, but that is simply not true. In Michigan, some debts will remain afterward, including taxes, criminal and traffic fines, back child support, most student loans and anything not specifically on the list of debts to be discharged.

In Michigan, those seeking bankruptcy must also complete a state-mandated credit counseling course within six months prior to the filing. This course requires debtors to contact their creditors to obtain a workable payment plan or seek a debt consolidation loan. After the documents are filed, taking a financial management course is also necessary.

There are two different types of bankruptcy - chapter 7, the discharging of debt while keeping a home or property not in default, and Chapter 13, a repayment plan that usually allows the debtor to keep a home, automobile and certain other property even though the loans for such properties are in default.

Michigan bankruptcy filings require extensive and often complex paperwork, including a two page petition and a list of all the debts to be discharged and property to be excluded. Deeds or titles of property owned and verification of income, expenses and financial transactions for two years prior to filing are also needed. The fee for Chapter 7 filings is $299, while Chapter 13 is $274.

Fortunately, once the paperwork is filed, the harassing phone calls from creditors can be stopped. In fact, creditors are required by law to cease contact once advised of the bankruptcy, but the court may not inform them for several weeks. To speed along this process and cease the calls, debtors should let creditors know of the filing right away and supply a case number.

Bankruptcy proceedings consist of a short meeting (called a 341 meeting) with a bankruptcy trustee. The trustee may ask clarification questions regarding financial status and the debtor is sworn under oath to answer. The debtors’ attorney and creditors may also be present.

Unless a debt or its discharge is disputed, bankruptcies don’t go to court. Creditors have 60 days after the 341 meeting to challenge any debts included. If the bankruptcy is undisputed, the process is typically finished in three to six months.

Since there are so many steps involved in filing a Michigan bankruptcy, it is recommended that those considering this debt relief option contact a local attorney that specializes in bankruptcies for further assistance. The right attorney can be an invaluable asset, protecting your property and your interests to the full extent of the law during an emotional and difficult time.

Plastic money is a term dubbed by the people of the world in reference to the wondrous item called the credit card. We all like to have everything now and the credit card can give us all just what we want. An instant credit facility is the magnet to those people desperate for a credit card and ready to spend.

It is not fair to blame individuals for this as the finance companies are quite happy to see this increase and at the same time, see the demise of cash. However, with such a tempting product comes great responsibility, one that we would be wise to take seriously. Financial Institutions worldwide also have to be more careful today and insist upon stricter verification of the credit card applicant. The US Patriotic Act is making the situation harder in America as checks take place for anything that has been ordered thereby creating more delays. For an American though, the need for a credit card far outweighs any delays he or she is experiencing.

This same average American could have eight or more credit cards and he will use at least on of them every day. Currently running at around 100,000 credit card applications in the system every day in the United States, there doesn’t seem to be any slowing down in the demand. There is a genuine need for credit and credit card applications are set to rise even higher in the coming years. People need to be educated however, in the need for greater responsibility when using credit cards as a great deal of money is currently wasted especially online with adult, gaming and other money sucking services. If you have learned anything so far then you might be a little clearer about your obligations and what to expect when you make your credit card application.

Most of the time, although your credit card application has been pre-approved, you will still be asked to fill out a credit card application or the acceptance form. Do not be alarmed by this because it is necessary to verify you are who you say you are. The advent of online credit card application forms has speeded up the delivery and confirmation that the application has arrived even if the acceptance process is still slow.

When filling out your credit card application, there are some important details that should be considered one being the possibility of hidden fees that can be quite expensive.

We all take the Internet for granted these days, especially when it comes to booking a vacation or ordering a bouquet of flowers for a loved one, but until the facility to accept credit cards online became a reality, none of this was possible. You can’t run an online business by taking checks or money orders if you really want to make money.

A good way to see your potential customers leave is to make them wait for the order. Instant payment is expected by every internet user so whether you are supplying a service or product you need to be able to send it out as soon as payment is made.

You will find that every successful website on the Internet accepts credit cards. It doesn’t matter how new your website is, you will need to arrange online payments this way as soon as possible.

Trying to run an e-commerce site without this type of electronic payment facility will be difficult at the very least and could mean that it will ultimately fail. Accepting credit cards online does pose some problems though, as some payment systems are quite expensive to set up and maintain.

Most online payment systems are similar to those you will find in any retail store or restaurant, alternatively you can use the system that many others are using now called Paypal. Though there are some that are wary of Paypal, I honestly think if you are going to use a credit card this is the way to go.

A Paypal account lets a customer use their credit card in the same way that they would on any other internet site but as you have your own account it is very quick and easy to do. Make sure you provide your visitors with a secure setting if you want to accept online payments.

Internet identity fraud is a problem, so visitors need to know that their personal information is encrypted and not accessible by people who would use it for their own ends. Any website that accepts credit cards online will be a secure site with the first letters of the website address being https://, This provides peace of mind to the user, so if you do not have this facility your customers will go elsewhere. It is this feeling of safety and security that ensures customers come back to your site and order from you again.

Despite what you may have heard bad credit personal loans after bankruptcy are available from some companies. Sometimes in fact some companies will offer them as little as 30 days after the bankruptcy discharge.

You see companies are willing to do this knowing that a person cannot claim bankruptcy for a minimum of seven years following the bankruptcy discharge.

This naturally provides these companies with some satisfaction that they will be able to get their money back legally in the future should the person in question run into problems.

Even though many of the larger boys in this industry are simply not interested in this market these other generally smaller companies are taking the market very seriously.

Even with the counseling requirements of bankruptcy on financial management and responsibility, there is no law that requires those declaring bankruptcy to follow any suggestions made during the counseling.

Once the bankrupt individual has discharged his bankruptcy he or she should be free to go after a bad credit personal loan when they feel the time is right.

The fact that bankruptcy can cause people so many difficulties, let alone embarrassment sometimes, pushes them to some drastic measures in an effort to get back on their feet. In some cases picking up one of these loans could be perceived as a drastic measure.

Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I’m afraid the new bankruptcy law has not managed to put an end to this.

The absence of a law against bad credit personal loans

While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there are no laws governing who can apply for them.

Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.

It is the norm for lenders in this industry not to require collateral for the loan. The truth of the matter is that because of the legal recourse available which can include Wade garnishment, even when the loan goes into default the lender stands to make a profit.

You see when someone defaults on one of these loans a court ordered repayment is commonly granted right away for however much the loan comes to, plus all costs involved with the collection of the loan.

As with anything bankruptcy related, if you are bankrupt you must consult a lawyer in regards to this subject and carefully convey all of your options before making any decisions.