Credit Guide

By: James Dimmitt

Card Consolidation Credit Debt
Were you lucky enough to get a pay raise recently? If so, what are you planning to do with it? Here are 4 tips on how to make your raise pay real dividends for you now and into the future:

Check the fine print in your credit card terms and conditions. Many credit card companies reserve the right to raise your interest rate if you make a late payment to other creditors, not just to them. The theory is that if you're late on other payments, you're a higher credit risk. The truth is that this is just another revenue stream for credit card issuers. The solution Pay all your bills on time.

Credit Union 1) Open a savings account

A consumer with excellent credit ( 850) would pay about 7.8% interest rate for a home equity loan, while a consumer with marginal credit ( 659) would pay 9.2% and one with poor credit ( 559) would pay a 12.1% rate.⁹ The rate swings for a new car loan are even greater, with good credit risks paying a 5.2% paying 11.4% and poor risks paying 17.2%.

Merchant Credit Guide Co Baby boomers can probably remember parents or grandparents making regular deposits to a savings account at the local bank. Our current savings rate is a measly 2.5 percent - down significantly from the 7 percent average 30 years ago.

paid "credit" card has a facility they call "Credit Builder" which may be of interest. It works by providing a loan of the yearly fees (£59.40 ) for the card which you then pay off instead of paying the monthly fee (£4.95 ). At the end of the 12 months you've paid of the loan and this is registered with the credit reference agencies. There's a link straight from the prepaid credit card section of this site. You don't need any credit history (or can even have a really bad history for that matter) paid.

Apply Online For Credit Card For example: If you saved an $80.00/month raise, at the end of one year you'd have $960.00. It's not a huge amount for some, but it's a start. And thanks to the wonders of compound interest you can watch it grow into a nice nest egg over time, especially if you continue to add new raises to your savings.

Why carry Credit Cards when you can use Obopay Credit cards allow people to purchase items immediately, and pay for them later. Instead of having money removed directly from a bank account, as is the case with debit cards, a credit card purchase is paid for by the credit card issuer and the credit card holder pays back the issuer in full at the end of the month, or with interest added minimal monthly payments. Also, responsible use of credit cards helps in building a good credit history, which aids in attaining loans, insurance, and other important services from financial institutions.

By Card Credit Debt Debt Guide Savings account interest rates are on the rise. The online bank, ING Direct is currently offering 2.35% APY (annual percentage yield), with no minimum deposit, no fees, and your account is FDIC insured. Visit www.ingdirect.com to learn more about their saving account plans.

Credit Repair 2) Pay down credit card debt

Active Credit Credit Guide The average American carries $2,627 in credit card debt, up 14.5 percent from a year ago, according to Myvesta, a nonprofit consumer education group in Rockville, Md.

Credit Score Fifty-three percent of credit card companies require only a 2% minimum monthly payment, up from 43% of companies in 2003, according to the consumer advocacy group, Consumer Action.

Bad Car Credit Guide Loan Paying the 2% minimum due each month on a balance of $2,600.00 at 18.0% interest, it would take you MORE THAN 35 YEARS to pay it off, not to mention the $6,730.00 spent in interest charges! Instead, add your $80.00 a month raise to the minimum monthly payment and you would be paid off in 2 YEARS and pay just over $500.00 in interest charges, a huge difference!

Bad Credit Loan Applying your raise toward your credit card debt will lower your debt to income ratio, improve your credit score, and help you escape from the nasty web of outrageous credit card debt.

Credit Definition Derivative 3) Open or contribute to an Individual Retirement Account (IRA)

Bad Credit Mortgage If you haven't started contributing to a personal retirement account, you should, and what better time to start than with your new raise? This is exactly what I did three years ago, although I wish I would have started sooner.

The Insider Guide To Credit If you're counting on Social Security to take care of you in your retirement years, you'd better do some rethinking. Regardless of changes to the Social Security system, we tend to overestimate how much we'll receive in benefits and underestimate how long we'll live. The only way to fill that gap is to have income from your own retirement plan to enjoy in your "golden years".

Business Credit Card An additional benefit of opening an IRA is that many companies will match your personal contributions at a specific rate. Check with your human resources department to see what plans are available and whether or not your employer will match your contributions.

Banker Complete Credit Guide 4) Invest in Stocks, Bonds, and Mutual Funds

Credit Card Application You don't need thousands of dollars or a degree in business in order to invest. Nor do you have to hire a broker or financial advisor to own stocks, bonds, or mutual funds.

Credit Guide Managing In fact, a company called ShareBuilder is making it easy for anyone who can afford to make regular automatic investments "to build wealth through long-term investing." Visit www.sharebuilder.com to learn more about their simple, affordable, and flexible plans to fit your budget.

Credit Card Offer 5) BONUS TIP

Merchant Credit Guide Company Another option, and the one that too many of us choose, is to do nothing other than spending our annual raises. Unless you had some unforeseen emergency or are living paycheck to paycheck, is there any reason to think you can't get by this year on the same salary as last year?

Bad Credit The Federal Reserve estimates that over 40% of U.S. families spend more than they earn and as many as 25% of households aren't saving enough for the future

Collection Collection Complete Your raise presents a unique opportunity for you to invest in the well being of your finances with results that can continue to "pay" you now and well into the future.

Credit Counseling

Complete Credit Guide Higher © 2005, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt - James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other free bonuses by visiting http://www.yourfreecreditreportnow.com



Source: http:// www.isnare.com

[ Comment, Edit or Article Submission ]