Sneaky Credit Card Tricks That Can Really Mess Up Your Plans to Get Out of Debt!

Trying to get your credit life back in order can be easier said than done. What you’re going to have to focus on is getting credit, protecting that credit, and making sure that you will be able to really keep the credit going for a long time to come. You can’t ride off of good credit forever — it’s only designed to stay around for about ten years. So even if you had good credit in the past, you’re going to have to maintain the credit in order to see your credit score grow.

Knowing the sneaky tricks that credit cards do can help you stay in the game for a long time — here are some of the top tricks that are still kicking around this industry to this day.

1. Universal Default Clauses

Universal default is something that we’ve already written about, but it bears repeating. Just about every credit card that you can think about will definitely have this written into your contract with them. Universal default is about as nasty as it sounds — if you default on one credit card, you’re going to get an interest rate hijacking from all of them. So that means that you really need to make sure that you’re on your guard as much as possible. Paying early is the best defense against the universal default clause. If you know that your paycheck is coming already and you’re still way ahead of the due date, send in your payment anyway. It’s going to save you in terms of interest costs, and it’s also going to give you the peace of mind that comes from knowing that your credit card isn’t going to slap you with a higher interest rate for no reason.

2. Bait and Switch

Are you taken in by that shiny new credit card offer you saw on TV? You know the one with all of the miles and the low interest rate? Well, you might want to be careful — that shiny new offer might not be as shiny as you think. Generally, those cards require you to be in the top tier of credit applicants. If you don’t have that type of credit score, what you will probably be given is another card that has different terms. Make sure that you read the terms correctly — even if you only charge a penny to that different card, you’re bound by the terms of that card. No negotiation, nada — you need to just cancel the account and move on unless you can make the new card work anyway.

3. Shifting Addresses

What if you want to pay by mail? You can end up getting nailed by a credit card company’s address changes. Their payment P.O box can change at will, and if you don’t keep up with the changes you’re going to have a raised interest rate and a late fee to deal with.

The solution? Pay early. Pay early. And oh yeah — pay early some more. Your best defense against most credit card tricks is to pay early. Unfortunately not everyone pays on time, and they end up waiting to the last minute. If you’re still mailing payments, you might want to switch to scheduled online payments. That’s a safer way to pay your monthly fees anyway!

4. Cash advance fees

Cash advance fees can really slow you down and there’s really no reason for it. Even if you have a 0% interest rate credit card, you will be surprised at how much money the company will charge you for the privilege of taking money off your credit card. There is often no grace period for this type of cash advance business either — you get to start paying interest right away! Isn’t that fun? Not really.

You will also have to deal with a cash advance fee of 2-4% of what you take out, and your payments won’t go to the cash advance if you have other purchases on the card. They want to make sure that the high interest items stay on the account for as long as possible.

5. Credit Card Theft Insurance

What a rip off! You don’t need credit card theft insurance, but it’s not like the credit card company is actually going to tell you this. They’re going to wait and see what you’re going to do. And in most cases, you’ll sign up for it because nobody wants to wake up to the idea of having to pay so much money that they didn’t even charge up.

The secret that they don’t want to tell you is that if your credit card is stolen, you’re only liable for up to $50. As long as you report the stolen card as soon as possible (and follow it up in writing), your total liability is limited to $50. And with many card companies, they don’t even enforce that — to keep goodwill high, they’ll just excuse the $50 as well.

These are only some of the sneaky card tricks that can happen to you — make sure that you’re really taking the time to read up on those terms and conditions that everyone loves to skip over. That’s the best way to really make sure that everything goes smoothly in the long run!

Read More

Quick Mistakes to Avoid in Credit Repair

If you’re looking for things to avoid in credit repair, you’ve come to the right place. There are countless mistakes that you can make in the world of credit repair, and these mistakes add up to some serious consequences. Not getting details ironed out in the right way can make it even harder to get out of debt. In some cases, getting the details wrong can even invite a lawsuit. That’s why it’s so important to really make sure that you’re focusing on the bigger picture as much as possible. That’s the real way to get to the goal of being out of debt.

One of the top mistakes that you will want to avoid is trusting a collection agency. Remember that their job is to get money out of you no matter what they have to say. If they have to threaten you with legal action, they will certainly do that. If they have to call at all hours of the day and night, they will certainly do that. They have the technology to call you over and over — it’s really no stress on their side.

What you need to do is make sure that you get a limited cease and deist letter printed and sent to them. Make sure that you are always using a traceable method of delivery. We recommend Certified Mail because you can request for a return receipt. That’s the best way to get these problems solved.

Now, you might assume that you don’t need to do everything in writing — they can’t really be that intent on screwing you over, right? Wrong! Collection agencies couldn’t care less about what’s going on in your life, or anything of the sort. They care about money, and they want to make sure that you are giving them the full amount that they ask for.

Another mistake that you want to avoid is thinking that you don’t have any way to negotiate anything. On the contrary — you actually have more power than you can imagine. All they can do is attach negative information to your report and keep sending you letters. They can threaten all they want — the damage is already done. Your collection information on your credit report will fall off after 7 years from the date the collection accounts were originally created.

No matter how many times the collection agency threatens you, you need to make sure that you know your next steps. Asking for validation of the debt is one of your strongest defenses. Even if you know that the debt is yours — they still have to validate. They still have to prove to you not only is the debt yours, but they have the right to collect upon it. This is something that might take some time, but it’s definitely worth doing in the long run.

When you want good credit, you have to learn to work with the collection agencies to get it. Arranging for a pay for delete situation is also a good idea — it makes those tradelines disappear, boosting your credit score dramatically.

The final mistake that many make in credit repair that bears highlighting is that they focus so much on getting rid of bad debt that they never get into credit again. Becoming a cash only customer really isn’t a wise idea. You’re a lot better off making sure that you have some type of credit.

Even if you have to start over from scratch with store cards, secured cards, and other small cards, that’s better than being cash only. If you dream about having a car loan of some kind in the future or even a house, you’re going to need to prove that you can handle credit. By paying off all of your debts and then never getting anything else, all you’re going to show is that you really can’t handle credit at all — not the impression that you want to give off!

Now is definitely the time to make sure that you focus on the task at hand — keep these mistakes in mind when you embark on your journey. Good luck!

Read More

Opt Out For Protection Against Identity Thieves!

Identity theft is a serious problem, and the sad news is that it’s only going to get worse with time. So if you really want to make sure that your information doesn’t fall into the hands of identity thieves, you’re going to need to make absolutely sure that you work hard to handle your finances properly.

Believe it or not, there’s a lot of little things that you can do over time to make sure that you will be able to keep criminals from getting your information.

One thing that you should make sure that you do is try to opt out of just about everything that you can think of. The less junk mail that you get, the better off you are.

Even though you might not realize it, there’s a lot of companies that you’re doing business with right now that are actually selling your name to a bunch of other mailing lists. This gets your information around and around, and who knows when the next data breach will occur, or where?

So you need to make sure that you cut down on the amount of people that have access to your information. Unsubscribing from the Direct Mailing Associations selection of lists is a good idea. In addition, you will also want to make sure that you opt out of the junk mail lists most credit card companies use to market card after card to you.

Cutting down on who has access to your information is a good step in lowering your risks of identity theft. You will still nee dot make sure that you’re using your paper shredder to destroy your information properly. A cross-cut shredder isn’t very costly, but it can really protect you from thieves looking for your information.

You will also want to make sure that you inform your bank that you do not wish your information to be shared with 3rd parties of any kind. Every bank’s privacy statement is different, but you will need to make sure that you read up on it carefully.

Sometimes you might have to make some requests in writing, but that’s a small price to pay in order to really make sure that your information is going to be taken care of at all costs. It’s just a matter of making sure that you get started right away for the best results possible — don’t delay another moment!

Read More

More On Time Barred Debts

So let’s cover time-barred debts a little bit more — they come up a lot, and if you’re trying to get targeted about how you’re going to repay your debts, they matter a great deal. You see, if you waste all of your money paying time barred debts, you have less money to actually pay the debts that are really going to count. So it’s just a matter of making sure that youíre focusing on the bigger picture here. Time barred debts aren’t your friend, they’re usually too old to count, and if the debt collector is trying to bug you about them — chances are they know that it’s a time barred debt.

You have to know your rights. Even though the time barred debt means that the debt collection agency cannot take you to court, they can still bring it up to you. They can still try to get you to pay it. As long as they don’t sue or threaten to sue you over the debt, they are in the clear. The Fair Debt Collection Practices Act covers how debt collectors have to behave. So you will actually find that debt collectors will choose their words carefully.

If the debt collector does indeed sue you to collect a time-barred debt, you can have the suit dismissed on its face by letting the court or judge know that it’s a time-barred debt.

It’s important to know that you can refuse to pay. You just need to make sure that you are looking up the statute of limitations for your state. Yet it can be even more complicated than that. If you have moved a few times since you have entered into these agreements, you might need to make sure that you’re looking up each state that you lived in at the time these agreements were signed. In addition, you will also want to look at the original agreement and see what state actually governs all legal practices. It might be the state the company itself is headquartered it. Sometimes companies like California, North Dakota, South Dakota, or even Delaware. But you will need to make sure that you do the research yourself, especially if you are determined not to pay.

The statute of limitations for a state could range between 3 and 10 years.

If an account has been on your credit report more than seven years, it cannot appear on your credit report. There are certain exceptions to this, but overall, you can get these accounts removed from your report. After all, it makes sense — the company is putting the negative information on your account for you to pay them. If they no longer have any legal right to collect the debt, then there’s no need for any “reminder” information to go there.

Read More

How Fast Can You Really Patch Your Credit

Credit repair is a subject that’s getting more and more attention as time passes. People are finding themselves with a lot of bad credit and debts to get through, but they are no longer thinking that this credit situation has to be permanent. They’re not thinking that they have to freeze up and let life pass them by. They’re not thinking that they’re never going to get out of debt.

You have more power than you think to change your financial life, and it’s time to take on that power. But there might be a question that remains: just how fast can you really handle your credit report journey? The answer is a little complicated.

You see, it just depends on what you’re trying to do. If you’re trying to get from one “block” of credit to another, you can do that in a matter of months. For example, it’s well known in the industry that any score under 600 isn’t going to get very favorable credit terms — if they get any type of credit at all. So you need to make sure that you focus on raising your score over 600 first. That might mean disputing inaccurate information, or just making sure that you start replacing your credit stuff with better information. That could mean opening up secured credit products and taking good care of them. It’s not just enough to open an account — you also want to make sure that you’re going to be able to pay them off regularly. Meeting the minimum payment is good, but you don’t want to get caught in a vicious cycle where you can’t keep up the payments. If you only pay the interest, the principal will grow and grow until you owe a lot more than what you can handle.

A secured card is a good start. In addition, you’re going to want to make sure that you’re looking at your credit report frequently. Subscribe to an online service that lets you really see the progress that you’re making with your credit report. If you only deal with the hard parts and skip seeing the rewards of all your hard work, you’re going to have a hard time staying consistent.

Consistency is really the best way to make things happen for you. If you only think about all of the challenges ahead, there’s no reason to stick out your goals. You just have to keep pushing forward and making sure that you have things under control.

If you’re trying to make a huge increase to your credit score, then you have to realize that it’s going to take some time. You’re going to have to add a lot of new positive information to your credit report and make sure that you’re sticking with it through good times and bad times.

A savings account to make sure that you aren’t putting yourself into another period of rough times isn’t a bad idea either. It’s all about knowing what you can handle, what you can’t handle, and the things that you need to get help handling. Enrolling yourself in a non-profit credit counseling course can also help you make bigger gains in the world of personal finance.

Good luck out there — don’t give up on your dreams, because then you won’t have any chance of seeing them come true!

Read More