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!

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!

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!

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.

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!

In many cases, your credit is not positively or negatively affected by your spouse. You get to have a separate credit report and only your information is there on that report. The marriage itself is public record, which means that lenders will know that you are indeed married sooner or later.

If you’re a woman worried about losing your financial history upon marriage, relax! Your credit history is actually tied to your Social Security number, not your name. This means that if you change your name in any way, you’ll still be able to enjoy all of the hard work that you’ve put into maintaining your credit. If your credit isn’t great, you still have a few ways to improve it.

The top way is to add yourself to your spouse’s credit card as an authorized user. This step only makes sense if you are both a good saver as well as someone that has a spouse with a good credit history. If you are the one that has a good financial history, then apply this knowledge in the other direction.

There are times where the credit bureaus will accidentally split your credit file in half following a name change. If this happens, it needs to be re-merged right away.

Your credit score can go up as you get married, because you have two incomes to work with when it comes to debts.

Joint accounts of all kinds will be handled by both of you. This means that if one of you is considered late on a payment — you are both considered late, and both of your credit histories will reflect this. This means that if you don’t marry someone that has the same financial view that you have, you will end up always spending money in a negative fashion. This will affect your credit and keep you from other products that matter to you — like a home loan.

If you are going to take the step towards joint accounts with your spouse, you need to make sure that both of you are aware of how the accounts will be used. You might have a policy of being able to charge only what can be paid off during that same reporting month. This would effectively mean that you don’t have any interest charged, and thus you get to simply have extra time to pay the cards back. Any card can be an interest free card if you know how to work the terms and conditions of the credit card.

If your spouse has a bad credit history, it’s something that you need to discuss. They might have a valid reason why their finances were so bad in the past. If they are taking steps to pay everything on time and avoid being late, then you will have no problem building a solid financial future together. Good luck!

There are two types of retirement accounts that get discussed quite often — traditional IRAs and Roth IRA’s. We’ll cover traditional IRAs first.

This is a tax deferred account that allows you to use pre-tax dollars and then pay taxes on the growth later, when you are hopefully in a lower tax bracket. However, people end up paying more in terms of taxes because they end up taking money out of the retirement account while they’re still working. This ends up costing you more in terms of taxes later.

However, what if you could avoid being hit with so many taxes? That’s actually where the Roth IRA comes in. These are going to be ones that are funded with post-tax dollars. You are taxed upfront and your money is withdrawn tax free.

You have to think about what type of tax bracket you’re going to be in at retirement versus what you’re in right now. If you’re going to end up socking away a lot of money in qualified accounts that are not taxed upfront, then you’re going to end up wanting to go with a Roth IRA anyway — the money is taxed upfront at your lower rate. And then you can withdraw the money tax free when it’s time to retire.

What if you flip it backwards, though? If you plan on living on less income when you retire and would then therefore be in a lower tax bracket, you’re going to need to do a traditional IRA where you would have the lower rate and the tax-free growth.

A Roth IRA tends to really have a much better benefit system than a traditional IRA. Even though you might be far away from retirement, we advise that you at least look at your options now. Thinking about retirement means that you’re going to be able to really ensure that you will have no problem taking time off when the time is truly right. It doesn’t really have to be a struggle, you know! Good luck!

If you lie on your credit application and get the loan or credit card, everything might be just fine. However, you’re opening yourself up to challenges of fraud if you suddenly default.

That’s the problem with saying that you make more money than you really do, because you will end up having a hard time convincing the lender in question to give you any type of payment plan. What’s worse is if the lender actually demands proof of employment and income. If you lied on the application, they can terminate the contract and call everything you charged due. Acceleration clauses are often built into contracts these days, so you need to be careful.

From a moral standpoint — do you really want to obtain something under false pretenses? Not at all. You have to make sure that you try to focus on the good part of life — taking things slowly and getting where you need to go in good time.

There’s nothing like knowing that everything you gain is due to honesty. When you have to enter into a web of lies, it can be really hard to actually get your story straight. It just makes your life hard in ways that you would be better off avoiding one way or the other.

Are you ready to push forward and get to where you need to go? Great! If you’re trying to only do unsecured credit cards (the reason why most lie about their income), you might find that switching to secured credit cards is a better option for you.

Yes, you’re going to have to put up a security deposit in order to get the card, but this isn’t the end of the world. It is quite possible to make sure that you still have things taken care of in the long run and who knows — if you take care of the secured card, the company will generally give you an unsecured card with no problem.

When you’re starting our credit life over, you’re going to need to make sure that you actually focus on getting things taken care of the best way that you can. It’s tempting to think that you can rush the process, but these actions only cause problems later on in life.

It’s better to make sure that you can really focus on doing the best job possible when you really get down to it. The more work that you can put into getting things done, the easier it will be in the long run to enjoy the credit you’ve worked so hard for!

Getting busted for fraud and fined is not the way to go — and there are cases where charges of fraud have led to jail time. So don’t let that be you — keep it honest at all times!

The truth is that there are some credit repair agencies that really might be there to help. However, you need to make sure that you focus on what type of fees you’re going to be charged. It’s all well and good to think about trying to contract the work out to someone else. However, there are some problems that can pop up.

First and foremost, you never know how the company will pursue removing information from your credit report. Many of these companies use methods that are short term at best. Once they have their money, they’re gone — and in a few months, the information that you paid so much money to make “disappear” will be back on your credit report. In addition, you can also wake up sleeping giants, since many of these companies end up handling time barred debts inappropriately.

What you ultimately need to do is try to handle all of it on your own. It’s tempting to let someone else do it, but what if you find yourself in this situation again? It’s a lot smarter in the long run to have everything taken care of yourself. That way you know exactly how to do it, and you can even show people that need the help how to go about getting it done again.

That’s the real way to handle your finances. If you try to let everyone do everything for you, you will truly miss out on the opportunity to get things handled on your own.

When you’re ready to push forward with your credit repair needs, you’ll actually find a massive resource out there to help you get things handled properly.

It might be embarrassing to admit that you have problems with credit. We’re very tight lipped about our finances as a society — no one really wants to mention how much they spend, or how much they save. And no one really wants to mention how much debt they have, either — we would all rather suffer in silence, how crazy is that?

Now is the time to break the silence and really think hard on whether or not to go with credit repair agencies. You could be doing more harm than good, so do your research before you make any type of financial commitment!

Either way, the fact is that unless they take you to court, they can’t just attach themselves to your property. Even then, you have to make sure that the statute of limitations hasn’t expired. You will need to look at your state in particular to make sure that everything is where it needs to be in terms of limitations.

Unless they have received a judgment for the monies owed, you will not have to pay them anything. And they can’t go after debts that are time barred from being collected. They’re just going to be out of luck, and that means that you will have to make sure that you don’t get sucked into paying them anyway. Remember that a collection agency will tell you anything and scare you into anything to make sure that you pay up.

If you really do feel the need to pay them, you will want to make sure that you get some sort of agreement in place for less than the full amount. These companies are scavengers that pay pennies on the dollar for your debt. So even if they collect 30% of the balance, that’s going to be pure profit for them.

Don’t let anyone bully you — if they threaten court action and you know that it’s time barred, then you have a lot of bargaining power. Make sure that you use it to your advantage as much as possible!

Checking your credit report is one of the best things that you can do. When it comes to dates, you will generally need to look at when the account was placed into collections. That’s usually what ends up starting the SOL clock in the first place. However, it’s very important that you make sure that you check the laws in your state to make sure.

If you are harassed later on for this debt, you have rights under the Fair Debt Collection Practices Act. Don’t forget that, even if the collection agencies hope you never read that law.

If you do make an agreement with a collections agency, you have to realize that it starts the SOL clock all over again. You also want to keep good records because collection agencies tend to “forget” and go after you all over again years later in hopes that you don’t have any record that you paid them.

It can be frustrating to have to keep so much information in mind, but it really does pay off in the long run. The more informed you become, the harder it will be for collection agencies to bully you in the future!