Credit Repair Articles

Insights You Need to Know About Prepaid Debit Cards

bbcred — Thu, 09 Sep 2010 02:11:34 +0000

Many consumers today are interested to know the basic features and characteristics of prepaid debit card programs. If you belong to this set of consumers, then we recommend that you read the remainder of this article. Below you will discover some basic facts as well as the advantages and disadvantages linked with the use of this prepaid card program.

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What are Prepaid Debit Cards?

A prepaid debit card is a very unique card program. The reason for this is that this card is actually a combination of a credit card and debit card. How is this possible?

Before you can use a debit card, you need to make sure that you have loaded sufficient funds onto your debit account. This is also true about a prepaid debit card. You need to load money onto the card before you can use it to pay for your purchases and bills in business establishments that recognize and accept plastic cards.

Your prepaid debit card can also function like an ordinary credit card. You can use it as a cash alternative to pay for your groceries, restaurant bills, and even for buying items online. You can even use a prepaid debit card to make reservations in hotels, car rental services and even in airlines. Despite your poor credit rating, you can still gain the features of a standard credit card through your prepaid debit card. And this is the main reason why this card is also called a credit card for bad credit.

Benefits and Drawbacks Associated with Prepaid Cards

Now what are the advantages of getting a credit card for bad credit? This card is actually a good tool in budgeting and managing your finances. You will also realize that a prepaid debit card can actually protect you from identity theft and from losing the money you have in your bank account. After all, your prepaid card is not linked to your bank account and it is PIN-protected.

What about the drawbacks of using prepaid debit cards? Some of the disadvantages associated with the use of this credit card for bad credit include: numerous fees and charges, no interest earned on the initial deposit, and its exclusion from the Consumer Credit Act.

Aside from the disadvantages mentioned above, consumers with poor credit ratings cannot use prepaid debit cards to repair bad credit history. This is because in these plastic card programs, cardholders will not be given credit lines that they can manage responsibly. In fact, they are the ones loading money onto their card accounts which they often use in signing up for online purchases and in paying their monthly expenses. So even if you will responsibly manage a prepaid card account, it will have no impact on your credit profile and it will not even help you repair a bad credit standing

Still, it is important to note that the beneficial features of prepaid debit cards normally outweigh their drawbacks. So, you can still have the assurance that this card will work to your advantage.

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About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing personal loans for bad credit and credit card for bad credit to people with bad credit.

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Great Tips in Securing Bad Credit Car Loans

bbcred — Mon, 06 Sep 2010 01:13:52 +0000

Securing car loans is relatively easy if you have an excellent credit rating. But people with poor credit ratings find it difficult to locate credit firms willing to lend them money, which they will use to buy the cars they need.

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If you have a poor credit rating, and you dream of owning a car, the best way for you to realize such dream is to get a bad credit car loan. Through a bad credit car loan, credit firms could provide you sufficient amount of money that will empower you to purchase a car. But what should you do to secure this type of car loan? Provided below are some excellent tips that will guide you in securing bad credit car loans.

Be realistic

First of all, you have to realize that most lenders see you as a risky borrower. So do not let your expectations go way too high. You have to be realistic in terms of the car you plan to buy. Remember that most credit organizations and banks will not provide as much cash as you want, to buy the car of your dreams. So be realistic in searching for cars priced right, based on the money you will get from a bad credit auto loan.

Prepare relevant documents.

Before seeking for bad credit car loans, you need to prepare all the necessary documents. Obtain a copy of your credit report. Have extra copies of your employment certificate and salary slips. A lender may also require you to provide your proof of residence and identification documents, for verification purposes. So have all these documents prepared before applying for a bad credit auto loan.

Do your Homework

You need to conduct researches about credit companies and the different types of loans they offer. You need to be knowledgeable about the terms and conditions required in most car loans. Research about the prevailing rates of interest, as well as the fees charged on car loans. You may also learn about the different types of loans, like secured car loans, unsecured auto loans, and personal loan programs extended by credit companies. Know what you could get out of these loans and soon, you will have ample information that will guide you in choosing an excellent car loan.

Seek Professional Assistance

It is also wise to seek the help of a credit consultant. Through credit consultation, the counselor could advise you how you could manage your finances well while also paying for a target car loan. The counselor could also provide you excellent insights on the benefits and drawbacks of secured car loans, unsecured auto loans, and personal car loans. In this way you will know what to expect from each of these loans, and you could choose which will be most appropriate to your current financial standing.

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Use these four great tips and soon you will be able to secure the bad credit car loan you need. In the end you will realize that indeed this type of loan empowered you to realize your dream of owning a car!

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit personal loan and bad credit cards to people with bad credit.

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Bad Credit Car Loans – Go or No Go?

bbcred — Fri, 03 Sep 2010 01:46:06 +0000

So you have been planning to embark on the quest of finding the right bad credit car loan. After all, this is the only way for you to purchase the car you need. Because of your limited cash savings, you think that a bad credit car loan will be the key towards driving home the car you desire the most. But, before you embark on such quest, allow us to enlighten you about the benefits and disadvantages of most bad credit car loans. This way, you will be guided on deciding whether or not you should go and apply for this type of car loan.

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Advantages of Bad Credit Car Loans
This type of loan benefits a lot of people who have poor credit ratings. Despite their low credit scores, consumers are provided access to credit funds, so they could purchase the vehicles they need.
It is also a well known fact that it takes a lot of time to save up for a car purchase. But through bad credit car loans, individuals are able to experience the comfort and convenience of driving their own cars. This happens immediately after they have acquired the money from the car loans they have applied for.

If you happen to own a house, you could use it as collateral for a secured car loan. Through this loan, you could have a significant amount of money for you to buy your dream car. Some great things included in most secured car loans are relatively lower interest rates, fewer processing fees and charges and excellent repayment terms.

Disadvantages of Bad Credit Car Loans
The greatest drawback in this loan is the consequences of late or skipped payments. If you deflect from your agreed-upon-payment terms, for sure you will be penalized with fees and charges that will cause your interest payments to go up. The duration of your loan repayment will also be extended, thus prolonging your agony in repaying your outstanding debt.

Another bad consequence of missing out on your car loan repayments is the possibility of losing one of your properties. If you have submitted your home or your car as security for the repayment of the loan, and you fail to live up to your promise, your creditors will have the power to repossess these properties. Soon, you will find yourself homeless and car-less because of skipping on your repayments for a bad credit car loan.

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So if you plan to get a car loan, you have to be sure that you will be capable of repaying the loan that will be extended to you. Otherwise, you will see yourself losing your valuable properties and incurring debts that will prove to be very difficult to settle.

Now, we encourage you to ponder on these advantages and disadvantages of bad credit car loans, for you to finally decide whether or not to go and get one of these car loans for people with poor credit ratings.

About the Author

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The Credit Card Shoppers and the Threat of Fraud

bbcred — Tue, 31 Aug 2010 01:04:26 +0000

Many people today prefer to do their shopping over the internet, rather than personally visit the shop to make a purchase. Indeed, the number of online shoppers continues to increase primarily because purchasing over the internet is very convenient.

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Unfortunately, case of credit card fraud and crimes related to identity theft also increase. To protect consumers from illegal transactions, the Fair Credit Reporting Act was passed. Now, consumes have the right to dispute unauthorized charges in their accounts so they cannot be force to pay for purchases that they did not make.

Listed below are essential steps that you can do if you believe to have been victimized by credit card fraud:

Call your credit card issuer. If you see any unfamiliar transaction in your credit card bill, call up your issuer right away to inform the matter. Usually, minor discrepancies can be easily fixed by contacting your credit card’s customer service number. After making the call, send a follow up dispute letter via registered post mail. Ask the name of the person you talked to on the phone and the response you were given regarding the issue.

Send a dispute letter. For more complicated complaints, a letter of dispute is a must. In your letter, point out the incorrect charges in your credit card bill. Make sure that your letter is addressed to the Complaints or Dispute Department of your credit card company. Include a copy of the billing statement with the errors clearly marked.

Upon receiving of your letter, your credit card issuer will conduct an investigation regarding your dispute which can take up 30 days. But what if your dispute has been neglected? In this case, you can demand to have your dispute escalated to the higher administrative department of the credit card company. If still no action has been done, contact the Federal Trade Commission for assistance.

Avoid being a victim of fraud. Review and understand your credit card’s terms and conditions particularly with regards to unauthorized charges and liabilities. Before making a purchase, examine the merchant’s policies on purchases, returns and guarantee protection.

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About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing personal loans for bad credit and Instant Approval Credit Cards to people with bad credit.

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Plastic: Handle With Care

bbcred — Thu, 26 Aug 2010 01:01:54 +0000

Ever since plastic credit cards were first introduced in the market, many people strive to own at least one. Even younger people and students are provided with credit cards by their parents. If you already own a credit card or plan to apply for one, there is one thing that you must keep in mind. It is the fact that plastic money must be used with utmost caution.

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Why Handle with Care?

While using a credit card for payment is indeed convenient and quick, consumers or cardholders need to be particularly careful about how they handle this small piece of plastic. What is the danger in paying with credit cards?

Credit cards give its holder the freedom to buy something without cash at any time. Because payment can be made at a later time, these plastic cards come in handy when unexpected expenses arise. However, there is also the risk of spending more than necessary because you have the power to do so without worrying about money.

Some credit cards are also known to carry expensive interest rate charges. For instance, let’s say that your credit card charges 15%. At 15% rate, a $50 worth of purchase can become $57 if you add the APR. Imagine how much more a cardholder will pay if he/she decides to carry over a balance. If the cardholder isn’t careful, debts can double or even triple in a few months.

Aside from the interest rates, some credit cards are accompanied by high maintenance fees such as late penalty charge, annual fee, balance transfer cost, transaction fees, foreign conversion fees, etc. Add up these costs to your bill and it’s easy to see how a person can be easily stuck in bad debt.

Yes, credit card holders are strongly advised to exercise caution when spending with their credit cards. It is crucial to be able to pay your full balance for the month to avoid incurring additional interest rate charges. Furthermore, paying on time can save you anywhere from $30 or more on late charges.

If you are a first time credit card holder, understand your duties to your credit card company. Learn the difference between important purchases and not important ones. If you must use your credit card, see to it that you will be able to pay off your balance on time.

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For people who own two or more credit cards, it’s best to monitor each of your accounts regularly so that you can be aware of the status of your debt and repayment. Understand the terms and conditions of each credit card as different issuers may impose different policies, particularly in matters of repayment. Last but not the least, be the one in charge and never let those plastic cards take control over you.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit cards and personal loans for bad credit to people with bad credit.

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Signs that You May Need Professional Credit Counselling

bbcred — Mon, 23 Aug 2010 01:09:01 +0000

When facing bad credit, a lot of consumers immediately consider bankruptcy, thinking that there is no other way to resolve their debt problem. But before taking any drastic step, why not first get help from a trusted credit counseling agency?

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Listed below are signs that you may need to acquire professional credit counseling service:

Creditors are calling you to collect payment. Do you receive constant calls from your creditors reminding you about your past due debts? If yes, then obviously, there is a problem going on. Remember that hiding from your creditors will not resolve anything. Instead, ignoring the true status of your debts only aggravates the problem.

As you skip your monthly payments, your debts continue to accumulate because of interest rate charges and late fees. If you don’t act fast, there might be no other option left but bankruptcy. Speak with your creditors and negotiate your debts. If you feel like you cannot negotiate it on your own, a credit counseling agency can help you.

Your monthly salary is not enough to cover for your expenses. Do you find that your monthly earnings barely cover for your expenses? If yes, there is a risk that you overlook your repayment duties to your creditors which can lead to more debt. Seek help now, before things get too complicated.

You need to use your credit card in order to get by. If you have to pay for your groceries and daily needs with your credit card just to get them, then obviously, you are facing financial disaster. Keep in mind that if you fail to pay your monthly balance in full, you will immediately incur the additional interest rate cost. Even worse, if you fail to submit your payments in two months, your credit card issuer can increase your interest rate.

You need to take out a short term loan to pay for another debt. If you have to borrow money to pay another creditor, then you are already in the middle of a serious debt situation. Keep in mind that short term loans and loans for bad credit usually carry high interest rates. If you fail to pay back the loan on time, you will be facing an even bigger problem.

Money matters get in the way of your personal relationships. Behavioral issues such as compulsive shopping and gambling can sometimes be the real cause of financial crisis. A professional credit counselor will not only teach you strategies on how to get out of debt but will also be able to help you cope from a behavioural issue which can bring a long term relief from bad debt.

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Seek Help Now!

Indeed, you don’t need to wait until your debt situation worsens before seeking out credit counseling. It is not true that if you take credit counseling, your credit history will be affected. In fact, if you are struggling with debt repayment or you’re not sure of how to manage your finances effectively, it’s best to seek help now before it’s too late.

About the Author

Shelly Evans is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

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How to Recover from Gambling and Debt

bbcred — Thu, 19 Aug 2010 02:32:21 +0000

People can fall into the trap of bad debt for different reasons. For some, it was a result of gambling addiction. You may not realize the true profundity of the situation until there’s no other option left but to declare bankruptcy. Indeed, what may start out as a hobby can turn into a harmful addiction that can dramatically affect you and the people around you.

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If you find yourself in a similar situation, what can you do? How can you find the way out and recover from gambling and debt? Consider the following advice:

Recognize the problem. It may be difficult to admit that there is a problem but it is the first important step before you can start working towards a solution. The questions below may be able to help you determine if you have a gambling addiction. If you answer yes to following questions, it is very likely that you have a gambling addiction and you should act fast before things get worse.

Has gambling become a daily part of your routine?
Do you borrow money just to be able to gamble?
Do you find yourself using your cash on gambling instead of buying necessities or paying an important bill?
Do you get into fights with family members or friends because of your gambling habit?
Have you ever sold anything to support your gambling?
Do you feel like your day isn’t complete until you have gambled?

Set your priorities. You need to sit down and think about your priorities. If you find yourself stuck in bad debt, then debt repayment should be on top of your priorities. Obviously, if you continue with the habit of gambling, you are only aggravating the problem. Some people may think that they can pay all their debts at once with just one big win. However, it is unwise to depend on gambling to solve your financial worries.

Seek professional help. At this point, it is recommended that you seek professional help to manage your gambling addiction. Look for organizations that offer rehabilitation help for people with gambling addiction.

A trusted credit counselling agency can also assist you in managing your finances more effectively by helping you create a doable budget plan and valuable advice on how to deal with your creditors.

In some cases, debt consolidation may be recommended. For instance, you may consider enrolling in a DMP or Debt Management Program where you will submit payments to a debt consolidation agency who will distribute your payments to your creditors. However, before signing up for a debt management program or any kind of debt relief service, check the background and reputation of the company you’re dealing with.

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About the Author

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