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Credit Card Debt Consolidation – What options are available?

Posted by | Posted in Debt Management | Posted on 18-05-2010

Are you one of many Americans who find it hard to clear your credit card minimum every month?  If you are, you are most probably in credit card debts.

For your information, credit card debt is one of the most difficult types of debt to clear. Reasons being, credit card companies charge very high interest rate and of course always slap you with a high late payment or penalty fees whenever you cannot make your payment.

To get out of this mess, you will need to consolidate your credit card debts either yourself or with the help of an external agency.

1.Consolidate your debt yourself.
It’s neither easy nor too difficult to consolidate your own credit card debts. Almost every credit card company has their in house debt consolidation department to help their clients consolidate their credit card bills. What you need to do is to call them, and tell them your situation truthfully.

The chances of consolidating your debts successfully depend on how you put forward your situation to your creditors. How your creditors access your current financial health also play a part. Before you start to call your creditors, it might be wise to check out for more tips and guide on how to negotiate with your creditors online.

2.Engage the service of debt consolidation companies and programs.
There are many free government programs to help people consolidate their debts, but these free services often require that you chalk up a certain amount of debts before they help and you must also meet their requirements.

The last option would be to engage the service of debt consolidation companies. By charging you a fee, debt consolidation companies will negotiate with your creditors for lower interest, better repayment method and lastly help you devise a financial plan to help clear your debts in a systematic way.

No matter what options you take to consolidate your debt, do it early and you will get a live a debt-free life again.

Credit Card Applications – Getting Approved After Refusal

Posted by | Posted in Debt Management | Posted on 09-05-2010

It can be disheartening when you apply for a credit card and get turned down. However, in the vast majority of cases, it really is not anything that you need to worry about. While there are some people out there who would be approved for virtually everything they could think of applying for, for the vast majority of us, applying for a credit card can take a little time and some trial and error.

Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.

Determining Your Credit Score

You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.

The Next Step After Rejection

If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.

Patience is a Virtue in Credit Card Applications Too

The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.

KEYWORD: credit repair after bankruptcy (7)

Posted by | Posted in Debt Management | Posted on 01-05-2010

KWD: 1.61%

Take Credit Repair after Bankruptcy Step by Step

Getting credit again after bankruptcy is a concern that seems too complex but it is in its real sense simple. Yes. One can have another chance at re-establishing his or her credit. This is through the process of credit repair after bankruptcy. In order to obtain this, one must develop great patience because re – establishing one’s credit do take time.

In credit repair after bankruptcy credit worthiness is important. Credit worthiness is usually measured by one’s credit history, which represents one’s financial reputation among creditors. Failing to pay off one’s credit card debt, not paying off the minimum monthly amount, missing a payment or not making one’s payments on time can lead one person on a path to damaged credit So if one is planning to do credit repair after bankruptcy it is important that his or her credit shows worthiness.

Satisfying all the demands of a  bankruptcy case is obviously the first intelligent step taken to credit repair after bankruptcy. The next step one will have to take is repairing one’s credit report. A credit report usually includes the approximate amounts and locations of a person’s bank accounts, charge accounts, loans, and other debts, bill-paying habits, defaults, bankruptcies, foreclosures, marital status, occupation, income and lawsuits.

Two or three years after filing for bankruptcy, there should be a possibility that one will want to start rebuilding good credit by applying for secured credit cards, preferably cards without annual fees attached to them. One could also do a research on the internet to see what others have done in similar situations.

In doing credit repair after bankruptcy, it is germane to start small. It is unrealistic to expect anyone to hand a person doing a credit repair after bankruptcy a $10,000 credit limit overnight. It will never happen. One should make monthly payments in the full amount. A person’s payment transactions will determine how successful his or her new credit report will be. One must never be late with payments for it could be another road to bad credit history.

In doing credit repair after bankruptcy, the stronger is a person’s current financial condition, the better. It is a must to convince lenders that one has left the bankruptcy behind. One must show that he or she is able to manage  money matters after the bankruptcy in such an efficient way. Prompt payments made in a full amount are very impressive to a credit lender.

However, if one is denied of a major credit card, he or she should not get distraught, and instead, he should try applying for a department store’s line of credit or a card issued by an oil company. These are small steps to start rebuilding a credit future.