Secured Credit Cards

Building a good credit history is easy, but getting credit is easier said than done. Most lenders investigate your credit history before you are qualified for a loan. They don't want the risk of loaning you some money if you don't have a good credit record, and having a good credit record is very important in our society right now. If you want to establish a credit history, one good way is to apply for a secured credit card. As implied, you can secure this kind of card by depositing some amount in a savings account as a collateral.

The balance limit in your secured credit card is usually 50% or 100% of the amount you have deposited. Most credit card companies employ this because it is secure for both parties. The amount of credit you get is what you have deposited in the savings account, thus, the company has a lesser risk of acquiring a very large amount of debt that they cannot handle.

When you make purchases and pay the monthly bill, you're building your credit report. Most people though switch to unsecured credit cards in the long run because secured credit cards have a higher interest rate and annual fees than the unsecured credit card. For those young professionals, secured credit card is a good way to start building credit record. It has minimal risk for both the credit card holder and the lender but comes with a higher interest rate than the unsecured credit card. If you're looking for a lower rate then the unsecured credit card is for you. But before you apply for an unsecured credit card, you should have established a good credit record with your secured card first.

There are many effective methods you can use to reduce credit card debt although some can depend entirely on your ability to look after your money. For some a credit card can be the perfect financial aid. After all it is a way of lending small amounts of money when needed with only a small interest and annual fee to pay on top of the amount you spend.

However it is very easy to think of it as an extra X amount of cash in your pocket. This where credit card debt often begins, in this article we are going to look at a few simple methods you can use to reduce credit card debt. 1. Analyse your monthly expenditure and income. Discover where your money is being wasted and eliminate that problem. More often than not families do not realise that they are actually wasting money when they cannot afford too.

100 a month on unneeded or wasted items then you can simply go without for a few months in order to reduce credit card debt. 2. Try using a 0% interest credit card to help clear your debt. Interest is often the hardest part of having a credit card. 50 a month interest whilst you do so,

If you are able to get a deal on a 0% interest credit card you can use this to pay off your current card. More often than not you will now have a year to pay off the interest free card, of course the money you are saving from your other cards interest can be used to do this. 3. Asking your credit card vendor to change the date your credit card bill comes through could even be the solution you need to clear your debt.

If your bill comes in 3 days before payday there is a high chance you will not be able to pay your amount before it is due. Ask the bank to change it by a week or so, this way you can pay of X amount of your bill before it actually comes through. This will lower your credit cards minimum payment and reduce the amount of interest you pay for that month. 4. Set Goals. It is quite true that simply settings goals could help you in your search for a debt free future. If you have a good to reduce your debtby 20% or so each month you will be more dedicated to making it happen. There are professionals and help lines that can help you with sort of strategy so if you need help there are people out there.

The current economic crisis has created a situation where making money from credit card debt is actually an excellent business opportunity. The following statistics illustrate the magnitude of the problem and potential opportunity. Let's take a brief look at each source. You can purchase loans from the FDIC (Federal Deposit Insurance Company). Loans for sale are advertised directly on their website.

Date by which successful bidder has to pay for the loans. You can also purchase loans direct from your local bank and by this I don't mean a local branch of a national bank. The manager of the latter would not have sufficient flexibility or clout to be able to negotiate the sale of any failed loans that they might have.

However, with a small, local bank, if you approached your bank in the right manner, an offer to purchase failed loans which the bank has had to charge-off, could seem quite lucrative. Purchasing loans from a loan broker can be more expensive but loan brokers segment their loans more and so the profiles of the package of loans that they put together are more similar.