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Credit Cards Let You Spend More than You Make
two minus four equals trouble when you are talking your budget. if you spend more money than you make, you will have money problems.
the problem is that you usually dont realize what youve done until it is too late. its hard enough to keep track of checking account spending, but add credit cards, and spending can get out of hand. how many times have you used your credit cards to buy clothes, impulse items or even groceries, and said youll pay it back? but at the end of the month, you have nothing to pay it back with.
its easy to say you will pay it back next month, or when you get that bonus at work, or when you get your tax returns. before you know it, its added up to a mountain of debt.
while credit cards arent the only way to spend more than you make, they are a number one enabler. other ways to spend more than you make is by taking out cash advance loans or having an interest only mortgage. in the long run, they rarely work for your benefit.
its not easy to stop spending more than you make. but it is possible. start by creating a budget. list all of your bills and all of your expenses and see what you have left over. do this every paycheck. you have to know exactly how much money you have if you want to avoid spending too much. if you need to, sit and look at your bank account register for three minutes every morning. write down what youve spent the day before.
personally, my husband and i have found that the longer we go between looking at the checking account ledger, the more we spend. when we know every day how much we have left, we are able to spend more frugally. but if we both just assume that we still have x amount left, we get into trouble.
if you are a shopaholic, then there are ways to cut your need to spend. the number one way is to never step foot in the store. if you know that you will buy too much other stuff at walmart, dont go there for groceries. if you want to go in hobby lobby just to look, but know that every time you look, you spend $200 -- dont go in.
another way to reduce that need is to go through what you already have. when you see how many things you already have, the need for more is lessened.
you know, everyone has lapses. if you have lived on a $5,000 a month spending habit on a $3,000 income for a while, you may be used to juggling things. and even when it starts falling in, you want to spend that $5,000. you may go out and spend too much every once in a while -- you just have to deal with yourself when you do. then get back on track.
there are people out there that live comfortably on $500 a month. there are others that make $5,000 a month that cant make ends meet. it doesnt matter how much money you make, its how you use that money. by keeping close daily track of your income and purchases each month, you can make it on almost anything.
copyright 2006 #1 loans usa
martin lukac, represents, #1 loans usa(http://www.freeroller.net/messageboard/mbs.cgi/mb98411), a finance web-company specializing in real estate/mortgage market. we specialize in daily updates, rate predictions, mortgage rates and more. for mortgage rates please visit http://www.rateempire.com
article source: http://ezinearticles.com/?expert=martin_lukac
Credit: How It Works and How to Repair It
how credit works
credit is undeniably important and can influence everything from your ability to secure a loan to your ability to acquire a job. in basic terms, your credit history illustrates how well you have paid your bills and handled credit extended to you in the past, as well as how well you are handling credit today.
credit bureaus or credit reference agencies collect information about you and your paying habits from banks, credit card companies, lending institutions, and retailers with which you have had financial dealings. credit bureaus compile information about your credit history into something called a credit report. this credit report contains information about your payment history for such things as credit card accounts, home rentals, utilities, automobile loans, and student loans.
when you apply for a loan or credit, the lender, from which youve requested the funds, purchases a credit report from one or more of the available credit reference agencies. the lender then reviews and analyzes the information on your credit report to decide whether or not to offer you a loan. typically, individuals with better credit histories are offered better loan terms and rates. however, having bad or slow credit does not resign you to being unable to secure a loan at a good rate. youll just have to work a little harder to get the best deal.
it is wise to periodically check your credit report to make certain the entries listed are correct. sometimes mistakes are made that could cause you to be denied credit. if you find errors on your report, contact the credit agency in question for details on how to correct the mistakes.
ways to repair bad credit
bad credit can cause numerous problems, such as making it difficult to obtain loans and credit cards, get certain jobs, and even rent a place to live. those with bad credit often feel hopeless and quite sure their negative credit histories will follow them around forever. however, there are ways to repair bad credit and make obtaining credit easier.
start by obtaining a copy of your credit report. review your credit report and begin repaying old debts. while paying old debts will not repair the damage to your credit file, it will prevent additional negative reports from being filed. furthermore, these debts will be reported as paid, helping to ensure that your credit history does not continue to get worse.
after youve repaid some of your old debts, you want to make sure new, positive reports are filed. to make this happen, consider opening a new bank account or applying for a credit card designed for those with bad credit. if you obtain a new credit card, be sure to keep the balance low and pay on time. you dont want to create any new negative reports. you might even want to consider refinancing, with a home equity loan, to pay off several accounts simultaneously.
eventually, negative credit reports do simply go away. unfortunately, it takes five to seven years for negative reports to expire and cease dragging down your credit score. this means that in addition to repaying old debts and opening new accounts, you must have the patience to wait for negative items to drop off. you can, however, take comfort in the fact that the steps you take to improve your credit report will cause your score to rise, as you wait for older items to be removed.
you may freely reprint this article provided the following authors biography (including the live url link) remains intact:
about the author
luke ashworth is the founder of accepted.co.uk which helps homeowners search for loans via the website http://www.freeroller.net/messageboard/mbs.cgi/mb5589.
article source: http://ezinearticles.com/?expert=luke_ashworth
Citi Credit Cards: Why You Should Choose Wisely
citi is one of the leading consumer credit providers in the us market. they offer a wide variety of rewards cards ranging from student-specific cards to their new citi simplicity rewards card which features no late fees. the average us consumer carries 3 credit cards. with the wide variety of citi offerings, it would not be uncommon for one to want to carry three different cards from this issuer. however, this is not possible.
citi has a policy that each consumer may only carry a maximum of two of their credit cards. this fact is not very widely known by the us consumer. the problem arises because of decisions that many consumers have made in the past. because credit card companies target college students, especially during their freshman orientation, many students receive a citi card when they turn 18. these student cards typically have a higher apr than those cards available to older adults who have already established their credit. still, most students carry these cards primarily because they are struggling for money and need credit for books, recreation, etc. even if this means paying a high apr. five years later, the former student is enticed by another offer, lets say the citi platinum select card for example. they apply for this card because it offers a lower apr and higher credit limit.
time goes on and the consumer has built-up their credit history by making timely payments etc. now they are interested in a new offer that offers a rewards program, like the citi simplicity rewards card or the citi premierpass. they fill out the secure online application and are instantly rejected, even though they have very good credit. the reason why this occurs is because their social security number is on file in the citi credit card system notifying that they already carry two other citi credit cards.
now there is a problem. it negatively affects the consumers credit rating to cancel their student card which theyve been carrying for years even though they are current on payments. closing accounts is looked upon as negative credit activity. so, the only other option is to transfer the balance from the student card to another issuer, wait a few months, then re-apply for the citi card that they originally wanted and transfering the balance from their new card onto that citi card. this, however, is also a problem. if it appears on your credit report that you have been applying for several cards within a short timespan, especially when transfering balances, red flags go up.
the solution:
catch this problem early on. if you are carrying a card with a high apr, like a student card, transfer that balance on to the card that you want. then you are only carrying one citi card and you may apply for another card and get approved in the future, assuming there is an offer that entices you.
the other option, which negatively affects your credit temporarily, is to cancel both cards simultaneously, wait for a while and then apply for the citi card that you would like to carry.
option #3 is only specific to those with no current, or one current citi relationship. choose your new citi card wisely. make sure that the citi card that you wish to carry is one that you would like to have for the long haul.
russ nauta is the senior writer and consumer credit information investigator for credit card outlet, a leading online credit card information portal since 2004
credit card outlet features instant approval credit cards, rewards cards, balance transfer cards and low apr cards from major issuing banks.
credit card outlet also features several citi rewards offers
this article may be reprinted with a published link back to http://www.freeroller.net/mbs.cgi/mb672830.
article source: http://ezinearticles.com/?expert=russ_nauta
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