0% Balance Transfer and 0% APR Promotional Periods

Not so long ago, the 0% balance transfer promotional periods were introduced in the credit card industry. The idea was that for a period of time (Usually 6 months) the credit card company wouldn’t charge interests over unpaid balances transferred from other credit cards. Sometimes, this offer came together with a 0% APR promotional period too, which implied that there was no interest rate for purchases either.

These offers draw attention to many credit card holders who immediately turned to credit cards that featured this benefit. In a short amount of time almost all credit card companies where offering this kind of cards.

Smart people saw a great opportunity, they could keep transferring the balance from one card to another just before the promotional period ended, thus getting free finance for an uninterrupted period of time. This was immediately noticed by credit card issuers who limited this practice in many different ways.

Balance Transfer Fees and other Charges

The solution that the credit card industry implemented consists on charging a fee (instead of an interest rate) for balance transfers. The idea of 0% balance transfer is lost since, though there is no interest rate, transferring the balance from one card to another is no longer free of charge.

Moreover, in order to cover their costs, credit card issuers charge other fees and costs. In order to compensate for the 0% interest rate on balance transfers, this kind of credit cards come with higher issuing fees, renovation fees, maintenance fees, penalty fees and so on.

Also, when the promotional period has ended, the interest rate charged for financing the unpaid balance can be extremely high, almost abusive. It can even double the interest rate charged by regular credit cards for the same purpose.

Credit Card Surfing

This practice, which consists on transferring the credit card balance from one credit card to another taking advantage of the 0% promotional periods, can be used and is still used by many people who have large balances. The fee charged for transferring higher balances is thus, not that onerous. Nevertheless, you should know this is a risky practice, because if for some reason, it cannot be performed on time, the interest charged for financing the unpaid balance may be too high and you could easily exceed the credit card limit incurring in penalty fees and higher interest rates.

So, if you decide to take advantage of this feature and transfer your balance from one credit card to another, make sure to read the fine print of your credit card contract and watch for hidden fees that may turn such transaction too onerous and useless.

By: Sarah N Dinkins

http://www.badcreditfinancialexperts.com/

Undoubtedly, there is a lot to think about when deciding whether cosigning a loan for a friend or family member is a good idea. Doing so includes not only the agreement to potentially pay off unpaid debts, but also any fees that might come with them. Surely, there are risks that come with making such a decision, but there is potential for benefits as well. In fact, there are things to think about on both sides of the coin.

It seems like there are no real benefits to being a cosigner. However, consider the difference assuming this role will have on the life of your loved one. Without someone to sign off on borrowed money with them, a person may not be able to take college courses or make a major purchase such as a car or a home. Furthermore, having such debt for the first time could teach a person to be responsible with his or her money.

There are a lot of responsibilities that come with being a cosigner, though, which cannot be ignored. You will be required to provide an asset, such as your house, which will be taken as payment if money is not paid. Additionally, the borrower's debt on this money will be considered the cosigners debt as well, and will in turn show up on your credit report if you choose to give your signature.

For this reason, one should truly be thinking about the major risks that come with signing. For example, one must know that cosigning means taking on debt that will affect you in all the ways your own debt would. It may be more difficult to lend money in significant amounts for some time afterward. It may also mean that you will be contacted immediately if the payments are not made precisely on time.

The cosigner must also consider the state of his or her credit score. If the borrower is unreliable, this could take a toll on the score of the cosigner as well. Credit reports are something that all companies look at, including insurance companies when they give out premiums. The detriments could also affect the cosigner's spouse's credit history in certain states with community property laws.

All in all, though, cosigning a loan for a loved one may prove to be the biggest favor a person could do. It will put them on a good financial foundation for the future, giving them better prices on insurance and better credit card rate. It could also better the cosigner's credit, allowing him or her to reap all the same benefits of having a decent credit score.

By: Gerald Hipps

http://cosignerswatch.com/

Before you take a trip to a foreign country, you may wish to learn about converting currency. The process is fairly simple. Basically, the money from your country is worth a different amount than the currency of the country that you are visiting. This article will explain the different ways that you can convert currency, and it will tell you how to find exchange rates.

If you take American money or traveler's checks with you, you will have to convert them to the currency of the country that you are in while you are there. You can take them to a local bank that will convert them, or you can take them to a currency exchange stand in an airport or rail station.

Both of these places will provide you with an exchange rate, and then they may charge you an additional fee for their services. To see how their rate compares to the standard rate for that day, you can check the newspaper for the current exchange rates. Most large newspapers will include this information. Alternatively, you can do an internet search for an exchange rate calculator which will also give you the most current rates.

Typically, the rates that you pay at a rail station or an airport will be relatively high. However, your bank or credit card will also be willing to help you with converting currency. They will typically offer you a better rate.

If you have a Visa card that is linked to your checking account, you can use it at most foreign ATMs. The machine will allow you to take out foreign currency. Your bank will charge you the regular exchange rate for that day plus a small fee plus the fee that they charge when you use an ATM that is not from their bank. However, you should let your bank know that you will be leaving the country so that they do not think that someone has stolen your card.

If you have a credit card, you can use that to pay for items. Your credit card company will do the currency exchange, and you will see that amount on your next bill. If you are adventurous, you could exchange your money on the black market for a better rate. However, that is not advised.

Converting currency is an important part of traveling to other countries. However, it should not be a scary or intimidating thing. As long as you understand the basics of the process, you should be able to get a good rate and the process should be fairly streamlined.

By: Jeremy C. Winters

Bankruptcy, while being an easy escape from substantial financial obligations and high debt amounts, is a damaging endeavor. Besides going through stress during bankruptcy filing, people experience negative consequences of their financial insolvency for many years. Bankruptcy stays on the credit report of an individual for a long time, and, besides being the reason for credit denial, may cause employment, insurance, and housing rejection as well. Besides all above, bankruptcies are not cheap either. Filing and attorney fees are usually the smallest of all expenses, as higher interest rates on loans and inflated insurance premiums, to name a few, may cost thousands extra over the term of several years. That is not counting personal damages, such as possible psychological traumas, family relationship complications, social rejection, and so forth. While bankruptcy may sound very depressing, the recovery is not difficult and is a matter of making the right steps in the right direction and keeping yourself motivated. Three easy steps may help you to minimize the negative impact of bankruptcy and start a new, worry-free life.

Step One: The Budget

Developing the strategy is always the first thing to do, no matter what you may be trying to achieve. Very often, a bankruptcy is a result of poor planning combined with force majeure circumstances, so a solid financial plan is necessary on your trip to recovery. All you need to do is to make sure you do not live beyond your means and always save for a rainy day. Analyze your income and expenses, prepare a budget, and make sure you bring home more than you spend. Get a savings account that is hard to reach (open it in a different bank and cut your ATM card) and put a little money from every paycheck away – this would be your emergency fund. Avoid impulsive shopping – always make a list of all the things you need, make sure you can afford it, and do not buy anything else.

Step Two: The Credit Repair

Bankruptcies stay on your credit for long, but it does not mean you cannot do anything about it. While you may not remove your bankruptcy record from your credit report for seven or ten years, you can definitely start rebuilding your credit to minimize the impact of the negative items on your credit report. First, you need to clean up your credit report. Order a copy of your credit report from all credit agencies and dispute any inaccuracy you may find – this would often boost your score without doing anything else. Second, avoid applying for new credit unless you really need it, as most lenders would reject you, while credit inquiries would further damage your credit standing. Last, establish a positive payment track. The best way to do so is to open a secured credit card account and make regular payments on it. Once your payments are reported to credit reporting agencies for few months, your credit score would start improving.

Final Step: Do Not Repeat Your Past Mistakes

While this may sound obvious, some people fail to learn even the hard way. Once they see that their credit is improving, and more lenders are willing to deal with them again, they would get themselves deep in debt again. This self-destructive approach would most likely end in another financial insolvency. Living beyond your means is never good, as it limits your ability to save money and puts more stress on your finances.

By: Mary D Wise

http://www.badcreditloanservices.com/

Bad credit loans are meant for those who have a low credit score and can’t obtain financing from traditional sources. However, even though bad credit personal loans are meant for people undergoing credit difficulties, this doesn’t mean that there are no credit verifications for approval. In fact, credit history is a very important variable that may trigger a decline even for bad credit loans.

Thus, you need to make sure when applying for bad credit loans that you know exactly where you stand as regards to your credit history or you risk getting declined due to bad credit even though you are applying for bad credit loans. There are some things you need to consider especially when it comes to your recent credit history.

Recent Credit History Defined

There is no agreement as to what exactly recent credit history is. Credit history being the consecutive records of debt payments on your credit report, “recent” would imply the latest entries on the report. However, whether the latest are the last five, ten or a hundred is yet to be resolved. In the meantime we can only talk about an average.

The last six months on your credit report are what most lenders consider to be your recent credit history. This period needs to be free from stains if you want to get finance. It doesn’t matter if the rest of your credit report shows critical stains like defaults or even a bankruptcy, your recent credit history is what matters the most.

Late Payments, Missed Payments, Defaults

There are things that you need to avoid in order to have a good recent credit history. You need to understand that if you pay your bills or debt installments late, it always gets recorded into your credit report as a bad input. If you miss a payment, the situation is worst and if you don’t get yourself up to date with your payments you may default on your loan and that will ruin your credit.

These stains can affect your approval chances and that’s why you need to avoid them. Also, you need to keep your credit card and store card balances to a minimum. Don’t pay only the minimum payments on your credit cards, try to pay them in full or at least reduce the debt a bit every month. This will greatly contribute to boost your chances of getting approved.

Bankruptcy

Anyone who has gone through a bankruptcy process knows that financing is not simple after that and probably not advisable either. However, if you still need to get a loan after bankruptcy, you need to understand that it is very difficult to obtain funds with such low credit score as bankruptcy produces and thus, you’ll need to wait some time before your credit recoveries.

In most cases, you’ll need to let pass by at least 6 months since a bankruptcy was discharged in order for a lender to even consider you for a loan. Nevertheless, you can boost your chances by offering collateral or a co-signer. Also bear in mind that those six months need to show an impeccable credit history on your credit report.

By: Sarah N Dinkins

http://www.badcreditfinancialexperts.com/

Do you have a great credit score and a long-established history of making timely payments? Well, if you do, then you are creme-de-la-creme of the consumer credit market. You are one of the lucky ones that can open any bank door without fears of loan rejection. Very few people can boast excellent credit, most fall into mediocre or even bad credit class. Should you be one of the latter, you may be wondering whether it is feasible to get an unsecured loan at all. Many have already discovered that it is possible to get an online unsecured personal loan even with bad credit.

An unsecured loan is a lending product that does not require collateral. It is typically available to near-prime and prime borrowers only. Online lenders, however, cater to all kinds of borrowers, offering high approval rates and competitive terms. The best part is that the whole application and approval process is conducted entirely online.

Online Lenders Are More Understanding Of Bad Credit

Most people start to realize the advantages of today's information technology. Online applications are more successful, as they offer higher approval rates to people with bad credit. For many, it seems amazing to finally qualify for a loan after being rejected by banks and credit unions. But how does this happen? Online lenders have greater capital raising opportunities and, as a result, have larger lending portfolios compared to smaller local banks that people are accustomed doing business with. Therefore, they are more willing to diversify their portfolios by considering investments into sub-prime lending.

Banks, on the contrary, limit their risks as much as they can. They try to issue loans to prime credit borrowers, making it nearly impossible for an average consumer to get a loan. That is why many people after being rejected by banks feel that getting a loan is a distant dream. Do not let banks discourage you! Turn to online lenders instead, as they seem to have less restrictive criteria for people with less than average credit.

Everybody Wins By Competing Online

Low Federal Reserve rates and growing number of lenders had made it a paradise for bad credit consumers. Everybody seems to be competing for their business online. Everybody should use this competition to their advantage. No matter how low your credit score is, there is a lender out there in cyberspace willing to finance you. Online lenders also have lower operating costs compared to banks that allow them to make money while offering competitive rates to people with bad credit. Thus, everybody wins: lenders enjoy good investment returns and consumers are able to get financing that they could not get before.

Unsecured Loans Can Save You Money!

Competing lenders benefit consumers with blemished credit as they are able to underwrite loans with very competitive interest rates, sometimes lower than a local bank may offer to a good credit customer. With loan lengths of several years, it presents a great money-saving opportunity, as even small difference in interest rate may add up to hundreds, if not thousands, of dollars saved on the overall cost of borrowing. You can also save money on gas, since entire application process is done online, and there is no need to leave home. Approvals are fast and getting loan funding is a matter of a day or two.

By: Mary D Wise

http://www.badcreditloanservices.com/