“Credit Card Debt Consolidation” - Anyone who has read any newspaper articles on ‘Credit card debt’ would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt which you hold on various high APR credit cards onto just one low APR credit card. Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation.
However, credit card debt consolidation comes with few more benefits as well. This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit card) is the fact that you need to track and manage a lesser number of credit cards.
The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts and reward points (especially if you move to a co-branded card as part of credit card debt consolidation)
“Bad Credit Credit Card” - But bad credit is not the only reason you can be denied a major credit card. Some people simply have never used credit. People who like to pay cash only, have never financed a car, taken out a college loan, or a mortgage may have zero experience with credit. In that case, most card companies will reject your application, not because you have bad credit — but because you have no credit rating.
Many women who marry young and do all their borrowing under their husband’s name often find themselves with no credit rating after they are widowed or divorced. Thousands of women have been denied loans and credit cards on that basis. Still other people carry too much debt to be considered a good risk. If you have a car loan, a student loan, a mortgage, two or three — out cards, you are unlikely to be granted another credit card.
But in any and all of the above cases, you can still obtain a credit card. No matter how bad your credit, and even if you have declared bankruptcy, you can still be granted a VISA or Mastercard with a limit as high as $5,000, if you know the right company to call, and how to make your application.
Prevent Credit Card Late Fees - When credit card companies process credit card payments, every single detail is extremely important. Get even one of these small details wrong and you will have to pay credit card late fees. The Fair Credit Billing Act requires credit card companies to credit payments the day they are received. However, this law also allows each credit card issuer to set their own specific payment guidelines. If any of these guidelines are not met, the credit card company can take as much as five days to credit the payment.
That means you can get your payment to your credit card company on time and it could become late during that five-day period. The credit card company could legally charge you credit card late fees. So it’s in your best interest to follow their payment guidelines carefully. The payment guidelines are usually on the back of your credit card bill.
This includes everything from a specific payment address to the time of day the payment has to be received to be credited that day. Some companies even require that payments arrive in their preprinted envelope they sent you with your bill. To be safe, always use the preprinted envelope provided by a credit card company.
Credit Card Payments - Fitting Your Payment Into Your Budget, now that you know when your payment is due and how you are going to make your payment the next step is ensuring you have the funds available to actually pay the bill. Most people have bills that are due each month on or around the same due date. This is why having a household budget makes handling your personal finances easier.
You will have to have the necessary payment in your bank account before the due date. This may take a bit of planning on your part since you will likely have months where your payday falls just either just before or after your due date. This means you will have to “schedule” your credit card payment to come out of the previous paycheck. If you pay your balance in full or have a very high minimum payment you may need to put aside a predetermined amount from each paycheck prior to the date you will schedule (or send) your payment to ensure you have all the funds available.
Paying your credit card bills or any of your bills for that matter on time is essential to building and maintaining a good credit history. Not only will you be taking the necessary steps toward reducing your debt you will also avoid incurring late payment fees or risking a higher interest rate being applied to your account.
Negotiate A Lower Monthly Payment- Many consumers would prefer to make their minimum payment yet find they are unable to afford that payment in the current economic climate. Acknowledging this fact, some creditors are willing to negotiate a smaller minimum payment that consumers can better afford. Call your creditor and ask if your payment can be lowered to help keep up your end of the financial obligation.
Only Those That Qualify Need Apply- Financial hardship programs are designed with consumers who are experiencing a real financial hardship in mind. If you are able to make your credit card payments and are simply looking for a way to reduce your payments, this program is not for you. In fact, card holders who have the assets or resources to make their payments in a timely manner should avoid trying to utilize this program. If you are “caught” you will find negative actions taken on your account. Read the rest of this entry »
