Austin Bankruptcy Lawyer » Credit Cards http://www.bankruptcylawyerinaustin.com A Fresh Start Wed, 24 Feb 2010 11:02:28 +0000 en hourly 1 http://wordpress.org/?v=3.0 Credit score and credit type http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-and-credit-type/ http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-and-credit-type/#comments Thu, 11 Feb 2010 23:07:25 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/to-a-lesser-extent-than-your-credit-history-the-amount-of-your-credit-and-the-time-you-have-had-credit-your-credit-score-will-be-affected-by-the-type-of-credit-that-you-have/ Credit score and credit type is a post from: Austin Bankruptcy Lawyer

]]> To a lesser extent than your credit history, the amount of your credit and the time you have had credit, your credit score will be affected by the type of credit that you have.

You can estimate that this will account for approximately 10 percent of your credit score on average.

As with most other areas of credit repair this is also relatively easy to resolve by simply getting more of a mix with your borrowings.

Lending institutions like to see that you are capable of managing various types of debts as this will give them the confidence that you will be able to handle the repayments of their money.

If you have a few different types of loans and also pay bills on a regular basis then that will represent a fairly rounded portfolio and should show that you are competent with the management of your responsibilities.

Look at the types of credit that you currently have and consider getting other types of credit in the form of credit cards, small hire purchase loans or any other small loans that differ from those that you are holding at present.

This is not to encourage you to increase your debt and place additional strain on your finances but you can substitute part of one form of credit with that of another.

You will need to look for a suitable balance when doing this as even though the lending companies like to see that you can handle many different forms of debt they won’t like to see that you have too much debt or too many debts.

Think along the lines of the lender and borrow according to what you believe they would like to see.
In all accounts make sure that you make all your repayments on time and when you are managing more than one debt you really do need a budget to make it easier to manage and remember the payment dates.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-and-credit-type/feed/ 0 Identity theft via the computer http://www.bankruptcylawyerinaustin.com/credit-cards/identity-theft-via-the-computer/ http://www.bankruptcylawyerinaustin.com/credit-cards/identity-theft-via-the-computer/#comments Thu, 28 Jan 2010 00:33:01 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/a-lot-of-identity-theft-occurs-on-the-computer-where-thieves-get-access-to-your-information-online/ Identity theft via the computer is a post from: Austin Bankruptcy Lawyer

]]> A lot of identity theft occurs on the computer where thieves get access to your information online.

Due to this you need to be particularly careful to protect your information when using a computer to access your online banking information and also when using credit cards to buy products online.

Many of the viruses that are created allow people to gain access to information on your computer so it is always wise to have up to date anti virus software installed on any computer than you are using.

When you are paying for products or services online make sure that you are only doing this with trusted companies who have the necessary security measures in place to reduce the chance of fraud. They should have encrypted payment facilities and a good privacy policy at the very least.

Email accounts can be accessed by outsiders so always ensure that there is no private financial information stored in your email accounts and never assume that an email that appears to be coming from your bank is a legitimate email as it is a popular scam to appear as a bank to get your personal information to access your ‘real’ bank accounts.

Never give your credit card details over the phone unless you are 100% sure that it is safe to do so with a trusted company.

You can always check with the Better Business Bureau to see whether companies are legitimate to deal with and your money and information will remain safe.

You should also check your credit card statements as you get them to see if there is any unusual activity as fraudsters are often able to get information and make charges without most people ever realizing.

If there is a problem contact your bank immediately and they will usually reverse the charges and issue you with another card that has different numbers and login information.

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Identity theft via the computer is a post from: Austin Bankruptcy Lawyer

]]> http://www.bankruptcylawyerinaustin.com/credit-cards/identity-theft-via-the-computer/feed/ 0 Why is your credit score lower than it should be? http://www.bankruptcylawyerinaustin.com/credit-cards/why-credit-score-is-too-low/ http://www.bankruptcylawyerinaustin.com/credit-cards/why-credit-score-is-too-low/#comments Fri, 15 Jan 2010 13:22:12 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/many-people-who-have-had-a-good-record-of-debt-and-bill-repayment-are-surprised-to-find-that-their-credit-score-is-lower-than-it-should-be/ Why is your credit score lower than it should be? is a post from: Austin Bankruptcy Lawyer

]]> Many people who have had a good record of debt and bill repayment are surprised to find that their credit score is lower than it should be.

This can occur when you have been a victim of identity theft or there has been an error on your credit report.

Identity theft is more widespread that many people assume and it can affect you without you ever knowing, until of course you make an application for credit and get declined.

Identity theft is where a criminal will assume your identity by stealing your information and getting access to your accounts.

They will use this information to drum up debt leaving your financial record in tatters.

Sometimes they will use your information more discretely by removing small amounts of money from your accounts over a period of time.
This can happen when they get access to your PIN numbers of credit cards or bank accounts.

They can also use your information to get new credit cards and use them up to the credit limit before attacking the next unsuspecting victim.

When this happens you are left with the debt and the poor credit score.

You should always check all your accounts on a regular basis and look for any suspicious activity. If you notice anything that you are unsure of contact your bank immediately and get them to investigate.

In addition to checking your accounts you should also check your credit report regularly to see whether there is anything on it that you believe shouldn’t be there.
There will be information on your credit report of new accounts if they have been created in your name and you will be able to act on these immediately if you see them on your records.

If there is any suspicious activity you should report it to the police immediately and get a statement from them that you can then send to your bank or the lending institution that shows on your report. Notify the credit bureaus and get them to attach the police report to your records and make sure you close the accounts that have been attacked.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/why-credit-score-is-too-low/feed/ 0 Overdue taxes – a top priority http://www.bankruptcylawyerinaustin.com/credit-cards/overdue-taxes/ http://www.bankruptcylawyerinaustin.com/credit-cards/overdue-taxes/#comments Thu, 07 Jan 2010 22:57:27 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/it-is-top-priority-to-pay-all-your-overdue-taxes-as-soon-as-possible-due-to-the-compounding-problems-that-occur/ Overdue taxes – a top priority is a post from: Austin Bankruptcy Lawyer

]]> It is top priority to pay all your overdue taxes as soon as possible due to the compounding problems that occur.

With penalties and interest on overdue taxes it doesn’t take long for the total to mount up where you will be paying more for those than the original amount outstanding.

Federal taxes are one of your most important debts to clear as there is no one quite as ruthless at recovering debt than the IRS. They have more powers than anyone else to recover debt.

They can take assets to cover the debt and that even includes your home so you don’t want to be messing with the IRS.

If you know that you won’t be able to pay your tax when it falls due then you will need to look at all alternatives and that might even include the necessity to use your credit card to pay your account simply because that will be an easier debt to manage than the IRS and the interest and penalties that they will impose.

If you have enough equity in your home then that is another solution because the interest you will pay on your home mortgage will be a lot less that the IRS interest for late payments.

You will probably be reluctant to use your house to borrow the money, and rightly so, however in the case of federal taxes you could stand to lose your house if you didn’t pay anyway.

If you have already incurred penalties and interest for outstanding taxes then it is possible to come to an arrangement with the IRS where they will reduce some of these charges provided you can offer them some reasonable explanation as to why this happened. An example of this would be an illness that stopped you from working and earning enough money to make payments.

Often you can arrange a payment plan with the IRS to pay off your debt and if they agree to that use your budget to work out how much you can reasonably afford to pay without getting in difficulty and defaulting. Once you get a payment plan sorted you won’t want to miss any payments under any circumstances.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/overdue-taxes/feed/ 0 The importance of a budget http://www.bankruptcylawyerinaustin.com/credit-cards/importance-of-a-budget/ http://www.bankruptcylawyerinaustin.com/credit-cards/importance-of-a-budget/#comments Thu, 31 Dec 2009 11:13:12 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/dont-even-try-to-get-by-without-a-budget-as-you-will-be-setting-yourself-up-for-failure-its-as-simple-as-that/ The importance of a budget is a post from: Austin Bankruptcy Lawyer

]]> Don’t even try to get by without a budget as you will be setting yourself up for failure. It’s as simple as that.

Without a budget you can’t hope to have control over your finances as most people will find that once they start doing a budget they realize all the additional expenditure they have in their life that they hadn’t noticed in the past.

It is the little bits and pieces of expenditure that accumulate into a bigger debt problem.

Creating a budget is one of the first things that you should do and using that budget daily will keep you on track to getting out of debt.

If someone were to ask you right now to write down exactly how much it costs you to live day to day, week to week, and month to month — could you do it?

If you are honest you would probably have to admit that it would take quite some time as you would have to look through your card statements, monthly bills, shopping lists and more to get a clear picture of what money you are spending.
In addition to that you would need to look at any expenses that occur at irregular intervals either quarterly or once yearly.

You would also need to make allowances for additional spending during the festive season and the extra interest you would need to pay on the credit card debt that you would drum up over that period.

On top of that you would need to make allowances for maintenance on your vehicles and household maintenance.

The more you look into the expenditure the more that will be revealed and that is why a budget is so important. Most people get a big shock when they prepare a budget for the first time as they never realize how much money they spend on things that they don’t think about.

And that is why you must have a budget. There is no suitable alternative. You can’t run a business at its best without a budget and you can’t run a household without one either.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/importance-of-a-budget/feed/ 0 Seperating from the past http://www.bankruptcylawyerinaustin.com/bankrupt/seperating-from-the-past/ http://www.bankruptcylawyerinaustin.com/bankrupt/seperating-from-the-past/#comments Mon, 28 Dec 2009 19:55:23 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/if-you-have-had-major-credit-problems-in-the-past-then-you-need-to-take-action-to-show-that-your-current-financial-standing-and-credit-management-is-no-longer-in-the-state-that-your-history-represents/ Seperating from the past is a post from: Austin Bankruptcy Lawyer

]]> If you have had major credit problems in the past then you need to take action to show that your current financial standing and credit management is no longer in the state that your history represents in your credit reports.

There are events that can happen in life such as divorce and bankruptcy that are often unavoidable and while they can severely affect your credit score at the time most people will move on from those events and get more balance in their life where such financial problems are unlikely to happen again with good financial management.

These events can affect your credit score in a substantial way and unless you take the necessary action to repair your score they can hinder your progress for many years to come.

Bad credit score from events like this is much like getting back on your bike when you fall off. You will need to take out a small loan and pay if off as soon as possible to get back on your ‘financial feet’ and prove to potential lenders that you are no longer high risk.

Every time you get another loan and pay it off on or before time without missing any payments you prove that you are not as risky as your credit score might suggest.

The more often you do this the easier it will become to get credit and you can work your way up to bigger loans at lower interest rates as your FICO score improves.

Expect to be met with some resistance when you first apply for loans after having a big financial upheaval but you will find that there are always some people who will be willing to lend you money albeit at high interest rates.

Keep the loans as small as possible and pay them off as soon as possible and then look for better terms the next time as you work your score up.

You will probably find that getting a credit card with a small limit is the best way to go at the beginning.

If you live near Austin, Texas and are considering filing bankruptcy, give us a call at (512) 343-2572

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]]> http://www.bankruptcylawyerinaustin.com/bankrupt/seperating-from-the-past/feed/ 0 Debt Cures: A Review http://www.bankruptcylawyerinaustin.com/credit-cards/debt-cures-a-review/ http://www.bankruptcylawyerinaustin.com/credit-cards/debt-cures-a-review/#comments Sat, 26 Dec 2009 07:48:54 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/debt-cures-a-review/ Debt Cures: A Review is a post from: Austin Bankruptcy Lawyer

]]> ‘Debt Cures They Don’t Want You To Know About’ is a book by Kevin Trudeau published May 2008 which claims to blow the lid off the finance industry. It is a follow up to his 2007 book, ‘Natural Cures They Don’t Want You To Know About’ which exposed the pharmaceutical industry and medical practitioners for covering up the fact that there are simple natural treatments for many conditions that are just as effective as prescription drugs, but ‘they’ (the medical establishment) are constantly pushing us into becoming dependent on pharmaceutical company products.

‘Debt Cures’ follows the same kind of pattern in claiming that the banks and other finance institutions are virtually ganging together in a conspiracy to push the population deeper and deeper into debt so that they can make money from all of the interest that we owe.

This is an attractive idea for many people who are in debt because it takes the blame firmly away from our shoulders and lays it on the credit card and loan companies. It’s not your fault – you were virtually forced into the spiral of debt that you find yourself in. That is Kevin Trudeau’s argument, anyway.

We grow up accepting that it is normal, natural and even wise to be in debt. Perhaps in some cases it is. Take mortgages for example. Your parents and grandparents may have warned you about living within your means, but did they ever suggest you shouldn’t take out a mortgage because you would be getting into debt? I doubt it.

For most people, a mortgage is a very good financial proposition. It often works out cheaper than paying rent, at least after the first few years, and at the end of the time you own the house. It’s almost a no brainer, if you have the salary to afford it.

The problem is that most of us do not understand the difference between taking out a loan to buy an asset that will increase in value, like a house or perhaps a business, and getting credit for things that will never again be worth what we paid for them. That includes cars, furniture and all the little things that we put on our credit cards.

When you get into debt, banks will offer you more cards and loans until the point where it becomes almost impossible to pay. Then they pull the rug out from under your feet. No more loans, your cards suddenly don’t work, and the credit score system makes sure that all of the other finance companies instantly know that you are a bad risk. That’s where the conspiracy idea comes in.

In the end though, we could say that it doesn’t really matter whose fault it is. If we are in debt then nobody is going to help us get out, that’s for sure. Certainly not unless we pay them for their advice.

‘Debt Cures’ is a little repetitive in places, but it gives you some good ideas for reducing your debt and even eliminating parts of it. There are web addresses for internet sites where you can pick up free reports on how to reduce different types of debt. Some of the tactics he suggests are not workable in every situation but you should find some hints in there for dealing with all types of debt.

There are more comprehensive debt management books out there but this one is simple to read and excellent for anyone who doesn’t know where to start. If you have not begun tackling your debt yet, ‘Debt Cures’ by Kevin Trudeau should give you some ideas that could quickly help you save much more than the purchase price.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/debt-cures-a-review/feed/ 0 Reducing credit limits http://www.bankruptcylawyerinaustin.com/credit-cards/reducing-credit-limits/ http://www.bankruptcylawyerinaustin.com/credit-cards/reducing-credit-limits/#comments Sun, 13 Dec 2009 14:21:10 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/sometimes-it-is-worthwhile-getting-the-bank-to-reduce-the-credit-limits-on-your-cards-but-you-will-need-to-consider-the-situation-carefully-before-deciding-because-there-are-a-number-of-factors-that-c/ Reducing credit limits is a post from: Austin Bankruptcy Lawyer

]]> Sometimes it is worthwhile getting the bank to reduce the credit limits on your cards but you will need to consider the situation carefully before deciding because there are a number of factors that can affect your ability to improve your credit score.

If you have the ability to reduce your overall debt then reducing your credit limits can help with your credit score.

Decisions such as this will be easier to make if you have a good budget that can help you plan for the immediate and long-term future as you will be able to calculate whether you will need the extra credit facility or not.

If you are in doubt then you should keep the credit available in case there are circumstances where you will need something to fall back on in an emergency rather than miss payments.

If you aren’t using the cards and have no intention of doing so in the future then having that extra credit available could discourage lenders from giving you a loan when they know that the possibility of you getting beyond your means could easily happen should you call on the credit that is available.

By reducing the credit limit you will be reducing the risk to lenders and improving your credit score.

If possible you should always try to reduce high interest credit such as credit cards with lower interest loans such as those that can be borrowed on the security of your house.

When you have many forms of credit and they all have limits that are more than you are currently borrowing then lenders will look at the total credit available and this can add up to a substantial amount which could lead to problems if used.

Close down the newest cards and keep those that you have had for a longer time as they will help with your credit history and reduce the overall total amount of credit available to improve your score.

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]]> http://www.bankruptcylawyerinaustin.com/credit-cards/reducing-credit-limits/feed/ 0 Credit score gotchas http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-gotchas/ http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-gotchas/#comments Thu, 10 Dec 2009 22:28:20 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/often-people-will-do-things-that-affect-their-credit-score-without-knowing-that-they-are-doing-so-and-cause-it-to-be-lower-than-it-should/ Credit score gotchas is a post from: Austin Bankruptcy Lawyer

]]> Often people will do things that affect their credit score without knowing that they are doing so and cause it to be lower than it should.

There are so many different businesses that allow you to have credit cards for purchase at their stores and offer a credit limit on those cards to entice people to make purchases.

While these are easy to get they are also easy to forget and many people have a number of ‘store’ credit cards that they never use without knowing that they will appear on a credit report and can have a detrimental affect on your score.

This happens because lenders will see that you have many different sources of credit and to them that might be one card too many to allow you to borrow from them even though you aren’t or haven’t been using it.

The other problem with having too many accounts is the fact that there is the chance that you might forget to make the necessary payments on them simply because there are too many to manage and more to forget. This will have a negative affect on your credit score too.

You should close any accounts that you aren’t using unless specifically needed for financial planning.

If you are using the additional accounts to spread your credit over various different accounts then that can help your credit score so you will need to look at each situation on an individual basis and how it can benefit you.

Closed accounts will still show up on your credit report for some time and they can still have an affect on your credit score but you need to look at the longer term and what is best for your future rating remembering that the sooner you take action to make positive moves the sooner your credit score will begin to rise.

Credit score gotchas is a post from: Austin Bankruptcy Lawyer

]]> http://www.bankruptcylawyerinaustin.com/credit-cards/credit-score-gotchas/feed/ 0 Update your loans http://www.bankruptcylawyerinaustin.com/credit-cards/update-your-loans/ http://www.bankruptcylawyerinaustin.com/credit-cards/update-your-loans/#comments Sat, 05 Dec 2009 17:53:11 +0000 admin http://www.bankruptcylawyerinaustin.com/bankrupt/you-should-update-your-loans-and-get-better-deals-when-your-credit-score-improves/ Update your loans is a post from: Austin Bankruptcy Lawyer

]]> You should update your loans and get better deals when your credit score improves.

Lenders are always looking for clients and they prefer good clients to bad. As your credit score improves you will be in a position to get finance at better interest rates and when this happens you should look at replacing the loans you currently have with ones that are available a better rate of interest.

Lenders will be only too happy to get your business as you become less of a risk and with a better credit score you can negotiate with them to get a better rate if you move your business to them rather than the company you currently owe money to.

This will allow you to get better terms and be able to repay the loan faster or the reduced payments due to the lower interest will allow you to apply the additional money that you will have to other debts that are at higher rates of interest such as credit cards.

The further you go with your credit repair the easier it gets to improve your whole financial standing and the momentum you build by constantly looking for better uses of your money will help you to realize your final goal sooner than you probably anticipated in the beginning.

It can be very exciting to see how your overall financial stature rises with all the ‘little’ adjustments that seem minor initially.
You will begin to change your budget on a regular basis to represent the new balance of income and expenditure and you will gradually reduce or eliminate the debts that are recorded in your budget.

You can even start to think about investment for the future rather than accepting a future that is weighed down with debt.

Don’t be too concerned if some of this refinancing has a slight downgrade of your credit score as the reduced repayments and subsequent reduction in debt will soon help that to rebound and set you up for more positive gains in the medium term.

When you are in a position to do this you know that you are well on the way to recovery.

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