How Revolving Credit Works

dghkuA letter arrives in the mail. “Congratulations! You’ve been preapproved for a National Bank Platinum Card with a credit limit of $25,000 dollars!” You consider what you could buy with $25,000. Or how you could use it to pay off the balance on your three other credit cards.

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Credit cards are the perfect example of revolving credit. With revolving credit, a bank allows you to continuously borrow money up to a certain credit limit. Every time you buy something on credit, that amount is subtracted from your total credit limit. And every time you pay off your balance, your credit limit goes back up. Sounds easy, right?

Well, not exactly. You have to consider interest. If you don’t pay your full credit card balance at the end of the month, the bank will charge you interest on the amount you still owe — anywhere from 10 to 28 percent [source:]. Carrying a balance from month to month is called revolving your debt. If you keep revolving month after month, you could find yourself in a serious debt mess.

Is there such a thing as a free credit report

fjytjYour credit report is an important thing. It’s kind of like a passport to living in the 21st century. With a good score (based on your credit history), it’s much easier and much less expensive to get loans, be insured, and even get a job. And since it’s a detailed listing of what kind of a borrower you are, it’s also important to look at your credit report occasionally to make sure it doesn’t contain mistakes.

The three major credit reporting companies — Equifax, Experian and TransUnion — make their money by analyzing and reporting on how you live your financial life. These companies use mathematical models to calculate what kind of risk you pose to someone who is considering lending you money. The formulas the credit reporting bureaus use are based on the original credit scoring model created in the mid-20th century by the Fair Isaac Corporation. Fair Isaac’s model is the industry standard, which is why your credit score is usually called your FICO (Fair Isaac COrporation) score.

You can read about credit scores in more detail in How Credit Scores Work, but

How to Apply for a Car Loan

hgkujdkIt’s 7:15 p.m. and you’re finally on your way home from work. It’s been a long day, but it’s not over yet. You still have to pick up dinner and the dry cleaning before you can catch the bus. It’s going to be 9:00 p.m. before you get home. As you finally find yourself seated under a pile of packages on the bus, you begin to daydream about having a car. No more taking the bus or train. No more riding your bike in bad weather. No more sitting in the back seat of the carpool — you could be the one behind the wheel.

Your neighbor just got a cute new coupe. If only you could too. But how would you pay for a car? By doing what most car buyers do — apply for a car loan. Purchasing a vehicle can be a little overwhelming, especially handling the financing part. But it doesn’t have to be. It is possible to navigate the car buying and financing process smoothly. First, you need to have a good understanding of who the lenders are.

If you

Turning Your Trash Into Cash

Junk. We all have some of it lying around the house. Whether it’s boxed items cluttering the attic or everyday items that just don’t fit with the room’s decorating theme anymore, many of us have more than we need. At some point it all gets to be too much and in a fit of energy we decide that our place needs to be cleaned. Then the junk gets moved, typically to the nearest trash can. But wait. Before you throw out all that stuff, it pays to take head of the saying “one person’s junk is another person’s treasure.”

If you are about to throw out something because you think it has little value, you may come to regret it later. Those things that you consider to be trash many times have great value to collectors. If you have an item and have no idea if it has any worth, a quick first step is to head to the online auction sites like eBay. Input the item you have into their search engine. If similar items come up and there are bids on them, then someone out there thinks that the item you were about to trash

Is it important to know the potential of the forex trend?

Ne need to be a statistician to understand the importance of predicting future trends in the development of exchange organizations. Forex has established itself as a resource capable of creating excellent opportunities for transactions. The downside market risks are present here permanently. Total can not be foreseen, but not soon identify individual criteria and trace “behavior” of currency flows is quite real. To this end, programs have been developed, which control the activity of extras.

The road to success is possible?

A few secrets that reveal the essence of the work with the currency markets, presented in well-known to be the most successful participants. But all of them were based on a few important rules that allow to achieve good results:

– Not to engage in multiple transactions at the same time and take a look at forex euro dollar forecast,

– Take the fast-paced work environment as a stimulus for further development,

– To consider their own experience when entering new transactions.

But the most important, in addition to the above conditions, is the availability of relevant information, revealing the analysis on euro dollar forex, without which life would not be dynamically modify their own performance in the desired direction.

Technical analysis is our

So Many Ways to Save

If you are anything like me, you have trouble saving money! Just like most folks I guess. After a lifetime of trying I have finally figured out how I can save some money and not even notice it’s missing and with almost no effort at all. That’s the best part. Here are some ways that might work for you as well:

1. Limited access to your funds

Open a high interest yielding online savings account, one that is linked to your account but not part of the same bank. Why? Some online banking services (i.e. ING DIRECT) offer you a bonus for signing up at times it’s $25 and sometimes it’ $50 just depends. That’s the start of your savings. Referral bonuses get you more money. Always, a good thing. When your bank account holds your checking and savings it’s very easy to transfer money from one account to the other. Sometimes too easy. If we impulse buy and think “Oh, I’ll just transfer the money from the savings over – it’s an immediate transfer” Stop right there. We’ve just taken a step in the wrong direction. Easy access doesn’t help you save. So, if your

Simple Ways to Save Money

Saving money is something that is important to many people. Whether you are fresh out of college and need to save whatever you can to make ends meet, or if you have a growing family and need to stretch your dollar further, finding ways to save is something that everyone can relate to. Thankfully, if you are looking to save some money there are a few easy tips that you can follow.

  • Put Money Away Often: Perhaps the easiest way to save money is to put money in a dedicated account frequently. Many bank accounts now come with automatic deposit, where the bank will move an approved amount from your checking to savings account each month. It doesn’t even have to be a lot of money, something as small as $20 a month will add up in the long run. Being automatic, you won’t even have to worry about it,
  • Find the Best Deals: No matter if you are shopping for groceries or for new clothes, finding the best deals will take you a long way. Don’t be afraid to use coupons and shop when stores are having sales. A store like Lane Bryant runs sales both in-store and online, while

Points to Consider Before Going For Foreign Exchange

Foreign exchange is a process wherein you convert one form of currency into another. There may be different reasons as to why you will have to convert your funds into a foreign one, some of which include travelling abroad, studies, or even remitting to family home. However, before you begin your forex process there are certain factors you must consider. Let us take a look at them to know more.

Understand the basics of the forex process

First timers who are planning to exchange currency must first be very careful with what they do. They should have basic information on how this procedure works so that they do not make any mistake. This will help prevent making any conversion error, which in turn prevent them from losing any forex funds. There are many steps you can take to understand this process. You can either approach a bank or institute that offers you assistance or you can research online for possible information.


Cost of exchange

When you get your funds converted into forex, you will need to pay a required amount as commission. The rates of commission often change, especially if you approach a private institute

Avoid Delays by Using Online Money Transfers

Transferring money from one place to another has a lot of advantages. It can be used to send monthly salaries to your family in your home town. It can also be used to send funds if there is any financial emergency. Apart from this, there are several other advantages to transferring money, especially with the online money transfer. One of the main advantages include avoiding delays. Let us take a look at them.


Advantages of digital medium

There were many ways to transfer funds through traditional means. However, these means of money transfer often lead to considerable delays due to various avoidable reasons. But with the digital medium, these reasons are eradicated. For example, when typing the account number, you can get an immediate verification if the account number is active or out of service. Additionally, with the ever changing advancement of technology, transferring through the online medium is made extremely fast. That is because, it does not require several banking staffs to handle the transaction. Thus, it cuts down on the levels of approval and transferring it has to undergo before the funds is sent to its designated account. Through this advantage,you can now transfer funds from one

Skills That You Need to Run an Online Business by Yourself

Everyone’s seen those reports on TV or the Internet about people who make a pile of money running a YouTube channel. Or who make stuff at home and sell it online for a nice sum. As you sit in commuter traffic or get yelled at by the boss, those daydreams of owning your own online business probably rise up again. How hard is it really, and how much would you make?

While it’s difficult to come up with solid numbers on Internet-based solo entrepreneurs, tax data shows that rising numbers of one-person businesses are making pretty decent money. About 2.4 million of them generate at least $100,000 a year in income [source:]. Forbes reporter Elaine Rofeldt, who’s been covering the phenomenon, ascribes a lot of that growth to Internet-based retail’s ability to pull in customers from far and wide, not just in one town, and she expects that growth will continue.

OK, that sounds pretty good. But even so, if you’re going to tap into the Internet’s potential for making money, there are certain skills you’ll need. Some are the same ones you would have needed to start your own shop in the pre-Internet era — good planning, effective execution and

Ways People Rack Up Debt

According to a 2010 Gallup survey, Americans identify terrorism and government debt as the two most worrisome issues to American wellbeing [source: Saad]. If Americans are so concerned about the government’s debt, why aren’t we worried about our own debt? More than half of Americans are in debt and paying interest on it. Many blame credit cards — and rightfully so; they are a major culprit. But there are a number of ways people rack up debt. Read on to see 10 ways we accumulate debt.

terrorism and government debt as the two most worrisome issues to American wellbeing [source: Saad]. If Americans are so concerned about the government’s debt, why aren’t we worried about our own debt? More than half of Americans are in debt and paying interest on it. Many blame credit cards — and rightfully so; they are a major culprit. But there are a number of ways people rack up debt. Read on to see 10 ways we accumulate debt.

We all know the drill. We’ve either seen it in a movie or in real life. It’s either the wife sneaking in a big

Tips for a Debt free Life

Can you imagine having no debt? What kinds of decisions come with each paycheck when you owe nothing? Your savings account is bursting at the seams, so you can add some more to the world travel budget. But wait, that budget is set for two years of travel already. Your time volunteering and visiting the orphanage you helped fund in Haiti will happen when the kids are on school break, so maybe it’s time to put a paycheck or two into the business you’ve always wanted to start. That could even add money to your money and set up the family for when you’re gone. No worries.

This kind of dreaming doesn’t have to be a dream. Whether you’re in a stage of life where college planning is central, retirement is imminent, or marriage and joint accounts are calendar days away, being debt-free is possible.

Instead of dreams of running away from it all and cracking coconuts on a deserted beach, take a few minutes to think about how you really want to live — maybe with electricity and some great vacations — and see how you can get started today.

Knowing your debt

Whats the No 1 reason people go into debt

How much of your money is yours and how much you pay toward your debt has a lot to do with how your debt got there in the first place. There are several reasons we accumulate debt, like paying for unforeseen emergencies or unemployment. But most often, debt is a result of bad spending habits, because unless you’re spending cash, it’s costing you money to spend money.

Imagine a credit card is someone granting you a favor to buy something you can’t afford now but can easily pay off in the future. Well, the reality is that you simply end up owing more and owning less. We have been talking about the Joneses — those neighbors with the life and stuff we want — for almost 100 years, and we still can’t keep up with them. Unfortunately, never being content with what we have can lead to large amounts of debt. And lacking the knowledge we need to manage that debt can keep those credit card balances static, or worse, allow them to grow.

Here’s how. Imagine making a credit card purchase for $500. You rationalize spending the money because you look at it in $15

How Non Profit Debt Consolidation Works

Debt consolidation companies help people in debt by combining all of their outstanding payments (credit cards, student loans, medical debt) into one payment [source: Chatzky]. Often, the debtor takes out a new, lower-interest loan to cover this payment. The consolidation company may also offer credit counseling and may negotiate with the credit companies to reduce the amount of debt owed. So how do they do it? Non-profit debt consolidation companies can offer their services for little to no cost through funding from donations, creditors and government grants.

Just as there’s no magic pill for baldness, weight loss, or wrinkles, there’s no magic pill for eliminating debt quickly, completely and easily. Even with a legitimate non-profit debt consolidation company, it will still take years to wipe out debt. Consumers have to be careful of the temptation to spend more since they have a new loan. If you use a car or house as collateral on the loan, the bank can seize it if you default on payments. Using a debt consolidation service could also affect your credit report [source: DebtHelp].

Picking a not-for-profit debt consolidator can be difficult. Some companies abuse their non-profit status. Others seem local,

What is asset discovery in bankruptcy

When you file for bankruptcy, you are required to provide detailed and complete information about your debts, income, expenses, financial history and assets. If you purposefully conceal information about an asset — or aren’t entirely honest about the asset or its value — criminal charges could follow.

The court requires you to be honest. It employs an asset discovery process, which refers to the legal, formal process used to gather information or documents about your assets. In addition to the information you provide, a bankruptcy court trustee will audit your debts for discrepancies. If, for example, you only own two chairs but have a fresh loan from a furniture store, this will prompt the trustee to wonder whether you are having someone store the furniture as a way to conceal it from the court.

The court trustee will also search public records, bank records, tax returns and online databases, as well as payroll slips, bank accounts and retirement accounts. The trustee may even ask former neighbors, co-workers, spouses and friends to weigh in on your assets.

It’s best to share information about your assets voluntarily, because failing to do so could result in being denied

What one thing will improve your credit score the most

One number could stand between you and your dream house. It may seem unfair for one number to define you, but to many lenders, it does. Not only can that number determine whether you get a loan, it can dictate the exorbitant or reasonable interest rate attached to it. Insurance companies, landlords, employers and even utility companies routinely use the number to learn about you and your financial reliability.

Your credit score can dramatically affect your life, and, luckily, you hold the power to change it. Knowing how to improve your score has become an important skill in today’s credit-dependent society. To learn how to improve it, we need to understand what it means and how it’s calculated.

Your score is based on your debt history and your existing lines of credit. The companies you do business with report information about your account activity to credit reporting agencies, such as Experian, TransUnion and Equifax. The agencies gather your information and pull it together in a credit report. You are entitled by law to a free credit report once every 12 months. It’s a good idea to take advantage of this opportunity, especially if you plan to

Whats the one thing I can do to hurt my credit score the most

Credit scores are something of an obsession in developed nations. There are ways to improve them (like paying bills before their due dates), but this takes time and perseverance. You can also seriously damage your credit score — this can happen quickly, sometimes with only a misstep or two.

Debt Image Gallery

A cottage industry has grown to help people figure out how to navigate the difficult waters of borrowing money without harming their credit further down the road. Books and radio shows have been developed to help people live debt-free altogether. Web sites — including HowStuffWorks — dole out advice on how to improve credit scores. Media outlets run stories on everyday people who’ve been plunged into credit nightmares.

Even with all the credence that’s given to credit scores, some studies have suggested that the numbers might not always accurately reflect a person’s credit worthiness — and some of the research is pretty startling. For instance, if your local library engages a collections agency to retrieve a book you never returned, your credit score can drop as much as 100 points [source: CBS4]. That’s a pretty significant amount, considering credit scores range between 300

What is the average credit score and why

Your credit score has a humble history. In the 1950s, engineer Bill Fair and mathematician Earl Isaac devised a mathematical formula to help creditors analyze data. Their idea was simple but radical: a credit scoring system. It didn’t catch on at first, but then Conrad Hilton (founder of Carte Blanche, one of the world’s first credit cards) and Montgomery Ward started using credit scores in the late 1950s and early ’60s [source: Fair Isaac].

The Fair Isaac Corporation refined its formula as Americans became more dependent on credit. As a result, your FICO score — the number between 300 and 850 that most people refer to as a credit score — became widespread. And in 1989, the first general FICO score was issued by a major credit bureau. The score represented — and still does — a culmination of your credit worthiness.

Image Gallery: The Burden of Debt

The global consumer economy is based largely on borrowing money. Americans buy homes and cars through loans from banks. Even smaller purchases can be made with credit cards. When people borrow this money, they’re charged interest. The money generated from interest is how banks

Will bankruptcy keep me from getting a job

After you filed for bankruptcy, it felt like a fresh start. You began rebuilding your credit and even started looking for a new job. Still, you’re worried: Will a bankruptcy ruling show up on your credit report — and will it be seen by potential employers?

Yes, on both counts. When a potential employer screens your credit, that employer will have access to your Social Security number, previous addresses and debt information. Along with information about student loans and mortgages, there will be information on car payments, credit card debt, debts in collection, tax liens and bankruptcies filed fewer than 10 years ago for a Chapter 7 filing or seven years ago for a Chapter 13 filing. Just about the only thing an employer won’t see on your credit report is your credit score [source: Kane].

Think credit checks are only for C-suite executives? Think again. A survey of human resources professionals by the Society for Human Resources Management revealed their employers are opting to investigate the credit history of at least some — and sometimes all — potential employees. Not only were high-level employees credit-screened, but some surprising positions were, too: delivery drivers, office assistants,

Where did the idea for bankruptcy come from

Imagine falling behind on your credit card payments and, eventually, becoming unable to pay them at all. Now imagine being thrown into prison because of it.

It may seem an unlikely scenario today, but there was a time in history when debtors were jailed for failure to pay — a sentence that made little sense since being imprisoned left them unable to work. Even in the U.S., debtors were jailed until the early 1800s. Now our legal system deals with the inability to pay using a complex federal bankruptcy code designed to offer protections to debtors, and, in some measure, to creditors. But how did the bankruptcy code come about?

Bankruptcy laws are designed to liquidate the collective assets — known as the estate — of a debtor, and to dole out the proceeds to creditors. The creditors receive a portion of the proceeds according to claims they have filed with the bankruptcy court, which help satisfy what the debtor owes them. If the debtor owes more than the estate pays the creditor, as is often the case, then the balance of the debt is forgiven.

It’s a concept that’s been in play since the

What happens to your debt when you die

Typically when someone dies, their personal debt does not get passed on to surviving family members. If you find yourself up to your eyeballs in debt and unable to pay your home mortgage, the foreclosure process allows you to walk away. Even if you owe more than your home is worth, the bank takes your house and forgives the remaining debt, leaving you with a terrible credit score. But what happens when you die? Do the banks and creditors you still owe money forgive your debt or do you bequeath your debt to your surviving family along with your precious heirlooms?

The cut and dry answer is this: Your debt belongs to you and you alone; it is not passed on to your family members when you die. The full and complete answer is something only an estate planning expert with knowledge of your state’s laws can answer. The laws regarding debt after death are defined at a state level, so there’s really no umbrella answer for everyone. In most cases, the only instance in which another family member would be responsible for your debt is if they cosigned a loan with you. By cosigning, both parties