If you have recently turned 18 or you’re applying for credit for the first time, then you might be learning that getting a great credit card isn’t easy.  If those offers of credit card reward programs sound enticing, be forewarned that it takes a little bit of time before those cards are available.  However, you can start building up your credit score now, starting small!

First-Time Credit Users

First-time credit users have a few options available for building up a credit score.  Your first option is getting a secured credit card.  Secured cards are for people with no credit history or bad credit history.  Essentially, you put up the money for the card up front and then get to use the card as a credit card.

Your second option is department store-issued or oil company-issued card.  These cards come along with high interest rates, so be very careful to make your payment each month. Otherwise, you’ll be slammed with credit debt – something you definitely don’t want on your fresh credit score!

Your third option is to get an entry-level credit card.  Much like the other two cards, this will have a high interest rate and a low limit, so avoid credit debt and pay off your balance on time and in full.

Once you establish a good credit score (after about a year), you can “graduate” to a better card with more perks.  However, start small and start responsibly, and you’ll be well on your way to getting cash-back and free airline miles galore!

Are you struggling with your finances?  Has debt negotiation proven to be of little benefit for you?  If so, you might benefit from initiating credit negotiations with your credit card provider.  Credit negotiations can be a great way to demonstrate good faith and cut a deal with your credit card company.

Suggestions for Getting Started

Anyone who is owed money, whether a small bank, large corporation, or credit card company, likes to know that their borrowers show good faith intentions to repay them.  Demonstrating good faith intentions is an essential first step.

You might be struggling with making your payments, but your lender may not realize that you’re struggling.  Alerting them of your financial situation before you start missing payments can work in your favor.  You may even be able to enter into some credit negotiations that result in a better deal for you.

Also, try coming up with a payment plan that you think is feasible.  The more transparent you can be about your financial situation, the more realistic your payment plan will appear.  Pitch your payment plan to your card provider, and see what the response is.  You might be surprised how well-received this strategy can be!

Credit negotiations are always better than debt negotiation.  Just as you’d rather get an oil change than have to overhaul an oil-thirsty engine, credit negotiations are more desirable than debt negotiation.

The financial world often seems to be quite polarized over the subject of credit cards.  While some financial professionals will tell you to avoid all cards at all costs, others will encourage you to take advantage of all the credit cards you can.  Like most people, we tend to think that somewhere between those two pieces of advice there’s a healthy balance.  Responsible credit card usage can be a beneficial thing.  You get to build credit, enjoy rewards, and it doesn’t cost you a thing.  As long as you’re avoiding credit debt, you’re good to go!

Cards You Don’t Want

However, some credit card companies don’t make it easy on you.  If you aren’t careful and constantly vigilant, they’ll reel you into credit debt before you know it.  After all, credit debt is where the card companies make their money!  The people who pay on time every month (the kind of person you are, right?!) don’t do much for the card companies.

If you’re looking to get a new card, heed these credit cautions:

• Avoid cards with astronomically high interest rates.  If you have no credit score, this will be virtually impossible to do.  However, get a low-interest card as soon as possible.  Even if you have full intentions of staying out of credit debt, a bill due date could slip your mind, and then you find yourself slammed with high interest charges!
• Avoid cards that have fees associated with every single little thing you might want to do.  Some cards are ridiculous with the number of fees they charge.  You shouldn’t have to put up with this.  There are plenty of other options out there!
• Another favorite credit cautions tip: don’t settle for lame rewards.  If you have any kind of decent credit score you should be able to get a card that has some perks to it.  If not, move along!

Reminder

• Stick to reputable card providers.  It makes it easier to purchase (your card is more likely to be accepted), and the bigger card companies are more likely to be better secured.

If you’re suffering under credit debt, your primary focus should be paying it off as quickly as possible.  If, however, you’re in good credit shape, taking advantage of these credit tips can help you put money back in your pocket.  Responsible use of credit has many benefits.  If you aren’t taking advantage of these tips, then the time to start is now!

Need-to-Know Credit Tips

Without naming particular cards, here are a few perks to look into.  (A quick Internet search can show you which credit cards carry these particular offers!)

• Some credit card companies offer free admission to museums and art galleries to cardholders.  A few of these museums have quite pricy admission stickers, too!
• Free airline miles.  Of course, this is one of the more popular credit card perks.  For those who fly a lot, the benefits that an airline offers – paired with the benefits of your credit card – can really add up!
• Low-Price Guarantee.  This is one of the best perks we know of.  Several credit card companies will reimburse you up to a certain amount if you find a lower price on an item you purchased on the card.  Be cautious though, and don’t let this benefit encourage over-spending!
• Warranty Extension.  Another nice one… buy a product with some cards, and they’ll tack on an extra 90 days to the manufacturer’s warranty.  Sometimes the card will even extend the warranty by a year!

Take advantage of these credit tips if you’re shopping around for a new card.  Or, your card may already have these perks, and you didn’t even know it!  Just make sure you don’t take on a lot of credit debt along with all of these benefits!

Two words you never want to hear together: credit and scam.  But, in a down economy, scam artists are taking advantage of consumers with bad credit scores more often than ever before.  If you receive an offer about credit repair, be very careful.  No one – no one – can alter your credit history legally.  So, if you encounter a service or individual offering ‘credit repair’ services, don’t fall prey to the trap!  You should never enter into any kind of credit negotiations with anyone besides your lender.

What to Look For

If the company that has approached you asks for money before providing any kind of service, you should be wary.  Really, this is a good piece of advice for dealing with any kind of service in the financial world.  However, with all the frauds advertising ‘credit repair’ services, it’s especially worth mention.

If the credit repair company encourages you to share your Social Security number in order to make the record-searching process easier, you should know that you’re dealing with a scam artist.  You should never share your Social Security number.

Has the company offered suggestions on what you can do for yourself?  Companies in the financial industry should always let you know what your various options are before offering their own services.  After all, they exist to help you.

If you are explicitly advised not to contact any of your credit card companies, or any credit reporting agencies, then you have received the final, major clue that you are dealing with a credit repair scam.

Be careful; be vigilant.  And, remember… you should never enter into any kind of credit negotiations that are not directly between you and your lender.

Many people are under the impression that just because they have credit debt or a bad credit score they can’t get a new card.  However, nothing could be more untrue.  Applying for credit isn’t only an option available to people with good credit scores.  You, too, can be applying for credit, no matter what your score is.

Really? Me?

Yes!  Now, of course, we can’t guarantee that you’ll get a line of credit, but it is possible for many people in tough situations.  Here are a few things to think about.

Is your credit score not an honest reflection of you?  Is there a story behind your credit debt that could change the way you’re perceived by lenders?  If so, formulate that story.  Pull together the facts and all the evidence you can find.  Now, share that story with your potential creditors.  You might be surprised to find out that people are people, and your story can find an audience.

Also, when you display yourself as a put-together candidate, you greatly increase your success at applying for credit!  While that credit score is important, lending institutions know that people do change.  If you can demonstrate a positive change in your life and practices (and your credits score hasn’t caught up to reflect that change), then let your would-be lending institution know!

Lastly, don’t forget that you can always opt for a secured credit card.  While this isn’t the most ideal way to get credit, it is an option.  And, showing your responsibility with a secured card can expedite the process of getting a “real” credit card.

Don’t let credit debt hold you back from applying for credit!  Put on your best face, and go out there and win your case with lending institutions!

If you’re going through tough financial times, it might seem like applying for credit is just too difficult.  However, when you know a few tips and tricks, you’ll find that it’s not too hard to get the credit you need.  While you should always be a responsible borrower (which might include debt negotiation), applying for credit can be the lifeline that gets you back on track.

Tips and Tricks

Firstly, it’s important to remember that you should never apply for/use credit if you’re planning to file for bankruptcy.  If you use credit within the 90 days leading up to your bankruptcy case, that debt will not be discharged.  So, if you’re worried that you might have to file for bankruptcy in the near future, then you should be especially judicious about your use of credit!

If, however, bankruptcy is not a concern and you just need some credit to make it to the next month, then visit your local bank to see what kind of loan they can extend to you.  Also, you should check out your local credit union.

If you are having trouble with the debt you already carry, you might also be able to go over some debt negotiation strategies with your lending institution.

Should your credit situation deter banks and credit unions from providing you a loan, you can always visit a payday loan lender.  Though these places aren’t a first choice, they can still be good ways to find that extra cash!

Applying for credit shouldn’t be overly difficult.  When you look thoroughly, you will find a lender!

For many who have recently turned 18, the world is now full of opportunities that weren’t there before.  But instead of buying lottery tickets or nonessentials, why not take advantage of the credit that is now available to you?  Using credit responsibly at your age can build good practices now that will keep you away from credit debt in the future.  Also, it will make life easier for you when you need to obtain serious credit later on down the road.

What You Can Do

The most important credit tips we can give you all relate to responsibility.  Never do anything that makes you uncomfortable; never compromise your financial security with your use of credit.

That being said, get a credit card.  Something simple, no-frills, with a small line of credit will do.  If you have never had a line of credit before, that’s all you will be eligible for anyway.  Now, use this card a few times a month, and wait until the end of the month to pay off the balance.

Simple, right?  By using this card, you demonstrate to creditors that you are a responsible, trustworthy borrower.  Before long, you’ll be getting offers for cards that actually pay you.  Just be sure you pay off the cards every month!

When you use credit responsibly and establish a good credit score, you develop practices that will keep you out of credit debt].  You also will find it easier to get a mortgage, lower interest rates, and better payment plans for those big loans you might need later on in life!

If you found this post helpful, send it along to the teenagers and college students you care about!

When going through a divorce, there are a lot of concerns involved.  If you and your spouse have joint credit debt or loans, things can get particularly messy.  Not only are you splitting up possessions and joint assets, but you have credit debt to deal with on top of everything.

Protecting Your Credit Score

As you go through your divorce and come out on the other end, you need to be prepared for an adverse effect on your credit score.  While divorce itself shouldn’t affect your credit score, the loan modifications and new lines of credit that you might be forced to open can affect your credit score.  Being aware of this is essential.

If the damage done to your credit score is unavoidable, at least you can start work immediately on repairing it.  Of course, the first thing you want to do is eliminate all credit debt that is in your name.  Once you’ve eliminated your credit debt, you’ll be well on your way to preparing your credit score.

If you still have joint debt after the divorce, make sure your ex-spouse is on the same page with you when it comes to paying off that debt.  Even if you make your payments in full and on time, your ex-spouse’s failure to do so can hurt your credit score.

Next, don’t be too eager to close multiple lines of credit.  Closing lines of credit affects your credit score adversely, and throws up red flags for creditors.  Keep the credit lines open and available, even if you aren’t using them.

Acting immediately is key to recovering your credit score after divorce.

We hear it all the time: “I don’t want to get into credit debt, so I haven’t signed up for a credit card.”  We can’t stress enough how inaccurate this statement is.  If you are truly so irresponsible that you’re worried about racking up large amounts of credit debt with a credit card, then sure, by all means, avoid them.  However, most adults should be able to spend responsibly.

Use Credit Like Debit

If you took a class in Credit Tips 101, you’d learn on the first day that everyone can benefit from having a good credit score.  Whether you want to buy a home or need an emergency loan later on in life, having a good credit score can make things easier for you.  However, you don’t simply get a good credit score by being responsible with you money.  You have to apply for a line of credit, receive the line, use it, and pay it back on time.

The easiest way to get going in this process is by applying for a first-time user credit card.  When you use your new credit card like a debit card, you’ll develop a good credit score and stay out of credit debt.

We think this is one of the most important credit tips we can share with you.  Starting this process early in your life can make things a lot easier later on down the road.  However, it is essential that you treat the credit card like a debit card!  Make your payments on time, every time, and you’ll be on your way to establishing a terrific credit score that can work for you in the future!