Business Credit Card

Are you wanting to apply for a new credit card but feeling hesitant to perform the credit card application online? If so, you need not be concerned. Advances in the technology of secure e-commerce have made online credit card applications literally safer than filling out a paper application and mailing it through the US Postal Service. Here s why.

SSL Technology

First, banking institutions that offer online credit card applications use the most up-to-date technology to ensure that their web sites are protected against intrusion and data theft. This technology is known as SSL, which stands for Secure Sockets Layer, a transmission protocol that encrypts any data sent between the bank and your computer, such as all the personal information you need to fill out when applying for a credit card.

Encryption

What exactly is encryption? It is a sophisticated mathematical process that disguises data by altering the bits of information in ways that are undecipherable to others. You have probably done encryption in your childhood days when you sent messages to friends in school using a secret language such as reversing the alphabet, so that A meant Z, and Z meant A. That early game was actually a form of encryption.

In the early days of the Internet, encryption used 40-bits, which meant that a character of data could be transformed into another character in any one of 2 to the 40th power ways, which is approximately 1 trillion ways. But as large as that number is, computer security experts realized that people, including criminals, who had access to very powerful computers could crack 40-bit encryption in a short period of time, ranging from a few days to a few seconds depending on the power of their computers.

Therefore, in the late 1990s, a much more powerful type of encryption was introduced using 128 bits. This means that each character of data can be altered in any of 2 to the 128th power ways, a code which represents an astronomical number of possible variations that would take on the order of 20,000 years to break using today s fastest computers. The use of 128-bit encryption has thus completely altered the safety of data.

Two Encryption Keys Required

Furthermore, today s encryption methods use what is called the two-key algorithm whereby the sending computer and the receiving computer use both a public key and a private key to encrypt and then decrypt any data exchanged between them. The process is complex to explain, but suffice it to say that the two-key approach makes it impossible for all intents and purposes for an outside party such as a criminal to capture and interpret any data transmitted between two computers over an Internet site using SSL technology because the criminals will not have both keys.

Online Credit Card Applications - No Safer Method

In short, SSL technology virtually guarantees that if you fill out a credit card application over the Internet using a bank s secure application page, all your personal information can never be stolen or broken into.

Compare this to a paper credit card application which you send via the US Post Office. Think about how many mailboxes are broken into each year and how many pieces of mail are somehow lost and you will now realize that applying for a credit card over the Internet is actually the most secure method you can find.

So if you want or need a new credit card in order to expand your credit capabilities or to get bonus points or travel rewards, the best thing to do is to go to one of the web sites that allows you to compare credit card offers, then click through to the secure web site for the bank you choose to fill out their online credit card application. You will also benefit from this because your application will be processed within minutes and you can often get an immediate approval rather than waiting weeks as you do when you mail in a paper application.

All in all, rest assured that computer security experts are working hard to protect consumers from crime and identity theft as Internet banking, e-commerce, and credit card payments are increasingly processed online.

By Ed Vegliante

Labels: applications, credit card, online

If you ve done any searching on the Internet for information pertaining to Credit Repair, you ve no doubt found that there s a great deal available. Unfortunately, there s also a lot of misinformation as well.

Let s take a look at some of the most common misstatements you ll come across and examine them in detail.

MYTH #1

Credit repair doesn't work!

While it s true that credit repair is more art than science that s not to say it doesn t work. If you undertake to repair your bad credit score, there s never any guarantee you can restore it to perfect status. But sometimes you can, and in almost every case you can at least affect some improvement in your credit score, and often major improvement at that!

First of all, credit reports for the most part are filled with errors. While there seems to be no general agreement, it s estimated that anywhere from 1/3 (Attorney General of NY) to as many as 90% (Charles Givens Organization) of credit reports contain errors.

Removal of erroneous negative information alone will go a great way toward improving your credit score. But there s more to the story, which brings us to myth #2.

MYTH #2

Negative information that can be verified cannot be removed

This is one of those statements that are almost true, but taken literally is misleading. As is often the case, the inclusion (or exclusion) of one seemingly small word makes the difference in a truthful statement, and one that s not (or not necessarily) accurate.

Let s take an analogy. Suppose it s the middle of summer, and your grass has grown unusually high. Let s also suppose that you own a lawn mower, it s in good working condition, and has plenty of gasoline in the tank.

Now let s say that you re sitting on your couch and say to yourself My grass will get cut today because I CAN go outdoors anytime and cut it.

So will your grass get cut? Not necessarily! Just because you can go outdoors and cut your grass doesn t mean it s going to get done. You can repeat this statement to yourself all day long, but your grass isn t going to get cut until you actually go outside and DO it!

Likewise, because a negative item on your credit report can be verified doesn t mean it will be. According to the Fair Credit Reporting Act, a credit bureau must investigate and verify within a reasonable period of time any item in your credit report that you dispute. If the information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information.

Now in this context can be verified clearly means verified by the credit bureau s investigation of the item, and the reasonable period of time has been established (by subsequent rulings) to be 30 days. So if the credit bureau doesn t complete its investigation of the disputed information within 30 days, or if for some reason the creditor fails to respond and verify the information, by law the disputed data must be deleted from your credit file.

MYTH #3

Credit repair agencies are all scams

It s true that there ARE a good many unscrupulous credit repair agencies. But there are also some corrupt police officers, lawyers, and politicians. Yet we don t label all members of these professions as corrupt.

If you re looking for help to repair your bad credit you do need to be careful and do your homework when selecting an agency. There are many honest credit repair companies that are not scams. But beware of any who make promises as to results!

As stated above, it s not always possible to restore your bad credit history to perfect status, and no one should be making any promises to that effect. Beware of any company that does! And while an agency will in all likelihood be able to improve your credit score, if any agency makes this promise, be sure it s accompanied by a money back guarantee. Otherwise, look elsewhere. And don t forget to ask for references and follow up on them.

MYTH #4

You have to hire a credit repair agency or lawyer to fix your credit

Going back to the analogy above, you can always hire someone else to cut your grass (or to do just about anything else) for your. And if fixing your own credit seems an intimidating task, you might prefer to hire a credit repair company to do it.

But it s not really necessary that you do. First of all, credit repair agencies aren t cheap. You can expect to pay anywhere from $2,500 to $5,000 or more. Plus, you ll be paying a high fee for something you can just as well do for yourself, which brings us to myth #5.

MYTH #5

It s too difficult or complicated to fix your own credit

A credit repair company isn t going to do anything for you that you can t do for yourself! Credit repair isn t rocket science. It involves writing letters to credit bureaus and to creditors. If you re able to write a letter, put a stamp on it and mail it, you re able to repair your own credit.

Given the proper knowledge, you can fix your own credit

This statement IS true! You re entirely able to repair your own credit, given the proper knowledge. And given the proper knowledge, you can fix your own car, repair your own plumbing, or for that matter perform brain surgery.

While fixing your own credit is relatively simple and straightforward, you do have to know how to go about it. Essentially it involves getting a copy of your credit report and writing letters to the 3 major credit bureaus disputing negative information in your file.

But there s a right way and a wrong way to do it. In fact even some of the high priced credit repair agencies get it wrong, which brings us to myth #6.

MYTH #6

You improve your credit score by getting all the negative items on your credit report removed

It s possible to get all the negative items on your credit report removed and actually see you credit score go DOWN as a result! The reason? Your credit score depends on a number of factors, one of which is the length of your credit history. In some cases, you re better off to NOT remove some negative items on your report, especially if they involve a few late payments in the distant past, but show timely payments during recent years.

While the nuts and bolts of credit repair is beyond the scope of this report, there are a number of sources of good information online. If you have bad credit, there are 3 major points you should keep in mind:

1. If you have a bad credit history, it can (and probably will) cost you many tens of thousands of dollars in higher loan interest over the years, as you ll be charged much higher rates than you would be with good credit. If your credit is really bad, you may not be able to get a loan at all!

2. The situation isn t hopeless! In almost every case you CAN improve your credit score. You can easily do it yourself or find a reputable agency to do it for you. But in any case, GET IT DONE!

3. If you choose to repair your own credit (recommended) there are good books and eBooks available that can walk through the process. Get hold of one and get started NOW!

By: Jim Eastman

Labels: credit, myths, repair

If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment.

Nasty as it may be, the practice of cutting credit lines below the balance is legal -- at least, for now, says Chi Chi Wu, a staff attorney for the National Consumer Law Center, a consumer advocacy group. Federal Reserve rules requiring lenders to give cardholders 45 days notice before reducing a credit line to the point that it would trigger penalties won't go into effect until July 2010. "[Until] then, there are no federal protections," says Wu.

Congress is also hoping to rein in unscrupulous credit-card practices. In February, Sen. Chris Dodd (D., Conn.), chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, reintroduced the Credit CARD Act, which among other things, offers cardholder protections like the ability to pay under the existing terms if an account is closed and requiring issuers to lower penalty rates within six months once a cardholder gets back on track with payments. Earlier this month, the House Committee on Financial Services chairman Barney Frank, announced a series of four hearings that will include discussions about credit card reform.

SmartMoney.com contacted both committees to see if they were aware of issuers' practice of cutting credit lines below balances, and if they planned to address it in upcoming hearings. Neither responded to requests for comment.

The motivation among issuers to make such deep cuts that they plunge below a cardholder's balance amount isn't very clear. Usually, issuers cut credit lines to reduce outstanding liabilities -- they sometimes may even chase the balance on riskier accounts with further limit cuts as cardholders pay down debts, explains Bill Carcache, an analyst with investment bank Fox-Pitt Kelton. But cutting below the balance doesn't reduce an issuer's liability: The cardholder still owes the outstanding debt.

One possibility is that this is yet another attempt by card issuers to get consumers to close their accounts (while bringing in a little fee income in the short term), says Dennis Moroney, research director and senior analyst for consulting firm Tower Group. "I can't rationalize in my mind what other motivation there would be," he says.

Paul Pensabene of Saratoga Springs, N.Y., received a statement from HSBC on Dec. 8 that said he had a $359.99 balance and remaining available credit of $8,640. But when he went online to pay the bill several days later, his online account showed that same balance put him over his newly-reduced credit line of $300. And that didn't include the $35 over-limit fee. Pensabene grappled with customer service until they agreed to remove the fee, and then paid the balance in full. "All I could think was, 'Good lord, what if this is happening to someone that couldn't pay their balance off in one shot?" he says. "They'd end up in default with these fees piling up."

HSBC declined to comment on individual cardholder accounts. Spokeswoman Cindy Savio says the issuer has tightened its credit standards based on the economy. "As we have previously stated, in an effort to reduce credit risk and refine strategies for our card business, we have tightened credit standards, reduced or canceled higher risk credit lines, and closed a number of inactive accounts," she says.

While the fees, frozen accounts and default interest rates resulting from credit-line cuts can sting your finances, they can do some serious long-term damage to your credit score. Your credit utilization ratio -- the total amount of debt you owe in relation to the amount of credit available to you -- accounts for roughly 30% of your score. A credit line cut has the potential to decrease your score by 50 points or more if you don't have much other available credit, says Craig Watts, spokesman for FICO, the company that calculates and issues the credit score that most lenders use.

Even cuts that are close to the balance have the potential to devastate if they're not caught quickly. Luckily for Carol Gressett of Decatur, Miss., she noticed the reduction in her Discover-branded Sam's Club card limit just days after it happened. The limit was cut to within $100 of her $3,000 balance. The official letter notifying her of the reduction arrived three weeks later. "We could easily have gone over if I hadn't been paying attention," she says.

(A Discover spokesperson says GE Money issues the cards, and so is responsible for managing credit lines. GE Money did not respond to requests for comment.)

By Kelli B. Grant

Labels: business credit, card, cards, credit, limit

Deciding to apply for a credit card is not a decision you should take lightly. Many stores try to get you to impulsively apply at the register, and you should never agree. Credit cards can affect your financial situation for years so you should certainly think before you act. If you want to apply for a credit card, there are a few steps you should take beforehand.

Evaluation

Before you apply for a credit card, you should do an evaluation of your finances. Get a free credit report and make sure everything is accurate. You will want to know what your credit score is so you will know which cards to look at when you apply for a credit card. If there is anything unusual or incorrect on your credit report, deal with it immediately. Many people never look at their credit report, and therefore have no idea what may or may not be on it. It is important to clear up anything incorrect on your credit report before you apply for a credit card.

Research

After getting everything strait with your credit report, you should begin researching. Research cards that fit your credit score. Make a list of important characteristics you want in a credit card. Look for the best deals in several areas. Before you apply for a credit card, you should make sure you understand everything about the card and the company's policies. Look at the interest rates, rewards programs, and other characteristics.

Be wary of great introductory offers. When you apply for a credit card, many companies will offer you fantastic introductory deals. It is great to take advantage of these deals, however you should be sure that the terms won't change unexpectedly after the introductory offer time period is over. For example, you will need to know what the interest rate will be after the offer before you apply for a credit card.

Conclusion

Once you find several credit cards with terms that you understand and like, categorize them by your choice. Apply to one at a time. If you only need one card and apply to three, you run the chance of getting approved for all three. This will not only reflect on your credit report, but also give you the inconvenience of canceling two of them. So, be patient and wait for a response.

When you apply for a credit card, you are vowing that you will be responsible financially. Deciding to apply for a credit card means that you know you will be able to pay the balance off in a timely manner. If you are not sure of your ability to pay, you should never apply for a credit card. Be responsible, examine, and research before applying!

By Morgan Hamilton

Labels: apply, card, credit, how, tips

If you're like a lot of folks, you may have recently received a "Dear Valued Customer" letter in the mail from your credit card company. No, you aren't being fired, but it might feel like it.

If you have an affiliate card issued through one of the big banks, it starts like this: "This challenging business climate has led Citibank, the issuer of XYZ Gold MasterCard....to notify us [that] they are making changes to the terms of many Citibank credit card offerings ... including the XYZ MasterCard product."

Uh-oh. Here it comes.

The enclosed material, one of those multi-page, fine-print deals, starts off with "the Changes." It tells you that the APR, minimum-finance charges, transaction fees for foreign purchases, and "other fees" have changed, and that "supplemental pricing information" appears in "your new card agreement [which] follows this notice."

Changed from what to what? Unless you have the last version of this document handy, you probably won't know. Like too many things in personal finance, you don't know what you don't know.

You'll find a lot of these changes these days. First, because of the banking crisis, cash-strapped banks are scrounging for cash wherever they can. Second, new federal legislation that takes effect in 2010 bans universal default, double-cycle billing, and a host of other evils. That's the good news. The bad: This is driving banks to get ahead of the potential $12 billion in lost revenue.

So here's what to do:

Call an agent: Pick up the phone immediately and find a live agent willing to explain the changes.

Get a comparison: Have the agent clarify what changed, not just what your card's terms are today or after the change. If your effective APR went from "prime plus 14.08%" to "prime plus 17.99%," have them explain that and also what the resulting rate actually is. For any changed fees, ask them what the new and old fees are. Have them do an example if necessary to illustrate total cost.

Be persistent: When they're done, ask if there's anything else you should know. I found out that the "penalty period" for the higher default APR if you miss a payment had increased from six months to 12 months. Hard to find in the fine print, and it didn't come with the first explanation.

Pay your balances in full and on time: The adverse changes only applied to balances carried and/or a late payment; if you pay in full and on time you won't be affected. You might consider setting up auto-pay to avoid late payments.

Ask for the good news. These changes all sound like a takeaway; less benefit, more cost. However, the issuer may also offer attractive balance transfers, five months for 1.99% with a 3% transfer fee or 3.99% for 10 months. Some issuers may offer other benefits anticipating negative customer reactions from changes in terms.

Protecting what you have and tracking changes in terms are important in managing your credit and your finances in general. And incidentally, the banks and card issuers that do these changes well -- raising cash without angering customers -- stand to come out ahead.

Jennifer Openshaw, author of " The Millionaire Zone," is co-founder and president of WeSeed, whose mission is to enable people to discover the stock market in their everyday lives through their passions, their jobs and the brands they know and love. She's been seen on Oprah, Dr. Phil, The Today Show, CNN, CNBC, and Nightline. You can find her on Twitter @jopenshaw or on Facebook.

Source by MarketWatch http://finance.yahoo.com/banking-budgeting/article/106702/The-15-Minute-Tip-Fine-Print-Pitfalls

When the problems are numerous, friends are few. These words are very apt when it comes to the situation of bad credit. Fulfilling your cash needs when having a bad credit history, it may be difficult to get the support you want. Getting external help will still suit you as the money is available without any hassle through bad credit loans.

The borrowers who have a credit score which is lower than 580 in the FICO report may be suffering from this problem due to various factors. It can be arrears, defaults, missed repayments or CCJs that have caused this problem. But the borrowers still deserve a chance to avail these loans for their needs.

Through these loans, the borrowers can choose whichever option that they like out of the secured and the unsecured form, according to suitability. The loan form also depends upon the ability of the borrower to pledge collateral with the lender for the money. If a bigger amount is required by the borrowers, they can take up the secured form by pledging an asset with the lenders. Amounts can be borrowed within the range of £5000-£75000 for a term of 5-25 years. The home, car or any asset of the borrower can be pledged as collateral.

Borrowers who need smaller amount can also take up money and that too without pledging any assets. This is possible through unsecured form of these loans. Money that is obtainable by the borrowers lies in the range of £1000-£25000 and has to be repaid in a term of 6 months to 10 years. Tenants and non-homeowners can also take up these loans for their needs easily.

Adverse credit history of borrowers may entail a higher rate of interest. But with the help of online research and comparison, the borrowers can take up low rate deals with the help of comparison of the loan quotes easily.

Bad credit loans are a great opportunity for the borrowers to avail money at the most needful times. It is a great respite for borrowers stuck in bad credit.

By Simon Tauffel

Labels: bad credit, loans

Some credit cardholders had a rough ride in 2008. As banks grappled with rising charge-offs and default rates, many reined in risk by restricting access to credit and adjusting existing accounts.

In fact, about 60 percent of domestic banks say they tightened lending standards on credit cards during the previous three months, according to the October senior loan officer survey from the Federal Reserve.

Unfortunately, the credit forecast is mixed. For 2009, experts predict mostly cloudy skies with a chance of silver lining.

Keith Leggett, senior economist with the American Bankers Association, says that "2009 is not going to a pretty year." With the unemployment rate expected to rise, he believes issuers will remain risk-averse.

"I think what you're going to see (are) tighter standards being applied to get new credit," Leggett says. "You will see lenders continuing to scale back their exposure to existing lines of credit."

Expectations

Here's a look at what experts say is coming and what you should do about it.

1. Minimum credit scores will rise

"Underwriting is a moving target," says Curtis Arnold, founder of CardRatings.com. A year ago, Arnold said consumers needed FICO scores of 700 or better to get the best credit card rates and limits; now he says 730 is the minimum. "That target is going to continue to change and tick up going into the first half of next year."

At the lower end of the spectrum, "folks that may have qualified this year or last year for a subprime card with a 575 or 600, this time next year may not qualify for a card at all."

According to the Federal Reserve's senior loan officer survey, about 50 percent of domestic banks indicated they had raised the minimum credit score needed for credit cards, and nearly 60 percent approved fewer applications for people who didn't satisfy the credit scoring requirement.

Your best money move: Take steps to improve your credit score. Check your free credit reports at www.annualcreditreport.com and dispute errors that may be weighing down your score. Apply for credit only as needed.

2. Reform measures coming

The Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration issued credit card reforms in late December that take effect in July 2010. The regulations crack down on universal default, double-cycle billing and hiking rates on existing balances.

President-elect Barack Obama also has made reforms part of his agenda, and there are bills pending in Congress.

Arnold fears that such added regulation may bring about the end of zero-percent balance transfer offers and teaser rates on credit cards if issuers react by making credit more expensive for everyone.

Promotional offers already aren't as generous as they were a year ago. "I'm predicting in 2009 that this trend will continue, and it could exacerbate to the point that we just never see any zero-percent offers anymore, for example," Arnold says.

We also may see some fees change and new ones implemented under the new regulations, says Ken Paterson, director of the Credit Advisory Service at Mercator Advisory Group, a research firm for the consumer payments industry in Maynard, Mass.

Your best money move: If promotional offers do go extinct, Arnold suggests trying balance transfer cards that offer a low rate for the life of the loan. Another option is getting a card from a smaller bank or credit union, which tend to offer more consumer-friendly terms. Use our comparison tool to find the best credit card.

3. A sustained squeeze on existing cardholders

"I think credit lines are going to continue to be cut," Arnold says. "I think that's a trend that's going to continue as issuers try to hedge their risk." He predicts that issuers also will keep raising rates, closing unused accounts and increasing underwriting standards.

As of Nov. 19, the average interest rate charged on all cards was 12 percent for fixed-rate cards and 11.27 percent for all cards. However, banks aren't hesitating to raise rates on people with imperfect credit. Major card issuers indicated to Bankrate in October that they are placing applications and existing accounts under heavier scrutiny for risk and closing inactive accounts deemed too risky.

About 60 percent of U.S. banks reported slashing lines for nonprime borrowers during the past three months, and 20 percent reduced limits for prime cardholders, according to the senior loan officer survey.

Having lower credit limits can make cardholders appear closer to being maxed out because the balance uses up more of the available credit. The result can be a lower credit score, which can invite changes to other accounts and make loans more expensive.

On a positive note, smaller credit lines may help curtail spending temptations.

Your best money move: Don't invite scrutiny. Pay on time, reduce debt and keep statement balances below 30 percent of the credit limit. Use emergency-only cards once every six months to keep them active, and pay them off. Read every mailing from your issuer and complain if you notice an adverse adjustment. If you plan to retaliate by closing an account, understand what canceling a card does to your credit score.

4. Rewards programs may be scaled back

While rewards programs are expected to stick around, issuers may scale back rebates to consumers if legislation passes that would reduce interchange fees collected on transactions. Interchange fees are paid by a merchant's bank to a customer's bank when someone uses a payment card. They help fund the rewards programs of card issuers.

"I do think there's going to be some tinkering around the promotional categories, maybe scaling back on some of the cash-back categories where, say, gasoline or some other purchase has been incented higher," Paterson says.

He says the worst-case scenario would be a situation where issuers start devaluing points, just like airline rewards programs have done with miles. Consumers would have to spend more to earn the same rewards. But it's too early to tell whether that will happen with non-airline rewards cards.

Your best money move: If you have points or miles you can cash in, do so sooner rather later. As a consumer, you have little recourse if the issuer decides to abolish the rewards program or change the terms.

5. Fewer direct mail solicitations

Consumers are expected to have received 1 billion fewer credit card solicitations this year than in 2007, according to projections from Mail Monitor, a credit card acquisition tracking service from Synovate, the market research arm of Aegis Group PLC.

Happily for consumers who find themselves annoyed or tempted by credit card offers, economist Leggett expects the downward trend to continue. "This is not the right time to be going out aggressively pursuing customers," he says.

As many as 70 percent of issuers are scaling back efforts to acquire cardholders, according to a July 2008 report from Javelin Strategy & Research in Pleasanton, Calif.

Consumers still might get offers from banks where they already have accounts.

Paterson speculates that banking relationships may take "a more important role in securing credit cards." Banks have more information on existing customers and may be more willing to extend credit to them.

Banks already are stepping up efforts to communicate with their customer base, albeit for other reasons. They sent 42 percent more direct-mail solicitations to their customers in the third quarter of 2008 versus the second quarter, according to a report from Chicago-based Mintel Comperemedia.

Your best money move: If you don't want to receive credit card offers, opt out of them at OptOutPrescreen.com. You can opt out for five years, or permanently if you mail in a form.

Other smart moves

• Build a savings cushion. Financial crises happen. Don't let a job loss or vehicular breakdown send you reaching for your credit cards. They're an expensive way to finance emergencies, and issuers may penalize you for piling on thousands of dollars in debt all of a sudden.
  Pad your safety cushion by saving three to six months' worth of living expenses in a liquid savings account. If that goal sounds unrealistic, try this suggestion: "Start by socking away 10 percent of each paycheck. You'll really never miss it, and yet at the end of a year you'll have a little more than one month's income in the bank," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, or NFCC, in Silver Spring, Md.
  
• Don't wait to get help. If you are falling behind on your payments, get help sooner rather than later.
  
  A temporary financial problem, such as a job loss, is a good reason to contact your issuer if you're struggling to make payments. Most have in-house help programs that can lower your interest rate or waive fees for a short period of time, usually three to six months.
  
  Cunningham says that if consumers are experiencing a long-term financial problem, such as a divorce or major medical expense, they might want to contact a credit counseling agency for help. Visit the NFCC's Web site to find a counselor.

Source by Leslie McFadden http://finance.yahoo.com/news/5-smart-creditcard-moves-in-brn-14081638.html

Labels: counseling, credit card, smart