4 Cool Tricks to Maximize Your Credit Card

Your credit card is an important tool when it comes to your finances. This is precisely the reason why you should try your best to make the most of its perks. You may not realize it, but there are a number of things that you can do to maximize your card’s use.

This article presents a couple of cool tips every cardholder needs to remember.

Make best use of your Billing Cycle

The way you pay your monthly bills is crucial to maximizing your card. For instance, if you settle your dues punctually and in full, then you will be able to avoid being charged with interest. This is probably the best way to use your card. This is because you are technically getting a free loan from your card provider.

Of course, there are still a couple of tricks you can do to step things up. Consider this: if you make a charge a day before your statement is closed, then that you will have around 20-25 days to settle that charge. However, making that same charge a day after the statement is closed will give you a total of at least 55 days to pay that charge. This is because that charge will be transferred to the next billing cycle.

Another important trick you need to remember is that some card providers actually allow their users to move back their due dates, thus extending their payment cycles. This can certainly help if you find yourself in a financial jam. However, you need to keep in mind that you won’t be able to this repeatedly.

Always ask to be reconsidered

If your initial credit card application was rejected, you should never hesitate to ask for reconsideration. There is always the possibility that your credit worthiness was not assessed correctly. Keep in mind that the process itself is not perfect, so mistakes are bound to happen.

Just give your card provider a quick call. Explain to them why you deserve to be approved for that particular card. If you are convincing enough, the person on the other end of the line might just give you that card you want.

Threaten a Chargeback

Asking for your money back from a merchant is often a futile effort. Fortunately, credit card users have a slight edge over people who pay with cash. As a credit cardholder, you are entitled to a chargeback option.

The chargeback option is an important trick all card owners need to remember. All you have to do is call the merchant, and ask to speak to a supervisor. Inform them that you want your money back. However, if your initial attempts at a refund are rejected, then tell them that you intend to ask for a chargeback from your card provider.

It is virtually guaranteed that the supervisor will change their mind once you threaten them with this. This is because a chargeback means increased merchant fees. They would rather give you back your money than be charged any additional fees.

Make the Most out your Reward Cards

As you may have already noticed, many reward cards rely on gimmicks to make you spend more. Do not fall for this trap. Overspending is the among worst things you can do with your credit card. Instead, you should try using these cards creatively. Earn reward points the smart way.

For instance, if you want to qualify for a sign up bonus, then try using your credit card to purchase gift cards. Just make sure that you will be using these in the future. That beings said, buy them from retailers that you visit often.

 

How to Get Approval for a Home Mortgage Loan

If you are planning to apply for a home loan, check out the following helpful tips to get your application approved.

Know Your Credit Score

Credit activity and credit scores will greatly affect your mortgage approval. Lenders usually require minimum amount of credit score that should be maintained so that your conventional mortgage loan request will not be denied.

Also, having derogatory credit information might hinder mortgage approval. To avoid unwanted denial of your requested loan, you should lower your debts, pay bills on time, and fix errors on credit reports.

Save Your Cash

Mortgage lenders require down payments which depend on the kind of loan. If you have the means, pay a higher down payment. This will lower your balance and alleviates your private mortgage insurance.

Down payment is not the only fee you should be worrying about. Acquiring a mortgage also involves home inspections, title searches, closing costs, application fees, credit report fees and other fees. Save up cash for these payable fees.

Stay at Your Job

Changes on your employment and/or income status will have a major effect on the mortgage process. The information you provided in your application will be the basis of your home loan approval. Giving up a job to be self-employed or getting a lower paying job will make a wrench in the plans, leading to a reevaluation of your finances to check if you’re still qualified for the loan.

Pay Debt & Avoid New Debt

Qualifying for a loan doesn’t require that your credit card be zero balance. But, it’s better that you owe less to your creditors. Your debts determine whether you will get a mortgage or not. Also, it will determine how much you will acquire from the lender. When you have many credit card debts which makes your debt ratio high, the lender might refuse your loan request or provide a lower mortgage.

However, even though you get approval for a mortgage with debt, it is advised that new debt should be avoided while under the mortgage process. Before the mortgage closing, lenders recheck credit and when they found out that there are new debts they can stop the closing.

Have Pre-Approval for a Mortgage

Having your home loan pre-approved will help you determine what you can afford before bidding on properties and what interest rate should you be paying on the loan.

Determine What You Can Afford

Choose a home that will fit your budget. Though some lenders pre-approved applicants for more than what they can afford, be smart, live within your means and purchase a home that you can afford.

 

Credit Repair Services Do You Really Need It

Repairing credit can be compared to losing weight, there is no quick-fix! Just as it takes time to get rid of your fat, the same goes for the negative items on your credit report. Any attempt to repair your credit quickly is more likely to backfire, than to produce any positive result. The best thing that you can do in order to rebuild your credit is to be responsible in managing it over a period of six months at the least.

You need to be responsible in managing your credit, but what if there are errors and inaccuracies in your credit report that render it negative? The worst thing about such inaccuracies is that you are at a serious disadvantage, usually through no fault of yours. Unfortunately, a study by U.S Public Interest Research revealed that 70 percent of all credit reports contain serious errors.

Fixing these errors involves a detailed legal process which consists of sending dispute letters to creditors and credit bureaus, sending reminders, studying the documentary evidence provided by creditors and bureaus, and more. Like most people, you might not have the required time and expertise to follow through on all of these processes efficiently. This is where credit repair services can help you out. Now it’s important to understand that it will not be possible to improve your credit score in a few weeks. As previously stated, this is not possible even if the negative items in your credit report are due to error.

Time taken for Credit Repair
Creditors and credit bureaus are required by law to produce original documentation in order to prove the negative items that are present on your credit report. They cannot take more than 30-45 days to do so. However, drafting and sending dispute letters may take some time as well. Some people think that it is possible for any consumer to get his or her credit score corrected without any professional help, which is true but hardly practicable.

Anyone whose credit report contains errors can try to draft their own dispute letters and send them to the concerned parties, but it is time-consuming and it takes a lot of mental effort. Unless you are ready to take this duty as seriously as you take any other professional commitment, do not even try! Hiring a reliable provider for credit repair services, which would be a company that has more than a decade of experience helping thousands of customers with unfairly negative credit reports, can help you correct your credit score without too much fuss.

Credit report repair services are particularly useful when:

— The negative items on your credit report are due to accounting, reporting or any other error committed by creditors, credit bureaus or collection agencies. Genuine errors can be struck off from the reports smoothly when you go through the proper procedures.

— The credit repair service providers are good at identifying errors that cannot be verified. By law, if any item in the report cannot be backed up by documentary evidence, it needs to be removed. This loophole can be used by credit repair companies to improve your score.

— Some lenders are willing to negotiate with credit repair representatives of their consumers. If your lender allows it, this can help you raise your credit score.

 

When Was the Last Time You Monitored Your Credit Report?

If every major financial activity of yours is summarized into a single piece of paper, it will turn out to be a very important document, right? Your Credit report is an important document and the one with a positive credit history can be an excellent financial tool. You can use it to get a loan from a bank, a credit union, a private lender or any sort of a creditor when you are in need of funding.

Did you know that 40 million Americans have a credit report that contains at least one inaccuracy? Many of these reports show big mistakes. Why should you have to pay a higher interest rate or not be able to apply for a mortgage because of an error committed by others? These are only two of the possible consequences of having a low credit score.

This is why it is important for consumers to monitor their credit report on a regular basis. If you think you don’t have an eye for detail and doubt you will be able to make out everything that is wrong with your report at just one glace, it’s best that you leave the task to professionals.

People with a low credit rating, who are wondering ‘How I can clean my credit?’, should definitely consider taking the help of credit restoration experts.
A reputed credit services company will be able to spot inaccuracies like:

Numerical errors and spelling mistakes – They may seem to be harmless at first, but these apparently simple mistakes are capable of lowering your credit score significantly. Because creditors handle several reports in a day, they are bound to get a few names or numbers wrong once in a while.

False charges – False charges can be penalties induced over late payments, debts, etc. that are not yours or that you have already made payments against. In addition, it is also possible for the report to feature someone else’s penalties by mistake.

Identity theft – Many Americans experience fraud or theft with their social security numbers, credit cards, and it impacts their credit report negatively. This is something that needs to be addressed quickly.

The three major credit bureaus in the U.S. are Experian, Equifax and TransUnion. All three are legally obligated to provide you your credit report once a year at no charge. It is advisable that you get your credit reports and check for mistakes and consistency.