Travelling for Free With Credit Cards

Internet savvy travelers, sometimes called travel hackers, who are willing to do a little online research are able to get airline tickets at a greatly reduced cost or even for free. By applying a few simple techniques used by experienced travel hackers, almost any traveler can get airline tickets at prices that will make traveling by air a pleasurable experience. A relatively simple way to get airline tickets for free is through promotions on credit cards, especially airline credit cards.

Most modern travelers already participate in a form of travel hacking when they visit online reservation sites such as priceline.com or orbitz.com. By using aggregate sites like these to compare prices, travelers can reduce the cost of their airline tickets by twenty five percent or more. Experienced travel hackers take the concept of reduced prices a step further by seeking ways to get an airline ticket for free.

Finance companies are constantly seeking out new credit worthy applicants by offering marketing promotions such as zero or low interest rates for the first year, no annual fees, or even free frequent flyer miles. A simple search on Google for "credit card frequent flyer miles" will yield over a million results. Many of these websites will display comparisons of the various companies currently offering mile promotions. Companies typically entice new applicants by offering promotions for twenty thousand, thirty thousand, or even fifty thousand frequent flyer miles. Travelers can then use those frequent flyer miles to get free airline tickets.

When comparing credit cards for the best frequent flyer miles deal, travelers need to ask the following questions:

1) Is there an annual fee? If so, then a wise traveler may want to avoid applying for the credit card since many companies do not require an annual fee.

2) Can the frequent flyer miles be used on multiple airlines, or are the miles specific to one airline? Southwest Airlines offers a twenty five thousand frequent flyer miles promotion on its credit card, which is good for a free roundtrip flight, but the traveler is limited to Southwest Airlines.

3) What are the interest rates? Even if the card holder has good intentions to pay off a card each month, unexpected things do happen. Consequently, potential applicants may want to avoid cards with high interest rates.

4) Is there a minimum purchase requirement? Some companies require card holders to make a certain amount of purchases within a specific timeframe in order to qualify for the frequent flyer miles.

5) Last but not least, how many miles does the company offer, and does the company offer any additional ways to earn frequent flyer miles? In addition to the initial free miles, many finance companies will award the card holder with one or two miles for each dollar charged to the credit card.

Although acquiring free frequent flyer miles is enticing, a wise traveler knows that credit cards can be dangerous if used unwisely. Anything a traveler charges to a credit card must eventually be paid. A true travel hacker knows their limits and controls their spending.

Using the techniques discussed, anyone with reasonable credit has the ability to acquire enough frequent flyer miles to fly for free. Why wait? Become a true travel hacker and apply for a credit card today.

Four Credit Card Mistakes that Can Cost You Money

There are four major mistakes most people do with lines of credit that keep them from increasing their wealth. It is these four mistakes the smart wealthy do not make, which make them wealthier.  Start by checking the fine print of your offers, checking your purchases, paying down your debts, and breaking these five bad habits.

It's In the Fine Print

Credit card companies use flashy advertisements to grab your attention. In reality, the fine print notes that those rates are introductory, often ending in as little as a month or your next bill. Cash-back is also not as good as it seems, many companies use it as a marketing ploy, but the fine print usually dictates how it can be spent, and that's usually only with them and their partners. Credit card companies are not out there with your best interest at heart, they are there to make money, and lots of it. Read the fine print with scrutiny and ask:

· When do the introductory rates end?

· What are the normal rates?

· What causes rates to go up again and how much?

· Do the rates fluctuate?

· Do rates increase for late payments?

· Do rate changes depend on your credit score?

· Can they charge compound interest on late payments?

· Can they charge extra fees?

· Can they charge you for paying off your bill?

Additionally, we need to know if they charge for using the card, where they charge, and if the card is accepted only at certain stores or venues. Also, many companies charge if you do not keep a minimum debt on the card, which is a bust for those who pay off their bill each month.

Using Credit as Investment Funds

Many of us begin our credit card debt by purchasing consumables. This is the absolute worst way to waste the loan the credit card companies give us with the little card. Consumables include small purchases such as food, drinks, movies, services, and other random things which immediately lose their monetary value upon purchase.

Those who look for ways to increase their wealth use credit cards as a form of investment. They also use it as an emergency fund and only use it to buy consumables if they know for certain they can pay those off on their next bill, before they get charged interest. For the wealthy, the investment option means they use the money to generate money, thereby offsetting the interest charges.

How does that work? It's simple, by using the line of credit to purchase things that appreciate in value, or increase in value over time more than the interest rate costs them. They create an income source that also is tax free until they sell that item. Usually this amounts to antiques, rare cars, properties, and business investments.

Credit cards are not free money. This is a loan from a business to you. If you do plan to use it for everyday expenses, be forewarned. Only do this if you have the cash in your bank account to pay off the purchases before the next bill in order to earn points or other rewards. And check the fine print, so see if non-carried over debt actually counts for that.

Paying Down the Debt

If you simply pay down the minimum monthly balance and let interest accrue on the remainder, you set yourself up for increasing debt. The minimum payment is only for covering the interest, thus creating an income for the credit card company.  The larger your charges are on your account, the more interest they earn from you each month.  How do we end this cycle?

1. Start by stopping credit card use. If you don't have cash for food and beverages when out, learn to make time for them at home. Which also means you will be saving money by doing so.

2. Pay down the minimum monthly payment, plus as much as you can on the bill. Can you cut some expenses over the next few months and reduce your credit card debt by half or more? Create a financial plan that enables you to do so.

3. Read the fine print on all of your current cards and calculate how much interest you are paying and how much of that interest makes up the monthly payment. Then decide if you can consolidate them into a lower-interest card, take out a lower interest loan to pay them off, or pay off smaller cards with one card to eliminate multiple  debt avenues.

4. Pay off cards with the highest interest rates first and those with the highest balance second. Work to eliminate as many credit cards as possible from your debt and wallet. Eliminate any cards which have hidden fees, monthly charges, or fluctuating interest rates. The remaining cards should be used for a) emergencies only [like breaking down and needing a tow truck, or emergency medical care], and b) investment purchases.

Five Mistakes Never to Make with Credit Cards

These five mistakes are what separate the middle class and wealthy from the broke and barely surviving financially. Making them, especially repeatedly, will end us up in a mess of financial trouble that results in the inability to get an apartment, buy a house, lease or buy a car, get insurance, and sometimes, even be denied certain jobs.

1. Using Cards with fluctuating interest rates

2. Using cards with monthly charges

3. Using cards to buy consumables

4. Paying the monthly minimum balance, late payments, or skipping payments

5. Allowing non-investment debt to increase monthly

By being smart with our borrowed money we can improve our chances of financial success, our credit score, and our purchasing power. Thinking like a rich person when it comes to credit card debts and other loans may not make us rich or famous, but it will increase our personal financial wealth. The feeling of empowerment that comes from being debt free is amazing, it boost our self-confidence and our bank accounts. By being smart with how we use borrowed money, we will work to earn, not work to earn money for our debtors.

An Online Cash Advance Does Not Discriminate Against Poor Credit

Pay for a cash advance is one expense, but to pay to look at your credit score is outrageous. There are many web sites which will provide access to credit scores after the credit card information has been processed. It sounds like a good deal until you forget to cancel your membership. It may take months before you remember and until then, you will have paid the fees for a service you do not use.

Many websites have names similar to the actual free site the credit bureaus offer. A consumer, who is not educated on the free site, would not know better and move forward with entering credit card information. These companies are hoping for that to happen and that you will forget to cancel your membership. It will give you access to your credit scores as promised, but the free site provided by the credit bureaus will as well.

A credit score is a guide not a guarantee or promise. The online cash advance industry knows that credit scores represent many years of managing money. it does not reflect on what is happening now which is exactly what the cash advance industry is looking for.

Each of the three credit bureaus offer one free credit score check every twelve months. If you stagger them (one every four months), you can check your report three times a year by rotating which one you pull. People put so much emphasis on credit reports that the whole picture gets overlooked.

Credit scores vary. Pull all three reports and you will find yourself with three different scores. your scores can be affected by errors, identity theft and if you had to go through a bad time. The reports are made by the creditors each month and they stay on your credit for seven years. If you had a period of time in your life where money was tight, got divorced or lost your job, future creditors will be seeing the aftermath without knowing the cause. Unfortunately, your story is not attached to the report so when a creditor looks at your history and sees unpaid debt or multiple late notices they will tend to think you are not credit worthy.

This is one reason so many people have turned to applying for cash advances and other short-term money options. Because these loans are no credit check and provide fast cash, those with a poor credit history can still find relief with struggling budgets. As horrible as these loans can be for some financial situations, they tend to get overused as the one of the only options available.

Financial vulnerability has promoted the short-term loan industry into the forefront. Applications for cash advances online and payday loans as well have increased in the past few years. Responsible lenders would not promote their loans to those who cannot afford to pay it back or to use them towards outstanding debt.

Steps to Take If Sued by a Credit Card Company

When you sign up for a credit card, you agree that it is your responsibility to pay for your balances each month. Consequently, you accept that the card issuer or the company has the right to sue you in case you don't follow the agreement. Credit cards are merely a way to pay for purchases; thus, they are not free money. Once you stop making payments, the card issuer may take legal steps to get back what they rightfully own.

If your creditor has taken legal action against you, doing the following steps may help:

Step 1: Evaluate

Some lawsuits are incorrectly filed. If you did not incur the charges made against you, you can file a dispute. This usually happens when you are a victim of identity theft. Most people are not even aware that their identity is being utilized by other persons. If this is what happened to you, you can contact the card issuer, the Federal Trade Commission, and the law enforcement to formally report the incident.

Step 2: Respond

If the charge against you is accurate, you may have to explain yourself to the creditor. One of the first things that card companies do is inform you that they have decided to sue you. When you receive the notification, you should acknowledge it by responding to the letter. The biggest mistake here is to think that the lawsuit will simply go away if you ignore it.

Step 3: Seek Help

You can hire a lawyer if you believe that you cannot face the situation alone. It is understandable that you may not have enough money to pay for the legal counsel. Fortunately, there are free attorneys that can aid you during such situations. Your lawyer can even provide assistance so you can make the right decisions regarding your current financial state.

Step 4: Educate Yourself

Even if you are sued by your creditor, you still have your rights against harassment and lawsuits. According to the Fair Debt Collection Practices Act or FDCPA, the creditor does not have the right to pursue you in the form of threats and even foul words.

Step 5: Appear

Don't ever miss a hearing. The judge may automatically side with the creditor if you don't show up when summoned.

Step 6: Negotiate

You can minimize the damage if you get to talk to your creditor. Believe it or not, card companies are actually more interested in the repayment than the lawsuit. You or your lawyer can negotiate with the creditor. You can offer a payment schedule and a monthly amount that you are comfortable with. If successful, you need to abide by the payment structure; otherwise, the company may resume the lawsuit if you miss repayments once again.

When a credit card company sues you for non-repayment, this does not mean that you will be arrested for it. However, a judgment may be performed against you, which will stay in your credit report for about seven years. This is where you can be arrested, specifically if you violate the judgment.

How to Read Your Credit Report?

Bad Credit can be depressing. The key is to take action. Even if you are down to a 500 credit score, understanding your starting point is a good first step toward raising your score.

Start by getting a copy of your reports. Credit scores are based on the information on file with the big three credit bureaus: Equifax, Experian and TransUnion. Every year, every consumer is entitled to a free report from the government operated site AnnualCreditReport.com. After your first report, you can purchase additional ones directly from the bureaus and resellers like myFICO. You are not penalized for pulling your own credit report.

Once you get a report, you will see it has several sections. It starts with Identifying Information:

Name - includes all variations under which you are known ("Robert", "Bob", "Bobby"), your Maiden Name, if applicable, even misspellings of your name during credit checks. Make sure these are names that apply to you

Current Address

Previous Addresses

Social Security Number

Date of Birth

Telephone Numbers

Drivers License Numbers

Spouse's Name (if applicable)

Current Employer

Former Employers

The next section is often Public Records. This is where you will find local, state and federal court action listings related to your paying, or not paying, financial obligations. Best case, this section is blank. If you are in trouble with your debts, it may not be. These are the items to tackle first if they are inaccurate as they hurt your credit score the most. Here you will find:

Bankruptcies

Tax Liens

Judgments

Wage Garnishments

Overdue Child Support

Now on to Collection Agency account information. Here you will find any accounts sent to collections in the past seven years. Usually a listing will contain:

Collection Agency's Name

Amount Owed

Contact Information

The big section is Credit Accounts or Credit History. This is where an agency will list all your current and past credit accounts that were reported to credit bureaus. Generally this covers the last 7 years. If you had a Nordstroms card where the "date of last activity" was in 1985, it has probably been dropped from the listing.

Each account listed will contain the following information:

Creditor (aka lender, credit card company, etc)

Account number

Date of account opening

Name(s) of account holders

Total amount of loan or the highest balanced ever on a card

Remaining balance

Any set monthly payments like for a mortgage

Any minimum monthly payments like for a credit card

How well you paid - two part code

So what is this code? It has two parts: whether it is I for installment or R for revolving credit. Mortgages are installment loans and credit cards are revolving credit. It's better to have more I debt than R debt for a credit score, but how you pay it off it more important than both. Some credit bureaus use M for mortgages instead of I. The second component is a number between 1 and 9. Having a 1 is best and 9 the worst. Some bureaus put a C on accounts that are current which is positive like getting a 1.

The final section is inquiries; these reflect who has requested to see your report. There are two types: hard and soft. Hard inquiries are ones you initiate by applying for loans, credit cards, auto financing, etc. Soft inquiries come from current creditors monitoring your account and companies who want to send out pre-qualified offers to individuals. Here you are looking both for inaccurate information and super high numbers of hard inquiries. If there are hard inquiries that you didn't initiate, it could be a red flag someone is trying to use your identity.

The credit industry knows there are mistakes, misinformation, and errors in these reports. Each credit bureau has a process for making corrections. You will have to contact them and provide documentation using credit dispute letters. These are simple to write. Provide copies of supporting evidence of your claims. Keep copies of everything for yourself.

Try Our Credit Repair Secret Tips

Many people don't realize that if you have got a low credit score there are some credit repair secret tips that can help you undo the damage and increase your score. Debt collectors don't really want you to know these tips otherwise they would have less work, but you do have rights and debt collectors do have rules that they have to follow.

The first step you need to take to improve your credit rating is to make sure that all the negative points on your credit report are accurate. Quite often a small mistake on a credit report is what makes a person's credit score low. Request a copy of your credit report from all the three credit bureaus and go through the reports to make sure that there are no mistakes. If you do find a mistake you will need to contact the bureau immediately and in writing so they can investigate it and fix the error. You don't want inaccurate information being the cause of your low credit score so this is the first thing you need to rule out.

When are dealing with a credit bureau you need to keep your documents and details filed of all your communications. It is best to send them a letter by certified mail and keep a copy of the letter for your own records. The credit bureaus should investigate any inaccuracies and respond within 30 days but there may be times when your case might be misplaced or they just aren't on top of everything so you should always keep your own records.

Remember also that you are not a servant working for the credit bureau; this information greatly affects many aspects of your life so you need to be assertive when dealing with the bureaus. You should still be professional and polite but don't talk to them like you are asking them to do you a favor because it is more important than that. You want a mistake corrected and you may need to be assertive to get them to do it.

By law the credit bureaus have 45 days to respond to you but there are cases where it has taken longer. The process can sometimes drag on a little so don't expect the mistake to be fixed overnight, but if it does go on too long then you need to contact them to see what the holdup is.

At some time in the future you may want to buy a new home or a new car and may need to apply for a mortgage or a loan and you may not be able to if you have a bad credit score. Don't wait until the time comes to apply for that loan before you start worrying about your credit score, by then it will take too long to get it repaired. Start repairing your credit score now so that when you do need to apply for a mortgage or loan you will be able to without worrying about a bad credit rating.

To improve your credit score, and while you are waiting for any mistakes to be fixed, start practising some good credit strategies. Start paying all your bills on time and this includes your household bills as well as loan payments and credit card payments. Late payments on your bills and loans can really affect your credit score.

If you are will to devote some time and effort into repairing your credit score then you can successfully do so. It will take time and that is probably the biggest credit repair secret tip of all. But the sooner you begin taking steps to repair your credit the sooner your score will increase and you can start enjoying the benefits of having a good credit rating.

Finance: Credit Tips

Finance: Credit Tips