Strangely enough, one of the first reasons why you were denied is also the reason why you may have been turned down for a job application, or why you got poor grades on an exam, or didn’t win some contest: You failed to follow directions.

Applicants must follow directions and fill in every blank.

The next reason is a catch-22. You may have been rejected because you don’t have a credit history. Since approval hinges on your credit score, and since credit scores reflect your credit history, no history means no score.

So how can you establish credit? Try making application for a store charge or a gas card. Go to your local bank and ask for a small loan. Or, ask a family member with credit to co-sign for your first card.

Having a co-signer can also help if you’re rejected for the next three reasons: You’re too young, you don’t have enough income, or you don’t have enough time on your current job.

Again, youth and lack of history are strikes against you.

Under the CARD Act, credit card issuers cannot issue you a sole ownership credit card if you’re under 18 – or under 21 without income.
You’re also likely to be rejected if you’re young and just entering the job market, or if you’ve done a lot of job-hopping. Unfortunately, you’re not face to face with a person who can understand that your job changes have each been a step up, or that you were laid off because the whole company went under.
Even if you have been on the job for a couple of years, if your income is too low, some credit card issuers will deny your application. If this is the case, try for a low-limit card whose payments you can make easily on your current income. Then use it wisely to build a history.

And of course, your past credit use comes into the picture.

You may be asking for too much – You already carry a pocketful of credit cards, the balances on your current credit cards and loans may be too high, or you may have made recent application for too many cards or other sources of credit.

If you’re maxed out on your current cards, you will more than likely be denied. This not only lowers your credit scores, but tells credit card issuers that you’ll probably do the same with their card. And of course, that makes you a high risk.

So pay down some of your outstanding balances before you make application. Whatever you do, don’t keep trying a different company in hopes that one will accept you. Multiple inquiries on your credit file tell creditors that you’re desperately seeking funds…and that’s a red flag in their eyes.

You may have mis-used credit in the recent past.

Recent collections and delinquencies tell credit card issuers that you’re a poor risk. You either don’t have enough money to pay minimum balances, or you’re spending it elsewhere.

Once those delinquencies and collections are 7 years old, they should fall off your credit report. Meanwhile, the older they are, the less damage they do to your credit scores and your chance of getting new credit.
A charge-off is even worse. This tells the creditor that you’re willing to walk away from your obligations. If you really want a new credit card, consider paying back any balances that were charged off in the past.

If you really need to carry a credit card…

As a last resort, apply for one of the cards designed for consumers with poor credit histories. You’ll pay an annual fee and the interest rate will be higher, but you’ll have a card in your pocket for emergencies. And, if you use it sparingly and pay off the balance each month, you’ll begin to build a positive credit history.

Author: Mike Clover

CreditScoreQuick.com

Should You Use Your Cell Phone for Credit Card Processing?
Introduction
One of the most exciting new technologies for businesses is the ability to process credit cards using your cell phone. As with every new technology, there will be a lot of questions on whether it really works, how it can change business, and if it is safe to use. So should you use your cell phone for credit card processing? Let’s first take a look at how credit card processing works with a cell phone.

How Cell Phone Credit Card Processing Works

You may be wondering how this is all possible. If you’ve operated a business before and have taken credit card orders, you may be familiar with the big credit card processing machines. Depending on the type of phone you have, you can connect a smaller version of this machine and process credit card orders. This machine is small and the machines are specially designed to work with smart phones such as the iPhone and Blackberry.

To put a payment through, you simply swipe the credit card through the machine and the buyer can authorize it by signing his signature. He can also put his pin number through using the phone. You can even email a receipt (or a text message) of the purchase to the buyer so that he has confirmation and a record of the sale. Basically, it acts as a regular credit card processing machine.

The Advantages of Using Your Cell Phone for Credit Card Processing

If you’re a business person or professional that is always on the go, you will come across situation where you have the potential to make the sale. The only problem is that you have no way of taking the order other than getting into contact with the potential buyer when you get back to your office, give instructions for online payments, or make an arrangement to meet with him.

The most obvious benefit of being able to process credit cards on the spot with your cell phone is that you can close the sale when the buyer is interested. In business, you can lose the sale if you have an excited buyer but you lose the ability to take the order. The ability to take orders on the fly has many different applications.

For example, there are people that do business in auctions, trade shows, or even in seminars. Using your cell phone to take credit card orders can be the best way to take orders when there is nothing else available. This can make your investment into auctions, trade shows, seminars, and other events more profitable.

You can also imagine how to take orders on the fly will help professionals such as photographers, consultants, and other service providers. Being able to close the sale will cut down on lost sales as you’ll be able to sell when the buyer is sold on the product or service.

Although it may sound like risky business to use your cell phone, the whole process is encrypted and you won’t have to worry about outside parties intercepting your orders and abusing the customer information. The whole process from validating the payment and transferring funds happens instantly.

The Disadvantages of Using a Cell Phone for Credit Card Processing

The biggest disadvantage of using your cell phone to take credit card order is theft. If your cell phone and machine gets stolen or lost, this can mean a lot of problems for you. If somebody knows how to use the machine and work with the application, it may lead to fraudulent charges.

Another disadvantage is that the processing fees to use this technology are more expensive than taking orders through traditional means. The prices have gone down over time but it is still more costly than accepting orders online. You do have to keep in mind that using this technology ensures that you get the sale on the spot rather than waiting and possibly losing the customer. To many people, this will be worth the cost.

A roadblock you may face is the buyer being hesitant about using this technology. Most customers will be unfamiliar about the concept of using your cell phone to take orders and not trust it. On the other hand, using this technology allows you to avoid carrying people’s credit card numbers for later processing. It also gives them instant confirmation of their order through text and email.

You can convince them that it is completely safe and works without any problems. You should stress how it is far safer and reliable to use this method rather than taking down their name, address, and credit card information on a piece of paper to put it through later.

The Summary

All in all, using your cell phone to process credit card orders opens up many doors for professionals and business people. They can safely take orders and secure the sake. So far the feedback on this technology has been positive. Many business people that have used this technology reported that they had no problems putting orders through and most didn’t have to deal with issues such as fraud.

The advantages of using this technology far outweigh the disadvantages. If you do business while you’re on the go, you should strongly consider investing in this service. There are many different companies that offer this service so you should do some research about the rates as well as the company’s reputation. Also read up on customer reviews to see if the company is reliable and the support is strong. That will ensure that you go with a company that can provide an excellent service.

My Bio:

About the Author: Mirsad Hasic is the webmaster and editor of best credit card deals, a site where you will learn how to pick a credit card that suits your current needs plus get valuable tips on how to reach credit card debt relief.

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Economy and unemployment weighs on the minds of potential home buyers…..

If you’re renting today, you are losing out on some really great opportunities. A recent national study done by the “The Associated Press by Marcus & Millichap Real Estate Investment Services” shows that the gap between renting & owning is around 100 bucks per month.

Are you scratching your head? I would be…..

If you don’t currently own a home, you have to rent somewhere. The last time the gap was even this close was back in 1993, and back then the gap was around $264. This was based on a study done on 45 metro areas. These numbers also are based on conventional loans with 10% down and a rate of 5.07 percent – and rates are lower now.

Even though these numbers vary depending on the market you live in, unless you live with your parents, renting is inevitable. With these types of numbers, it really makes no sense to rent regardless of the market.

Other factors should be considered when renting vs. owing a home. When you own a home you also get tax deductions for interest paid and your property taxes. You don’t get any tax deductions for paying the landlords’ rent. So if you consider the current gap and the tax benefits, renting becomes less favorable.

In addition, locking in to a low interest rate on a bargain-priced home means your house payment won’t go up. But, as prices and interest rates begin to rise, so will rents. Within just a few years you’ll pay more in rent than you would be paying on the home you purchased this year. And you won’t have anything to show for it but rent receipts.

But what if you lose your job after you’ve purchased a home?

Let’s assume you do…. What is the difference in losing your job while you rent? Most of this is just physiological and with a little understanding a light will start to go off.

With the interest rates at 4.25% and all the great deals on homes, this current market is a dream for any potential home buyer.

I would not worry about losing your job, I would worry about missing the boat on the great deals and low rates. We can’t control the market anyway….

These low rates will not last long and if you lose your job, you still need a place to live. I would rather lose my job while owning a home vs. renting. There really is not much difference in payment considering the cost of homes and low rates currently.

 Author: Mike Clover

CreditScoreQuick.com

For many months we’ve been hearing how difficult it is to get a loan. According to news reports, the standards have been tightened, you need more money down, you need higher credit scores, etc. etc. etc. Real estate agents across the country say it isn’t hard to find buyers, but it’s darned hard to get those buyers qualified to buy the homes.

But all that is not necessarily true for all people in all places.

It has always been possible for veterans to buy with no money down. And while vets were once required to pay the funding fee up front, current regulations allow for this 2.15% to 3.3% fee to be rolled into the loan amount. The fee varies depending upon the veteran’s service.

Since there is no mortgage insurance on VA loans, this has always been an attractive choice for members of the military.

However, Navy Federal Credit Union may be an even more attractive choice.  Members of military families, and some civilian employees of the military and the U.S. Department of Defense are also eligible, with membership in the credit union.

Navy Federal Credit Union suspended zero down financing following the mortgage crisis, but it has been reinstated this year with the HomeBuyers Choice Mortgage. Their program is similar to the VA’s – but their funding fee is only 1.75%. No Private Mortgage Insurance is required and seller concessions of up to 4% are allowed. This loan is intended primarily for first time buyers and is available for purchases up to $650,000.

The next zero-down opportunity comes from the Department of Agriculture.

Contrary to popular belief, their Rural Development loans are not confined to farmland, or even to borrowers living in rural areas. Indeed, the USDA is granting loans in cities and subdivisions. A quick check of the “eligibility” map on their website indicates that USDA loans are available in the low-income, “depressed” areas in each state.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

The USDA program places restrictions on household income, and is intended for first time buyers, although others may qualify. No mortgage insurance is applied, and the 2% loan guarantee fee may be rolled into the loan amount.

This program, which is administered through banks, has become so popular that it ran out of money for a period of time last spring. Until the extension was announced, that situation caused a panic among first time buyers who were hoping to meet the deadline on the tax credit.

Buyers who can’t qualify for “No-down” can look to FHA for “Low-down” mortgages.

During the housing boom only about 3% of all borrowers used FHA loans. Now that number is up to about 30%. Borrowers with FICO scores as low as 580 are eligible to purchase with only 3.5% down. For those with scores under 580, 10% down is required.

FHA loans are, however, the most expensive of the choices. The FHA charges an upfront mortgage insurance premium of 2.25% plus an annual fee of 0.55% of the mortgage amount.

So why are so many still unable to buy a home?

They don’t fall into the right occupational or income categories – or the right geographical categories. They’re self-employed or have recently taken a new job or moved to a new location.

Or perhaps, just because the banks can make these loans doesn’t necessarily mean they will. Under some new Fannie Mae guidelines, an underwriting mistake can now come back on the bank. And banks don’t want to risk their own money.

Author: Mike Clover

CreditScoreQuick.com

Top reasons to pay your collections.

Speaking with a collection company about a debt you owe is like dealing with a school yard bully. These guys are programmed to collect debts so they can get their commission check. If you are getting ready to clean up your credit here are top reasons for paying off your collection accounts.

1. Stop Collection Calls

You will discover that collection calls will not go away until you settle up on the debt you owe. Some professionals recommend that you dispute a collection. Some recommend sending a cease & desist letter. A collection will be on your credit report for 7 years from collection date. The collection will be sold around to other collections companies. Don’t waste your time with disputes and cease & desist letters. Call the collection company work out a payment arrangement or settlement.

2. Keep from getting sued

Some assume that a collection company will make calls and then give up if you don’t pay. This is not always the case. In some situations the collection company will take you to court and get a judgment against you. A public record will be on your credit report for 7 years.

3. Increase your credit scores

The older a collection is the less it will affect your credit score. Since collections stay on your credit report for 7 years, a paid collection is better than a collection not paid. You will find after paying off your collections your credit score will increase.

4. Get approved for loans and credit cards

Some banks will not approve you for a loan if you have outstanding collections on your credit report. In some cases they will require you to pay off the collection and to provide proof you did so. You will not be able to get a car loan, mortgage loan, etc…. A collection on your credit report could also affect certain type of job applications that require employment screening.

5. Debt Free

Settling up on collections you owe means you are one step closer to being debt free. Paying off collections is better for your overall financial health in the long run. If you can afford to settle on your collection accounts, this is the best practice.

Author: Mike Clover

CreditScoreQuick.com

Everyone talks about credit scores these days, but they aren’t all talking about the same thing.

“Credit score” has become a generic term that covers all the various kinds of credit scores. It’s no wonder consumers get confused.

When you apply for a mortgage loan, your lender will probably order a traditional FICO score. This score will be based on the scoring method developed by FICO (the Fair Isaac Corporation) using the credit data supplied by each of the 3 major credit reporting bureaus.

But… it might not be a traditional FICO score. FICO has now come out with the FICO 8 scoring model, and is encouraging lenders to switch over. On top of that, the 3 credit bureaus got together and created their own scoring model, called the Vantage Score. Your lender may be ordering a report based on that model.

The next area of confusion is that different industries get custom credit scores based on what matters to them. For instance, your score in making a home loan application could be different than your score when you want a car loan.

All creditors want to see that you’re a responsible consumer, intent on paying your obligations on time. However, a bank giving you a car loan will want more weight given to your history with regard to car loans than with house payments.

You might say they’re looking at your credit report to see what matters most to you… what obligations you will pay even if you get into a financial bind.

Another point of confusion lies in the score ranges. FICO scores start at 300 and go to 850. Others start at 330 or 350 and go to 830 or 850. But the Vantage score doesn’t start until 501 and goes to 990. So if you’re looking at a score of 660 – you may be rated “good” using a FICO score, but not so good using the Vantage score. If you have doubts, ask what scoring model was used.

All the scoring models use much the same information, but they give different weight to the categories. That’s another reason why your scores could be different coming from two different sources.

In general, the various scoring models use information that includes:
• Payment history
• Amounts owed
• Length of time you’ve had credit
• New credit or new credit applications
• Types of credit used
• Credit available to you

This is true whether you pay for a FICO score or get a free credit report from a site such as this one. And rest assured that if a free credit report says your credit is “excellent” it won’t suddenly fall to the “poor” category on a FICO score.

Since you can’t dictate the scoring model used to “judge” you, what can you do?

Pay attention to all the categories. Pay every obligation on time, keep your credit card utilization at 30% or less of available credit, keep all of your old accounts open, and avoid making numerous credit applications. When store clerks urge you to “Get 15% off today” for opening a new account, say thank you… but don’t do it.

On the flip side of that – do try to use different forms of credit. When you can successfully handle a credit card or two, a car loan, and a mortgage payment, it shows creditors that you’re a responsible money manager… and it improves your credit scores.

Do monitor your credit scores.

Don’t wait until you want a new car or a home loan to find out if you’re making damaging mistakes in your use of credit. Get your free online credit scores, or go to FICO or one of the credit bureaus and purchase your score. It won’t be the exact score your lender will see, but it will be close enough to let you know how you’re doing and if you need to take steps to raise those scores.

CreditScoreQuick.com

This guest post was contributed by Elizabeth C. She helps run FindSecuredCards, a secured / prepaid credit cards portal helping those pick out the best card for their wallet.

Prepaid credit cards are great cards to consider for your wallet. They are going to help you control your spending, as well as manage a budget properly each and every month. The best thing overall is that they really aren’t that much different than your typical credit card.

So, what happens when you’re in the market to get a card that is best for yourself? What are some things that you should look out for? I’ve been working in the credit industry for a few years now and by following these tips, you should be able to get a great card that suits you best.

#1 Watch the fees: Most cards on the market have reloading fees, start up fees, and more. While finding a card with no fees at all is rather slim, they are out there. What you’re going to want to do is make sure that you compare apples to apples and know what fees you’re going to have to pay.

#2 Get interest: Since a prepaid card is going to have money loaded on it, you’re going to want to make sure that you have a bank account that is going to give you interest on your deposit. Why give a bank some money and they give you nothing in return?

#3 Major logo: Don’t sign up for a card from no name banks. The problem with this is that you’re not going to be able to use it anywhere! I would recommend that you get a card from major carriers such as MasterCard, as well as Visa. That way, you can be comfortable knowing that you can use your cards at a bunch of merchants.

#4 Features: Every card is going to claim to be different, but the features that are most important to me are no fees, no minimum balance required, free ATM withdrawals, as well as online bill pay. If your card has all of these features, consider it golden.

#5 Reviews: The last thing that you’re going to want to do is check out reviews online. Read up a little bit about the card and see what people have to say about it. Sure, there are always going to be negative reviews, but see why people give that negative review.

By following these tips, I can ensure you that you can find a card that works rather well. Compare a few cards before you apply, just to ensure that you’re getting a card that is going to work for you, rather than the banks.

During tough economic times credit experts are popping up everywhere. It’s not hard to find a website with someone giving advice about credit reports, credit scores, financing, or stock market advice.

All of these topics are hot and everyone claims to be knowledgeable. But I have often wondered; what classifies someone as a “Credit Expert?”

I recently got in touch with John Ulzheimer about his knowledge of credit reports and credit scores. John, who has been classified as a Credit Expert by the media, replied that  his expertise comes from the fact that he worked for Equifax and Fair Isaac. He also claimed that one’s opinion is a matter of perspective when it comes to “Who is a credit expert.”

That’s partially true, but the whole reason I started CreditScoreQuick.com was because of all the misinformation on the web from all these so-called credit experts.

During my years as a lender, prospective buyers have come to my office or called on the phone with all types of misinformation about credit.

The number one issue was credit report disputes. Everyone that had late payments or collections on their credit report had read somewhere on the web that if you disputed these negative items they would fall off your report.

Some also told me that they’d been advised to close out any credit cards they weren’t using.

The list goes on and on….

One reason I mistrust self-appointed experts is my experience with a former business associate. He owned a credit reporting company for banks, and like John, had previously worked for Experian.

He considered himself an expert, but consistently argued some of the methods I was using to help borrowers increase their credit scores and get their loans financed. When someone tells you “That won’t work” but you’re doing it and it’s working, you have to wonder about their expertise.

That made me believe that having worked for one of the bureaus didn’t necessarily qualify a person to be called an expert.

That said, here is who I consider a “Credit Expert.”

1. An individual who deals with credit reports daily.
2. Someone who can actually read a credit report.
3. Someone who can point out credit report problems along with solutions to fix the problem.
4. Someone who has a track record of helping individuals achieve better credit scores.
5. Someone who can teach credit education.
6. Someone who knows Fair Credit Reporting Act (FCRA)
7. Someone that knows Fair and Accurate Credit Transaction Act of 2003 (FACTA)

I think there are two problems with looking for advice on the web today.

One is that anyone can call themselves an expert – and in order to make a buck, these false experts prey on people that are in financial trouble. These are the “experts” who recommend shady practices that can actually get consumers into legal trouble.

The other is that some very sincere people don’t possess the knowledge they believe they gained from working for one of the bureaus. As is typical with the red tape that accompanies the corporate process, these big corporate companies work their employees with blindfolds on. Each employee learns their small part of the process, but doesn’t get the entire perspective that they might get if they were working face to face with consumers on a day to day basis.

So if you’re looking for advice on the web, don’t believe everything you read.

Get some references about a company or double check with 2 to 3 other sites. Google their name and company name to see what others have to say about them.

Author: Mike Clover

CreditScoreQuick.com

You might think your credit report is privileged information – to be given only to those individuals and businesses who have gained your permission. But that isn’t so.

Under the Fair Credit Reporting Act, many entities are allowed to access your credit report.

Potential creditors, of course. You expected that. When you apply for a loan or a credit card, you hand over your Social Security number and give permission. In some cases, you give permission for them to go back for another look at any time.

Credit card holders who were penalized by the universal default provision know all too well what can happen when your credit card issuer decides to check up on you and sees that you’re in arrears on some other credit card or loan.

Employers and potential employers also need your permission to access your credit report. And no, they aren’t given your credit scores. Employers have to review the report and come to their own conclusions.

And then we come to the entities that don’t have to ask for permission…

Collection agencies that are trying to collect a debt from you have the right under the Fair Credit Reporting Act to access your credit report without notification to you. They’re checking to see if you’ve paid off some other account or have a large credit line on an unused credit card. These are factors that would indicate that you’ve got money to pay them. They also use your credit report to check for a current address or a new employer.

Utility providers check your credit when you open a new account. They use the information to decide if you’ll need to pay a deposit before they turn on your utilities. Utilities get a “utility score,” which is different from the FICO score used to rate you for a mortgage loan.

Insurance companies get yet another report – one with an insurance score. This practice is being eliminated or severely limited in some states. Insurance companies aren’t happy with that change, as they do believe that consumers with good credit are a safer risk than consumers with poor credit. Policy premiums reflect the belief.

Landlords may not only check your credit report, but may order a more complete background check before handing over the keys. They want to gauge the risk of you running out with unpaid rent due – and they want to assure themselves that their property won’t be used for illegal activities.

Licensing bureaus – Some states allow professional licensing bureaus to check your credit before issuing a license.

While we are all most familiar with FICO scores or some variation of them, credit reporting bureaus actually have a wide variety of credit scoring models. The utility credit score and insurance credit score are but two. Each model is used for a different purpose and gives weight to different factors in your credit history.

Author: Mike Clover

CreditScoreQuick.com

It’s been a tough couple of years for anyone wanting to get credit and even those with good credit ratings may have had their credit card and overdraft limits gradually whittled down as lenders have looked to adopt a more austere approach.

And with an estimated 50 million Americans ineligible for credit, it’s no wonder that the popularity of prepaid cards is on the rise.

So what is a prepaid card?

A prepaid credit card is simply a card that looks very much like a credit card and can be used in much the same way, the main difference being that you need to load the card with money before you can use it.

What are the advantages of a prepaid card?

Don’t get into debt!

Once you have exhausted the funds that you have pre-loaded onto your card it won’t let you spend any more until you load it with more cash.

This means that you cannot get into debt as you would with a credit card or a debit card with an overdraft facility as you can only spend what you’ve got.

Build your credit rating.

Prepaid cards offer a great way to build up your credit rating as you have many of the benefits and convenience of a credit card but none of the risk associated with running up large amounts of debt.

In addition, many of the banks that offer prepaid cards will be likely to offer credit once you have proved you are no longer a high credit risk.

Identity theft protection.

Identity theft linked to credit and debit cards has become an increasingly worrying phenomenon over the last few years and prepaid cards could be one way to protect against this.

If a fraudster did manage to steal the details of your prepaid card, they would not be able to run up credit at your expense as the card is not linked to any bank account.

Foreign travel.

Prepaid cards offer a convenient alternative to carrying around traveller’s cheques and offer the same level of protection if they are lost or stolen.

In addition, exchange rates are fixed at the time of loading your card so you won’t fall foul of any fluctuations in the exchange rate as you may when purchasing money abroad.

Furthermore, as long as the local currency matches the currency loaded on to the card, there will be no foreign-exchange fees for goods bought with the card.

So what are the disadvantages?

The banks need to make money out of prepaid cards somehow and, as they can’t charge interest because it’s essentially your own money that you’re using, they claw back the money through a series of fees related to the card.

Application fees

Some lenders will charge you a fee when you first take out a prepaid card with them else they will charge you a renewal fee once the card expires.

Loading fees

Although it’s your own money you are using, you’ll often be charged every time you load your card up with funds and this can come in the form of a flat rate or as a percentage of the amount you have added.

The fee may also vary depending upon which method you use to top up the card.

Transaction fees

With credit and debit cards, the transaction fees are passed onto the trader, but with prepaid cards you foot some of the bill.

Again, this can come in the form of a flat fee or as a percentage of your total spend.

In addition, prepaid cards carry a charge for money withdrawn at ATM machines, even from machines that don’t charge for withdrawals, so it’s best not to withdraw cash on a prepaid credit card.

Inactivity fees and monthly charges

Some issuers will charge a fee if the card is not used for a certain period of time and some also charge monthly fees just for carrying them so always read the terms and conditions before signing up.

Protection.

Whilst purchases made on credit cards are protected against loss or theft, this is not the case with prepaid cards.

So, if, for example, you make an online purchase but never receive the goods, you will not get your money back as you would have if you had paid with a credit card.

Article written by Les Roberts finance writer for Moneysupermarket.com