When trying to fix your bad credit, knowing which credit cards can help you achieve that can mean all the difference when settling your accounts. In your search for credit repair advice, you may have come across information regarding secured credit cards as being the best way to help you rebuild your credit rating, especially since all they require is a deposit to activate and anyone can qualify.

While these can certainly be a great way to help you boost or maintain your score –that required deposit can help curb your spending enthusiasm – there are some secured cards out there that can do more harm for your credit than good.

To help you separate the good from the bad and get your credit back on track, here are three of the worst secured credit cards for your credit history.

•    Public Savings Bank Visa Secured Card. This card may not sound too bad, with its incredibly low interest rate (just over 11%) and 0% APR for the first six months.  That is, if you don’t mind paying the ridiculously high $75 setup fee, or that the bank charges you $25 every time it raises or lowers your credit limit. That’s right, the bank charges you a fee to lower your credit limit. Why even bother?

•   First Premier Bank Secured MasterCard. This second part comes with a high APR (20%), a pretty high annual fee ($50), and generally isn’t a fan of raising your credit limit.  Not only that, they generally don’t even consider raising your credit limit until you’ve been a customer for well over a year.

And even when they do increase it, it’s usually by no more than $100. When you factor in the time it takes to maintain or rebuild your credit score, having to wait that long for such little payoff makes this card easy to avoid.

•    Applied Bank Secured Visa Card. This is probably the worst secured card on the market, with some of the highest fees and lowest credit limits. This card doesn’t come with a set up fee, but does include a $50 annual fee for the first year. Afterwards the fee is dropped, but is replaced with something much worse: a $9.95 monthly fee, meaning you’re paying them almost $120 each year in fees.

If the bank ever decides to increase your credit limit, they charge you $100 for the “privilege” each time. Considering the credit limits on secured credit cards depends on the amount that you deposit, this means your credit limits are always ridiculously small; almost not even worth it at all.

Unsecured credit cards may seem like the best way to go when looking to repair your current score, and many of them are, but just like regular unsecured credit cards, you’ll need to read the fine print on their interest rates and fees before choosing the right one for your credit history.

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Many people are already aware of how important their credit history is and do all they can to stay on top of it.  They pay their bills on time, keep their expenses down, and only apply for new lines of credit when it’s a necessity.

So what happens when they check their credit report or worse, apply for a major loan, and discover their credit is not where they thought it was?  What went wrong?  They did everything right – or so they thought.

While most people are so busy watching the major items in their credit history, many forget there are minor details that can become major issues if gone unchecked.  With that in mind, here are the top 5 most common credit mistakes to watch out for (in no particular order), and how you can avoid them.

1.    Closing credit cards. For many people faced with a less-than-stellar credit history, their gut reaction is to immediately close all their credit card accounts and immediately go into Hyper Savings mode.  This is a big mistake.  Closing your credit accounts will switch them to inactive and they’ll eventually fall off your report, leaving you with a smaller credit history, making it harder to apply for new credit when you need it.

•    How to avoid this. Think of your credit report like your resume.  You wouldn’t suddenly want your impressive work history to become null and void after a set amount of time, would you?  Of course not.  If you do have multiple credit card accounts open (say, 5 or more), you may consider closing the ones you don’t use, but keeping at least 2-3 open so that you’ll still have open lines of credit.

2.    Missing payments. This one’s pretty obvious.  Everyone knows that to maintain a good standing with the credit bureaus, you should pay your bills on time, and in full.  What may surprise you though, is how severely late payments can affect you, depending on how late you may be.

•    How to avoid this. The obvious answer is to pay your bills on time, and you won’t have a problem.  If you’re on a fixed income though, or if you have too many bills to keep track of, you might consider creating a budget for yourself to better map out what needs to be paid and when.  You may also consider switching to automatic withdrawals from your account to pay your bills, so you won’t have to worry too much about it.

3.    Too many maxed-out accounts. If you treat your credit cards like Veruca Salt treats her daddy’s bank account, you’re probably sitting on top of a pile of junk you’ll never need and a credit history that looks like it fell in with the bad nuts.

•    How to avoid this. Refer back to the first point.  Close any excess accounts you may have, and start paying down your debts as much as you can each month.  In the future, remember to keep your charges below 30% of the available balance and DO NOT EXCEED IT.

4.    Shopping for credit. Every time you fill out a new credit or loan application, the creditor will make an “inquiry” into your credit report.  This is to let the credit bureaus know that you’re actively looking for new credit.  Having too many inquires on your report signals to them that you are “high risk.”  So, the more inquiries you have on your report, the more points you can lose from your score.

•    How to avoid it. Most people think “shopping for credit” translates to “shopping for a car or home loan” and so think they’re covered here.  But if you’ve ever applied for a store credit card to get in on some savings, guess what?  They dinged your credit score too.  That said, think twice before you try and apply for new credit to save a couple of bucks, and you’ll save some other numbers instead.

5.    Thinking you can handle this on your own. That’s actually a bit of a misnomer – you CAN handle this on your own.  But with so many laws, regulations, and acronyms flying out about credit, many people find that attempting credit repair on their own can be exceedingly time-consuming and just don’t bother.

•    How to avoid this. Consult a credit repair and debt settlement firm.  I know many of them seem like scams, so look for companies that stay away from making high financial promises and instead work to help you pay down your existing debts so you can start fresh.

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Most credit problems seem to stem in one way or another from unpaid debt.  That’s why My Credit Group puts emphasis on debt relief as a vital part of the repair process.  Without addressing your unpaid debt, you may not get the results you were hoping for. (more…)

Credit Repair · debt relief · my credit group

So as it turns out, more people like to save money than I had thought.  I know; I’m just as shocked as you!  And since there’s absolutely no shortage of ways to stretch out your bottom dollar, and I had such a blast writing that last article in the first place, I thought I’d bring you even more tips for stretching your budget out as thinly as possible.

Impulse shopping: It’s just not for you anymore

I’ll be honest – this tip is a little bit of the pot calling the kettle black.  I impulse shop with the best (or worst, depending on your point of view) of them, and at one point I had the piles of bills to prove it.  If any of you are like me, you know it can be a tough habit to break.

You can make shopping trips much easier on your wallet by listing all the things you absolutely NEED to buy before you leave the house.  Once you’ve got your list, keep your head down and stick to it – retailers can smell impulse shoppers from miles away and they won’t think twice about taking you money belt down a few notches.

“Would you like us to save your credit card information for future purchases?”

No, you would not!  Leaving your card numbers on online retailers is a terrible idea, especially if you’re an impulse shopper.   Having not only your credit card info, but your address saved as well makes it all too easy to buy whatever looks good on a whim with just a couple of clicks.

If you already have your Visa queued and ready to go on Amazon, delete the account information.  It’ll make impulse trips to online malls more of a hassle when you have to dig for your card, and who wants to do that?

Sorry kids, no trip to Disneyland this year

I guess the county fair will have to do again.  Seriously, anyone who’s ever been to a major amusement park knows that taking a family of four can just about single-handedly claim your paycheck.  So why spend all your time and money waiting in line for the next Country Bear Jamboree show when there are alternatives?

If you have kids, or have ever been one yourself, you know how easily entertained they are.  They don’t mind much what they’re doing, so long as they’re with you.  With that in mind, work on coming up with fun and inexpensive ways to keep them entertained.  Go to the beach, or the park, play games around the house, or just plop them in front of the TV and let nature take its course.

It’s not HBO, it’s just regular TV

Got a premium cable package with over 700 channels?  Yeah, you might consider cutting that too.  Honestly, those cable bills run up a fortune (especially if you factor in premium HD channels and DVR options) and there’s usually nothing on worth watching anyway.

Plus, with more and more cable networks offering content online on sites like Hulu, paying a premium to watch American Idol is one of the easiest bills to drop.

Keep an eye on your debts

Those of you with a large amount of bills coming in know it can be hard to keep track of them all.  Keep an eye on your budget and set up a plan for paying down your debts systematically.  Keep tabs on bills as they’re paid off and you’ll see how quickly more and more of your money will go back into your pocket.

If you need help with setting up a budget, or are looking to negotiate some of your debts down to a reasonable level, consider a credit repair firm when looking for debt relief.  Maybe then you’ll be able to afford that trip to Disneyland.

Credit Repair · debt relief

I saw a story on the news last night that cash-strapped states are now looking to tax their residents on services they’re paying for, like car repair, dry cleaning, even personal training! These days, it’s important to watch every single cent that comes in and goes out of your bank account. You’d think that, with the economy in the state it’s in, people would be a bit more frugal with their spending habits, but with developments like this, it’s becoming harder for even the Scrooges of the world to keep their money bins filled. (more…)

Credit Repair · debt relief

Oscar: Hey, I just wanted you to know, that you can’t just say the word bankruptcy and expect anything to happen.
Michael Scott: I didn’t say it, I declared it.

For many people, declaring bankruptcy is to say to the world at large, “Watch out for me, I have absolutely no idea how to handle money!”  It’s the equivalent of committing financial suicide.  Any attempt at securing a loan or any kind of credit is met with mocking laughter.  You’re left to wander the wastelands alone, never to receive any financial help again because of that horrible scarlet letter on your chest.  Lepers are held in higher regard than you now.

Good news, though – things aren’t actually as bad as they seem.  Yes, it’s true that declaring bankruptcy is something that you should only do as an absolute last resort.  It can wreak havoc on your credit report and makes borrowing money very difficult.  Believe it or not though, there’s actually a light at the end of the tunnel.

Bankruptcy isn’t the end of the world

While a BK isn’t the get-out-of-jail-free card some know-nothing know-it-alls may be quick to say it is, it can be used as a practical means to an end, helping you to reorganize your credit report and get out of debt.  After all, the entire purpose of filing a BK is to help reorganize your finances, so if you’re down to your last resort, you might as well make the most of it.

Tips for surviving a BK

Assuming you’ve exhausted all other options – cutting expenses back to the bare minimum, trying debt settlement plans with your creditors, even getting a second job – here are a couple of tips for those who’ve filed for Chapter 7.

1.    Get used to paying for everything with cash.  For the time being, you’ve got no credit and any credit you may be able to obtain will come with high interest rates.  So whenever possible, pay in paper, not plastic.  Life will be less stressful, and you’ll be developing a good habit for when you come out of this storm.

2.    Work on establishing new lines of credit.  This may sound, well, impossible given the circumstances, but filing a Chapter 7 BK means liquidating all debts, which frees up your disposable income for new loans.  And with that money freed up, it’s surprising how eager some lenders out there will be to extend you credit.

3.    Get a secured credit card.  Keep your charges each month under 30% of your available credit and always pay your balance in full.

4.    Pull copies of your credit report from all 3 credit bureaus and make sure they have your debts listed as “discharged under BK.”

5.    Consider consulting a credit repair company to help you build and manage new credit.  If the idea of trying to rebuild your credit on your own seems like a bad one, there are firms out there that are great at helping you build new lines of credit to reestablish a good credit rating.

bankruptcy · debt relief

We all fall off the horse once in a while.  At some point in time, whether we’re equipped to handle it or not, the ride can get to be a little too much for us to handle, and down we go.

For some of us, getting back up on that horse can be harder than it was the first time around.  At times like that, a helping hand is pretty much the most appreciated thing in the world. (more…)

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Ah, college.  If Animal House and every other movie about college has taught us anything, it’s that your four or more years at school – whether at your local community college or one of those cushy Ivy League schools – is one giant toga party after another.  The keggers are never-ending, there’s always a party SOMEWHERE, and if that no-good Dean ever shows up to shut us down, well, that’s why we brought all these water balloons.  Oh, and there may be some light learning required. (more…)

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There’s certainly an abundance of credit repair companies that claim to be “the best.” `And what do you get, exactly, when you hire “the best?” Most of these companies operate exactly the same–they attempt to clean up credit report by mass-mailing dispute letters.  And that’s about it.  Really…is that all it takes to be the “best” credit repair company?  (more…)

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Thank you for coming to the interview today.

No problem.

Can you tell me a little bit about yourself? Starting with your qualifications?

Well, I’ve been in this business for about 10 years now. I’ve worked with all kinds of consumers, from individual customers looking for credit repair and debt relief, to major institutions like Bank of America, Wells Fargo and Chase. I’ve even worked with the Department of Defense. Oh, and I’ve— (more…)

Credit Repair · debt relief