When Credit Cards are Disputed

When you set up shop and allow for payments via debit and credit
cards, there are numerous advantages- including spontaneous shoppers,
and people who will buy more when they can put it on a credit card,
but there are also a few disadvantages as well. One issue many
retailers discover when they first start accepting credit cards is not
only will they be responsible for paying the various fees associated
with accepting credit or debit cards as payment, but accepting credit
cards means you also have to deal with the occasional credit card
dispute.

One common dispute will result in what's called a charge back. Credit
card charge backs happen when a customer disputes a charge made on
their credit card, and your bank transfers the liability to you and
requires that you pay the money back. There are two main reasons why a
charge back occurs-

Fraud
Poor Customer Service

If a cardholder decides to dispute a transaction they find on their
credit card statement because they say the card has been stolen or
someone used the card without their permission, then the retailer is
responsible to recover that money. The cardholder's credit card will
be refunded and the retailer is out the money from that sale.

If your company is not providing quality customer service, a customer
may not receive their ordered items or they might receive defective
items- in which case they're going to dispute the purchase and you
will be required to pay that money back when the bank submits the
charge back to your business bank account.

There are many levels of protection provided to retailers who accept
credit cards as payment. Technology provides us with a secure online
environment that encrypts the credit card details and personal
information of the cardholder as it's transmitted over the internet.
Technology also provides various card verification methods that ensure
that the person submitting the order has the card in hand- and
hopefully, they're the owner of the credit card account.

Unfortunately though, there is no fool proof protection to avoid all
types of credit card fraud, and a customer can submit a charge back up
to six months after the date of purchase.

To minimize the number of charge backs you get hit with, be sure your
online shopping cart or website takes the necessary steps to verify
the identity of the person placing the order. There are many different
ways to try and avoid fraudulent activity online, including address
verification, security code checking and for internet transactions-
you can use Verified by Visa and MasterCard's SecureCode.

Another step you can take to minimize the number of charge backs you
receive is to ensure that you are providing high levels of customer
service. Make sure each customer is getting the items they order, and
use processes that ensure that only quality items are being shipped.
Take time to make sure items are shipped in proper packaging as well,
to minimize damages that could occur during transit of orders.

For in person transactions, you can help minimize the charge backs by
requiring that customers sign their receipt and having your cashiers
actually take the time to compare the signature with the signature on
the back of the card. You may be surprised at the number of retailers
that skip this step! If the signatures match, the customer will not be
able to submit a dispute that results in a charge back at a later
date, so it's well worth the extra thirty seconds or so to compare the
signatures. If the cashier doesn't believe the signature's match, he
or she can require that the customer use another form of payment.

Disputing Credit Card Charges

Disputing Credit Card Charges
Let's imagine for a moment that you've just received your credit card
bill in the mail, and you think the only purchase you made with it the
previous month was at the gas station. What do you do then, when you
find three purchases at Old Navy, and a bunch of other purchases you
know you didn't make?

Do you know what rights you have regarding fraudulent purchases on a
credit card in your name? How about your rights if you purchased an
item with a credit card, but never received the products you ordered?

If these problems have not happened to you yet, you are lucky. These
are common situations credit card users face every day, and it can
help you to know before something like this happens to you what your
rights are, and what your responsibilities are in the matter.

When You Are Not Satisfied With Purchase

One of the benefits of using a credit card to make purchases is the
additional protection they provide if you make a purchase that you are
unsatisfied with. For example, maybe you used a credit card to pay
the contractors who were hired to repair your shower leak, but there
is still water on the bathroom floor. Obviously, you are not
satisfied with the work they completed, and you don't want to pay for
it. The problem is, you charged it on a credit card and now the bill
has come!

Your first step is to contact the contractor, or the merchant you made
your purchase from. Most of the time, the merchant is more than happy
to replace a broken item, perform the service again or refund the
purchase back to your credit card. If you make a phone call, document
it and follow up with a letter to cover your tracks in the event the
merchant doesn't follow through.

If for some reason the merchant decides they are not going to do
anything to correct the situation, you should immediately contact your
credit card company and report the information. Don't wait to report
the problem on a later date- most credit card companies require you to
report a problem as soon as you see it on the statement in order to
benefit from any of the protection they provide.

Charges You Didn't Make

Did you know that federal law is involved in helping limit credit
cardholder's responsibilities for charges on credit cards that they
did not make themselves? The Fair Credit Billing Act actually limits
your responsibility to just $50 for any charges you did not authorize.
If you open your credit card bill and find charges not made by you,
there is a process you should follow to get it resolved as quickly and
painlessly as possible.

Firstly, call the credit card company and explain the charges that
were not made by you. They will give you instructions as to what to
do next.

Then, you should take the time to find and review all of your recent
credit card statements in case there were other charges that you may
have missed.

The credit card company will most likely ask you to sign a form to
confirm that you were not the one who made the charges in dispute.
Don't use the card while you are disputing charges.

Once you finally get a resolution and get the charges removed, be sure
to order your credit report from all of the major credit bureaus in
order to make sure that the record has been updated there- because
chances are the time it takes to resolve fraudulent charges will have
caused late payments on that credit card that may have been reported.

You can get more information about credit card disputes from the Fair
Trade Commission, http://www.ftc.gov/bcp/conline/pubs/credit/fcb.pdf.

When Credit Cards are Disputed

When you set up shop and allow for payments via debit and credit
cards, there are numerous advantages- including spontaneous shoppers,
and people who will buy more when they can put it on a credit card,
but there are also a few disadvantages as well. One issue many
retailers discover when they first start accepting credit cards is not
only will they be responsible for paying the various fees associated
with accepting credit or debit cards as payment, but accepting credit
cards means you also have to deal with the occasional credit card
dispute.

One common dispute will result in what's called a charge back. Credit
card charge backs happen when a customer disputes a charge made on
their credit card, and your bank transfers the liability to you and
requires that you pay the money back. There are two main reasons why a
charge back occurs-

Fraud
Poor Customer Service

If a cardholder decides to dispute a transaction they find on their
credit card statement because they say the card has been stolen or
someone used the card without their permission, then the retailer is
responsible to recover that money. The cardholder's credit card will
be refunded and the retailer is out the money from that sale.

If your company is not providing quality customer service, a customer
may not receive their ordered items or they might receive defective
items- in which case they're going to dispute the purchase and you
will be required to pay that money back when the bank submits the
charge back to your business bank account.

There are many levels of protection provided to retailers who accept
credit cards as payment. Technology provides us with a secure online
environment that encrypts the credit card details and personal
information of the cardholder as it's transmitted over the internet.
Technology also provides various card verification methods that ensure
that the person submitting the order has the card in hand- and
hopefully, they're the owner of the credit card account.

Unfortunately though, there is no fool proof protection to avoid all
types of credit card fraud, and a customer can submit a charge back up
to six months after the date of purchase.

To minimize the number of charge backs you get hit with, be sure your
online shopping cart or website takes the necessary steps to verify
the identity of the person placing the order. There are many different
ways to try and avoid fraudulent activity online, including address
verification, security code checking and for internet transactions-
you can use Verified by Visa and MasterCard's SecureCode.

Another step you can take to minimize the number of charge backs you
receive is to ensure that you are providing high levels of customer
service. Make sure each customer is getting the items they order, and
use processes that ensure that only quality items are being shipped.
Take time to make sure items are shipped in proper packaging as well,
to minimize damages that could occur during transit of orders.

For in person transactions, you can help minimize the charge backs by
requiring that customers sign their receipt and having your cashiers
actually take the time to compare the signature with the signature on
the back of the card. You may be surprised at the number of retailers
that skip this step! If the signatures match, the customer will not be
able to submit a dispute that results in a charge back at a later
date, so it's well worth the extra thirty seconds or so to compare the
signatures. If the cashier doesn't believe the signature's match, he
or she can require that the customer use another form of payment.

Disputing Credit Card Charges

Disputing Credit Card Charges
Let's imagine for a moment that you've just received your credit card
bill in the mail, and you think the only purchase you made with it the
previous month was at the gas station. What do you do then, when you
find three purchases at Old Navy, and a bunch of other purchases you
know you didn't make?

Do you know what rights you have regarding fraudulent purchases on a
credit card in your name? How about your rights if you purchased an
item with a credit card, but never received the products you ordered?

If these problems have not happened to you yet, you are lucky. These
are common situations credit card users face every day, and it can
help you to know before something like this happens to you what your
rights are, and what your responsibilities are in the matter.

When You Are Not Satisfied With Purchase

One of the benefits of using a credit card to make purchases is the
additional protection they provide if you make a purchase that you are
unsatisfied with. For example, maybe you used a credit card to pay
the contractors who were hired to repair your shower leak, but there
is still water on the bathroom floor. Obviously, you are not
satisfied with the work they completed, and you don't want to pay for
it. The problem is, you charged it on a credit card and now the bill
has come!

Your first step is to contact the contractor, or the merchant you made
your purchase from. Most of the time, the merchant is more than happy
to replace a broken item, perform the service again or refund the
purchase back to your credit card. If you make a phone call, document
it and follow up with a letter to cover your tracks in the event the
merchant doesn't follow through.

If for some reason the merchant decides they are not going to do
anything to correct the situation, you should immediately contact your
credit card company and report the information. Don't wait to report
the problem on a later date- most credit card companies require you to
report a problem as soon as you see it on the statement in order to
benefit from any of the protection they provide.

Charges You Didn't Make

Did you know that federal law is involved in helping limit credit
cardholder's responsibilities for charges on credit cards that they
did not make themselves? The Fair Credit Billing Act actually limits
your responsibility to just $50 for any charges you did not authorize.
If you open your credit card bill and find charges not made by you,
there is a process you should follow to get it resolved as quickly and
painlessly as possible.

Firstly, call the credit card company and explain the charges that
were not made by you. They will give you instructions as to what to
do next.

Then, you should take the time to find and review all of your recent
credit card statements in case there were other charges that you may
have missed.

The credit card company will most likely ask you to sign a form to
confirm that you were not the one who made the charges in dispute.
Don't use the card while you are disputing charges.

Once you finally get a resolution and get the charges removed, be sure
to order your credit report from all of the major credit bureaus in
order to make sure that the record has been updated there- because
chances are the time it takes to resolve fraudulent charges will have
caused late payments on that credit card that may have been reported.

You can get more information about credit card disputes from the Fair
Trade Commission, http://www.ftc.gov/bcp/conline/pubs/credit/fcb.pdf.

The New Business Owners Guide to Accepting Online Payments

by: Debbie Dragon

As more people decide to try and increase their income by starting
online businesses, there is a greater number of individuals who
require methods of accepting online payments. It's necessary that an
online business appears professional, so potential consumers have the
confidence to trust and buy from them, and it's equally necessary that
the credit cards can be accepted over a secure connection.

Online business owners have a number of options for accepting online
payments, from PayPal to ProPay to a standard merchant account. While
it may be easier initially to go with a third party payment processor
like PayPal or ProPay, you may find the long term benefits of having a
merchant account worth the additional effort to get one set up right
from the start of your online business venture.

Benefits of having a merchant account with your new online business include:

Ability to accept the major credit cards that most everyone has in
their wallets: Visa, MasterCard, Discover and American Express. Not
only can you accept the credit card versions of these cards, but
you'll also be able to accept debit card payments from the millions of
American's with debit cards containing the Visa or MasterCard logo,
since they are treated just like credit cards.

Ability to obtain payments from your customers right from your website
over a secure connection, instantly. Online businesses that attempt to
accept payment by mailed check or money order will never achieve the
same level of success as a website that can accept payments instantly
online with credit cards. Customers will simply close your site and
find a website offering the same product or service that WILL take
credit card as payment – shopping online means customers want to pay
online and not wait for the mail to deliver their payment before the
transaction takes place.

Customers recognize businesses that accept credit cards as having a
higher level of professionalism and credibility.

Ability to receive your online payments transferred to your own bank
account by automatic wire transfer – quickly, securely, and with the
same level of security that your customers experience during the
purchasing process.

Ease of bookkeeping management thanks to reports and statements of
transactions made through your online merchant account and payment
processing system. May even reduce the need for a bookkeeper on staff.

Ability to use software that is included with your merchant account
for online businesses to quickly and easily set up price lists for
products and shopping carts on your website. This makes maintaining
your site a breeze for you, and the shopping experience intuitive to
your website shoppers.

If you should take your online business off the web at any point – to
a flea market or vendor event, for example, you can often rent a
terminal to accept credit card payments in person, manually. Some
merchant accounts include terminals as part of your monthly fee, and
if you feel your online business will have many vendor events, it may
be in your best interest to look for that service as part of your
merchant account to save money.

Reasonable processing fees. Merchant accounts have lower fees than
services like PayPal – which means you have a better profit margin.
Some merchant accounts have monthly fees with very low per-transaction
fees, and include a large variety of value added services that are
simply not offered as part of third party payment processing systems,
like PayPal.

Online businesses often operate globally. Your merchant account will
help you accept payments in a number of different currencies in order
to extend your reach to a greater number of potential customers.

Chargeback fraud is an increasing concern for online retailers, where
people buy something online with credit and then report the purchase
as fraud. As the retailer, your account will get deducted the amount
of that purchase and the product has still been delivered and you're
out that money! Merchant accounts can help you avoid chargebacks with
their fraud screening services, which is included in your monthly fee.

Beware of Financial Profiling

by: Janna Weiss

Imagine having your credit limit lowered because you've been seeing a
marriage counselor and charging the fees to your credit card. Imagine
your loan application getting rejected because you work for a mortgage
lender or a home construction company. Imagine, through no fault of
your own, getting hit with a monthly spending limit on your credit
card just because you shop at the same stores as people who have poor
credit habits.
Welcome to the world of financial profiling.

John and Monica Bell from Chadds Ford, PA, use their American Express
card regularly. They charge about $5,000 a month, but always pay the
balance in full. You can imagine their surprise when they opened a
letter from the card company that advised them of a new $1,100 monthly
spending limit. The Bells didn't do anything wrong. They simply fell
victim to financial profiling.

The idea of profiling is nothing new; after all, lenders already look
at our debt load and credit history before they decide to loan us
money. Those figures paint a picture of our credit-worthiness and the
risk involved if they let us borrow.

But the Bells and many others are being penalized for spending habits
that they have not displayed. Instead, American Express looked at the
places where the Bells do business and decided that, since other AmEx
customers with similar buying patterns had defaulted on their
payments, the Bells were at risk of doing so as well.

Specifically, John and Monica have a mortgage through Countrywide
Financial Corp., a company, now owned by Bank of America, whose name
is associated with the mortgage crisis. Because other AmEx customers
borrowed irresponsibly and defaulted on their payments, it was assumed
that the Bells might do the same.

American Express spokesman Michael O'Neill acknowledges that people's
spending habits are taken into consideration, especially when they
appear to be similar to the habits of problem customers. While those
similarities alone aren't enough to justify a spending limit, says
O'Neill, "If they're spending in a way that looks like a pattern of
other people who had credit trouble before them, it gets added into
the mix."

Why are credit card companies holding their customers responsible for
other people's behavior? Because of the credit crisis. Banks and
lenders are scared to loan money to anyone, including each other. With
record amounts of defaulted loans on one side, and no access to
borrowed funds on the other side, many banks have found themselves
between a rock and a hard place – and their customers feel the pinch
as they get declined for loans and watch their credit limits plummet.

In some cases, the profiling has gone too far. CompuCredit started
slashing credit limits on customers who sought marriage or personal
counseling, patronized bars and pool halls, or paid for tire retreads
and automobile repairs. They also failed to disclose this new
profiling system to their card holders, resulting in a law suit by the
Federal Trade Commission (FTC).

In today's credit climate, CompuCredit and American Express aren't the
only companies looking for reasons to lower people's limits. Watch
your own credit limits carefully, and call your card issuer to ask
about any changes that you don't understand. If they won't reinstate
your limit even though you've been a good customer, it might be time
to take your business elsewhere.

Small Business Owners Find it Hard to Stay Afloat

by: Janna Weiss

In these troubled economic times, it seems that everyone is feeling
the pain of the credit crunch. From the working class all the way to
the national government, people are finding it hard to obtain loans
that were readily available as recently as last year. Amid the
rhetoric about Wall Street and Main Street, one class of people is
largely overlooked: small business owners.
For businesses to thrive, they need financing. Small business owners
and entrepreneurs have it rough. Every business entails start-up
costs. Plus, there has to be enough money to keep the business afloat
until it attains profitability – which can take years. With banks and
lenders shutting their doors to everyone with less than stellar
credit, what can small business owners do to make ends meet?

For many, it's a balancing act to stay on top of personal finances and
business costs. With an unprecedented number of small business loans
getting declined – the Small Business Administration approved 28,000
fewer loans in 2008 – owners are tapping their savings and retirement
funds and maxing out their credit cards just to keep their dream
alive.

Sadly, some of these dreams are currently on life support and fading
fast. Skyrocketing food and fuel prices have made business ownership a
costly endeavor. Financing is scarce, customers are making fewer
purchases, and those who do buy from small businesses are having a
tougher time paying up. Last year, it took an average of 30 to 60 days
for a small business to receive payment. Now the average is 120 days.
Says Tony Wilkinson, president of the National Association of
Government Guaranteed Lenders: "I've been at this since 1980, and I've
never seen it this bad."

Credit cards, especially those designed for small business owners,
fill in the financing gaps. But the credit crisis has brought with it
higher fees and lower spending limits, making this method of financing
less economical than before. Home equity is also in a slump.

Some business owners turn to private lenders for their loans. If your
business is industry-specific, you might be able to find a private
lender willing to back your venture. You could also explore equity
financing, giving up some of your interest in the company in exchange
for money. Relatives are another good source for financing. They're
usually more generous and less stringent about your repayment terms.

To secure funding from any source, you'll need a great business plan.
Sell your idea and back it up with hard data. Explain why the business
is a good idea, and draw up a timeline for your profitability. When
lenders see that you've done your research, they will be more likely
to take a risk and invest in your venture.

Small businesses employ 116 million workers and crank out half of the
U.S. gross domestic product, according to the Commerce Department. If
they fail, our whole nation will experience the fallout. Here's to
brighter a financial future for us all.

The New Business Owners Guide to Accepting Online Payments

by: Debbie Dragon

As more people decide to try and increase their income by starting
online businesses, there is a greater number of individuals who
require methods of accepting online payments. It's necessary that an
online business appears professional, so potential consumers have the
confidence to trust and buy from them, and it's equally necessary that
the credit cards can be accepted over a secure connection.

Online business owners have a number of options for accepting online
payments, from PayPal to ProPay to a standard merchant account. While
it may be easier initially to go with a third party payment processor
like PayPal or ProPay, you may find the long term benefits of having a
merchant account worth the additional effort to get one set up right
from the start of your online business venture.

Benefits of having a merchant account with your new online business include:

Ability to accept the major credit cards that most everyone has in
their wallets: Visa, MasterCard, Discover and American Express. Not
only can you accept the credit card versions of these cards, but
you'll also be able to accept debit card payments from the millions of
American's with debit cards containing the Visa or MasterCard logo,
since they are treated just like credit cards.

Ability to obtain payments from your customers right from your website
over a secure connection, instantly. Online businesses that attempt to
accept payment by mailed check or money order will never achieve the
same level of success as a website that can accept payments instantly
online with credit cards. Customers will simply close your site and
find a website offering the same product or service that WILL take
credit card as payment – shopping online means customers want to pay
online and not wait for the mail to deliver their payment before the
transaction takes place.

Customers recognize businesses that accept credit cards as having a
higher level of professionalism and credibility.

Ability to receive your online payments transferred to your own bank
account by automatic wire transfer – quickly, securely, and with the
same level of security that your customers experience during the
purchasing process.

Ease of bookkeeping management thanks to reports and statements of
transactions made through your online merchant account and payment
processing system. May even reduce the need for a bookkeeper on staff.

Ability to use software that is included with your merchant account
for online businesses to quickly and easily set up price lists for
products and shopping carts on your website. This makes maintaining
your site a breeze for you, and the shopping experience intuitive to
your website shoppers.

If you should take your online business off the web at any point – to
a flea market or vendor event, for example, you can often rent a
terminal to accept credit card payments in person, manually. Some
merchant accounts include terminals as part of your monthly fee, and
if you feel your online business will have many vendor events, it may
be in your best interest to look for that service as part of your
merchant account to save money.

Reasonable processing fees. Merchant accounts have lower fees than
services like PayPal – which means you have a better profit margin.
Some merchant accounts have monthly fees with very low per-transaction
fees, and include a large variety of value added services that are
simply not offered as part of third party payment processing systems,
like PayPal.

Online businesses often operate globally. Your merchant account will
help you accept payments in a number of different currencies in order
to extend your reach to a greater number of potential customers.

Chargeback fraud is an increasing concern for online retailers, where
people buy something online with credit and then report the purchase
as fraud. As the retailer, your account will get deducted the amount
of that purchase and the product has still been delivered and you're
out that money! Merchant accounts can help you avoid chargebacks with
their fraud screening services, which is included in your monthly fee.

Beware of Financial Profiling

by: Janna Weiss

Imagine having your credit limit lowered because you've been seeing a
marriage counselor and charging the fees to your credit card. Imagine
your loan application getting rejected because you work for a mortgage
lender or a home construction company. Imagine, through no fault of
your own, getting hit with a monthly spending limit on your credit
card just because you shop at the same stores as people who have poor
credit habits.
Welcome to the world of financial profiling.

John and Monica Bell from Chadds Ford, PA, use their American Express
card regularly. They charge about $5,000 a month, but always pay the
balance in full. You can imagine their surprise when they opened a
letter from the card company that advised them of a new $1,100 monthly
spending limit. The Bells didn't do anything wrong. They simply fell
victim to financial profiling.

The idea of profiling is nothing new; after all, lenders already look
at our debt load and credit history before they decide to loan us
money. Those figures paint a picture of our credit-worthiness and the
risk involved if they let us borrow.

But the Bells and many others are being penalized for spending habits
that they have not displayed. Instead, American Express looked at the
places where the Bells do business and decided that, since other AmEx
customers with similar buying patterns had defaulted on their
payments, the Bells were at risk of doing so as well.

Specifically, John and Monica have a mortgage through Countrywide
Financial Corp., a company, now owned by Bank of America, whose name
is associated with the mortgage crisis. Because other AmEx customers
borrowed irresponsibly and defaulted on their payments, it was assumed
that the Bells might do the same.

American Express spokesman Michael O'Neill acknowledges that people's
spending habits are taken into consideration, especially when they
appear to be similar to the habits of problem customers. While those
similarities alone aren't enough to justify a spending limit, says
O'Neill, "If they're spending in a way that looks like a pattern of
other people who had credit trouble before them, it gets added into
the mix."

Why are credit card companies holding their customers responsible for
other people's behavior? Because of the credit crisis. Banks and
lenders are scared to loan money to anyone, including each other. With
record amounts of defaulted loans on one side, and no access to
borrowed funds on the other side, many banks have found themselves
between a rock and a hard place – and their customers feel the pinch
as they get declined for loans and watch their credit limits plummet.

In some cases, the profiling has gone too far. CompuCredit started
slashing credit limits on customers who sought marriage or personal
counseling, patronized bars and pool halls, or paid for tire retreads
and automobile repairs. They also failed to disclose this new
profiling system to their card holders, resulting in a law suit by the
Federal Trade Commission (FTC).

In today's credit climate, CompuCredit and American Express aren't the
only companies looking for reasons to lower people's limits. Watch
your own credit limits carefully, and call your card issuer to ask
about any changes that you don't understand. If they won't reinstate
your limit even though you've been a good customer, it might be time
to take your business elsewhere.

Small Business Owners Find it Hard to Stay Afloat

by: Janna Weiss

In these troubled economic times, it seems that everyone is feeling
the pain of the credit crunch. From the working class all the way to
the national government, people are finding it hard to obtain loans
that were readily available as recently as last year. Amid the
rhetoric about Wall Street and Main Street, one class of people is
largely overlooked: small business owners.
For businesses to thrive, they need financing. Small business owners
and entrepreneurs have it rough. Every business entails start-up
costs. Plus, there has to be enough money to keep the business afloat
until it attains profitability – which can take years. With banks and
lenders shutting their doors to everyone with less than stellar
credit, what can small business owners do to make ends meet?

For many, it's a balancing act to stay on top of personal finances and
business costs. With an unprecedented number of small business loans
getting declined – the Small Business Administration approved 28,000
fewer loans in 2008 – owners are tapping their savings and retirement
funds and maxing out their credit cards just to keep their dream
alive.

Sadly, some of these dreams are currently on life support and fading
fast. Skyrocketing food and fuel prices have made business ownership a
costly endeavor. Financing is scarce, customers are making fewer
purchases, and those who do buy from small businesses are having a
tougher time paying up. Last year, it took an average of 30 to 60 days
for a small business to receive payment. Now the average is 120 days.
Says Tony Wilkinson, president of the National Association of
Government Guaranteed Lenders: "I've been at this since 1980, and I've
never seen it this bad."

Credit cards, especially those designed for small business owners,
fill in the financing gaps. But the credit crisis has brought with it
higher fees and lower spending limits, making this method of financing
less economical than before. Home equity is also in a slump.

Some business owners turn to private lenders for their loans. If your
business is industry-specific, you might be able to find a private
lender willing to back your venture. You could also explore equity
financing, giving up some of your interest in the company in exchange
for money. Relatives are another good source for financing. They're
usually more generous and less stringent about your repayment terms.

To secure funding from any source, you'll need a great business plan.
Sell your idea and back it up with hard data. Explain why the business
is a good idea, and draw up a timeline for your profitability. When
lenders see that you've done your research, they will be more likely
to take a risk and invest in your venture.

Small businesses employ 116 million workers and crank out half of the
U.S. gross domestic product, according to the Commerce Department. If
they fail, our whole nation will experience the fallout. Here's to
brighter a financial future for us all.

Working with Banks Articles

Working with Banks Articles
It's important to be well educated about working with banks before
applying for credit or making any other major financial decision. In
our education center we will inform you how to act when working with
banks. We publish new credit card articles weekly so be sure to check
back often.

How to Reduce Marketing Offers from Bank of America Companies
If you're a Bank of America account holder, you might be getting more
marketing offers than you know what to do with. This article explains
how to opt out of mail and phone offers that you don't want to
receive.

The New Business Owners Guide to Accepting Online Payments
As more people decide to try and increase their income by starting
online businesses, there is a greater number of individuals who
require methods of accepting online payments. It's necessary that an
online business appears professional, so potential consumers have the
confidence to trust and buy from them, and it's equally necessary that
the credit cards can be accepted over a secure connection.

Beware of Financial Profiling
Can your credit limit get slashed because of your spending habits?
What about other people's spending habits? This article examines the
trend of financial profiling and how it can affect your credit.

Small Business Owners Find it Hard to Stay Afloat
Imagine having a great idea for a small business, only to be denied
for the loan that would finance your venture. That's what small
business owners are experiencing. Here's a look at the struggles they
face and how financing can be secured.

When Credit Cards are Disputed
When you set up shop and allow for payments via debit and credit
cards, there are numerous advantages- including spontaneous shoppers,
and people who will buy more when they can put it on a credit card,
but there are also a few disadvantages as well.

Disputing Credit Card Charges
Let's imagine for a moment that you've just received your credit card
bill in the mail, and you think the only purchase you made with it the
previous month was at the gas station. What do you do then, when you
find three purchases at Old Navy, and a bunch of other purchases you
know you didn't make?

How to Reduce Marketing Offers from Bank of America Companies

How to Reduce Marketing Offers from Bank of America Companies
by: Janna Weiss

Is your mailbox bulging with "pre-approved" credit card offers? Have
you received calls from telemarketers hawking low interest home loans?
Maybe you've received unsolicited insurance quotes over e-mail. Where
are these offers coming from? If you've got an account with Bank of
America, you need look no further for the culprit.
Bank of America recently sent out a notice to its account holders. It
contains instructions for limiting unsolicited marketing from Bank of
America companies. With just a few simple steps, customers can
drastically reduce the amount of marketing they receive via mail,
telephone, and the Internet.

First, call 1-800-282-2884. You'll be connected to an agent who will
ask for your account number and some personally identifying
information. Once you've verified that you are the account holder, you
will be asked to supply the phone numbers, addresses, and e-mail
addresses that you wish to remove from their marketing lists.

The limited marketing will take effect on October 1st, 2008. Every
point of contact that you remove will stop receiving marketing
promotions for five years. When this period nears an end, Bank of
America will send out a notification so that customers can opt to
limit their marketing for a further five years.

Note that this doesn't stop direct marketing offers from businesses
you hold an account with. To stop receiving offers from Bank of
America credit cards, call the number on the back of your card and ask
to opt out of all promotional letters, balance transfer offers, and
pre-screened credit card marketing.

Banks and credit card companies are notorious for sharing your
personal information with their affiliate companies. When your
financial records and credit score get passed around, you'll start
receiving letters and calls urging you to accept credit cards you've
already been approved for.

But these phone calls and mailings are misleading. You cannot be
pre-approved for a card you didn't apply for. The truth is that these
companies obtained your personal information and, based on what they
saw, decided to offer you a credit card. Some offers even contain
actual cards that can be activated with a simple phone call. This can
lead to big problems if someone steals your mail. (Identity theft,
anyone?)

To learn more about Bank of America's privacy policy and marketing
practices, go to the Bank of America web site. You can also opt out of
pre-screened credit offers by entering your information at
OptOutPrescreen.com.

You can thank the Federal Reserve for laying down rules and forcing
banks to comply - rules that include telling customers about their
right to refuse marketing offers from Bank of America affiliates.
Hopefully other banks will follow suit, and our inboxes and mailboxes
will once again have room for messages we actually want.

Working with Banks Articles

Working with Banks Articles
It's important to be well educated about working with banks before
applying for credit or making any other major financial decision. In
our education center we will inform you how to act when working with
banks. We publish new credit card articles weekly so be sure to check
back often.

How to Reduce Marketing Offers from Bank of America Companies
If you're a Bank of America account holder, you might be getting more
marketing offers than you know what to do with. This article explains
how to opt out of mail and phone offers that you don't want to
receive.

The New Business Owners Guide to Accepting Online Payments
As more people decide to try and increase their income by starting
online businesses, there is a greater number of individuals who
require methods of accepting online payments. It's necessary that an
online business appears professional, so potential consumers have the
confidence to trust and buy from them, and it's equally necessary that
the credit cards can be accepted over a secure connection.

Beware of Financial Profiling
Can your credit limit get slashed because of your spending habits?
What about other people's spending habits? This article examines the
trend of financial profiling and how it can affect your credit.

Small Business Owners Find it Hard to Stay Afloat
Imagine having a great idea for a small business, only to be denied
for the loan that would finance your venture. That's what small
business owners are experiencing. Here's a look at the struggles they
face and how financing can be secured.

When Credit Cards are Disputed
When you set up shop and allow for payments via debit and credit
cards, there are numerous advantages- including spontaneous shoppers,
and people who will buy more when they can put it on a credit card,
but there are also a few disadvantages as well.

Disputing Credit Card Charges
Let's imagine for a moment that you've just received your credit card
bill in the mail, and you think the only purchase you made with it the
previous month was at the gas station. What do you do then, when you
find three purchases at Old Navy, and a bunch of other purchases you
know you didn't make?

How to Reduce Marketing Offers from Bank of America Companies

How to Reduce Marketing Offers from Bank of America Companies
by: Janna Weiss

Is your mailbox bulging with "pre-approved" credit card offers? Have
you received calls from telemarketers hawking low interest home loans?
Maybe you've received unsolicited insurance quotes over e-mail. Where
are these offers coming from? If you've got an account with Bank of
America, you need look no further for the culprit.
Bank of America recently sent out a notice to its account holders. It
contains instructions for limiting unsolicited marketing from Bank of
America companies. With just a few simple steps, customers can
drastically reduce the amount of marketing they receive via mail,
telephone, and the Internet.

First, call 1-800-282-2884. You'll be connected to an agent who will
ask for your account number and some personally identifying
information. Once you've verified that you are the account holder, you
will be asked to supply the phone numbers, addresses, and e-mail
addresses that you wish to remove from their marketing lists.

The limited marketing will take effect on October 1st, 2008. Every
point of contact that you remove will stop receiving marketing
promotions for five years. When this period nears an end, Bank of
America will send out a notification so that customers can opt to
limit their marketing for a further five years.

Note that this doesn't stop direct marketing offers from businesses
you hold an account with. To stop receiving offers from Bank of
America credit cards, call the number on the back of your card and ask
to opt out of all promotional letters, balance transfer offers, and
pre-screened credit card marketing.

Banks and credit card companies are notorious for sharing your
personal information with their affiliate companies. When your
financial records and credit score get passed around, you'll start
receiving letters and calls urging you to accept credit cards you've
already been approved for.

But these phone calls and mailings are misleading. You cannot be
pre-approved for a card you didn't apply for. The truth is that these
companies obtained your personal information and, based on what they
saw, decided to offer you a credit card. Some offers even contain
actual cards that can be activated with a simple phone call. This can
lead to big problems if someone steals your mail. (Identity theft,
anyone?)

To learn more about Bank of America's privacy policy and marketing
practices, go to the Bank of America web site. You can also opt out of
pre-screened credit offers by entering your information at
OptOutPrescreen.com.

You can thank the Federal Reserve for laying down rules and forcing
banks to comply - rules that include telling customers about their
right to refuse marketing offers from Bank of America affiliates.
Hopefully other banks will follow suit, and our inboxes and mailboxes
will once again have room for messages we actually want.

Balance Transfer Credit Card Articles

Balance Transfer Credit Card Articles
It's important to be well educated about balance transfer credit cards
before applying for credit or making any other major financial
decision. In our education center we will inform you about any aspect
of applying for and using balance transfer credit cards. We publish
new credit card articles weekly so be sure to check back often.

Easy Guide To Transferring a Credit Card Balance To a Better Credit Card
Transferring a high interest credit card balance to one with a better
interest rate and/or better overall terms and features is usually a
good way to reduce the amount of money you pay back on your existing
debt. Depending on the "better" credit card you select, you may also
be able to benefit from a rewards program or gain other features you
didn't already have – including travel accident insurance coverage or
an extended warranty program for new purchases made with the card.
There are a few instances when a balance transfer is not the great
deal it appears at first glance though, so it's important to do your
research before moving your accounts around.

How Balance Transfers Affect Your Credit Score
Transferring balances with high interest rates to a credit card with a
lower interest rate (or a 0% interest balance transfer offer) is a
great way to pay your debt off faster and save money in the process.
It's not as cut and dry as transferring the money from one place to
another though, there are some other considerations to work out before
you rush into the next balance transfer offer you qualify for:
primarily, how does a balance transfer affect your credit score?

Are 0% Balance Transfer Offers Really Free?
Paying off credit card debt with 0% interest is a dream come true –
which is exactly why a large number of credit card companies offer the
promotions. They know it will attract new customers who have debt with
other credit card companies to transfer that debt to their cards. But
where is the value to the company offer the credit card balance
transfer offer; if they let you repay that debt with 0% interest?

Balance Transfer Checks- Opportunities to Save
Credit card companies spend quite a bit of money on marketing to
attract new customers-and it's always cheaper to keep customers they
have rather than trying to find new customers.

Avoid These Common Credit Card Balance Transfer Mistakes
That offer to transfer your credit card balances sounds like a pretty
good deal, doesn't it? And it is, until you take out your magnifying
glass and start reading all the fine print that goes along with the
offer. What a lot of people don't realize is that the lender making
such an unbelievable offer wouldn't be doing so if there wasn't some
way to benefit financially. These lenders actually feel safe in
assuming that most people transferring balances won't pay attention to
the potentially costly details that accompany the offer.

Transferring a Credit Card Balance
Are you staring at that attractive advertisement for switching credit
card companies by transferring your balance from one card to another?
While many of these offers are truly great deals, balance transfers
and card-switching is not something to jump into, eager as you may be.
You need to do your homework first: Do enough research and
investigating in order to determine whether it in fact is worth it or
a good idea to make the transfer.

What You Should Know About Switching Credit Cards
With U.S. credit card debt at an all time high, many savvy consumers
and investors are renewing their commitments to rid themselves of this
burdensome and in most cases, unnecessary debt. In doing so they are
constantly searching for the next best credit card with higher credit
limits, lower annual percentage rates (APRs), and zero balance
transfer offers.

Consolidating credit cards
Credit card consolidation is a popular solution for those with
significant credit card debt, usually distributed on three or four
different cards. Basically, this means putting all your debts together
on a single card, like transferring it all to one loan. Of course, the
goal is to pick a card that offers better conditions than what you
already have, in order not only to simplify, but also to reduce your
payments.

Balance Transfer Credit Card Articles

Balance Transfer Credit Card Articles
It's important to be well educated about balance transfer credit cards
before applying for credit or making any other major financial
decision. In our education center we will inform you about any aspect
of applying for and using balance transfer credit cards. We publish
new credit card articles weekly so be sure to check back often.

Easy Guide To Transferring a Credit Card Balance To a Better Credit Card
Transferring a high interest credit card balance to one with a better
interest rate and/or better overall terms and features is usually a
good way to reduce the amount of money you pay back on your existing
debt. Depending on the "better" credit card you select, you may also
be able to benefit from a rewards program or gain other features you
didn't already have – including travel accident insurance coverage or
an extended warranty program for new purchases made with the card.
There are a few instances when a balance transfer is not the great
deal it appears at first glance though, so it's important to do your
research before moving your accounts around.

How Balance Transfers Affect Your Credit Score
Transferring balances with high interest rates to a credit card with a
lower interest rate (or a 0% interest balance transfer offer) is a
great way to pay your debt off faster and save money in the process.
It's not as cut and dry as transferring the money from one place to
another though, there are some other considerations to work out before
you rush into the next balance transfer offer you qualify for:
primarily, how does a balance transfer affect your credit score?

Are 0% Balance Transfer Offers Really Free?
Paying off credit card debt with 0% interest is a dream come true –
which is exactly why a large number of credit card companies offer the
promotions. They know it will attract new customers who have debt with
other credit card companies to transfer that debt to their cards. But
where is the value to the company offer the credit card balance
transfer offer; if they let you repay that debt with 0% interest?

Balance Transfer Checks- Opportunities to Save
Credit card companies spend quite a bit of money on marketing to
attract new customers-and it's always cheaper to keep customers they
have rather than trying to find new customers.

Avoid These Common Credit Card Balance Transfer Mistakes
That offer to transfer your credit card balances sounds like a pretty
good deal, doesn't it? And it is, until you take out your magnifying
glass and start reading all the fine print that goes along with the
offer. What a lot of people don't realize is that the lender making
such an unbelievable offer wouldn't be doing so if there wasn't some
way to benefit financially. These lenders actually feel safe in
assuming that most people transferring balances won't pay attention to
the potentially costly details that accompany the offer.

Transferring a Credit Card Balance
Are you staring at that attractive advertisement for switching credit
card companies by transferring your balance from one card to another?
While many of these offers are truly great deals, balance transfers
and card-switching is not something to jump into, eager as you may be.
You need to do your homework first: Do enough research and
investigating in order to determine whether it in fact is worth it or
a good idea to make the transfer.

What You Should Know About Switching Credit Cards
With U.S. credit card debt at an all time high, many savvy consumers
and investors are renewing their commitments to rid themselves of this
burdensome and in most cases, unnecessary debt. In doing so they are
constantly searching for the next best credit card with higher credit
limits, lower annual percentage rates (APRs), and zero balance
transfer offers.

Consolidating credit cards
Credit card consolidation is a popular solution for those with
significant credit card debt, usually distributed on three or four
different cards. Basically, this means putting all your debts together
on a single card, like transferring it all to one loan. Of course, the
goal is to pick a card that offers better conditions than what you
already have, in order not only to simplify, but also to reduce your
payments.

Consolidating credit cards

Credit card consolidation is a popular solution for those with
significant credit card debt, usually distributed on three or four
different cards. Basically, this means putting all your debts together
on a single card, like transferring it all to one loan. Of course, the
goal is to pick a card that offers better conditions than what you
already have, in order not only to simplify, but also to reduce your
payments.

Since there are so many offers out there, and lenders fight over your
business, you can sometimes find solutions that can save you thousands
of dollars per year. If you consolidate your debt to a credit card
with low interest and 0% balance transfer, you can save considerably,
and pay off your credit sooner (which, of course, is the main goal
when dealing with credit card debt).

The most serious mistake people do when consolidating is to go though
the entire process just to simplify their accounting, and they don't
pay enough attention to how much they could save. Another mistake is
to close your zero balance accounts when consolidating. This
practically means you close some of your credit options, which is
never a good idea.

When you plan to consolidate, call your banks and explain the
situation. They want your business, and you'll be surprised how
flexible and willing to negotiate they can be, once you explain to
them that you have various options available to take your business
someplace else.

There are many web sites offering solutions for debt consolidation.
However, keep in mind that, while this is a comfortable and fast
solution, you don't have the options to negotiate directly with the
banks. Also, most often the best offers come from banks that want to
keep your business, so make sure you give a change to the banks you've
had a long-term relation with. If you're not pleased with the results,
take your money elsewhere quickly.

Consolidation is often a necessity for students, new graduates, or
people who have filed for bankruptcy some time ago. If you've handled
your payments well and managed to clear up your record to a certain
degree, there is no need to continue paying more than it's worth for
your credit cards. Sit down and go through the numbers carefully, and
think analyze the problem realistically. Don't forget to check your
credit report and your credit rating before you start anything - it
will help you plan and plead your case. Also, if your credit request
gets rejected, don't forget to ask for your free copy of the credit
report.

Of course, credit card consolidation is not a miracle solution for all
your financial problems. On the contrary, you may find that it
requires a lot of financial discipline to make the payment on time and
to straighten things up. However, it is less confusing than having
several small credits, and so it is easier to keep things under
control.

There is also the option of getting credit counseling, if things get
really confusing. A successful plan will make sure you make the
payments on time and regularly, without putting a strain on other
aspects of your life. Of course, it's a lengthy process, usually
taking one or two years - but it's worth the trouble.

Sometimes, you can lower costs by consolidating your debt through a
second mortgage - but be really careful about the hidden costs and
problems - you may want to consult with a specialist or two before
taking this step. Usually, this means that your home will become
collateral, and you may lose it if things go wrong. Also, costs add up
quickly and you may end up paying more than you initially thought.

Easy Guide To Transferring a Credit Card Balance To a Better Credit Card

by: Debbie Dragon

Transferring a high interest credit card balance to one with a better
interest rate and/or better overall terms and features is usually a
good way to reduce the amount of money you pay back on your existing
debt. Depending on the "better" credit card you select, you may also
be able to benefit from a rewards program or gain other features you
didn't already have – including travel accident insurance coverage or
an extended warranty program for new purchases made with the card.
There are a few instances when a balance transfer is not the great
deal it appears at first glance though, so it's important to do your
research before moving your accounts around.

If you want to take advantage of a balance transfer offer, use this
guide for a smooth transition from one card to the other, and avoid
costly or time consuming mistakes:

Step One: Find a better credit card with a balance transfer offer.

There is no point moving money from one credit card to another unless
you are going to benefit from it in some way. Sometimes people are
mislead by the introductory rates and promotional offers – so it is
important that you dig a little beneath the surface to see what sort
of rates you'll be charged once the promotional period ends.

When looking at possible cards to replace your existing credit card,
make sure you find out the following information in order to make an
accurate comparison between your existing card and the new card:

What is the introductory rate and when does it end? Does the
introductory rate apply to new purchases only? Does it apply to
balance transfers? What is the cards APR (annual percentage rate) once
the introductory offer is over? Does the card have an annual fee? How
much is it?

This is an important consideration when looking at a card to move your
existing balances to - What does the card charge for a balance
transfer fee? Many cards charge 3-4% fees for transferring balances.
If you've got a $4,000 balance on your card that you're moving to a
new card, you're looking at a fee between $120 and $160 just to move
the balance. If you're going to pay a balance transfer fee, you're
going to need to save a whole lot of money in interest over the life
of the balance on the new card in order to make that fee worth it.

Step Two: What are your chances of getting approved for the new card?

Just because a credit card offers a 0% or 2% interest rate on balance
transfers does not mean that you will be approved for that offer.
Cards always put their best foot forward; but sometimes people are
approved for the cards under different terms, based on their credit
scores and payment histories. Take a close look, because often the
credit card you apply for will tell you that if you don't qualify for
the terms of the offer they will issue you a credit card with higher
interest rates or different overall terms. If this happens, will the
higher rates be beneficial to you, or will you just end up with a
second credit card that charges a fortune in fees and interest and the
temptation to spend more because you have a new credit line available?

Step Three: Apply

If you find a card with a great offer that you've compared closely to
your existing card and feel that you will save money through the new,
lower interest rate and/or through the rewards program the new card
offers – AND you've considered your realistic chance of being approved
for that card and all seems ready to go; it's time to apply.

When applying for the new card, make sure to fill out the balance
transfer portion at the time of application. The reason for this is
sometimes the balance transfer offers are only good for immediate
balance transfers that occur at the time of account opening. Balance
transfers that are initiated later may be considered a cash advance
and do not enjoy the same promotional terms your initial transfers do.

Step Four: Stop Using Old Card

If you've transferred the balance to a new and improved credit card,
stop using your old credit card. Cut it up or put it away so you
aren't tempted to charge on it. If you transfer the balance and then
continue to use your old card, you've completely defeated the purpose
of moving the money and now have TWO credit cards to pay off!

Consolidating credit cards

Credit card consolidation is a popular solution for those with
significant credit card debt, usually distributed on three or four
different cards. Basically, this means putting all your debts together
on a single card, like transferring it all to one loan. Of course, the
goal is to pick a card that offers better conditions than what you
already have, in order not only to simplify, but also to reduce your
payments.

Since there are so many offers out there, and lenders fight over your
business, you can sometimes find solutions that can save you thousands
of dollars per year. If you consolidate your debt to a credit card
with low interest and 0% balance transfer, you can save considerably,
and pay off your credit sooner (which, of course, is the main goal
when dealing with credit card debt).

The most serious mistake people do when consolidating is to go though
the entire process just to simplify their accounting, and they don't
pay enough attention to how much they could save. Another mistake is
to close your zero balance accounts when consolidating. This
practically means you close some of your credit options, which is
never a good idea.

When you plan to consolidate, call your banks and explain the
situation. They want your business, and you'll be surprised how
flexible and willing to negotiate they can be, once you explain to
them that you have various options available to take your business
someplace else.

There are many web sites offering solutions for debt consolidation.
However, keep in mind that, while this is a comfortable and fast
solution, you don't have the options to negotiate directly with the
banks. Also, most often the best offers come from banks that want to
keep your business, so make sure you give a change to the banks you've
had a long-term relation with. If you're not pleased with the results,
take your money elsewhere quickly.

Consolidation is often a necessity for students, new graduates, or
people who have filed for bankruptcy some time ago. If you've handled
your payments well and managed to clear up your record to a certain
degree, there is no need to continue paying more than it's worth for
your credit cards. Sit down and go through the numbers carefully, and
think analyze the problem realistically. Don't forget to check your
credit report and your credit rating before you start anything - it
will help you plan and plead your case. Also, if your credit request
gets rejected, don't forget to ask for your free copy of the credit
report.

Of course, credit card consolidation is not a miracle solution for all
your financial problems. On the contrary, you may find that it
requires a lot of financial discipline to make the payment on time and
to straighten things up. However, it is less confusing than having
several small credits, and so it is easier to keep things under
control.

There is also the option of getting credit counseling, if things get
really confusing. A successful plan will make sure you make the
payments on time and regularly, without putting a strain on other
aspects of your life. Of course, it's a lengthy process, usually
taking one or two years - but it's worth the trouble.

Sometimes, you can lower costs by consolidating your debt through a
second mortgage - but be really careful about the hidden costs and
problems - you may want to consult with a specialist or two before
taking this step. Usually, this means that your home will become
collateral, and you may lose it if things go wrong. Also, costs add up
quickly and you may end up paying more than you initially thought.

Easy Guide To Transferring a Credit Card Balance To a Better Credit Card

by: Debbie Dragon

Transferring a high interest credit card balance to one with a better
interest rate and/or better overall terms and features is usually a
good way to reduce the amount of money you pay back on your existing
debt. Depending on the "better" credit card you select, you may also
be able to benefit from a rewards program or gain other features you
didn't already have – including travel accident insurance coverage or
an extended warranty program for new purchases made with the card.
There are a few instances when a balance transfer is not the great
deal it appears at first glance though, so it's important to do your
research before moving your accounts around.

If you want to take advantage of a balance transfer offer, use this
guide for a smooth transition from one card to the other, and avoid
costly or time consuming mistakes:

Step One: Find a better credit card with a balance transfer offer.

There is no point moving money from one credit card to another unless
you are going to benefit from it in some way. Sometimes people are
mislead by the introductory rates and promotional offers – so it is
important that you dig a little beneath the surface to see what sort
of rates you'll be charged once the promotional period ends.

When looking at possible cards to replace your existing credit card,
make sure you find out the following information in order to make an
accurate comparison between your existing card and the new card:

What is the introductory rate and when does it end? Does the
introductory rate apply to new purchases only? Does it apply to
balance transfers? What is the cards APR (annual percentage rate) once
the introductory offer is over? Does the card have an annual fee? How
much is it?

This is an important consideration when looking at a card to move your
existing balances to - What does the card charge for a balance
transfer fee? Many cards charge 3-4% fees for transferring balances.
If you've got a $4,000 balance on your card that you're moving to a
new card, you're looking at a fee between $120 and $160 just to move
the balance. If you're going to pay a balance transfer fee, you're
going to need to save a whole lot of money in interest over the life
of the balance on the new card in order to make that fee worth it.

Step Two: What are your chances of getting approved for the new card?

Just because a credit card offers a 0% or 2% interest rate on balance
transfers does not mean that you will be approved for that offer.
Cards always put their best foot forward; but sometimes people are
approved for the cards under different terms, based on their credit
scores and payment histories. Take a close look, because often the
credit card you apply for will tell you that if you don't qualify for
the terms of the offer they will issue you a credit card with higher
interest rates or different overall terms. If this happens, will the
higher rates be beneficial to you, or will you just end up with a
second credit card that charges a fortune in fees and interest and the
temptation to spend more because you have a new credit line available?

Step Three: Apply

If you find a card with a great offer that you've compared closely to
your existing card and feel that you will save money through the new,
lower interest rate and/or through the rewards program the new card
offers – AND you've considered your realistic chance of being approved
for that card and all seems ready to go; it's time to apply.

When applying for the new card, make sure to fill out the balance
transfer portion at the time of application. The reason for this is
sometimes the balance transfer offers are only good for immediate
balance transfers that occur at the time of account opening. Balance
transfers that are initiated later may be considered a cash advance
and do not enjoy the same promotional terms your initial transfers do.

Step Four: Stop Using Old Card

If you've transferred the balance to a new and improved credit card,
stop using your old credit card. Cut it up or put it away so you
aren't tempted to charge on it. If you transfer the balance and then
continue to use your old card, you've completely defeated the purpose
of moving the money and now have TWO credit cards to pay off!

Transferring a Credit Card Balance

Are you staring at that attractive advertisement for switching credit
card companies by transferring your balance from one card to another?
While many of these offers are truly great deals, balance transfers
and card-switching is not something to jump into, eager as you may be.
You need to do your homework first: Do enough research and
investigating in order to determine whether it in fact is worth it or
a good idea to make the transfer.

First, find out if it is in fact worth it. Generally speaking, these
attractive advertisements and super credit card deals advertise very
low introductory rates if you transfer your current balance from an
existing credit card onto this new one. You can stumble upon these
offers anywhere—online, in the mail, on a flyer or via a telephone
call from credit card company salespersons—and you need to determine
how great these deals really are, or if you'll just end up paying much
more in fees and interest in the long run.

Read the fine print. Read everything. Read it through several times so
that you make sure you understand what it is saying. It may appear to
be a bunch of financial jargon that you might not think is very
important, but the truth is, this information is valuable and critical
to your decision in whether or not you make the big switch. Call the
credit card company and ask any questions you might have. If the deal
is solid and they want to make a sale, generally they should be able
to help you out in any way.

What do you need to find out about the deal? Here is an example. Let's
say that the advertised introductory rate is 6% (a low rate) on credit
card B if you transfer your balance from credit card A, where you
currently rack up an APR of 18% (a standard rate). You come across
another offer, showcasing credit card C with an introductory rate of
9%. At first glance you may think, "Well, let's go with credit card
B—it's the obvious choice here." However, after reading the fine
print, you discover credit card B's special rate only last six months,
and afterward the APR is 20%, whereas credit card C's higher rate
lasts for a year and the interest rate after that is 18%, the same as
yours on credit card A.

In other words, you have to factor in a lot of variables when making
the decision to switch your balance from one credit card to another.
Besides comparing the introductory rates being offered, the length of
the offer and what the regular interest rate is, you'll also need to
take into account balance transfer fees, annual fees, late fees and
other fees, as well as whether the teaser rate applies to balance
transfers only or also purchases, among other considerations.

Something else to keep in mind is that you may not actually qualify
for the special rate being offered, depending on your credit history
and credit rating. Before you make the big plunge, make sure you know
exactly what you, yourself, will be getting. There may also be other
conditions. For example, some credit card companies may penalize you
for one late payment and take you off the introductory rate onto their
regular rate, which may be higher than your current card's rate.

However, many credit cards with these introductory rates offer great
deals for people interested in switching credit cards and transferring
their balance over and can be more than worth it. The important thing
is to do your research, read the fine print and ask questions to
determine which credit card and deal is the right one for you.

Once you've selected the right credit card offer, the next step is to
fill out the balance transfer application form completely and
accurately. Next, make the minimum payment on your original credit
card while you wait for the balance transfer to go through. When it
has gone through, the new company should send you a notice, after
which you'll need to verify the transfer with your old company so they
can send you a zero-balanced billing statement. Finally, cancel your
old card since you don't need it anymore—it will also save you some
temptation.

What You Should Know About Switching Credit Cards

What You Should Know About Switching Credit Cards

With U.S. credit card debt at an all time high, many savvy consumers
and investors are renewing their commitments to rid themselves of this
burdensome and in most cases, unnecessary debt. In doing so they are
constantly searching for the next best credit card with higher credit
limits, lower annual percentage rates (APRs), and zero balance
transfer offers. In fact switching credit cards has become as common
as changing the battery in the fire alarm for some people and it has
actually worked. So if you are amongst the thousands of Americans who
are thinking of making a switch to improve your financial picture,
before you do there are a few things that you should consider. They
include how multiple inquiries for credit will affect your credit
score and if the APR that applies to balance transfers after the
introductory grace period still makes it a good deal. In addition to
these two things you should also, as with everything you do, conduct
your own research to find the best solution to meet your needs.

It makes sound economical sense to switch credit cards to save money
in interest charges and fees. Especially when you consider the fact
that for most credit cards the minimum monthly payment is so low that
it barely covers the interest charges reducing your outstanding
balance by just a few measly dollars from month to month. Its no
wonder then that we jump at any new offer that comes our way. When
deciding whether to switch cards though, you should keep in mind that
every time you apply for a new credit card an inquiry from that
particular creditor goes on to your credit file whether you receive
the credit or not. Additionally, multiple inquires by different
creditors negatively impacts your credit score and any account whether
closed or unused remains on your credit file for at least seven years.
Last thing, switching cards and closing accounts immediately after the
switch also impacts your credit score.

When considering whether to take advantage of a 0% balance transfer
offer, you should consider the amount of time that you'll have before
the "normal" APR applies to that balance and whether you'll be able to
pay that in full before the grace period is over. Additionally, in the
event that you aren't able to pay off the balance prior to expiration
of the grace period, you should consider if the new APR that kicks in
will be a significant savings from the card that you are considering
transferring balances from and whether interest will be charged on
just the remaining balance or the entire amount that you initially
transferred.

To ensure that you are getting the best deal, you should do a thorough
search of available credit cards before making a final decision on
which institution to submit a new application for credit to. By doing
so you will know upfront exactly what you are getting and whether
there are cost savings to be realized, leaving very little room for
surprises.

Switching credit cards is a smart choice for consumers who are trying
to manage and conquer their debt. For the disciplined person, this is
a very effective strategy to help you reduce your debt load. If you
find yourself in the situation where you are presented with an
opportunity to switch credit cards, please keep in mind the negative
effect that multiple inquiries will have on your credit score as well
as the opening of new accounts while simultaneously closing others.
When done wisely, after conducting a thorough search of available
options, switching credit cards can definitely help you to achieve
your financial goals.

Transferring a Credit Card Balance

Are you staring at that attractive advertisement for switching credit
card companies by transferring your balance from one card to another?
While many of these offers are truly great deals, balance transfers
and card-switching is not something to jump into, eager as you may be.
You need to do your homework first: Do enough research and
investigating in order to determine whether it in fact is worth it or
a good idea to make the transfer.

First, find out if it is in fact worth it. Generally speaking, these
attractive advertisements and super credit card deals advertise very
low introductory rates if you transfer your current balance from an
existing credit card onto this new one. You can stumble upon these
offers anywhere—online, in the mail, on a flyer or via a telephone
call from credit card company salespersons—and you need to determine
how great these deals really are, or if you'll just end up paying much
more in fees and interest in the long run.

Read the fine print. Read everything. Read it through several times so
that you make sure you understand what it is saying. It may appear to
be a bunch of financial jargon that you might not think is very
important, but the truth is, this information is valuable and critical
to your decision in whether or not you make the big switch. Call the
credit card company and ask any questions you might have. If the deal
is solid and they want to make a sale, generally they should be able
to help you out in any way.

What do you need to find out about the deal? Here is an example. Let's
say that the advertised introductory rate is 6% (a low rate) on credit
card B if you transfer your balance from credit card A, where you
currently rack up an APR of 18% (a standard rate). You come across
another offer, showcasing credit card C with an introductory rate of
9%. At first glance you may think, "Well, let's go with credit card
B—it's the obvious choice here." However, after reading the fine
print, you discover credit card B's special rate only last six months,
and afterward the APR is 20%, whereas credit card C's higher rate
lasts for a year and the interest rate after that is 18%, the same as
yours on credit card A.

In other words, you have to factor in a lot of variables when making
the decision to switch your balance from one credit card to another.
Besides comparing the introductory rates being offered, the length of
the offer and what the regular interest rate is, you'll also need to
take into account balance transfer fees, annual fees, late fees and
other fees, as well as whether the teaser rate applies to balance
transfers only or also purchases, among other considerations.

Something else to keep in mind is that you may not actually qualify
for the special rate being offered, depending on your credit history
and credit rating. Before you make the big plunge, make sure you know
exactly what you, yourself, will be getting. There may also be other
conditions. For example, some credit card companies may penalize you
for one late payment and take you off the introductory rate onto their
regular rate, which may be higher than your current card's rate.

However, many credit cards with these introductory rates offer great
deals for people interested in switching credit cards and transferring
their balance over and can be more than worth it. The important thing
is to do your research, read the fine print and ask questions to
determine which credit card and deal is the right one for you.

Once you've selected the right credit card offer, the next step is to
fill out the balance transfer application form completely and
accurately. Next, make the minimum payment on your original credit
card while you wait for the balance transfer to go through. When it
has gone through, the new company should send you a notice, after
which you'll need to verify the transfer with your old company so they
can send you a zero-balanced billing statement. Finally, cancel your
old card since you don't need it anymore—it will also save you some
temptation.

What You Should Know About Switching Credit Cards

What You Should Know About Switching Credit Cards

With U.S. credit card debt at an all time high, many savvy consumers
and investors are renewing their commitments to rid themselves of this
burdensome and in most cases, unnecessary debt. In doing so they are
constantly searching for the next best credit card with higher credit
limits, lower annual percentage rates (APRs), and zero balance
transfer offers. In fact switching credit cards has become as common
as changing the battery in the fire alarm for some people and it has
actually worked. So if you are amongst the thousands of Americans who
are thinking of making a switch to improve your financial picture,
before you do there are a few things that you should consider. They
include how multiple inquiries for credit will affect your credit
score and if the APR that applies to balance transfers after the
introductory grace period still makes it a good deal. In addition to
these two things you should also, as with everything you do, conduct
your own research to find the best solution to meet your needs.

It makes sound economical sense to switch credit cards to save money
in interest charges and fees. Especially when you consider the fact
that for most credit cards the minimum monthly payment is so low that
it barely covers the interest charges reducing your outstanding
balance by just a few measly dollars from month to month. Its no
wonder then that we jump at any new offer that comes our way. When
deciding whether to switch cards though, you should keep in mind that
every time you apply for a new credit card an inquiry from that
particular creditor goes on to your credit file whether you receive
the credit or not. Additionally, multiple inquires by different
creditors negatively impacts your credit score and any account whether
closed or unused remains on your credit file for at least seven years.
Last thing, switching cards and closing accounts immediately after the
switch also impacts your credit score.

When considering whether to take advantage of a 0% balance transfer
offer, you should consider the amount of time that you'll have before
the "normal" APR applies to that balance and whether you'll be able to
pay that in full before the grace period is over. Additionally, in the
event that you aren't able to pay off the balance prior to expiration
of the grace period, you should consider if the new APR that kicks in
will be a significant savings from the card that you are considering
transferring balances from and whether interest will be charged on
just the remaining balance or the entire amount that you initially
transferred.

To ensure that you are getting the best deal, you should do a thorough
search of available credit cards before making a final decision on
which institution to submit a new application for credit to. By doing
so you will know upfront exactly what you are getting and whether
there are cost savings to be realized, leaving very little room for
surprises.

Switching credit cards is a smart choice for consumers who are trying
to manage and conquer their debt. For the disciplined person, this is
a very effective strategy to help you reduce your debt load. If you
find yourself in the situation where you are presented with an
opportunity to switch credit cards, please keep in mind the negative
effect that multiple inquiries will have on your credit score as well
as the opening of new accounts while simultaneously closing others.
When done wisely, after conducting a thorough search of available
options, switching credit cards can definitely help you to achieve
your financial goals.

Balance Transfer Checks- Opportunities to Save

Balance Transfer Checks- Opportunities to Save
by: Debbie Dragon

Tis' the season for credit card offers! In particular, it seems that
from November through February marks an increase in marketing from
credit cards you already have- particularly if you haven't been using
them in awhile. Credit card companies spend quite a bit of money on
marketing to attract new customers-and it's always cheaper to keep
customers they have rather than trying to find new customers.

What you may find waiting for you in your mailbox is a balance
transfer offer from one of the credit cards you already have. The very
best balance transfer offers are in the form of checks that offer 0%
interest, but there are a number of other offers you might receive
with 3.99% interest or 6% interest and no balance transfer fees. All
of these offers may actually offer you a good deal depending on what
you decide to do with them.

For example, if you were to use a balance transfer check with 3.99%
interest and a fee of 3% of your total amount to pay off a credit card
or loan with 11% interest- as long as the dollar amount you borow from
the balance transfer check is high enough, you're going to be saving
enough money to make that a worthwhile fee to pay. You'll also be able
to pay off the balance much sooner with the lower interest rate even
by making the same amount of payments each month- since more of your
payment goes to principal

What many people don't realize is that they can actually get a balance
transfer check from one of these low or no interest offers, and
deposit the check into their own, personal checking accounts. Once
you've deposited the money, you can use it to pay off a variety of
debts that you owe that are costing you more than 3.99% interest (or
whatever the interest rate is on the balance transfer check offer
you've received); and save quite a bit of money!

There have been people who purchase cars using a balance transfer
check offer. If you're lucky enough to receive an offer for 0%
interest on the life of the balance transferred (with checks); you can
buy and pay for a car without any cash up front and without paying any
interest. How great is that?!

Other uses for the low or no interest balance transfer check offers: a
buy now, pay later holiday shopping season! If you deposit the check
from the balance transfer offer into your own account, you could use
that money to finance your holiday shopping. This is a good idea if
you get a 0% interest offer; or if you were planning to use a higher
interest credit card to make your purchases. By using the balance
transfer checks in your own checking account, you save on interest and
have more time to pay for the purchases which means you aren't hurting
your wallet too much.

Home improvement is another good candidate for using balance transfer
checks. Once again, just deposit the balance transfer check that you
write to yourself into your own account, and then hit the home
improvement store for the items you need to make the repairs or
complete your latest project.

As long as you make your monthly payments on time, you'll be able to
keep your 0% or low interest offer on the balance transfer. Making
even one payment late can be grounds for a rate increase, as well as
late fees, and the financial gains of using the offer will be wiped
out!

Avoid These Common Credit Card Balance Transfer Mistakes

Avoid These Common Credit Card Balance Transfer Mistakes
That offer to transfer your credit card balances sounds like a pretty
good deal, doesn't it? And it is, until you take out your magnifying
glass and start reading all the fine print that goes along with the
offer. What a lot of people don't realize is that the lender making
such an unbelievable offer wouldn't be doing so if there wasn't some
way to benefit financially. These lenders actually feel safe in
assuming that most people transferring balances won't pay attention to
the potentially costly details that accompany the offer.

Transferring balances from a high-interest rate credit card to one
with no or a lower interest rate can save you a substantial amount of
money if you don't fall victim to these common mistakes.

1. Balance transfer fees

Rare is the balance transfer offer that doesn't come with some sort of
balance transfer fee. It might be a flat rate like $50 or $75 but it's
usually a percentage of the total amount of each balance transferred.
Maybe 3% doesn't sound like much but if you're transferring several
thousands of dollars, that fee can be hundreds of dollars!

Although you may know by now to look for such fees, there's something
else you need to look for: whether or not there's a cap on how high
the balance transfer fee can go. Avoid those without caps. Before
taking advantage of an offer, always do the math. If the balance
transfer fee ends up being more than you would have paid in interest
had you not done the transfer, then don't transfer!

2. Other interest rates

While there might be low or no interest on balance transfers, you're
still getting a new credit card which means you'll still be able to
use it to make purchases. Purchases though, normally aren't part of
the no or low interest deal. In fact, you can expect the interest rate
on purchases or cash advances to be just as high as or higher than the
credit cards you're already using to make purchases. If you're serious
about chipping away at your debt, which is really the best reason to
take advantage of balance transfer offers, then you really should stop
accruing credit card debt!

3. Payment allocation

If you do transfer balances to the new account, and you do make
purchases on this new credit account, you may be surprised to find
that your payments are not allocated the way you thought (assumed)
they would be. Say you transferred $1,000 and during the last month
you made new purchases totaling $200. You make a payment of $300
thinking you'll clear away the new charges and start chipping away at
the balance transfer amount.

Next billing cycle you get your statement and find that the $200 in
new purchases is still there – plus the couple of new charges you made
since then. And all those purchases are compounding interest at a rate
of 16, 19, 22% or more! What happened? Well, as stated in the fine
print, the credit card company allocated your entire payment to the
zero interest balance because – well it's not making any money on that
amount. But it certainly is on those new purchases!

4. Interest rate after intro rate expires

That low or zero interest rate won't last forever and you need to know
how much it'll increase when the stated period expires. That's because
any balance remaining afterwards is likely to be whacked with a much
higher rate. To keep this from happening – which negates any savings
benefits you've reaped so far – make sure you have a plan for paying
off whatever balance you transfer before the rate increases. Also make
sure you don't miss a payment or make payments late. If you do you
might find – without warning – that your zero percent no longer
applies and you're paying more in interest than you were before.

Balance Transfer Checks- Opportunities to Save

Balance Transfer Checks- Opportunities to Save
by: Debbie Dragon

Tis' the season for credit card offers! In particular, it seems that
from November through February marks an increase in marketing from
credit cards you already have- particularly if you haven't been using
them in awhile. Credit card companies spend quite a bit of money on
marketing to attract new customers-and it's always cheaper to keep
customers they have rather than trying to find new customers.

What you may find waiting for you in your mailbox is a balance
transfer offer from one of the credit cards you already have. The very
best balance transfer offers are in the form of checks that offer 0%
interest, but there are a number of other offers you might receive
with 3.99% interest or 6% interest and no balance transfer fees. All
of these offers may actually offer you a good deal depending on what
you decide to do with them.

For example, if you were to use a balance transfer check with 3.99%
interest and a fee of 3% of your total amount to pay off a credit card
or loan with 11% interest- as long as the dollar amount you borow from
the balance transfer check is high enough, you're going to be saving
enough money to make that a worthwhile fee to pay. You'll also be able
to pay off the balance much sooner with the lower interest rate even
by making the same amount of payments each month- since more of your
payment goes to principal

What many people don't realize is that they can actually get a balance
transfer check from one of these low or no interest offers, and
deposit the check into their own, personal checking accounts. Once
you've deposited the money, you can use it to pay off a variety of
debts that you owe that are costing you more than 3.99% interest (or
whatever the interest rate is on the balance transfer check offer
you've received); and save quite a bit of money!

There have been people who purchase cars using a balance transfer
check offer. If you're lucky enough to receive an offer for 0%
interest on the life of the balance transferred (with checks); you can
buy and pay for a car without any cash up front and without paying any
interest. How great is that?!

Other uses for the low or no interest balance transfer check offers: a
buy now, pay later holiday shopping season! If you deposit the check
from the balance transfer offer into your own account, you could use
that money to finance your holiday shopping. This is a good idea if
you get a 0% interest offer; or if you were planning to use a higher
interest credit card to make your purchases. By using the balance
transfer checks in your own checking account, you save on interest and
have more time to pay for the purchases which means you aren't hurting
your wallet too much.

Home improvement is another good candidate for using balance transfer
checks. Once again, just deposit the balance transfer check that you
write to yourself into your own account, and then hit the home
improvement store for the items you need to make the repairs or
complete your latest project.

As long as you make your monthly payments on time, you'll be able to
keep your 0% or low interest offer on the balance transfer. Making
even one payment late can be grounds for a rate increase, as well as
late fees, and the financial gains of using the offer will be wiped
out!