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Anyone in advertising will tell you that the most effective marketing campaign is one that manages to attach an emotion to a product.   Clothes, makeup and weight-loss products are marketed to women on the basis that the they will feel sexier, prettier and more attractive, ultimately leading to love.   Cars, beer and aftershave are marketed to men on the basis that the  they will be “cooler” and attract prettier women.

Coca-Cola and McDonald’s show people laughing and having fun, suggesting they will feel happy when drinking a Coke or eating a Big Mac. Similarly, we are taught through lending practices, parental suggestion, bank advertising and social pressure that a poor credit score suggests not only the loss of untold dollars due to higher interest rates on loans, but amazingly, that a high credit score makes you a “good” person and a low credit score makes you a “bad” person.

Who hasn’t seen the silly television commercials that suggest you’ll be driving a junker car and working at the Renaissance Faire if you have a low credit score?  This identity-attachment we place on our credit score is so subtle that most people do not even realize it is affecting their financial decisions.   I’ve actually met people who would love to buy a home but stop themselves with a fear-based rational such as, “I might lose my job and not be able to make my mortgage payments. “  What does that actually mean? The deeper thread goes like this, “And if I miss my mortgage payments I may have to sell the house for less than I owe, or worse, foreclose, and that would hurt my credit score and that would make me a bad person.

“  People don’t actually put those words to their thoughts but that is the emotional journey they take that prevents them from buying a home. We’re taught to treat our credit score as if it is part of our identity and guess what? It isn’t. If you currently have a low credit score and find yourself suffering from the belief that you are a failure, that you are not good with money, or that you don’t deserve a loving spouse, great kids, a good job and “the pursuit of happiness” as much as everyone else does, then discard those thoughts right now.

Having a bad credit score doesn’t make you a bad person any more than not wearing designer clothes or driving a sports car makes you unloveable.   Your credit score is a product, just like everything else advertised to you, and it IS NOT connected to your identity. What your credit score IS, is one piece of an overall financial picture that includes your income, your expenses, your investments, your assets, your business, your retirement savings and your debt.

I’m suggesting that you look at that whole picture and not make financial decisions based solely on whether or not you might affect your credit score. If you’re in debt, what that means is that there may be some financial choices available to you, some as small as skipping a credit card or mortgage payment, some as large as bankruptcy or home foreclosure, and inbetween options such as a short sale or debt settlement, that may be viable even if they will lower your credit score.

I know, that’s a bold statement, one that most people would disagree with on face value.   To see what I mean, lets look a little deeper. Your credit score is a vague, logarithmic calculation that assesses risk for lenders.   A low credit score doesn’t mean the borrower can’t get a loan. People just out of bankruptcy court routinely receive credit card offers in the mail and we’ve all seen commercials for “low credit, no credit” car loans.   More likely than having no access to credit, a low credit score simply means that the borrower will pay more for credit in the form of higher points and interest. The banking industry would have you believe that, in addition to being a “bad” person, those points and interest on future loans will cost you SO MUCH money that you couldn’t possibly ever consider doing anything that would lower your credit score.   Let’s do the math on what a low credit score might actually cost.   Say you are buying a $25,000 car, $5,000 down and $20,000 financed.   If you have a “good” credit score, you might get a 5% loan.

Over 60 months, the total interest paid will be $2645.   With a median credit score you might get a 6% loan which would amount to $3199 in interst.   A bad score with a 7% loan, $3761.   The difference between the high score and the low score is $1100 in interest over 60 months, about $18 a month. What about with a house?  Say you want to buy a $500,000 home with 20% down (sorry, the 0-10% down days are over for awhile).   So you’re financing $400,000 for 30 years.   At 5% you’ll pay $373,000 in interest. (I know, brutal, right? Almost 100% interest over the course of the loan. Most people never consider what a home will actually cost by the time they are done paying it off, but that’s another article).   At 7%, you’ll pay $558,000 in interest.   A difference of $513 a month for 360 months.   The point is, IT’S NOT THAT BIG OF A DIFFERENCE.   $18 a month on a $25,000 car.   $513 a month on a $500,000 home.   Yes, sure, $500 a month is not meaningless, but it’s not the, “oh my gosh I might hurt my credit score what am I going to do?” doomsday heart palpitations that so many people have when they even consider the notion of their credit score being under 700, or under 600. If you already own your home and don’t intend to borrow money for any big ticket items in the near future, your credit score becomes even less of a factor in your overall financial picture.

When I had an 800 credit score, I was able to get over $200,000 in credit to pursue a business venture.   When the business venture didn’t work out as planned and I couldn’t meet my monthly interest payments on my cards, a bankruptcy attorney told me about the process of negotiating settlements on credit card balances, to pay them off for less than the amount owed.   My first question was, “how will that affect my credit score?” In about six months of settlement negotiations, I reduced my credit card debt from $212,000 to $30,000 and I had $115,000 in debt written off.   This reduced my credit score by about 200 points, to just over 600. But I had $115,000 in debt written off, not to mention all the interest I would have paid on the $212,000 in debt at 18-29% over years of minimum payments.   I couldn’t buy enough new cars in my lifetime at 2 or 3% higher interest to add up to more than I saved by settling my debt.   Had I been the homebuyer in the example above, I would have paid $185,000 more in interest over 30 years, compared to saving $115,000 in six months.

The point is, if you’re in debt, debt settlement may be a viable option that will save you more money in the long run that you’d save by having a higher credit score and paying a point or two lower on your next car loan. I’m not suggesting that anyone abandon their credit score to the wind and adopt unsound financial habits. I am suggesting that in the conversations you have with your attorney, accountant, spouse and self, give credit score considerations their proper due.   They are a single part of a large financial equation, not the end-all, absolute factor that your lenders and silly television commercials would have you believe.

Negotiating settlements is one of the fastest ways to reduce large portions of your credit card debt permanently. Although there are many companies advertising on radio and television to work for you in settling your credit card debt, it is possible to do it yourself without paying additional fees or a percentage of the amount you save to a third party. Here are five major points to keep in mind when settling your credit card debt.

1.     It will be necessary to stop making payments on your credit cards.   Generally, it seems that most banks, credit card issuers and other lending institutions are not interested in negotiating settlements with customers who are current on their payments.   In my experience, most people who could save many thousands of dollars through debt settlement will not do so because they do not want to miss payments for two reasons.

• a. First, they are worried about their credit score. The fear of hurting our credit score is quite common.   Though I do not suggest that you should toss all concern for your credit score to the wind, I do suggest that you include consideration of your credit score as one point in a larger context of your overall finances.   Your credit score is a tool that lenders use to determine the risk in lending to you. In many cases, having a lower credit score does not mean that you cannot get credit, only that the credit will come at higher interest.   If the amount you can save through debt settlement greatly exceeds the amount you will pay through higher interest on a future loan, than the benefit of settlement outweighs the drop in credit score.
• b. Second, they feel somehow “wrong” in missing a credit card payment.   This is because we, as individuals, are taught to attach a great deal of emotion to our finances general and negative emotion to debt and the inability to pay off debt.   By separating all emotionality from debt, you will be more successful in your settlement negotiations, which brings us to point number .

2. Treat debt settlement like a business negotiation, because it is. There is nothing wrong with you for being in debt.   You are not a failure or a bad person.   Our world runs on debt, every dollar in your pocket represents debt (the U. S. government owes the Federal Reserve $1 for borrowing that note).   You are encouraged to borrow for school, cars, clothes, gasoline, homes and business.   And in today’s economy, many of us are turning to credit to meet the shortfall between our income and our monthly expenses. Read the rest of this entry »

Many times, a credit card ends up being a double edged sword. The wise know how to make use of it diligently, whereas the not so wise take their time to understand how the card can be used beneficially after some struggle or trouble. Either ways, balance transfer credit cards offers seem to be a boon to many. The credit cards business has assumed great proportions, more than what can be even thought of. Many of us may have at least once faced the situation of a mounting credit card debt. The best credit cards are those that have numerous offers, such as discounts and freebies, and letting go of one may be difficult for the customers.

Earlier, the rationale was to repent for having taken a credit card in the event of a debt. These days, these credit card companies have provided balance transfer credit cards offers as a way of sustaining their existing customers and also in attracting the newer ones. Ideology Behind The

Concept When a customer realizes that he cannot immediately pay off his credit card debt, he can request another credit company to make the payment on his behalf to the company he owes money. Simply put, a new company dealing with cards credit money makes payment for the customer. In return, the company that has offered to make payment charges a minimal interest. A quick research will also help find companies that offer 0% interest rates, but most banks charge a minimum percentage of 1 or 2 percent. Such introductory rates last usually around six months and might extend to even a year as a result of the balance transfer. How To Avail? Balance transfer credit cards offers can be requested, or many a time, customers also get contacted to find out if they want to avail the offer. This is especially useful for customers who use the card heavily but cannot release funds immediately, especially businessmen who hold business credit cards rely extensively on credit cards balance transfer offers that come.

This model helps reduce the debt on cards. It is better that you close your account when you do a balance transfer. Precautions Although it is an excellent technique, balance transfer credit cards offers must be properly evaluated. Sometimes you can find some hidden charge, which is usually termed transfer fee, which is a percentage of the transferred balance. You need to ensure that there is a ceiling on the amount, like $50 or $60; else a lot of money can be lost. Also, some banks can charge a very high joining or annual fee. Some amount of diligent checks must be conducted so that no undue advantage is taken.

Other Benefits Taking every advantage of the balance transfer credit cards offers helps improve cash flow since it eliminates immediate expenses of finance charges. When cash flow is better, the ways of reducing debt can be strategically struck. This technique is one of the credit cards best concepts that have been introduced. A lot of benefits can be accrued by just switching over outstanding credit card balances from one card to another.

Credit card is one financial product if handles properly then definitely you will admire it the most. It is a good alternative to make payments when you are short of cash. But choosing a right card could be quite a challenge. There is a wide range of choice that is available in the market like Standard, Premium, Silver, Gold, Platinum, Titanium etc.

You just need to play it smart — rather than falling prey to the spiel, walk the extra mile and choose the one you want. You need to pick the right card; there are different types of credit cards stack up on interest rate and other features. The important factors that decide whether you will get a credit card are your residence and your profession. If you reside in a locality that is blacklisted (on grounds of poor credit history) by the card-issuing bank, chances of your getting a card are less.

Banks are also hesitant in issuing credit cards to individuals in certain professions. Also, if you have been servicing other lines of credit, the bank will take a look at your credit history. Lastly, the credit limit the bank gives you is, in most cases, a function of your profile. A basic question that you need to ask yourself is why exactly you need a card. Before you apply for credit card you should have a look at the below mentioned Credit Card Offers.

A) High fuel consumption: – In case you travel a lot through your vehicle then a card, that offers no surcharge in petrol purchase will be a good card to go for. Most commonly Titanium cards offer no surcharge while purchasing petrol. In case you are not eligible for a Titanium card, the next option should be a Gold card. In different cards the surcharges are wavered at a particular range like from Rs. 400 to Rs. 4, 000. It means if you purchase fuel less than Rs. 400 then there won’t be any waver in surcharge and if the transaction is more than Rs. 4000 then again there won’t be any waver. Few example of credit cards that offer no surcharge are Citibank Indian Oil Credit Card, ICICI Bank, ICICI Bank HPCL Gold Credit Card,

B) Traveling through Air: – In case you travel through flights then you should go with a card that offers discounts while traveling. A card like Platinum is one of the examples of credit card that offers special discounts to there card holders. Few banks that offer travel discounts on there credit card are Abnamro Bank’s -Smart Miles Titanium Credit Card, ICICI Bank-British Airways American Express® Credit Card, Singapore Airlines VISA Platinum Credit Card, Citibank-Jet Airways Platinum credit card and many more.

C) For Shopping:- If you are a shopaholic then, your choice of card should be in such a way that you get the maximum out of your shopping, may be in a form of cash back, reward points or gift voucher. While shopping through your credit card you can actually earn, it’s just that you should be aware of the offers available on your credit card. Few banks that offer shopping discounts on credit card are Citibank- Cash Reward credit card, HDFC Bank- Women credit card, Axis Bank-Gold & Platinum credit card and many more. Beside above factors you also need to check the charges taken at the time of late fee, revolving the payment and etc. Remember, once you have started using a credit card; make every effort to pay the total amount due in full before the due date of payment. Delay in making regular payments not only affects your credit history; it also does not let you make use of the free credit days’ facility.

The year ending always come with high expenditures, whether you want to buy new clothes for New Year party, new furniture for your home or anything else. And if you are among those who use your credit card frequently, you would be well to steer clear of following pitfalls.

1) Read the fine prints: Mostly people are not aware of the rate of interest, charges, and offers available on their credit card. Lack of knowledge & awareness about the products results in miss usage of credit card.

2) Minimum amount due: The credit card users are in impression that paying minimum due amount every month will reduce their outstanding amount. Whereas, it actually pushes one into a debt trap. The card issuer considers the remaining balance to be overdue and charges a heavy interest, which could vary from 42-49% per annum. Given this, the debt burden is unlikely to be eased by paying the minimum amount due.

3) Pending disputes: Whenever a dispute arise against our credit card, the credit card issuer follow us through phone calls or by text message, but we simple ignore them and as a result at the time of payment late payment fees and other penalty charges are due on us.

4) Drawing cash from credit card: With your credit card you can withdraw cash through ATM but it is not advisable, as the interest charged on it is quite high. There is a misconception that the interest on the amount withdrawal will be charged after 45 days but very few knows this that the interest will be charged from the same day.

5) Overdrawing credit limit: Keep a check on the credit limit of your credit card. Using your credit card above your credit limit will result in huge charges. So, to enjoy festive in a happy mood do remember the above pointers. Click here for apply credit cards

Dealing with credit card debt can be a stressful issue, but President Barack Obama and the government have released some policies recently that might lighten the load. Our nation is one in high debt, both as a whole and individuals, and the economic crisis does not make things look any better for the future. But Obama’s fiscal policy can make credit card debt easy to eliminate.

The presidential administration has put policies into play that will erase credit card debt, without forcing you into bankruptcy, which is an option that will harm your credit rating before all is said and done. These policies work well because funds have been freed up through the stimulus package that are allowing creditors and lenders to be more flexible with the consumers, allowing interest rates to be lower. High interest rates have been a key culprit in rising credit card bills. When you are involved in one of these consolidation plans, try not to use your credit cards or open up any new accounts because that will most likely result in higher debt, and getting out of debt is your ultimate goal.

Some consolidation plans can have your debt paid off in three to five years, depending on the level of debt owed. It is worth it because when that is paid off, you will have that extra money you were paying on the bills and now you know to be more financially responsible. Some ways to become debt free include consolidation plans and debt settlement. Consolidation plans take all of your credit card balances and lump them together in one monthly, affordable payment. It is more affordable because the accounts generally are closed and the interest rates decrease dramatically. When looking into debt settlement programs, try to do research before deciding to make sure the company is legitimate. There are companies out there that want to take advantage of people who do not have a watchful eye, and this will definitely do more harm than good in the long run.

Legitimate companies have accreditations and certifications, and have to pass an ethics standards test – showing you they are on the customer’s side. If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt. FreeDebtSettlementAdvice. com is one of the largest and most respected debt relief networks on the marketplace today.

Credit card processing can be defined as method of processing of credit cards by various companies and service providers to deduct money from the account of the user for the services availed. Credit cards are considered as a safe mode of payment. Many companies in today’s world accept payment from various clients and customers via credit cards whereas there are many businesses which are still content with the other payment methods like cash, checques, etc.

But it has been researched and published widely that the credit card acceptance as a method of payment by a business has a huge boost on the business. It ultimately increases the sales and profits. There are many companies or service providers to choose from. But always pick up that card processing company which offers you the best solution that is not partially but completely aligned to your business requirements and goals. Any mistake in selecting the right service provider can have an adverse effect on your business. Always bear in mind that the reliable credit and debit card processing company has clear terms and conditions, offers excellent value-added services and security, and a 24×7 customer care setup.

But before you select the credit card processing service provider you should be aware of your business requirements and in particular what mode of credit card payment solutions is best for your business. The section below explains few modes and solutions available for card processing and what features are available to make credit card processing secure and safe. Virtual payment processing terminals: These payment terminals enable you to accept card payments for orders received by mail or phone (MOTO) from anywhere with Internet access.

The key benefits to this solution is the quick and simple set up, acceptance of payment by either phone or mail, charging the customer in local currency and no hassle to change the solution if you switch bank or acquirer. Credit Card payment Terminals: In a traditional retail environment,the merchant will swipe the customer’s card through the terminal or key-in payment information and the terminal does the rest. These so called Point of Sale Terminals are the preferred way of processing credit cards and debit cards which are used in “face-to-face” transactions. Hosted payment interface: These solutions are web hosted payment processing interfaces that can be easily and seamlessly integrated with your own front-end system.

These solutions can be used with unlimited merchant numbers and can process simultaneous transactions. Online card processing: These solutions help to accept the card payments online with full support for ‘cardholder not present’ security measures. PC-EFT is an example of ‘cardholder present’, PC-to-host enterprise payment processing solution that can be interfaced with a merchant’s system. System integration can be achieved using our simple API and with full development support. As a system interface this solution can also process ‘cardholder not present’ related data. The main features of this system includes multi channel processing, multi merchant, multi currency, multi acquirer, acceptance of all major credit card schemes, real time or batch authorisation, dynamic currency conversion, chip and pin, transaction search facility and even end of day reporting to give you the better grasp of your business information. Along with the solutions available for your business, you need to be sure about the security of transactions.

The few safety verifications checks that can be used are CVV2, AVS. CVV2 is an abbreviation for Cardholder Verification Value 2 which is a 3 or 4 digit value printed only on the payment card and used therefore to verify that a cardholder has the card in their physical possession, giving a merchant protection against fraud. And AVS abbreviated for Address Verification System enables a merchant to request address information when taking the card details and send it to an acquirer for checking. The other security protocol that can be added is 3-D secure payment authentication which was developed by Visa in order to improve security of payments on internet. In the end you as a business should always look out for the best possible credit card processing company which gives you the best solution understanding your business.