Credit Card Consumers : Beware !

By Ryan Dennin

4 Ways to Build Credit

By: Alcides Hoy Jr.

So with the recent economic crisis everyone credit is either falling or staying stagnant. Now everyone is trying to figure out how they could raise it or at least get it out of the bottom tier that most are in. Here are 5 ways that you could build credit and or fix your current credit that might not be in a good economic state:

1. Get a Checking and/or Savings Account- These accounts help credit lenders to see that you have means of stability. Also it allows them to see that you own something that they could collect in the event that you are unable to make payments. In many cases the more money you hold int these accounts, the higher credit lending you will receive.

2. Department Store Card or Gas Card- Usually department stores cards are easier to get and they do not come with as much risk as many major credit cards would. Gas Cards will allow you to be able to pay for gas at a later date but as well build your credit along the way. Try to monitor the number of cards of these types you get because sometimes you could go beyond what you could pay monthly.

3. Gaining An Understanding of Credit Scores- Nowadays many people don't even take the initiative to find out how the credit score system works. In many cases its in your best interest to find out how you can receive the highest credit score possible so that in your favor you could receive highest credit lending.

4. Take Out a Short Term Loan- In these cases lenders get EXCITED to see that you have received prior loans. This shows that your payments are more reliable and that they will almost guarantee their payments every month.

How knowledgeable is the consumer when it comes to their finances?

Posted by C Brown
Consumer loans, credit cards, and credit score are on a lot of peoples' minds today. Do you know how much you really owe creditors? Do you know how to monitor your credit reports? Can you keep track of your personal finances and do you know how to read and understand everything that your creditors are giving you? A lot of people would answer no to these questions. Too many people don't have enough knowledge about their personal finances. Many consumers are defaulting on loans or taking out second mortgages to keep their houses. Many people are talking to debt consolidators to help them get a handle on debt. This seems like a great idea because creditors stop calling and bills stop coming every day, but in all actuality, you are still paying creditors less than their minimum payment, which means they are still reporting that you are paying your loans back late which really hurts your credit score. Loans were meant to help people, but now all loans and credit cards have done for people is get them into financial trouble that they can't get out of. More homes are being foreclosed on. More people are losing their job because of the economic crisis, which makes it ten times harder for people to pay back loans and harder for banks to loan people more money. Now is also the best time for Cyber crooks and identity thefts. There has been more complaints in 2008 during the economic crisis of bank account fraud. There has been thousands of emails and now even text messages sent out to mainly corporate executives or people who are financially stable in order to steal personal information whether it is to take $10 or $40 out of their account. Since these emails are personally addressed to these financially stable people, they open them and it sets a virus in their computer giving the thief the opportunity to retrieve vital information about financial markets even before the information is released to the public. Consumers need to read and be knowledgeable of what is happening in our economy, and how our economy directly affects the consumer.

http://www.articlesbase.com/finance-articles/how-does-consumer-debt-counseling-services-affect-my-credit-score-675369.html


http://www.iht.com/articles/2008/04/21/business/21cndbank.php#top


http://online.wsj.com/article/SB123318475748226305.html