Posts Tagged ‘chip cards’

Your Credit Score Can Benefit From More- But Only So Far

It’s true, a healthy mix of credit can boost your score…

but get too many cards or carry balances and it starts to lower your score.

To learn more and how to improve your score read on…

Consumer credit scores clearly take into account the “mix” of credit types and items consumers have on their reports. This part of the credit score is affected by what kinds of accounts a consumer has and how many of each.

The bureaus will score someone higher, for example, if they have an open mortgage, 3 credit cards, 1 auto loan, and a small amount of other open accounts. Low balances and available credit as well as timely payments are also large factors. So having a few cars is beneficial.

But, if a consumer has a ton of credit cards, their scores will be lowered.

If they have several mortgages, their scores will be lower.

Any “unhealthy” account mixes lower their scores.

The preferred number of credit cards appears to be three. This means a consumer will actually have a higher credit score if they have three open credit cards than if they have more or less than three open.

If you have more DO NOT run out and cancel your cards just yet.

Remember, 30% of the score is comprised of balances in relation to credit limit.

So if you have too many, keep your cards open, but focus on having three large balance cards and pay down the balances on time for maximum impact.

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I Want To Take A Summer Vacation….But How Will a Card Balance Transfer Affect My Credit Score?

It’s summer time and you may be craving a long get away. But if you’re thinking about a new card and a balance transfer to get more credit read this first for the pros and the cons.

When you have high interest credit card debt, a balance transfer can be an enticing but dangerous offer (especially in the summer when you want to get away).

If you have a small balance and only one or two credit cards accepting a balance transfer offer and a new card might increase your score…since you now have more available credit.
Click here for more on a better mix of cards and credit.

So you may be able to take that vacation AND in the long run, improve your score.

BUT….

while a balance transfer can save you money in the short run, it’s important to consider the overall impact of a new card and a higher balance on your credit score.

How a balance transfer will affect your credit score depends on several factors, including:

>The total amount transferred to the new card
>Your new available credit limit as compared to your available credit
>If you’re transferring to pay off a credit account in full, and
>If you close a credit account.

And remember, that closing an account will not remove it from the credit report, so it will be calculated into the score. The closed account can be used to determine length of credit history and also payment history which can be very important to overall score.

Of course, paying off the balance after you transfer may also positively affect your credit score.

So this summer be careful not to open too many cards and avoid increasing your credit card debt BUT consider a low percentage balance offer if you can pay it back fast and you have two or fewer cards. The specifics of how FICO calculates the score are complicated so for more information about balance transfers and your FICO score CLICK HERE to see part two of this article

Legal Disclaimer: CR Publishing provides quality and actionable do it yourself information and products to consumers who want to improve or build credit and/or to get rid of debt. The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.

FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.

Can you change your due dates?

The short answer is yes. In fact, it can be a great way to avoid late penalties and taking a hit on your credit score while you are on vacation or traveling to an area that you wont have the ability to pay your credit card bills. Many companies and lenders, including Discover and Barclays will allow you to switch your due date as long as it is within that billing cycle.

How is this useful though? In the past if you were traveling you either had to have access to the internet to pay online or pre-pay your statements to avoid any late fees or score penalties. This might still be a great option though because pre-paying statements and getting those balances paid down can free up more spending power without having to worry about going over that magic 30% number we have talked about so many times.

But If you are unable to pre-pay or you know that your budget depends on a check coming in you are able to move that due date and still make on-time or early payments before, during, or after your vacation.

It is important though to stick to your budget each month and especially for your vacation. Be sure to check out 3.5 Tips To Keeping Your Wallet & Credit Safe This Summer before you plan your next summer trip.

Be sure to also grab your copy of our free e-book on 28 credit secrets that banks and credit companies don’t want you to know!

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Credit Limit Looking Too Low For Vacation?

We have all been there. During the summer or during holidays our credit limits get all used up. We all know that we should really try to keep spending under 30% of our limit each month. Things happen though and sometimes we go over. Yes this can and if you do it often enough WILL hurt your credit score.

Here’s the good news though…

If you have been making regular payments and have a fairly established history on your cards, you can actually ASK for a credit line increase. Increasing your credit line will reduce your credit usage and improve your Utilization Ratio. Thus you will see a relatively fast credit boost. And it will free up some room on your credit line for those budgeted vacation expenses.

Here’s the bad news…

If you don’t practice self control when it comes to your spending, it’s a really fast way to rack up a lot of debt. Now that you got that nice boost in available credit you need keep spending down. And always make sure you are paying your card regularly and if possible paying your entire statement balance each month!

Why you should do this before you travel: Well traveling can be expensive and this might be one of those out of the ordinary months where you spend over 30% of your credit line. If you have been saving though and have the money to pay for your vacation, you now need to have the credit. A boost in your credit utilization can free up your credit line for travel and other vacation expenses while either boosting your score or keeping it where it is now. And that’s a whole lot better than your FICO Score taking a hit when you are trying to enjoy your much deserved family time.

One more thing before you go outside to enjoy the summer weather this weekend… A lot of building and keeping a great score is self control and perseverance. The system is complex and can be confusing at best. But keep at it! Always keep working and never give up even if you feel like you have hit a wall. And remember it takes a lot of self-control to keep that score up.

Want to get a jump start over everyone else in the credit building game? Get the Starter’s Guide for Building and Protecting Your Credit.

Also get your copy of our “Change Your Credit, Change Your Life” complimentary e-book

Don’t let summer debt get in the way. Discover the ultimate debt fighting techniques that let you win.

Traveling Internationally? Don’t Spend More Than You Than You Have To!

Stop Spending So Much! Discover The Credit Repair Intelligence System!

Summer is time to travel with friends and family! And if you have saved up and budgeted to travel internationally there are a couple things to think about before you get away.

International travel is expensive on its own so its silly to spend even more especially when you don’t need to. Its hard and risky to carry giant wads of cash around with you and in some countries small denominations are in coins which can be cumbersome to carry.

That means you will without a doubt use your credit card at some point on your journey.

It’s a good idea when you are planning your trip to first check out your credit cards. Many credit cards carry a 3%-5% foreign transaction fee. This can be a killer especially when you have your trip budgeted. Adding an additional 5% to each transaction can really hit your bank account and eat away your credit limit pretty quickly depending on how big it is.

So how do you avoid these foreign transaction fees and save more money this summer? Well there are many cards out there that don’t carry any foreign fees. This is easy to check for and if you have been building good credit you should be approved no problem! Even with less than great credit there are some cards that still do not carry a foreign transaction fee.

Remember to keep yourself and your credit reports protected this summer. Discover some great ways to protect yourself with The Starter’s Guide To Building and Protecting Your Credit.

Click here to have one of our dedicated team members contact you about the Credit Repair Intelligence System and The Debt Free Bible!

And if you haven’t already be sure to claim your complimentary e-book

Chip Cards- What Are They? And Why Are We Using Them?

You may have noticed over the last few months a transition of your credit and or debit cards. Recently new regulation was passed that required card issuers and financial institutions to issue EMV chip cards. EMV stands for Europay, Mastercard, and Visa. This method of payment became the world standard almost ten years ago now and the United States is just catching up now.

Still you might be asking what is EMV, what are the benefits, and why the switch? Well EMV is really a system that was created by three different credit issuers. Instead of using the prehistoric swipe and sign method EMV incorporates a high-security technology that reads a microchip embedded in your card. It will then need a pin and/or signature to complete the purchase or transaction. So I mentioned higher security. I also mentioned that EMV chip cards have pretty much been the world standard for almost a decade. So it should come as no surprise that almost 50% of all credit card fraud in the world occurs in the United States. Seems we were a little late getting to the game.

What is going to happen now? If you haven’t gotten a new chip card in the mail yet you probably will soon. And you should start to follow the chip card method of payment. Not only is it near impossible for your information to be harvested thus providing identity and credit score protection but it also helps to build a more secure network of payment methods and services. While many different vendors and card issuers have already made the switch to the new EMV system there are still some to complete the change. Before late 2016 or early 2017 all vendors must switch to this new system. The new regulation in place puts the responsibility of loss on the party with the least up to date technology. This is important if you are taking credit cards in your business or would like to inquire your bank or card issuers for a new chip card. Most banks and credit issuers will provide you with a new chip card, at no cost to you, to replace your old card. This is important to do now so you have the most up to date credit card security out there.

Utilizing credit to your advantage can be complex but it really doesn’t have to be. While these new chip cards and the EMV system does not directly change your credit score it can prevent against possible fraud which effects so many every single year. The more power and knowledge you unlock now can help build credit for the future. Understanding credit and how credit works is extremely important. To discover more about utilizing your credit to its fullest potential click the link below and discover the Credit Repair Intelligence System.

The WSJ recently interviewed Carolyn Balfany, Mastercards EMV Expert, to find out more about how the new system will work and what it means for the consumers and the vendors. To read the article you can click here: http://blogs.wsj.com/corporate-intelligence/2014/02/06/october-2015-the-end-of-the-swipe-and-sign-credit-card/ Its a great read if you want to learn some more about the EMV system and chip cards.

As always if you have questions we are here to help. If you are already a member of our Members-Only Forum that is the best place to post or ask your questions. If you need some more information please feel free to contact us at support@creditrepairpublishing.com.