Helping Your College Student With His Or Her Visa Card By Robert Michael

Teens and those in their early twenties are very savvy these days, but not necessarily about money. So when Visa comes calling, they snatch up credit card deals (often aimed at the university market) and start piling on the “deals”, only to find themselves in debt later.

You can help your child by giving him or her some helpful tips on using a Visa card for good, not evil.

Visa card tip #1: Only use in emergency situations

For many students, an “emergency” equals the need for a new pair of shoes. Of course, this not an emergency at all, and a Visa that’s already maxed out should never be used for a luxury item. Instead, tell your teen that if the answer to the question, “Can I live without this?” is “yes”, the Visa card shouldn’t be used. On the other hand, if the teen finds him- or herself in a bind (such as on a date with a loser or someone violent and thus needing a quick ride back to the dorm), the Visa can be used without question.

Visa card tip #2: Pay off all the balances

Many young Visa users think that they can just pay the minimum amount due and never worry about paying the piper later. Consequently, they get into all kinds of debt later. Make sure your child understands that the best thing he or she can do is to pay the entire Visa bill every month. And if he or she makes a purchases that cannot be paid off within two or three months, it probably isn’t necessary.

Visa card tip #3: Check your bill

Even big companies like Visa make errors at times, so it’s imperative that cardholders check their statements every month. Thus, they won’t wind up paying for a charge that shouldn’t have been attributed to their accounts. Younger Visa holders (and even some seasoned ones) are known for ignoring this rule, and it’ll only cost them time and money later when (and if) they figure out they were charged in error.

Visa card tip #4: Report stolen cards immediately

If your student has a Visa card, make sure he or she understands that, should it become lost or stolen, it must be reported ASAP. Otherwise, someone could use it to steal his or her identity, which happens far too frequently in today’s economy. If he or she is fearful that mom or dad will get angry, assure him or her that although you might not be overly pleased, you’d rather find out from him or her that the Visa card was stolen.

Visa card tip #5: Don’t be afraid of a credit card

Finally, make sure that your kids understand that credit cards are not some terrible form of monetary exchange. Actually, they can be quite useful, especially for building a credit history. Again, it’s all in the way your Visa is used; if you are savvy, you can start on the way to a very high credit score, which will be helpful later.

With your help, your child will become knowledgeable about how to use his or her Visa appropriately.

Resource: http://www.isnare.com/?aid=93012&ca=Finances

Beg, Borrow Or Steal, Make That Mortgage Payment By Tristan Hunt

One of the most common things I hear when a prospective client contacts us for a mortgage refinance is 'I just missed a mortgage payment and I want to refinance before it's too late'. When I ask them about their credit, most of them reply 'Oh I pay everything on time, I just got behind this one month on the mortgage'.

It breaks my heart to tell them that in many cases, it already is too late. The reason is simple if you really think about it: If your home is your biggest investment, your greatest potential asset and your largest current liability, there is nothing more important than showing that you are able to make the payment on it every month. If you are in a cash crunch, you're better off missing or underpaying almost any other payment, such as a credit card bill, even your utility bill, instead of missing or even delaying your mortgage payment, because missing one mortgage payment can cost you tens of thousands of dollars over the years.

When you miss a mortgage payment, your credit score may not go down dramatically. But your mortgage credit quality will take a serious beating, and you'll carry it around for years. When you start out with a mortgage, regardless of what your FICO credit score is, you are rated an 'A', meaning you make your mortgage payments on time. If you miss a payment, and even if you're just late enough to qualify as 30 days late, the lateness is recorded and you will become an 'A-' or a 'B'. Just one mortgage lateness can keep you out of the refinance market for up to two years by automatically locking you out of the lowest payment programs such as Option ARMs or low-rate fixed mortgages, and you can forget about stated income programs, you will now have to prove where every penny comes from and you'll need more of them too. If it sounds a bit like high school, it is, but this time its for keeps. Keep missing or delaying payments, and you'll quickly see your mortgage quality decline to a 'C' or 'D', which could prevent you from refinancing entirely by eliminating your eligibility from even standard rate programs. I have seen customers who started out at 6% wind up at 10% or more solely because they chose making payments on cars or credit cards over making their mortgage payment on time.

This hurts the most when you refinance or are ready to buy a new house, because you are usually borrowing more money than you were previously, either to pay off bills or make home improvements, or because you're getting a bigger house. So not only are you moving to a higher balance, but your now derogatory mortgage credit will force you into a high rate. If you need the cash to pay off bills and improve your credit urgently, or to purchase a home in a new area because you are relocating for work, you can wind up in a horrible Catch 22, very often disqualified for financing entirely, or with financing so unaffordable that you would rather not.

So what can you do about this? If you do better with automatic payments, sign up for direct debit payment with your lender, or arrange for your bank to automatically pay your mortgage every month on a specific date which far enough ahead of the due dates for your other bills that you won't be tempted to pay something else. The day after payday is a great day to do it. And the date should be far enough ahead of your due date that the bill is paid and posted on time. It might hurt that first month, but it will even out once you get used to the new schedule.

And if you are even thinking that you might miss a mortgage payment, call up a loan officer, and not one who works for your current lender, and get refinanced today. Not only will this put a little extra cash in your pocket and help you pay off your other bills, but it will usually allow you to go a few extra weeks without making another payment out of pocket. In fact, for qualified borrowers, we even have Zero Payment & Zero Interest for 90 Day loans which are perfect for people who are at risk of missing their next payment. Because there are no payments for up to 90 days, this is a very popular product amongst our customers. Option ARMs and Fixed-Rate Option ARMs (Hybrids) are also excellent products for people who are having trouble making ends meet temporarily, but expect to get back on their feet within a few month sor a few years, respectively. Loans generally take 15 days to close, so you really need to think ahead a little bit, which is hard for all of us. But instead of freezing up, or scrambling around looking for money, call up an experienced professional and get out of that jam before you get into trouble. You're better off dealing with the issue in the present instead of regretting the past. And no matter what, make sure you satisfy your mortgage payment obligation. Everything else on your credit report can be repaired, negotiated, but not your mortgage lates. Don't wind up in a situation like many of my callers are in, ready to dance but too late to the party, plan ahead and as always, protect your financial future today!

Resource: http://www.isnare.com/?aid=93989&ca=Finances

Are 0 Interest Credit Cards Reality Or Myth? By Robert Alan

If you are looking at owning a new credit card then obviously 0 interest credit cards hold a lot of appeal for you. Anything with 0 interest does grab attention, for that matter! But in the name of 0 interest credit cards, there is a lot of subtle dodging that credit card companies are playing with,to ensure you catch the bait. The question is will you?

Admit it. You are hooked on the 0 APR credit card ad that you just saw in the morning newspaper,and your interest is piqued. Are these 0 interest credit cards a reality or are they just a myth?

The truth is, they are and they are not! They are for real because there are cards that live up to the promise to a certain degree, but the truth is also that this 0% interest does not last long. It might just be an initial gimmick to get you to apply and once you’re a cardholder, you will only have the 0 APR credit card for just a short time (3 months, 6 months, or if you’re very lucky 12 months) before they start charging you a higher rate of interest. Truly, this credit card game is an interesting one to watch, if you are the suffering player. Read on to know what you can do to make sure you are not the sufferer.

Understanding 0 APR Credit Cards

Admittedly, 0 APR credit cards hold a lot of enticement. But here’s what you’ve got to do when you find that a 0 APR card that has piqued your attention. Pay attention to how long the no-interest period will last, whether you can transfer other balances at the 0% rate, and, most important of all of these, what the APR rate will be when the offer ends! When you are done assessing these parameters you can properly finalize from the card options available.

The Luxuries of Owning a 0 APR Credit Card

If you’ve already accumulated a huge debt on your previous credit cards, there’s good news for you. A 0 APR credit card is known to benefit users with large outstanding card balances in a big way. Not only are these users able to cut down the amount of interest incurred upon their debt, but with the help of a 0 APR credit card they can also gain access to competitively priced cash advances, which can help consolidate outstanding high APR debt. There are fees and APR's attached to these cash advances, however.

Pitfalls of 0 Interest Credit Cards

*Most (in fact all) 0 interest credit cards offer 0% interest or no interest only for a limited amount of time, which varies between 6 to 12 months.

*If you’re thinking of transferring balances from high interest credit cards, some of these cards might not even allow you to do so during the introductory 0% offer period.

*Certain 0 APR credit cards might also charge expensive balance transfer fees.

*Some of these 0 interest credit cards also carry very high penalties for late payments and automatically switch you to a variable APR rate for a late payment.

*Certain 0 APR credit cards charge a very high interest rate after the introductory (read honeymoon) period expires.

Yes, the picture is definitely not all rosy, even though you can undoubtedly save money through the use of some 0 interest credit cards, not using them judiciously can be an expensive proposition. So choose and use them wisely.

Resource: http://www.isnare.com/?aid=94009&ca=Finances