Here are some tips on how to use your good credit to your advantage:

• Get lower interest rates on existing credit cards. Many people know that having good credit will allow them to qualify for a lower rate on new credit cards that they apply for but some don’t realize that they can actually request a lower rate from the companies that they’re already a borrower with. The fact that you are a good borrower makes these companies want to keep your business so asking for a better interest rate on your outstanding debt should result in a positive response assuming that you are direct and firm in your request.

• Get bigger loans. A major reason that it is good to have good credit is because it will allow you to get bigger loans than you could qualify for without this good credit. For example, a loan for a new car or a loan for a home mortgage is much easier to get when you have good credit. Use this to your advantage by figuring out how you can invest using your access to big loans (for example, you may invest in real estate property).

• Get a nicer apartment. Maybe you’re not ready to use your good credit to get a new house but did you know that you can rent a better place with your good credit? You’re able to qualify for better apartments in nicer neighborhoods when you have good credit so you might want to start thinking about moving up in the world around you.

• Consider loaning money to others. You can probably get a low interest rate and low transaction fee on a loan because you have good credit. If your best friend has bad credit, she may not be able to get a loan at all or may be able to only get one with bad terms. You could help her out by getting the loan yourself and then allowing her to borrow the money from you at a rate that is higher than what you are paying but lower than what she could get otherwise. Of course, there are risks inherent in this; there are good reasons lenders don’t make loans to people with bad credit. However, it could be a way to help others while benefiting financially yourself.

• Get perks and rewards. Use your good credit to qualify for credit cards that are platinum-level or otherwise beneficial to the card holder in ways that aren’t true with lower-credit cards.

There are many advantages to having good credit. You’ve worked hard to maintain that good credit so don’t just let it sit there unused.

A “credit crunch” refers to a trend in the banking or credit card industry. This trend is to change the terms of loans to make it more difficult for borrowers to get good loans. There are two ways in which this may be done. The first is to decrease the overall number of loans that are being made available to borrowers. The second is to increase the interest rate or otherwise adjust the terms of available loans to make them less appealing to borrowers. The credit crunch may include either of these methods and often implements both.

A decrease in the overall number of loans being made can be done through a few different ways but the most common is to increase the requirements that make it possible to get these loans. During a credit crunch, people who found it easy to get credit cards in the past may find themselves being turned down when they make new credit card applications. To deal with this, borrowers need to improve their own credit reports. This will allow them to make sure that they can still get loans even though they are harder to get. If you want to survive a credit crunch, a good method is to focus on improving your own credit so that lenders will want to loan you money despite the crunch.

The second part of the credit crunch is more difficult to deal with as a consumer but it can also be mitigated by improving your own credit score. This part is the part where less favorable terms are offered to borrowers. There is only so much that you can do about this as a consumer because of the fact that minimum interest rates are out of your control. (Credit card companies that previously offered 9.99% interest rates may now only offer 15.99% interest rates and you can’t do much about it.) However, a better credit score still leads to better terms so you’ll want to make sure that you keep yours good.

A credit crunch results in fewer good credit card offers being made available in the market. However, there are still good credit card offers and loan options out there even during a credit crunch. Keeping your credit score high and being careful to compare credit card offers carefully before choosing the ones that are right for you are key methods towards surviving a credit crunch with little damage done to your finances.

One of the most important things that clients should know about your business credit cards is simply that you have them. Of course, you don’t need to go flashing the credit cards around but if you’re in a position where you have to pay for something in front of a client (a shared lunch, for example) then you should take care to use your business credit cards instead of either cash or personal credit cards. The reason for this is that it reflects positively on your professionalism that you have and use credit cards specifically designed for the business.

Another important thing that clients should be aware of is the way that you use business credit cards to improve the lives of others. For example, many businesses opt to get a green credit card or a charity rewards cards. These are credit cards that give back to a non-profit organization every time that you spend money on the card. These are things that clients are going to appreciate because they show your commitment to the world around you. Ultimately this is a benefit to you. If you use one of these types of business credit cards (and you should) it is completely appropriate to mention it as a giving-back feature of the business whenever you write about that topic in newsletters or email announcements. This is also something that you can mention on a page of your website which discusses your contributions to various causes. These types of feel-good things are great for business and using the business credit card to enhance this image is an easy way to boost your clients’ loyalty.

Of course, there are definitely things about your business credit card that your clients shouldn’t know. They shouldn’t know how many credit cards you have or what your outstanding debt is on those credit cards. Basically, your clients have no business knowing the details of your finances whether those details are positive or negative. It is bad form to share this information and it can lead to various kinds of trouble for you. When you are working to build up the image that you have in the eyes of clients and potential clients, you want to pay attention to your use of credit cards around them and make sure that you reveal certain useful information about the use of those credit cards without going so far as to reveal the financial details of your business.

The most obvious problem that may be caused by department store credit cards is that they let you acquire more debt. The department store credit card adds another card that you can use when you get in that impulsive shopping mood. This means that it frees up more loan money than you already had available which means that you can get yourself into more trouble with excessive debt than if you had just used a credit card that you already had to make the purchase. Additionally, the department store credit card tends to have a higher interest rate and higher transaction fees than those of standard credit cards which means that you’re paying more in the long run for incurring that debt on a department store credit card than you would pay if you used a normal credit card to make the same purchase. This mitigates the savings that you get at the time of purchase and can cause you to lose money overall.

In addition to the financial problems caused by department store credit cards, you should know that these credit cards can cause damage to your credit report. Part of this is caused simply by the fact that you’ll be incurring that additional debt – and that you have yet another card that you may make late payments on. However, it’s also caused simply by filing the application to get the credit card in the first place. Every credit card application that you make causes a small hit to your credit score. This type of credit card application causes a small drop in your credit score that only lasts about six months but it also shows up as a mark on your credit report that can remain on the report for up to two years.

Department store credit cards offer some benefits. For example, they are easier to get than normal credit cards and are sometimes the only option for starting to establish credit when you don’t have any yet. But there are major drawbacks to the department store credit card including the high percentage rates, the fact that they allow you to incur more debt, their limited use at only one store and the impact that they have on your credit score just based on the fact that you’ve applied for them. These drawbacks make it so that the department store credit card bites you in the end despite the early benefits.

Pros of Having Someone Co-Sign on a Credit Card

There are definitely benefits of having someone that you know co-sign on a credit card for you. These benefits include:

• You get the loan or credit card. You wouldn’t have gotten it otherwise so being able to get it with the help of a co-signer is clearly a benefit.

• You get better terms. You may be able to get a good interest rate or even some cash back rewards if your co-signer has good credit.

• A fresh start. Many people find that they can rebuild their own good credit once they have the responsibility of making sure to make on-time credit card payments to a credit card bill that has a co-signer on it.

Cons of Having Someone Co-Sign on a Credit Card

There are also drawbacks to having someone co-sign on a credit card for you. These are serious drawbacks that you should carefully review before deciding that getting a co-signer is a good idea:

• Having to ask. Frankly it’s not any fun having to ask a parent, friend or family member if you can use their credit. It’s embarrassing to admit that you can’t get a credit card on your own and you have to deal with the nuances of the whole conversation. You also risk hearing “no”.

• Added responsibility. You already have a responsibility to pay off your credit cards and be responsible with them but that responsibility is heightened when you are using someone else’s credit to obtain a loan. This can be a lot of pressure for some people.

• Damage to the relationship. If you do find that you have trouble paying off the debt that you acquire on someone else’s credit, you may discover that this does serious damage to your relationship.

• Power imbalance in the relationship. One of the specific problems that can come up in a relationship where a co-signing situation has occurred is the issue of power. Someone holds power over you when they help you financially. This is a serious thing to consider.

Clearly there are benefits to having someone co-sign for you to get a credit card, especially when you aren’t going to be able to get the card without their help. However, there are risks to your finances and your personal relationships which must be weighed against the financial gains.

Here are some of the easiest ways that you can avoid high interest rates on your credit cards:

• Don’t sign up for credit cards with high interest rates. Many people choose to accept offers for all credit cards including cards with high rates. Others will take a card with a high interest rate if it offers them benefits like credit card rewards. If you don’t have a card with a high interest rate, you don’t have the problems associated with high-interest credit cards so simply avoid getting one in the first place!

• Don’t miss payments or make late payments. One of the quickest ways to go from a fair interest rate to a high interest rate is to miss a payment on your credit card. In fact, you can become a victim of universal default which means that all of your credit card rates can go up just because you make a late payment on one of your credit cards. Always make on-time payments to every credit card company in order to avoid the problems associated with high interest rates.

• Read the fine print. One of the most common ways that people end up getting themselves trapped with a high interest rate is that they fail to understand the terms of their card. For example, someone might sign up for a balance transfer rate of 0% and then promptly forget all about the outstanding debt. Reading the fine print would reveal that the low interest rate is only good for six months. After that, the rate goes sky high. You would’ve known that if you had read the fine print and you would be able to avoid the problems associated with high interest as a result, either by not accepting the balance transfer offer or by paying off the debt during the low-interest period on the card.

• Understand how your payments are processed. Many people have credit cards that include a number of different types of transactions – balance transfers, cash advances and purchases are the most common ones. Each of these may have different interest rates. Your payment will be processed to pay off certain transactions first. You should know how this works in order to make sure that you’re paying off high interest credit card bills first.

The most important thing when it comes to the interest rates on your credit cards is that you take the time to know what they’re all about. Always aim to maintain the lowest interest rate possible by avoiding the things that cause interest rates to go up.

Universal default is a term that refers to a highly questionable (but unfortunately) common practice among credit card companies. The practice is for companies to change the terms of a credit card from the good terms to the default terms based solely on the fact that you as a borrower have defaulted on other loans. For example, let’s say that you have two credit cards – one that has a 19% interest rate and one that has a promotional interest rate of 5%. You miss a series of payments on the 19% interest rate card but pay the other one off in a timely manner. With universal default, the lender of the 5% interest rate changes the terms of the promotional deal to the default terms of the card (let’s say that’s a 22% interest rate) based solely on the fact that you have defaulted on the other credit card.

The practice of doing this is considered to be a very controversial issue. Most people believe that they should only be penalized for defaulting on credit cards by the credit card company to whom they have defaulted. In other words, they feel like it would’ve been fair for the lender of the 19% interest rate card in the above example to penalize them with default terms and fees but that it is unfair for the lenders of other credit card lines (such as the above 5% credit card lender) to also change the terms when no missed or late payments have caused that specific credit card to default. The practice is so controversial that Congress has considered implementing laws against that but those laws have not yet been approved and therefore universal default practices still continue.

As a credit card consumer, it is very important for you to know about universal default because it can have a huge impact on you if it’s something that you become a victim of. You want to make sure that you are making on-time payments to all of your credit card companies because you may risk universal default if you default on even one of these loans. This can cause you to fall into a bad situation where you can’t pay off any of your credit cards because the terms are so unfavorable to you. This may not be fair but it’s the reality of credit card lending today and something that you need to be aware of.

One of the biggest areas of concern when it comes to credit cards is identity theft. And one of the most important rights that you have is the right not to pay for charges that you didn’t make. If you ever become a victim of identity theft or even just notice a single unauthorized charge on your credit card, you should report it immediately. Be aware that you have the right to pay only a small fee (typically $50) on these types of charges. If the credit card company tries to hold you responsible for paying more than this amount on unauthorized charges, you have legal options designed to keep that money in your pocket. If you didn’t spend it, you don’t have to pay it.

Another common area of credit card use that people don’t realize affords them some rights is the situation of purchasing items on a credit card that are defective or never received. For example, you may order an item online using your credit card and be billed for the purchase but either not receive the item or receive an item that is damaged. Ideally, you would contact the seller and resolve the issue. However, if the issue is not resolved this way then you have the right to go through your credit card company to dispute the charge. Learn more about how to do this here.

Finally, you should know that you have some rights even when problems with credit card companies are somewhat your fault. For example, if you are unable to pay your bills, you still retain some rights. Of course, you’re still responsible for the debt. But you have rights in regards to how credit card companies and debt collection agencies can treat you or deal with you regarding the issue. These rights are outlined in the Fair Debt Collection Practices Act, a document that you should read carefully if you ever find yourself in the position of having outstanding debt that you can’t pay off. As a credit card holder, you definitely have a lot of responsibilities to worry about but you should also be aware of the fact that you retain some important rights, too.

Credit cards are a very important part of life today even for youngsters. In order to be able to secure good loans in the future, the teen has to start establishing good credit from an early age. Unfortunately, getting a credit card as a teenager is also risky because it opens up the potential for making serious financial mistakes that can damage credit for years to come. As a parent, you need to be active in guiding your teen to make good credit card choices. The first of these choices will be which credit card to get.

The important thing to keep in mind here is that your role as the parent of an aging teenager is to offer suggestions, advice and insight without making decisions for your teen. If you were to select a credit card for your teen, he wouldn’t develop the skills necessary to choose good credit cards down the line. Instead, you want to assist your teen in determining what a good credit card is so that he is actively involved in the selection of the card and can learn the skills that will help him make those good choices later when he’s financially on his own.

Sit down with your teen and discuss the things that you personally would seek in a good credit card. Make sure to discuss the importance of factoring in personal spending styles when choosing a credit card. For example, you may consider a low interest rate to be important when choosing a credit card. However, you may know that your teen is likely to make late payments and therefore that a card which doesn’t penalize for this is a better choice even if it has a higher interest rates. In discussing these things, make sure that you offer plenty of opportunity for your teen to insert input into what makes a good credit card and what factors should be considered in choosing one.

Your teen may act as though he doesn’t want your advice about things in life but the truth of the matter is that he does seek some guidance from you. There are going to be many controversial issues that come up between you and your teen but choosing a good credit card together doesn’t have to be one of them. Use this opportunity to really assist your teen in establishing a good foundation of financial skills while also building your relationship together. This will prove useful immediately as well as in the long run.

Benefits of Credit Card Debt Consolidation

Before deciding to look at options for credit card debt consolidation, you should know what the benefits of doing this will be. The biggest benefits of debt consolidation are:

• Reduced stress. You will feel like you’re finally doing something about the problem.

• Smaller monthly payments. Consolidation almost always lowers your monthly payments which means you aren’t as financially strained.

• Quicker debt repayment. The consolidation will allow you to plan to repay the debt and be done with it.

Drawbacks of Credit Card Debt Consolidation

For the most part, consolidating credit card debt is a good thing, but there are some drawbacks and risks to be aware of:

• Credit is freed up. Once the debt is consolidated, you have zero balances on all of those credit cards again. Without will power to not use those cards, you can get yourself into even more trouble.

• You’ll know what you’re dealing with. This is a good thing but many people hate the process of actually looking at how much money they owe.

• Interest rates may go up. If you have some low-interest debt that’s included in the consolidation, the rate on that portion of the debt may be higher than it was before.

Credit Card Debt Consolidation Options

If you are ready to start looking at consolidation of credit card debt, here are the options to consider. Make sure to review the pros and cons of each before deciding how to proceed:

• Balance transfers. If you can transfer all existing debt to just one card then you’ll be more organized with your debt. This is only good if the card has a low interest rate and the balance transfer fee is reasonable.

• Other type of bank loan. People may consider getting a home equity loan or other personal loan to consolidate all credit card debt. This is wise if you can secure a loan with good terms.

• Private loan. Some people are lucky enough to have parents or friends who will pay the debt off for them and accept repayment as a loan. This can be great because it immediately relieves the debt and starts improving your credit. However, there are personal risks involved when you mix money and friends!

• Debt management companies. These are businesses that say they’ll consolidate your debt for you. The reality is that you often end up paying them a big chunk of money for their services and then your credit gets damaged because of their involvement. Be wary of this option.

The key to good credit card debt consolidation is to review the pros and cons of consolidation and to choose the method of consolidation that will benefit you the most.