Closing Credit Card is Also Not a Good Idea

There are credit card holders who are letting their cards go inactive or just letting them cool off. This is their means to avoid the urge of spending. But the question is, how does this act affect the credit score of card holders?

Those who are not using their cards resort to bring cash when they walk around or they choose to use their debit cards in purchasing items. They reserve their credit cards for emergency needs like for instance buying a plane ticket and paying hotel expenses when they travel. This action step is good because if you allow your balance to increase, it will be damaging to your high credit rating and it will also create problem in your finances due to the higher interest rate that will be charged to you. Having high balances will make it difficult for you to secure financing for bigger project in the future like buying a house.

But consumers must also be aware that there are also disadvantages in allowing credit cards to gather dust most especially for starters. Credit history plays a very important role in earning points. If the card holder carries modest balances and uses his card frequently and pay his bills on time, this will earn points for him or her. This is where the frequency of using credit cards can make a difference when it comes to earning points.

The company issuing the card is making no money if the card is not used because it carries no balance. The company does not earn from the small annual fee that the card holder is paying. In order to woo card holders to use their cards, they will spend for promotions and this is an expense on their part. But eventually if the card still remains inactive, the card issuer will decide to close the account. If the company decides to close the account, there is no need for notification according to the Equal Credit Opportunity Act.

It is also not advisable to close accounts that consumers have paid off. It will be unfavourable to your credit score. So keep your accounts open and use them from time to time to keep them active and earn points for your credit score.

Why Having Good Credit is Better

For many Americans, their credit score is really starting to become the driving force of their lives.

Having a good score makes you accessible to many financial opportunities, while having a bad score only adds burden to your financial life.As early as the age of 16 until they are retired at 63, many citizens depend on their score for different reasons, and these are the top three reasons why they should.

First, those with the unblemished and perfect scores easily get employed. Majority of employers would run a thorough credit check on their potential employees, especially if the job is involved with the government.

If for example, there would be a job hiring for computer engineers in the government, those who would get the job must have a Top Secret clearance level, which is attained after the person’s ten year background is thoroughly checked by the authorities. Once it has been found that the person has been bankrupt, or had problems in his credit companies or suffers from bad credit then, it is very unlikely that he will obtain the career.Private companies would often look at the credit scores of their applicants to determine the best person for the job. A bad credit score does not speak very well about you.

Second, bad credit also means you would be paying a greater amount of money for every purchase you make. In one point of time, citizens would really have to get a loan whether it is for an automobile loan, a lease for an apartment, or even for the capital of their business. The credit score of a person is what determines his eligibility to get a loan. However, even if your credit score is fair, you could still be forced to pay a higher interest rate for the amount you borrow.

Finally, your rating would also impact where you could have a home. Property owners always run background checks on their potential clients, that is to make sure that they are responsible and they could pay on time.

Landlords would often decline those clients with bad credit because of the high possibility of missing payments and late payments. Some places that allow clients with bad credit to rent would often charge a higher interest rate and a high initial deposit to make sure they do not lose capital revenue. But there is a very high probability that those who have bad credit will only be landing a crappy apartment.

Do not let bad credit ruin your future. Take control and turn your life around now while you still can.

2nd Campaign Aide to DC Mayor Pleads Guilty

Another former campaign staff of Mayor Vincent Gray, who is heads the State of Columbia has stepped forward and claimed guilty for a federal offense during the politician’s bidding in the 2010 elections. This has been the second time this week that someone from the politician’s former entourage has stepped up against him.

Mr. Howard Brooks has stated that he was guilty for giving false statements to the authorities about the payments he gave to another candidate from Mayor Gray’s funds for his campaign. The first to step up was Thomas Gore, who said he was guilty of making the same payments and destroying any evidence of it. This made it clear that the campaign of the Mayor involved some dirty politics.

The participation of the Mayor in this misdeed however still remains a question for authorities. Though this current scandal is a big blow to his reputation, there has been no evidence what so ever to prove that he has been involved in the bribery. He even claimed in one federal investigation that he has no idea that his staff had been engaging in dirty tactics.

According to Gore, he shredded evidence of his payments to Sulaimon Brown, a candidate for mayor who was allegedly paid to make negative remarks about former Columbia District Mayor Adrian Fenty. There was a collusion that happened among the staffers that involved about $2,810 and Brown.

According to the documents in court, Brooks was inculcated to funnel money and pay Brown but no one was named by the papers. Brown was said to be receiving money from Brooks and the Mayor’s campaign manager Lorraine Green who is also a family friend of the Brooks. Though Green admitted she met the mayor candidate and even spoke with him in the phone, she denied having offered him cash or any privilege in the administration of Mayor Gray.

According to the officials of the administration, Brown was given a position that paid $110,000 in a year without an interview. But he was fired just after a few weeks; he then started his allegations against Gray in public.

The current mayor led by 10% of the votes against his greatest rival Fenty during the election. His platform was about reinstating the integrity of the administration. But this scandal has just done the complete opposite.

Brooks has been cooperative with the authorities in the investigation; he even wore a wire when he came to meet Gore in one of their private meetings. He would be receiving a maximum of 6 months in jail and probation rights.

Poor Kids Get Robbed of Private School Credit

The credit loan for poor children supplied by the federal government is being abused by some affluent families. The New York Times has unmasked this sully reality of breach in the tax education credit. The main intention of the credit was to supposedly provide for the less fortunate citizens to allow their children to avail private education. However, it has been a proven fact that it is now an avenue for parents of children who had availed private education to get the benefit for their children.

Only kids who have enrolled in public schools and the law were specifically crafted to differentiate “enrolled” and “attended”. According to the State Representative of Georgia, Mr. David Casas the law specifically used the word enrolled and not attending so that the scholarship could be availed by private school students.

In one of the meetings, parents were dubious of the idea and raised the idea as a scam. Once, a concerned parent questioned the law if it would qualify a student that has been attending a private school but also he enrolls in a public school just to avail the benefit. The child will be enrolled in two schools but he is attending the private school, the law only required the recipient to be enrolled in a public school and it said nothing about attending.

Though Mr. Casa reassured the parents that the program was not a scam, it is very clear that this requirement is a terrible idea and will blow up in the company’s faces in the near future. Currently, there are many programs like this that is operating across eight different states in the United States. The program costs $350 million of the states’ funds which has been paying for the education of students who attend religious schools and scholars for football.

The headmaster of the Covenant Christian Academy based in Cumming, Ga, Mr. Jonathan Arnold shares his dismay as he reviewed the names of current students who availed the scholarships.

Filing Bankruptcy is Not A Hindrance to Improve Your Credit

How would your credit appear after you have filed for bankruptcy? You are fully aware that having bad credit means that it would make it difficult for you to get a new credit card in the future and if ever you are able to get it, the new credit card would be more expensive in terms of interest rate on loans. However, there are ways to improve your credit even if you have filed for bankruptcy.

Why file for bankruptcy?

You filed for bankruptcy because your income was unstable and your creditors knew it .In fact, they were the ones who forced you to make that move. Your creditors were pressuring you to pay your bills and the only way to get out of debt is to file for bankruptcy. But after filing for bankruptcy, another bankruptcy cannot be filed up to seven years.

Once you are out of debt after filing for bankruptcy, see to it that through your income you pay all your current expenses. Control your spending by purchasing only items that are necessary so that you can pay all your bills on time.

Make a good budget

Business world today is spending billions of dollars for advertisement to entice people to spend and spend. Discipline yourself to buy only the essentials. Do not engage in impulsive buying if you want to fix your credit. Start saving. You can fix your credit on your own to avoid fraudulent companies that offer credit repair services.

Apply for a Secured Credit Card

Through the official site of AnnualCreditReport.com, you can monitor your credit report to check its accuracy. You can also get a free copy of your credit report through the same site.

By controlling your spending, you can start saving for future emergency needs. And once you have saved enough, you can apply to get a secured credit card which functions like a debit card. In order to get a secured card, you need to deposit a certain amount to the card issuer. For example, if the amount deposited is$500, the credit limit is equal to that amount.

After having used your secured credit card for a period, you can apply for a regular credit card but it may charge you a high interest. The high interest, however, should not matter. What is important is for you to use the card for essential purchases only which you are capable of paying at the end of the month. Eventually your credit rating will improve if you can sustain your discipline in spending for what is only needed.