http://creditfederal.com/article en-us http://creditfederal.com/article N/A article@creditfederal.com Fri, 25 May 2012 04:12:39 CDT 20 http://creditfederal.com/article/blogs/417/What-is-the-difference-between-a-charge-card-and-a-regular-credit-card%3F Charge cards are a type of credit card that require you to pay the full amount you've charged each month. There are no periodic finance charges, and charge cards often come with rewards.  Credit cards offer a revolving line of credit, meaning that consumers may carry a balance from month to month rather than having to pay the balance in full every month. Each time you use a credit card, you are essentially taking out a loan, and card issuers require that a payment of at least the minimum amount due must be paid by the due date every month. Interest charges typically accrue on amounts charged. Credit Federal Thu, 10 May 2012 00:00:00 CDT http://creditfederal.com/article/blogs/416/New-Jersey-Democrats-To-Hijack-Idle-Gift-Card-Balances Democrats of New Jersey are eye-balling the unspent balancess of their state residents' gift cards. These unused balances could be used by the state to pay its own bills. Soon, New Jersey will require gift card sellers to obtain ZIP codes from buyers so it can claim unused balances of resident cards that have been inactive for two years. Gift card owners will be able to file claims to get their money back, thus preventing unused balances from reverting to retailers, the New Jersey Treasury Department said in a statement. There will be no time limit on redemptions. If the money is never claimed, it can be used by the democratic leandership.Treasury spokesman Andy Pratt says the state is still discussing implementation of the law with retailers, some of which have already started collecting ZIP codes. Small businesses are exempt from the law.Some large gift card providers have already pulled their cards. American Express has removed its gift cards out of New Jersey convenience and grocery stores. Blackhawk Network, which distributes cards sold in drugstores and grocery stores, will stop selling gift cards in New Jersey in June unless the law is changed. InComm, which distributes gift cards from Visa and MasterCard, says it's also leaving the state in June.Opponents of the law say the problem it was designed to solve no longer exists. The vast majority of retail cards never expire, and a provision of the 2009 credit card reform bill prohibits general purpose cards from expiring in less than five years. In addition, the law restricts dormancy fees that used to eat away at unused balances. Since the law was enacted, the amount of unused balances on gift cards has plummeted, says Brian Riley, an analyst at CEB TowerGroup. In 2006, the value of unused gift cards - known in the industry as "spillage" - totaled $8 billion, or 10% of all gift cards. Last year, value of unused gift cards was $2 billion, or about 2% of gift cards, CEB TowerGroup estimates.Still, $2 billion is a lot of money, and if New Jersey succeeds in reaping revenue from spillage, other democratic party controlled states may also follow suit. About half of states have laws that give them the authority to claim all or a portion of unused gift cards or gift certificates, usually after three to five years of inactivity, according to the National Conference of State Legislatures.If you don't want democrats to steal your gift card balance out from under you to be used for their own coffers, use up the balance in full as quickly as possible. Credit Federal Tue, 24 Apr 2012 00:00:00 CDT http://creditfederal.com/article/blogs/415/Democrats-Allow-Higher-Credit-Card-Fees Obama's consumer financial watchdog agency is allowing credit card companies to charge big upfront fees, which is likely to affect subprime, bad credit borrowers the most. The Consumer Financial Protection Bureau acknowledged its proposal would increase costs for some cardholders and allow banks to charge more in fees. The bureau was established after the financial crisis to protect consumers from loans and cards with hidden fees or other traps. Obama's new decision; however, places a blow to the bureau which controlled bank fees to prevent abusive or deceptive credit terms.Fee limits are of particular concern to poor credit borrowers (subprime). Subprime borrowers tend to face much higher fees because lending to them carries more risk. Banks fear the agency will block too many fees, effectively preventing millions of Americans from establishing stronger credit so that they can qualify for mortgages or auto loans. Banks aren't allowed to charge fees totaling more than 25 percent of a person's credit limit in the first year that the account exists. But there's no limit to the fees they can charge before the card is activated.Under a rule proposed last year, those upfront fees would have counted toward the 25 percent cap. The CFPB is retreating from that idea after a federal court in South Dakota prevented it from taking effect. The consumer agency's new rule; however, would let banks charge whatever fees they want up front. Those fees can include processing or activation fees of nearly $100 - a large chunk of the credit limit for borrowers who are often granted lines of less than $1,000. Under the new plan, the 25 percent cap would only apply to fees charged after the card is issued.First Premier Bank of Sioux Falls, S.D., had argued that the Fed overstepped when it proposed the tougher rule. The bank had started charging customers a $95 processing fee for credit cards before the account was opened, plus a $75 annual fee. Some cards had a credit limit of $300.The upfront fee allowed First Premier and others to charge people fees totaling far more than 25 percent of their credit lines. The rule was an attempt to close that loophole.High-fee, low-limit cards like First Premier's are available mainly to people with weak credit histories, said Chi Chi Wu, an attorney with the National Consumer Law Center, which has urged CFPB to fight the court ruling.The CFPB declined comment beyond a press release that summarized the proposal. It acknowledged the potential effects in its Federal Register notice. Credit Federal Mon, 23 Apr 2012 00:00:00 CDT http://creditfederal.com/article/blogs/414/Bad-Credit-Debt-Consolidation-Loan-to-Pay-Off-Credit-Cards I'm a non-homeowner and I don't qualify for a debt consolidation loan. Is there a way I can get a bad credit loan to pay off credit card debt?One way to get a relatively low interest, long term loan is to use the equity in your vehicle to secure a loan. If you still owe money on your auto and don't hold the title in your name due to a lien, apply for a refinancing loan. The interest rate on the refinance will likely be higher than the original loan, yet it will still be far lower than other loan types. If your car is fully paid off and the title is in your name, instead of getting a car title loan apply for a secured loan using the title as collateral.By using your vehicle's equity, you can use the funds to pay off high interest credit cards. Then, use the monthly payment money you would have sent to the credit card company to double-up on your secured loan payments. The end result is a savings in interest fees, and likely an improvement in your credit score. Credit Federal Thu, 12 Apr 2012 00:00:00 CDT http://creditfederal.com/article/blogs/413/Should-I-pay-off-my-credit-cards-or-my-car-loan-first%3F-Which-option-would-save-me-the-most-money%3F In most instances, focusing on paying off credit cards vs auto loans not only saves you more money, but may also help improve credit more, too. Using our free financial calculators, you can determine for yourself which option would save you the most money in interest. Let's review a comparison example:If you owe have an extra $60 per month to pay towards a 21% APR credit card or a 7.5% auto loan, each with a $5,000 balance, here's what you would save:Credit Card: $5,000 balance at 21% interest, with monthly payments of $154.84. By paying an extra $60 a month, you would save $954.38, and payoff the card 18 months sooner.Auto Loan: $18,000 balance at 7.5% interest, with monthly payments of $435.22. By paying an extra $60 a month, you would save $408.04, and payoff the loan 7 months sooner. As you can see in the above example, paying down the credit card saves more money. But to get a more accurate figure of which option would save the most money for your particular situation, use our free credit card early payoff calculator and our free auto loan early payoff calculator. As for improving credit, typically by paying down revolving credit card debt you can optimize your debt-to-income ratio.  Credit Federal Tue, 10 Apr 2012 00:00:00 CDT http://creditfederal.com/article/blogs/412/Does-WalMart-Cash-Student-Loan-Checks Yes, you can cash student checks at Walmart.Walmart Expands Check, Card Cashing Services - Walmart announced expanded check cashing and card cashing services at stores nationwide, including the ability to cash payroll and eligible government benefits cards to the penny.The expansion includes cashing most types of pre-printed checks up to $5,000 and accepting more forms of ID for check cashing, as well as establishing Express Check Cashing check-out lanes at selected stores during peak hours.Checks Walmart Cashes Include:* Student loan* Payroll* Government* Tax refund* Rebate* 401k* Retirement* Loan* IRA* Pension* Expense* Insurance* MoneyGram money ordersCashing Payment Cards: In addition, customers will now be able to cash payroll cards and eligible government benefit cards down to the penny.Walmart cashes checks and cards up to $1,000 for $3, and cashes checks up to $5,000 for $6, offering significant savings over many other check cashers.Accepted Forms of ID: Walmart has also expanded the forms of identification approved for use in check cashing. Walmart already accepts driver's licenses, military IDs and tribal IDs. Now customers can also use state IDs and U.S. passports as identification for check cashing.Express Check Cashing Lanes: Walmart will begin offering designated Express Check Cashing check-out lanes at more than 650 stores during peak hours. Recommended hours are 4-8 p.m. on Friday as well as the first and 15th days of the month, but individual stores will have discretion to adjust to the needs of their local communities. The designated lanes will be for check and card cashing only.Walmart Money Services: Walmart is a leading provider of affordable money services to help customers manage their money and save. Products and services include:* Check and Card Cashing - Customers can conveniently cash approved checks and cards starting at $3.* Bill Payment - Walmart offers three-day, next-day and same-day bill payment delivery options, with prices starting at 88 cents.* Money Transfers - Customers can use MoneyGram® to send money to friends and family around the world in minutes, starting at $4.95.* Walmart MoneyCard - The Walmart MoneyCard is a reloadable, pre-paid debit card that gives families underserved by traditional financial institutions many of the advantages of a checking account, including depositing their paychecks on a safe and secure card, checking their balances, paying bills and shopping everywhere Visa or Mastercard debit is accepted. The Walmart MoneyCard has no overdraft fees.*Because of state restrictions, Walmart does not cash checks in New York, New Jersey or Rhode Island. State statute in Florida sets a $2,000 limit on check cashing. Walmart does not cash personal checks. Credit Federal Mon, 26 Mar 2012 00:00:00 CDT http://creditfederal.com/article/blogs/411/Online-Banking-Accounts Many people have discovered the benefits of online bank checking accounts. Mainly the 24 hour banking availability, the instant transfers, and the ease of bill paying and tracking expenses. FDIC Online Banking Suggestions:See if your current bank offers online account, and whether they are any fees. Most banks don't charge for basic Internet banking such as reviewing your account balances and transferring funds between accounts. If your bank doesn't offer Internet banking or the fees seem high, shop around. Visit the Web sites of other banks to compare their Internet banking services and the fees and limitations.Review ratings. Each year, independent consultants rate various institutions' Internet banking services for reliability, speed and ease of use. You may want to take a look at these ratings before you pick an institution for online banking. Consider mobile banking. That refers to the relatively recent ability to do your banking not just from your home computer but also from a smartphone or a tablet computer. Check the bank's Web site to confirm that your mobile device can be used and that you understand which services are available. Credit Federal Wed, 11 Jan 2012 00:00:00 CST http://creditfederal.com/article/blogs/410/Tax-Refund-Auto-Loan-Down-Payment If your car is constantly needing repair, instead of using your tax refund to cover maintenance costs you could use that money towards a down payment on a new car. Even if you intend to use your old car as a trade-in to cover the down payment, by adding your tax refund you can get a better deal, a lower interest rate, and your monthly payments will be lower. In addition to being more friendly to your budget, the lower installment payments also make it easier for you to occasionally include additional principle payments to get the loan paidoff quickly. And there's another huge benefit... the depreciation on your car will be lower as well. Cars lose a significant amount of value the very moment you drive it off the dealership parking lot. Typical down payments are 15-20% of the car price. Below is a handy chart to help you decide how much loan you can afford based upon your downpayment and/or trade-in value.   New or UsedVehicle Price15% DownPayment20% DownPayment   $8,000$1,200$1,600$10,000$1,500$2,000$15,000$2,250$3,000$20,000$3,000$4,000$25,000$3,750$5,000$30,000$4,500$6,000  Credit Federal Tue, 10 Jan 2012 00:00:00 CST http://creditfederal.com/article/blogs/409/Types-of-Secured-and-Unsecured-Personal-Loan-Applications Secured Auto Loan - There are multiply types of auto loans, including: financing for a brand new car, a second hand used car, refinancing an existing auto loan, or getting a loan on a car that is fully paid off.Secured Home Loan - This includes a new home purchase, refinancing an existing loan, or getting cash equity from a home that is 100% paid off.Secured Personal Loan - This type of loan typically uses property such as an auto or a home in order to secure the loan. Although the loan requires collateral, there are benefits such as lower interest and the largest personal loan amounts possible with very long term monthly installment payments.Unsecured Personal Loan - The benefit of this type of loan is that some are offered with absolutely no credit check, require no collateral and offer instant guaranteed approval for bad credit people. The cons; however, is that these high risk loans usually have limited amounts and are short term. Some lenders offer a pseudo long term of up to 2 years.Unsecured Line of Credit (Equity or Credit Card) - The most popular of these unsecured personal loans are in the form of unsecured credit cards which have a line of credit. Or, you can get a personal line of credit through your mortgage. Credit Federal Sat, 07 Jan 2012 00:00:00 CST http://creditfederal.com/article/blogs/407/Chargeoff-Christmas-credit-card-debt File bankruptcy or chargeoff Christmas credit card debt and other unsecured bills. If you've exhausted all solutions for meeting your financial obligations, it may be in your best interest to file bankruptcy. Although bankruptcy is much the same as simply not repaying debt, it's a legal chargeoff procedure. Both options; however, will have a severe negative impact on your credit score and will make it difficult to obtain new credit at favorable terms. Instead of charging off Christmas debt, consider a debt settlement agreement.   Credit Federal Tue, 03 Jan 2012 00:00:00 CST