Sorry, your card was declined

Sorry, your card was declined

You never want to hear your waiter say, “Sorry, your card was declined.” For people with bad credit, hard times are inevitable. When they occur, you can dig a deep hole and crawl in, but there are better ways to respond. Here are the most common scenarios involving embarrassing credit and answers most worthy.

1. “I’m sorry sir, but your card was declined.”

When a boy says these terrifying words, you are bound to flush crimson dining companions as speculate on the state of your finances.

Squelch panic, “said John Ulzheimer, president of consumer education. Explain calmly that the tape may have been damaged, and make another card for the purchase. If she was denied because you are maxed out, however, and you have no plastic or other cash, excuse yourself and call the creditor to request an “opt-in for overlimit fees.“” This will allow operations overlimit to fill, “says Ulzheimer. You will be assessed a fee, but your reputation will be saved.

2. “Er, Jane, we need to discuss this issue before you pay.”

It’s awful to be sued for a debt, but it is horrible when your employer receives an order for garnishment of wages, a part of your salary should be given to your creditor.

Do not wait until the sheriff to serve hits the paper, said the trust expert Delores Pressley. Be proactive and request a meeting with your boss, saying: “I am terribly sorry that a personal question has extended to the workplace. I’ll find a solution as quickly as possible. “This straightforward approach may compensate for a negative opinion of your supervisor. Also, you can not be fired for garnishment (unless there was more than one in a period of 12 months), which may inspire some confidence.

3. “Rent to you with your bad credit? Ha!”

Ready to sign a lease? If your credit is terrible, you could be in the same humiliation that Matthew and Fiona Peters, Madison, Wisconsin, experienced. As newlyweds, Peters thought they had found the perfect apartment. Yet in the rental office crowded, the agent announced loudly: “There is no way that we can rent with your credit. It is bad… very bad. “Every parent called and asked for help in vain.” After the second call, we sat there red-faced, wondering what we were supposed to do or say next, “said Matthew Peters.” It was emasculating! ”

Today, Peters offers advice to others in similar situations, “Keep your cool and do not take it personally seen a high level for all residents not only protects the property owner’s investment, but people living there as well.. “Focus on your finer points.” You could say: “My credit is bad, but I’m busy and make it a point to always pay for my first home,” said Peters. You may need to sweeten the deal by offering a co-signer, doubling the deposit or to pay rent in advance.

4. “Great, once we see your credit file, we can complete your job application.”

credit checks pre-employment are the norm today – and you’ll want to hide if yours is full of big balances, late payments and accounts written off.

Sure, you can deny access to your reports, but it could encourage the hiring manager to build your resume. So stand tall and to disclose past problems at the front. Honesty can not increase your chances. And relax on shamefully low credit rating. “The credit bureaus and their professional organization (the consumption data Industry Association) have publicly stated countless times stating that they do not provide credit ratings and audit reports of the working credit” says Ulzheimer.

5. “Darling, I can not wait to start a life with you – buy a house, have children …”

Have terrible credit, but in the beginning of a long term relationship? Assuming it can be scary. Like it or not, you must reveal the horrible truth. Then, commit to open communication and make amends, “said Joe Rubino, author of” Self-esteem book.”

“Contact all debtors, make arrangements to clean the debts, start a savings plan, cut credit cards and take full responsibility for the management of future purchases responsibly.” Strengthen your skills and your faith life partner through financial counseling, therapy or life coaching.

6. “I need to talk with Mary about a bill pending.”

Whether calls or messages collection go to your workplace, roommate or relative, your private situation will become public. First, the end of the phone calls. The Fair Debt Collection Practices Act prohibits collectors third discuss your debt with anyone but you. And while they may contact you at work if you ask them to stop, they should.

Tell them you know the law and that you will file a complaint with the Federal Trade Commission, if they persist. Then, “said Rubino, act with integrity and clean up your mess of money. “This done, he is afraid of anyone except your own. If you feel the need to explain calls to anyone, just say you made financial arrangements to settle debts and the case is supported “.

7. “OK, Phil, go ahead and charge those costs and we will reimburse you.”

A business trip is imminent and you are supposed to book a hotel room, flight or rental car. Uh oh, you have no credit. Do not worry, you’re not the only one not charging fees. About 29 percent of Americans live without credit. Suffice it to say that you only use cash, and ask to be paid with corporate funds or corporate card. Few employers balk at such a reasonable request.

Is it easy to deal with these credit problems mortifying gracefully? Of course not. But keep in mind that even a show of assurance from the air – and feel – better than avoidance.

U.S. downgrade and your credit cards

U.S. downgrade and your credit cards

Interest rates on cards are likely to be affected much differently than those on consumer loans.

Stocks have kept investors on edge during the past week as the Dow swings from boom to bust. For consumers, it’s a good time to step away from the market mayhem to survey the damage and potential threats to their finances.

One area that is getting short shrift — but shouldn’t — is the impact the Standard & Poor’s debt downgrade may have on credit card rates.

First, some background. The downgrade on U.S. Treasury bonds that was issued by ratings agency Standard & Poor’s — from AAA to AA+ — was widely viewed as a wake-up call to the U.S government and its “drunken sailor” approach to spending (though that might actually be an insult to drunken sailors).

While the Fed says it will keep rates near zero, many economists expect major consumer interest rate categories to eventually rise because of the downgrade, including things like mortgage, auto and student rate loans.

It’s no big secret why. Any consumer with a low credit rating knows that he or she is a bigger credit risk to lenders, and thus must pay higher interest rates for creditors to accept that risk and loan the consumer money.

It’s the same thing with Standard & Poor’s and the U.S. government. A lower credit rating means that global creditors face a higher risk of default when lending money to Uncle Sam. To borrow money — usually through the sale of U.S. Treasuries in the bond market — the U.S. government will have to offer higher rates of return to investors.

But here’s an interesting point. Even if Treasury yields do recover and grow again, your credit card’s interest rates may not follow the script. Why? Let’s look at three reasons:

Credit card rates aren’t tied to Treasury rates. Instead, credit card interest rates are tied to the Federal Reserve’s prime interest rate, which still remains historically low, and should continue along that path. Federal Reserve chairman Ben Bernanke has made it clear the Fed’s rate policy is to keep those rates down, despite what S&P says. That should help keep card rates manageable for consumers.

The CARD Act has a built-in safety net. Government can do something right once in a while. Take the credit card legislation passed in 2009: Inside the CARD Act is a provision that limits how much card issuers can raise rates. The reforms are limited to “current account balances,” meaning card companies can still raise rates on new charges, so be careful of new spending going into the last four-and-a-half months of 2011. But any charges you’ve already made are tied to current rates, which still remain relatively stable. A quick glance at BankingMyWay’s credit card rate search tool shows card interest rates stable between 11% and 20%, with the average credit card rate around 14%.

Standard & Poor’s doesn’t speak for everyone. Right now, S&P is out on its own with its debt downgrade. The other major U.S. credit agencies — Moody’s and Fitch ratings — didn’t go along. And until, or even if they ever do, don’t expect your credit card interest rates to rise significantly.

So call it a cloud with a silver lining. Yes, the stock market is taking a huge hit, but at least your credit card rate isn’t.

Riskiest places to use your credit card

Riskiest places to use your credit card

Sign up for automatic subscription billing online, and you might keep getting charged after canceling.

Even if you use the utmost caution, you can still be a victim of credit card fraud. Credit card companies and banks are more and more often putting the onus of catching phony or incorrect credit card charges on the consumer.

The most important thing is to check your billing statement, of course. And there are organizations that offer tips on how to keep your cards safe as well. Here, we take a look at 10 of the riskiest places you might use your card, and what you can do to avoid the dangers.

Non-Bank Owned ATMs

Encryption at these ATMs is often not as good as at bank ATMs, meaning some locations are just not as safe. These ATMs also are more likely to be hacked. And in some cases, people have put up devices that look like ATMs but don’t give out cash. Instead, they are just card-skimming devices aimed at stealing your credit card or debit card information.

Wi-Fi Hotspots and Public Computers

If you’re going to be making online transactions over an unsecured wireless connection like in cafes, parks and other hot spots, data can be compromised or seen while in transit, even if you’re on a secure page while you’re checking out. The same goes for public computers like in libraries. It’s not advisable to ever transmit personal data when you’re in a public connection environment, especially on non-secure wireless.

Recurring Bills / Subscriptions

Instead of using automatic billing, ask to be billed on a one-time bill by bill basis instead. When you use your credit card for purchases that involve weekly, monthly or annual billings, you can encounter the headache of over-billings, continued billing once a subscription has ended, etc. Some less-than honest merchants will use automatic billing in hopes you’ll forget and won’t check your credit card statement.

Read more “Riskiest places to use your credit card”

Credit card holders to get some relief

Credit card holders to get some relief

Credit card rate hikes reviewed, penalty fees crimped

Most penalties credit card will be limited to $ 25 and fees for customers who do not use their cards will be eliminated under rules issued Tuesday by the Federal Reserve. The Fed also has ordered a review of all walks of credit card interest rates charged since January 2009, including most of the record increases which came in the wake of a nationwide reduction in credit.

The rules, which implement a final set of changes that Congress passed in May 2009, will take effect Aug. 22. “The guidelines of the Federal Reserve released today are good news for consumers,” said Rep. Carolyn Maloney, DN.Y., one of the authors of the laws of a credit card.

The Fed’s rules could result in lower interest rates for consumers. Banks should reconsider the reasons for these increases that began in the last 18 months. They would have to cut rates if the reasons for the increase no longer exist, and regulators to review and implement such reductions.

Consumers will be more immediately notice the new limit penalty fee of $ 25. Reduce the cost penalty is a central provision of the law of credit card, but Congress has allowed the Fed to determine how.

The Fed gives way to a penalty fee to pay more if the consumer has shown a pattern of “repeat” violations, or if a card issuer can show that higher fees reasonably compensates its own costs in processing the violation prompting the penalty.
Read more “Credit card holders to get some relief”