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Credit Card Offers and Co-signing
It is safe to say that humans are not perfect! Yes, we are the dominant species on the Earth, but that doesn't mean that we always make the right choices! Sometimes we are driven by feelings and not by our mind. In some cases the risk is related our credit card offers. Most credit card users suffer from these fatal mistakes for many years and it takes a lot of time and effort to overcome financial difficulties. Should you co-sign for your credit card? And how can you avoid financial problems and protect your credit from unpleasant surprises?
What if your friend or your spouse asks you to co-sign for your credit card? What should you do? It can be difficult to say no, but at the same time it is not safe to answer "yes"!
On the one hand, you want to help your friend to build a credit history or to rebuild bad credit, but on the other hand, you are afraid to damage your own credit!
You know that it is very important to have good credit. If you have damaged credit history and low credit score, you will have difficulties renting an apartment, buying a car and even getting a job! As you can see it will be difficult to say "yes" to your friend as his or her mistake can have a real impact on your life!
If your friend doesn't make payments, your credit score will go down just like when you don't make payments yourself! If you don't want to take the risk, you should tell your friends about other possibilities for the consumers with bad or no credit history. For example, your friend can easily apply for secured credit card.
If you decide to co-sign, there are several steps you can take in order to protect your credit from unpleasant surprises!
First of all you need to set some conditions. Let your friend know your credit limit and ask him or her to inform you in case he or she can't make the payments.
Set up your credit account so that it could be viewed and managed online. You should have an access to your account and control the situation 24 hours a day! You will be informed about any changes to your credit account.
In the past it was good for your credit score if you co-sign a friend, a spouse or your child to your credit account. Now you don't get a credit boost, you take the risk if you co-sign anyone.
To co-sign or not to co-sign? That's a question you should answer yourself! Think about the trustworthiness of your friend and if you are not 100% sure, let your friend explore another options. Remember that you are the only person, who is responsible for your finances!
Marie Lee McCardie
07:52 AM, March 19, 2008
I would never co-sign anyone to my credit card! I think it is just not wise! I don't want anyone to screw up my credit history!
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Aesthetic Credit Cards
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When searching for a credit card, we are trying to consider our income, spending habits and preferences. The cards that really fit our lifestyle are hard to find. While some cardholders only care about the image on a plastic, the others prefer selected cards with rewards and gifts. The choice of rewards cards is so wide that even an experienced cardholder can get confused. The regular cash back and travel credit cards are really common nowadays. Credit card issuers are more and more concerned about specific customer groups, like sports or arts fans. Sotheby's credit cards provide rewards to people with sophisticated taste.
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Debit or Credit
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Not so long ago, the most difficult task for a US consumer searching a line of credit was not to get lost in the enormous variety of credit card deals and to pick up a most a most beneficial, most rewarding and cheapest one. However, the subprime mortgage crisis and tight credit conditions have reordered the priorities and a great many of American cardholders have changed their object.
Estimates show that high-value, good rewards credit cards are experiencing a drop of consumers' interest and the reason for it was forecast long ago - credit card debt. The all too easily accessible credit laid cards against customers at some point of time, and today people find themselves in urgent need to clear the consequences of their excessive spending.
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LifeLock Credit Protection
June 20, 2008
We are in need of ingenious solutions to the problem of a relatively new and utterly destructive type of identity fraud - new account fraud. New account fraud occurs when a criminal uses your identity information, such as your Social Security Number, driver's license number or credit card number to open a new account with the purpose of obtaining a new credit card or loan.
The cases of new account fraud are becoming more and more frequent, which is largely due to the currently prevailing systems of ID theft prevention and protection. Most of present-day security systems are focused on the authentication of existing account owners, not new ones, which provides criminals with a loophole.
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