It seems that everybody is into making money online these days.
By far, the largest market place in the world is right there in
front of you within the cyber world of the internet. But what is
the simplest and easiest way to make money online? Well,
affiliate marketing nowadays is the very common and the most
popular method of earning money online.

In addition, affiliate marketing allows you to make money online
by earning commissions off sub-affiliates, people you have
brought on to be affiliates of the parent company. These
two-tiered affiliates may seem like a pyramid scheme, but the
point is, it generates a tremendous amount of traffic to your
site as well as to your partners’ sites, which helps everyone
make money online.

So, what is the first thing you will need? It is to build your
own website and decide how much you are willing to spend on your
site. Nevertheless, to online your business is buried among
millions of websites. As a start-up internet business, you have
several options and several things to consider. Anything from
setting up a free account on one of the countless blog sites, to
paying thousands of dollars to professionals for the design and
hosting.

Keep in mind that people can’t just falter upon it accidentally.
It’s like spinning your wheels yet you are getting nowhere, or
you are talking, but no one’s listening. You have you establish
your presence and make your own site. You need to advertise and
promote constantly. Most importantly, make a lasting impression
so next time a customer is in the market for your type of
product, they will never forget your site over someone else with
similar products. Remember that everyone from industrial giants
to corner flower shops now wants to stake a profitable claim in
cyberspace. Building affiliate website is just a much better in
promoting products as an affiliate.

However, if you have an affiliate website, you can list other
people’s websites on yours and become an affiliate, making money
online through sales commissions every time someone goes to
their site through yours and makes a purchase. You can make
anywhere from 5% to 30% just by advertising their link.

But if you have none, better yet build your own affiliate
website. A website is not like putting a convenient store on a
corner and every person will see it as they pass by, and stop.
If you do not advertise your site in some form, no one will know
you’re on the web. The old saying “if you build it, they will
come” just isn’t true when it comes to opening a website.

Building and promoting affiliate websites is not an easy task.
With the web these days growing at a substantial rate, juts
about everywhere you turn on the web, you will see offers to own
your own business. A lot of these offers are justifiable
businesses with real products and items waiting for you to open
on of their affiliate sites and start selling. They can sound
very good and get you excited, tell you that you can make tons
of money. But then, be very careful, you have to consider a lot
of things before you can keep on.

Remember that there are also downfalls to having an affiliate
website; bear in mind that you probably won’t have much control
over it, the bad thing is sometimes, none at all. First, you may
not have the power to control over the ad banners that appears
on your site, you won’t have control over the content, links or
text links and on some of them, you may not be able to control
the keywords or optimize the site for the search engines, or
maybe even see your daily traffic or check your status, like how
many visitors have you gotten and how many items you have sold.

On the other hand, building affiliate sites can also be a good
thing if you are looking for a low maintenance way to have a
business on the web. Affiliate websites can also give you a
reasonably good income once you become established and if you
know where you can pick up some local traffic just through your
friends of neighbors.

Getting some heavy duty traffic will become your main goal when
you are about to open an affiliate website. However, building
and advertising a website can be flat out expensive, even scary.
So once you have your website, handle it wisely

Article Source: http://www.articlesbase.com/affiliate-programs-articles/why-building-affiliate-websites-are-the-way-to-go-357.html

About the Author:
Discover how you can create a turnkey internet marketing system that builds massive downline for you, attracts hungry prospects automatically, and generates income non-stop, 24 hours a day, 7 days a week! Find out more here: Visit How To Become Successful today!

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There are people who think of the world as a dreary place simply
because they do not find their existence charming enough to
render them contented. There are those who wish that they have
more than what they possess. There are those who are sick and
tired of working hard yet end up having nothing better. There
are those who curse the humdrum existence of having 9-5 jobs
that do not give them personal and professional growth. Still
these are others who want to earn money without sweating it out
too much.

These are the ultimate reasons why more and more people are
succumbing to affiliate marketing, one of the many money-making
systems that are conceived as a result of the popularity the
internet has been generating since it came into being. Since the
internet is one of the media with which to view the world and
interact with people without getting up from one’s seat, it has
become one of the most important channels with which to sell a
merchant’s products and wares.

This is the reason why affiliate marketing thrives as a result
of the internet’s popularity. The products and wares which the
internet markets get the necessary exposure needed to sell well.
This is where the fact that affiliate marketing is a lucrative
business comes in. What is intended to be sold is sold because
the internet is the best place to sell all these merchandise
without the merchant giving too much of an effort to sell them
per se.

How does affiliate marketing generate money? The way affiliate
marketing works is so simple one would have difficulty believing
how such a scheme is able to generate cash. In affiliate
marketing, one is introduced to a system where an affiliate, the
one who owns the website, agrees to display and advertise other
websites that belong, in turn, to a merchant.

The merchant is the one who hopes to generate sales through the
affiliate’s promotion of his website. Once these links are
clicked on by other people and a purchase is made, the merchant
pays the affiliate a commission. It is by simply promoting other
websites through his own that an affiliate is able to earn money
for himself in the easiest manner possible.

The principle involved in affiliate marketing can be compared to
the type of species interaction in ecology called mutualism
where interaction between two species allows both of them to
derive benefit from the situation without harming each other.
The result is a relationship that allows them to coexist in
harmony in the community where they both move. Affiliate
marketing allows affiliates to get paid in recognition of what
they were able to contribute to the process. Merchants, in turn,
are able to have their products advertised and ultimately sold
through the efforts provided by the affiliate.

The reason why products advertised by affiliates through their
websites generate a lot of sales is because the number of people
using the internet is growing every minute. Each and every
merchandise advertised through this medium gets all the
attention that it could possibly need to be able to convince
someone that it is worth the try. This is the ultimate reason
why there is money in affiliate marketing. The more links a
website promotes, the more chance sales will be generated. The
more sales generated, the happier the merchant, and the happier
the merchant, the better it is for the affiliate both
professionally and financially.

Those who have indulged in affiliate marketing have reached
goals and dreams which they were not able to realize under
ordinary circumstances. There are even those who have
skyrocketed to the top simply because they have dedicated all
their time and effort to perfecting their knowledge about this
business without even a bit of hesitation. One can be sure of
the fact that there is money in affiliate marketing. He only has
to cope with the fact that it is impossible to generate riches
in this business overnight.

Well, not really. All he has to do is to learn everything that
he possibly could about the industry which he is in. If he is
able to master everything concerning the tricks of the trade,
then everything will follow suit

Article Source: http://www.articlesbase.com/affiliate-programs-articles/heres-why-affiliate-marketing-is-so-lucrative-356.html

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Discover how you can create a turnkey internet marketing system that builds massive downline for you, attracts hungry prospects automatically, and generates income non-stop, 24 hours a day, 7 days a week! Find out more here: Visit How To Become Successful today!

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– Credit remediation is a subject consumers often face with fear and trepidation, and for good reason. With the exception of recognizing that the best score wins, the average home shopper knows very little about the whole credit scoring process. Sub-prime borrowers who are eager to move into A-Paper territory often find themselves at a loss when trying to find ways to upgrade their credit history. The good news is there are ways to improve less-than-perfect credit scores and obtain a loan for the home you really want.

The first step in the process is making sure that you have a current copy of your credit report. Congress recently amended the Fair Credit Reporting Act so that consumers may now receive one free credit report annually. There are three major credit bureaus: Equifax, Experian, and Transunion. Since entries can vary across bureaus, you’ll want to request a free report from each of the three companies. (Go to www.annualcreditreport.com)

It’s also important to know just what a good credit score is. Most A-Paper scores generally begin around 680, although this number may differ slightly among lenders. Don’t despair if you come up shy, there is always room for improvement. Increasing your score just 5 points can save a significant amount of money. For example, if your score is 698 and you increase it to 703, then you could save yourself thousands of dollars over time as a result of a slight improvement to your loan’s interest rate.

While credit repair is necessary for some, it’s not the only way to increase your credit score. Even if you have stellar credit, you can enhance your score through these steps:

· Evenly distribute your credit card debt to change the ratio of debt to available credit. Let’s say you have a credit score of 665. If you have debt on only one card, and four additional credit cards with zero balances, evenly distributing the debt of the first card could move you closer, and possibly into, that ideal bracket.

· Keep your existing accounts open and active. The average consumer is usually anxious to close credit card accounts that have zero balances, but doing this can cause them to lose the benefits of a long-term credit history and increase their ratio of debt-to-available credit. The bottom line is don’t close those old accounts!

· Keep credit inquiries to a minimum. Each inquiry into your credit history can impact your score anywhere from 2-50 points. When it comes to mortgage and auto loans, even though you’re only looking for one loan, multiple lenders may request your credit report. To compensate for this, the score counts multiple auto or mortgage inquiries in any 14-day period as just one inquiry, so try and stay within that time frame.

Remember, credit scores don’t change overnight. Improving them requires time and diligent effort on your part, so it’s a good idea to get the ball rolling at least three to six months prior to submitting your application for home financing.

If credit repair is what you need, you can either begin the process yourself or seek out a repair service. If you decide to make your own improvements, visit as many websites as possible to get information regarding credit laws and consumer rights. Diligently search through them and educate yourself to ensure that you don’t sustain any self-inflicted wounds. A good place to start would be the Federal Trade Commission’s website, which contains a wealth of helpful literature.

If you’re facing severe or complicated credit issues, then you’ll probably want to enlist the assistance of a professional credit repair company. Before you do, be sure to familiarize yourself with the FTC’s regulations on credit repair. With over 1100 credit repair companies to choose from, it’s important to be certain you are dealing with a reputable firm. Examine the FTC’s information on fraudulent practices to avoid falling prey to credit repair scams.

Addressing credit issues can be uncomfortable to say the least. But by taking these steps now, you’ll be that much closer to obtaining the home of your dreams.

Additional Resources:

To order your free credit report, go to:

www.annualcreditreport.com

To read the Fair Credit Reporting Act, go to:

www.ftc.gov/os/statutes/frca.htm

For the Federal Trade Commission’s information on consumer credit, go to:

www.ftc.gov/bcp/conline/edcams/credit/index.html

[Jacob Davidson] is affiliated with [Great Oak Lending Partners], a Licensed Broker, [MD] Department of Real Estate. If you would like to obtain a free Consumer Credit Scoring Booklet, please contact [Jacob Davidson] at [800 544 8584].

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More and more people are getting into online businesses for a
variety of reasons. First, because the Internet provides a wide
market for businessmen and selling through the Net is often
synonymous to selling their products to the world. Second,
because starting an online business requires only a portion of
the start-up cost that you will need if you are to set up an
actual business establishment. And third, because you would
virtually gain more profit online, considering your wide market
and your savings.

One aspect of online business today that many people,
businessmen and non-businessman alike, are willing to get into
is affiliate marketing. Simply said, affiliate marketing is a
relationship between a merchant, who has the need to sell and
advertise his products, and his affiliates, who are willing to
post the merchant’s ads in their own websites. The affiliates
get paid whenever an action is taken by a visitor on the
ad—either in a pay-per-click, pay-per-lead, or pay-per-sale
basis.

The selling point of affiliate marketing is that it gets
everybody benefited not only a little but a lot. The merchant
saves a lot because he only has to pay whenever an action is
made on his ad. On the side of the affiliates, they simply earn
a living even without trying to. And they get all these benefits
by simply getting involved in affiliate marketing. What more if
they take affiliate marketing more seriously?

Some people claim that affiliate marketing simply won’t work for
serious online businesses. They’re wrong. Affiliate marketing,
if taken more seriously, would translate to larger profits. And
yes, both for the merchant and the affiliates. How? Why not get
into a tried and tested marketing method of getting more
profits—back-end selling!

Back-end selling is simply the selling you do after your initial
sale; and that means selling another product to the same
customer. The product you sell after the first sale is called,
for obvious reasons, the back-end product. Back-end selling has
long been proven to be effective in boosting a business’s sale,
not only for online businesses but for traditional businesses as
well. Why? Because if your product is good, you would generally
get the trust of your customer after your first sale, and if you
have another product that he likes or needs, there is a great
chance that he will also buy that product from you. As a
businessman or marketer, that means additional profits just from
a single customer!

If back-end selling works for traditional and many online
marketing strategies, there’s no reason why it shouldn’t work
with affiliate marketing! And it works even better as back-end
selling with affiliate marketing may work both for the merchant
and the affiliates. It’s really just a matter of knowing how to
efficiently carry the back-end selling process.

For the merchants:

As a merchant in an affiliate network, you really won’t have to
concern yourself with the advertising of your initial product as
your affiliates should already be doing this for you. This
leaves you with enough time and energy to focus your attention
on back-end selling. There are a number of ways for you to
promote your back-end products to your customers. If you have no
idea what these methods are, we provide you with some tried and
tested methods in this site.

• Upon ordering the first product from your site, ask your
customer if he wants to receive newsletters about your future
products. Newsletters are good media for promoting your back-end
products.

• Send your customers a thank you letter and try to mention your
back-end product at the end of the letter (works both for snail
mails and emails).

• Give your customers a call and ask them if they’re happy about
your product. Then, try to inform them about your back-end
products.

• Most online magazines have “customers only” portions in their
websites that only subscribers of their printed magazines can
access. You can also have a site like this and place your ads
for your back-end products there.

• If you’re selling electronic products like e-books, find a way
to add a link that would direct your customers to your site or
have an ad about your back-end product inserted somewhere on the
pages.

• Redirect your customers to a “thank you” page after their
first purchase and insert in there some of your back-end product
ads.

• Insert a flyer or brochure about your back-end products on the
package that will be shipped to your customers.

For the affiliates:

Just when you think that back-end selling would only work for
the merchants, here I am to negate your thoughts. Back-end
selling works as well for the affiliates as it worked for the
merchants. And what will your back-end product be? You’re
affiliate products. Here are a few methods on how you can take
advantage of back-end selling with affiliate marketing:

• If your visitor has signed up for a free newsletter on your
site, give him a complementary email and have your ad for one of
your affiliate products at the end of the mail.

• If your visitor has signed up for free email courses, find a
way to insert your back-end affiliate products ads in some
portion of each new email course.

• If your site has a download page, place an ad for your
back-end product or a link to a page promoting your back-end
product somewhere on the download page.

• If you are an affiliate who in turn has products to sell, you
can promote your back-end products in the complimentary letter
or package that goes along with your product.

Back-end selling does really work with affiliate marketing; it’s
really just a matter of knowing how to make it work. And it
works not only for the merchant but for the affiliates as well

Article Source: http://www.articlesbase.com/affiliate-programs-articles/backend-selling-with-affiliate-marketing-358.html

About the Author:

About the Author:
Discover how you can create a turnkey internet marketing system that builds massive downline for you, attracts hungry prospects automatically, and generates income non-stop, 24 hours a day, 7 days a week! Find out more here: Visit How To Become Successful today!

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Identity theft involves criminals stealing your personal information such as credit card numbers, social security numbers and other information, usually to buy things on credit or to empty out your bank accounts.

Through your financial liability with your credit cards may be limited to $50 to $500, it can take years for you to clean up the mess online identity thieves leave behind.

As with any crime, an ounce of prevention may just cause the would-be identity thieves to leave you alone and move on to an easier target.

The following tips can help you avoid having your identity stolen.

1. Never give out your social security number, online or otherwise. No company you buy things from needs your social security number.

If you do business on the web, obtain a a Federal Tax ID number to use instead of your social security number.

Once criminals have your social security number, along with your birth date and address, they have virtually everything they need to start wreaking havoc in your life.

2. Use a good anti-virus program. One of the ways criminals get your credit card numbers, passwords and other sensitive information is through “Trojan horse” viruses that log your keystrokes and transmit information to the evil doers.

The “Bad Trans” virus that has caused so much havoc is just such a virus.

3. Always use a “secure” server when transmitting credit card information over the web and know something about the company before handing over your information.

You can feel pretty confident that you are using a secure server if a little lock displays in the status bar on the bottom of your web browser.

4. A popular new way to pay for goods and services online is to “use your checking account just like a credit card”.

Be extremely cautious about paying this way through the web. By giving a company your checking account numbers you give away much of the information necessary to empty your bank account!

5. Never give out information such as your birthday, marital status, education level or other personal information.

This additional information makes it extremely easy for criminals to make themselves appear legitimate when they pose as you. Websites should ultimately only require you to provide your name, email and billing information for a purchase.

You should avoid any site requiring more information than that.

These criminals prey on people’s ignorance and you can usually defeat them simply by making it too hard for them to get your information.

If you do find yourself a victim, immediately contact police and get legal help. Do not wait because you feel embarrassed or “stupid” over what happened.

Waiting only lets the trail grow cold and limits how much law enforcement can do to help you.

(c) Jim Edwards - All Rights reserved - www.thenetreporter.com

About the Author:
Jim Edwards is a syndicated newspaper columnist and the co-author of an amazing new ebook that will teach you how to use fr^e articles to quickly drive thousands of targeted visitors to your website or affiliate links…

Simple “Traffic Machine” brings Thousands of NEW visitors to your website for weeks, even months… without spending a dime on advertising! ==> http://www.turnwordsintotraffic.com

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Access to the free credit reports has been phased in beginning last December in the West and will finally be nationwide by 1 September. This is good news to consumers.

However, a new form of phishing, is manifesting itself even before access to free credit reports is available for all Americans.

The new law that requires the three national credit bureaus to provide a free annual credit report to consumers, has met with the law of unintended consequences. Although the law was initially created to help thwart identity theft, the process for requesting the free credit reports may in fact contribute to further identity theft or loss of privacy.

While the intent of the law was to make it easier for consumers to check for errors and possible evidence of identity theft in their credit reports, according to a new report by the World Privacy Forum, more than 200 imposter websites have sprung up trying to exploit one of the methods made available for consumers to apply for their free credit reports.

One of the methods by which consumers can apply for their free credit reports is through a website that was established jointly by the three credit bureaus. The official website for applying for the free credit reports is at http://www.annualcreditreport.com

But, if the identity thieves and other unscrupulous internet swindlers have their way, part of the very process sent up in an attempt to curtail identity theft, will leave consumers vulnerable to further loss of privacy.

The online pilferers create websites with domain names that are very close to the official website www.annualcreditreport.com. By registering similar names or close misspellings, such as wwwannualcreditreport.com (note the missing dot), creditannualreport.com and www.freeannualcreditreports.com they hope to entice consumers to unwittingly enter their private information into online web forms, thinking that they are on the official website.

Depending upon the level of personal information detail captured from the imposter websites, the swindlers can then use the garnered information for illegal purposes, sell the information to purveyors of personal information databases, or they can simply send the unsuspecting consumer to commercial websites.

While the majority of imposter websites, simply gather names, addresses, and email addresses and then send the consumer on to advertising sites, some sites attempt to gather social security numbers, birth dates, and other sensitive information.

To guard against the possibility of entering personal information on an imposter site, consumers can go to the official website from a link off from the www.ftc.gov website or call the official toll free number (877-322-8228) to get the free copy of their credit report.

Note: Strange as it may seem, your free annual credit report does not contain your credit score. For more information on your credit score, what it is, how it is used, and why it is important, see the resource box below.

Copyright 2005 George Dodge

About the Author:
George Dodge has been developing on the Web since 1994 and is owner of http://www.The-Credit-Repair-Center.com a source of information on personal finance management. For information on how you can also get a free copy of your credit score (which is NOT included with your annual free credit report), click here -> http://www.The-Credit-Repair-Center.com/scores/credit-scores.html Your Credit Score - Do You Know What It Is?

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Credit cards are a great way to make purchases and record to the penny your spending. They also provide a way to postpone payment on items and thereby earn more interest on your money.

For example, if you have a money market account that gives you 5% annual interest and you spend $1000 a month through your credit card, you can keep that $1000 in your money market account for an additional month. At the end of a year you would have earned an additional $51.16 for doing nothing.

Now $51 may not be much but it’s free!

Also you can use your credit card statements to keep track of exactly how much you are spending and where your money goes. With some credit cards you can use personal finance software to download your credit card transactions from the Internet right to your home computer.

Credit cards may actually save you money. Some people avoid making purchases if they do not have cash. Cash seems to “burn a hole” in our pockets, it just disappears. It is so easy to spend and it is right there. But a credit card takes more effort and you know that you have to pay the bill later that month.

Your credit card may also offer a rewards program where you get cash back, frequent flyer miles or discounts on services and merchandise.

Credit cards are convenient. Some purchases, especially those on the Internet, will only accept credit card payment. Also you don’t have to continually go to the bank or ATM to get cash.

A credit card also provides a measure of safety. You don’t have to carry large amounts of cash for large purchases. Even if your card or credit card number is stolen, you are not responsible for the thief’s use of your card.

But credit cards can also be a crutch. Too many people see their credit limit not as the maximum amount of debt they can go into, but as an account full of money that they can spend.

Average household consumer credit balances have now topped $7000. The monthly interest charge for a credit card charging 18% interest is over $100. More than $1200 a year just in interest.

And this interest is not like home mortgage interest that you can deduct from your taxes. You are paying an additional 15-36% on top of the $1200 for taxes on the interest you are charged. That brings your interest charge total up to $1400-1600 each year. Even more if your balance or interest rate is higher.

What is silly is that many people who are paying 18% interest rates on credit are also investing in a stock market that only averages 11%. Or worse, keeping money in money market, savings accounts or CDs that only pay .5-3%.

Want an investment that returns over 20%? Invest in paying down your debts. In the above example you can save over 20% with taxes factored in.

Many people have developed the habit of using their credit cards to buy what they want now and paying for it later. They then make only the minimum payments required. Often the minimum payment is set so that you only pay the monthly finance charge (interest) or just a small amount above it.

This will keep people paying that 18% rate for years. A $1000 purchase can end up costing $1500 when paid off after 5 years. Ironically many of these same people will wait months for a sale so that the item’s price goes down 10-20% and then make a purchase on their credit card and end up giving the savings to the credit card company instead.

Sometimes the credit card can lead a person into living a lifestyle that is beyond their means. If a person gets in the habit of dining out two to three times a week and these meals are paid for by credit card, the card balance increases quickly. Often the additional expense was not planned or budgeted. People can even end up spending more each month than the actually earn.

This can continue as long as the credit card balance is below the limit and the person makes their regular monthly payments. But as soon as the credit limit is reached, many credit companies will increase the credit limit and give the person more room to get into debt. I have personally seen a credit card limit expanded by $10,000 within three months.

This cycle can continue until the person is required to make a minimum payment that is more than they can afford. Now not only do they have to cut back on the lifestyle they have grown accustomed to over the years, but they also have to either increase their income or cut out things they enjoyed before increasing their lifestyle with their credit card.

Also what happens if the person is suddenly out of work or has to take a pay cut or lower paying job. That’s right, the credit card bills keep coming. And many people rely on the remainder of their credit limit to supplement their income until they are working again or can find a better paying job.

We have seen this cycle in America increase average credit card balances each year and eat up the equity in many people’s homes. Home equity loans are used as credit cards to live a lifestyle that is beyond people’s means. Or to purchase toys they really can’t afford to buy let alone keep and use.

Or the home equity money is used to “pay off high interest credit card debt” as the ads suggest. But then people continue the habit of living off their credit cards and get right back into debt again.

So what is the answer to America’s growing debt problem? Abolish credit cards? Nationally imposed credit limits?

How about a little old fashioned self-discipline? I know it’s not in style anymore but it is still the best policy.

Bottom line: pay off your credit card balance each month. Don’t buy something now and expect the big end of year bonus to pay off your credit card. Even if you do get it, you will probably spend it on something else.

Don’t fall into the habit of living off your credit cards. If you have $1000 of disposable income to spend each month, whether through a credit card or in cash, only spend the $1000. Don’t try to make up for extra expense this month by assuming you can catch up on your credit card payment next month. It won’t happen.

If you have developed bad credit habits, cut up your credit cards, or only keep one for emergencies and resolve to pay off the balance each month. Then create a plan to get yourself out of debt and stick to it.

You can relieve stress, avoid family conflicts and sleep better at night knowing that there are no credit card wolves howling at your door.

***************************************************************
© Simple Joe, Inc.
David Berky is president of Simple Joe, Inc. which sells the Simple Joe’s Debt Eraser PC software. Debt Eraser can help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan. This article may be freely distributed as long as the copyright, author’s information and an active link (where possible) are included.

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The operator stated, “Your credit card rate will then be a low 15.9%. How much would you like to transfer today to take advantage of this offer? Do you have any high interest loans you would like to pay off and reduce your payments?”

The previous day I had called them to get two bogus late payment charges taken off my statement. I also had to get my interest rate lowered back to my usual rate rather than the “penalty rate” (22.9%) they charge to anyone who is late, misses a payment or goes over their credit limit.

Wondering if my rate got changed back to my usual rate, I asked the operator what my current rate was. She said that it was at 12.9%, which was my usual rate for this card.

I do carry some debt on other cards (it helps with my credit rating to be making regular payments) but all the other debt I have is at lower rates than this card. I mentioned that I had no other debt that was at a higher rate than what she was offering.

She then replied that I could just take the money as a cash advance and do whatever I wanted with it.

So I asked her if I understood correctly what she was offering. “So you are offering to raise my interest rate if I get further into debt by getting a cash advance?”

“Yes, you can have up to $9000 and do whatever you like with the extra cash,” she replied. I was amused that she said that I could “have” not “borrow” the money and it would be “extra cash” rather than “additional debt”. But after all, she is in sales and the words “have” and “extra cash” are much more enticing than the more realistic alternatives - “borrow” and “additional debt”.

I politely told her that I was not interested in raising my interest rate or borrowing more money, “but thanks anyway.”

I then wondered how many other people would jump at the opportunity to pocket a quick $10,000 at the “low” rate of 15.9%.

I was also amused that she encouraged me to pay off my high interest debt with this money. Well, to my standards 15.9% is high interest debt. Granted it’s not the 24-25% charged by department stores but still it was more than I was currently being charged on any of my other cards.

Shouldn’t an offer that would appeal to me be one that offered me money at a lower rate? Her offer seemed backwards. She was trying to entice me with the vision of “extra cash” in my hand to do whatever I would like.

I took a moment to do some financial math (the most important kind) on this offer and found that if I had a current balance on that credit card of $4000 at my current interest rate of 12.9%, I would be paying about $43 a month in interest charges.

If I had accepted her offer for an additional $9000 at 15.9% (and I suspect that my regular rate of 12.9% would have risen to the 15.9% rate also), I would be paying about $172 a month, exactly 4 times what I am currently paying. If I made a payment of $200 a month to pay off this debt, I would be paying for over 12 and a half years.

What I learned from this experience is that I should get into the credit card business. Maybe I’ll check on some bank and financial institution stocks today. With offers like this they must be making money.

Once again, those who understand interest earn it, those who don’t, pay it.

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© Simple Joe, Inc.
David Berky is president of Simple Joe, Inc. which sells the Simple Joe’s Debt Eraser PC software. Debt Eraser can help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan. This article may be freely distributed as long as the copyright, author’s information and an active link (where possible) are included.

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* Unless you count the deferred interest we will charge you if you don’t pay off the full balance transfer amount when the promotional period ends.

** Except the ones we charge for “late payments****”, going over your balance, cash advances, balance transfers, membership in “rewards” programs, etc., etc., etc.

*** Fixed for the first month, but after we may change it without notice for: late payments, going over your balance, changes in the prime rate, or just cause we want more of your money.

**** Rate depends on your credit score. (Which we already checked and intend to charge you 19.8% or we wouldn’t bother sending you this great***** offer.)

***** A payment may be late if we just don’t get around to processing it in time no matter when you actually mailed it to us.

****** May not be great in all states.

Yes, folks, “the devil is in the details” and the truth is in the fine print.

While this is obviously an exaggerated and fictitious example I have seen most of these “weasel” clauses in the 100s of credit card offers I receive each year.

Some of these tricks and traps are practiced by local and national merchants with their “store credit cards” and “discount cards”.

I have seen stores and even car dealerships make “no interest for a year” type announcements and advertisements. But when you actually read the contract (and who does that - they count on you to not read the whole thing and you probably won’t understand it without your attorney) you may find that instead of the regular payments you would expect to start at the end of the no interest period, you are required to pay the full purchase price.

If you want to make installment payments, you will be required to pay the payment plus the interest (look for the rate in the fine print) and you may also be required to pay the interest that accrued during your “interest free” period. Gotcha!

Or how about the “no annual fees” bit. Look out for the contract to say “no annual fees FOR THE FIRST YEAR”. Or first two years or that a “membership” fee is required. How that differs from an “annual fee” is beyond me.

Also watch out for the “no annual fees” for the use of the card but “membership fee required” to participate the in frequent flyer miles or cash back points program (which was probably why you chose that card to begin with). Gotcha!

And how about the “fixed” rate? Read the fine print, it will actually say “subject to change without notice”. Is it just me or do I misunderstand the meaning of the word “fixed”?

Also your “fixed” rate may be raised to the “maximum allowable by state law” if you go over your credit limit (including fees that may put you over your limit before you even know it), make a late payment, miss a payment or do not pay the full amount. Gotcha!

And then there is that low “teaser rate”. Yes that’s what it is called in the industry and it is appropriately descriptive. That rate is given out, they aren’t lying about that. But it is only given to the people who have 700 or above credit scores, minimal debt, and a high paying job.

The majority of the people who are sent the ad will not get the lowest rate. But you won’t know your rate until you apply for the card. But by the time they tell you what rate you will be at they have already signed you up and issued your card.

They count on the fact that most people will just accept the rate and go from there. Gotcha!

So how can you avoid these traps?

Rule #1, read ALL of the fine print. If you are not clear on something ask someone else what they think it means. Ask an attorney friend, CPA (certified public accountant), financial planner, banker or other person in the financial industry. Chances are they will have several questions about the fine print, too.

Rule #2, don’t apply for a card unless or until they tell you what your actual rate will be. This is hard because most of them are not set up to tell you. Generally you will need to know your credit scores and have a copy of your credit report handy.

Even then you are unlikely to find someone through their telephone maze that will or can actually answer your question. Try to find a card that gives you a confirmed rate before you apply. A conscientious company will first request a copy of your credit report from one of the credit bureaus before quoting you a rate.

Look on http://www.bankrate.com for current rates offered by various credit card companies and banks. Often smaller banks and companies offer better deals and are not as strict or hard to deal with. Check with your local banks also. At least with a locally issued credit card “you know where they live”.

Rule #3, always mail your payment at least 7 days before it is due. Or try paying through the Internet. Many companies now offer that payment method. It can also save you time and stamps.

Rule #4, check your statement each month to be sure you are still at the interest rate you signed up for. If your rate has been increased, look for a late payment fee, or some other reason for the increase. Call the company and ask them why they increased your rate.

If your rate was unjustly increased (they processed the payment late or credited it to your account late, but it was not received late) then ask them to change your rate back to what it should be.

Even if you did make a late payment, most companies will reduce your rate after six months of on-time payments. But if you don’t ask, they will keep you at the higher rate as long as they can.

In the credit card business it is definitely “caveat emptor” or buyer beware!

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© Simple Joe, Inc.
David Berky is president of Simple Joe, Inc. which sells the Simple Joe’s Debt Eraser PC software. Debt Eraser can help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan. This article may be freely distributed as long as the copyright, author’s information and an active link (where possible) are included.

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The trick to raising your credit score is no secret, but it does take diligence and hard work.

First, check to see what is on your credit report. You can usually obtain a copy of your credit report for free on a trial basis from a number of agencies. Take caution, however, not to overuse these offers. Requesting too many credit reports can actually have the opposite effect on your credit score. When lenders see a large number of credit report inquiries they assume it is due to applying for loans and credit cards. This translates to money problems and lowers your credit score. At the most, you should only request your credit report one to two times per year. That should be sufficient for you to stay on top of your credit score.

Make sure you obtain a three-in-one report. There are several credit reporting bureaus and each one calculates your credit score in a slightly different manner. It is in your best interest to find out what is being reported by each agency.

If you do have a bad credit score, some of the items that contributed to your rating will take time to clean up, but the good news is that some can be cleaned up in just a matter of days.

Save yourself some money and time and steer away from offers from companies who claim they can fix your credit score for you. In most cases, these companies charge a small fortune and do very little. There is really no secret to fixing your credit. You can do it yourself and save yourself their expensive fees.

When you receive your credit report, be sure to review it carefully. While most of the information your report will probably be accurate, there may be some information that is completely in error. For example, you may notice that while you distinctly remember paying off a bill in the past, it is now showing up as delinquent on your credit report. In worst case scenarios, you may realize you have been the victim of identity theft and someone else is having a good time at the expense of your credit rating.

If you do see something on your credit report that looks suspicious or that you know is completely in error, write a letter. Keep it brief, but state in clear terms what the situation actually is. If you paid off that bill, include copies of backup documentation; such as cancelled checks or receipts. Mail the letter certified with a return receipt requested.

Be aware of what factors contribute to your credit score. Payment history, account balances, age of established credit, recent inquiries and opened accounts, credit mix are the five major factors that makeup your credit score.

Don’t succumb to offers for a certain percentage off a purchase if you open a charge account. That 10 or 15% you might save on your purchase isn’t worth the negative impact on your credit score.

If you have a lot of credit cards, don’t feel you need to get the scissors and start cutting. Credit cards can work to your advantage if used properly and responsibly. For the most part, credit score formulas look at the balances on your credit cards; if you’ve maxed them out, etc. Closing out accounts won’t necessarily improve your credit score. If you know you have a problem with charging everything simply because it’s convenient, lock away all your credit cards except for an emergency card. Then begin a diligent effort to begin paying down the balances on your credit cards. Experts recommend that at any given time you should always have at least 25% of your remaining credit limit available and unused.

Additionally, don’t think that consolidating your credit card balances on one card will help your credit score. Extensive moving around of money is a red flag to lenders and will usually hurt you more than help you.

If you do have an account that has a zero balance, don’t think it will raise your credit score to close out the account. That zero balance account is actually helping your credit score.

Make sure you pay your bills on time, every time. Set up some kind of reminder system if it helps or even set up your bills to be deducted straight from your account.

It may take awhile to raise a low credit score, but the effort is well worth the reward.

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