Every consumer in America has the right to a free credit report once every year by law as of September 2005. But since that law has passed there has been nothing but confusion.

The web sites that say they are offering this so called free credit report, are asking us to give them our credit card information. Does that sound like a free credit report to you?

You may have even given your credit card number to these companies to sign up for a thirty day trial for a credit service that has almost nothing to do with getting your free credit report.

In all fairness, you can cancel this service after thirty days. But how many people do you think forget and end up with monthly or even annual credit card charges?

In fact, these companies are counting on you forgetting about the thirty day trial and charging that fee on your credit card. But if the law says you get a free report, what's the deal?

A lot of people are confused about these free credit reports because of how some companies are marketing the free credit report. Hopefully, this information will clear a few things up for you.

For people who just want the bottom line, a free credit report is available at www.AnnualCreditReport.com and this is the only official site that helps consumers to obtain their annual free credit report.

This site's security protocols are excellent with physical and technological security and encryption. That's important for identity theft purposes because the information on your credit report should be seen by your eyes only.

So if this site is readily available and anyone can get a free credit report once a year, what's the catch? Here is the catch: the credit report you get from www.AnnualCreditReport.com does not have any credit scores.

Now you may be asking, "Then what good is getting this free credit report without a credit score?" There are a few good reasons why you may want to look at your credit report even without a credit score.

Did you know that more than forty percent of all credit reports have errors? If you spot these errors, you can get them cleared up before it affects your credit score. If you contact a credit bureau about an error, they have to clear it up or remove it after thirty days by law.

If you monitor and review your credit report, you can check to be sure that you are not a victim of identity theft. If someone takes over your accounts and charges up thousands of dollars in debt, they can destroy your credit score in a matter of hours.

These are just a couple of good reasons why you want to get your free credit report once a year and inspect it just to be sure everything looks like it should. You can get your free credit report online at or by phone or through the mail.

So where do you get your credit score from? This is where the confusion comes in and here is the answer. The law Congress passed did not say anything about a credit score just one free credit report a year per consumer.

You have to pay a service to get your credit score and some companies are confusing people with the way they are marketing this. They offer you a free credit report and score and many consumers believe it's their annual free credit report.

Improving your credit couldn't be easier. You simply have to make the right decisions.

There are many reasons why your credit could use improvement. Many people simply don't understand the way credit reporting and scoring works when they first start using their credit. Later on, when they try to buy a home or get a large loan, they find out that their credit isn't as good as it should be.

Others fall upon hard times and have no other option. There are many homeowners out there right now that have had their interest rates adjust sky-high in the past year. Some of them have seen their payments double on a home that has a larger mortgage than it is worth . Too many have only one option -- default on the mortgage and let it go into foreclosure. They will have a long road ahead of repairing their credit.

Here's the good news. You can repair your credit. It isn't difficult.

It just takes time. That's the secret. Time is the key to improving your credit report and your credit score. You have to let time do it's work.

Avoid any business that tries to tell you that they can quickly fix your credit report or score for you. It is a scam. Credit repair agencies can't improve anything in your report that is correct. Only time and a change of habits will fix it.

The main thing that will change your credit is paying your bills on time. You have to pay them on time, every time. No exceptions. This will greatly improve your credit score. Your score will take into consideration your most recent history over what happened six years ago. If you have great credit and miss one payment today, your score could actually become worse than someone who missed a payment six years ago and hasn't missed one since. Don't miss payments.

If you have a problem paying your bills, call your creditors to work something out before you miss a payment. Your credit will be safer and they will be more likely to work with you towards a favorable ending.

Paying your debts will help improve your score. But keep in mind that delinquent accounts and charged off accounts will not be removed simply because you pay them. They will be there for up to seven years.

However, paying down your current debt load will help. And lenders like to see that you have made an effort to pay off what you owe. It shows that you take responsibility. They understand that sometimes things pop up on a credit report that you didn't know about. Just let them know that you paid it as soon as it came to your attention. And by paying down your current debt, you will improve your credit score. You don't ever want to be using more than 50% of your available credit. Keep it as low as possible.

Whether or not you should cancel your credit cards is a highly debated topic. Dave Ramsey, a respected financial advisor, says that you should because they leave you open for identity theft at the least. It also removes the temptation to use them. If you struggle with credit card debt, I think you should close them, regardless of how it affects your score.

The arguement against closing says that if you close the accounts you have held the longest, you will shorten your credit history and reduce your score. And it does look good to have a certain number of revolving accounts in good standing. If nothing else, cut the cards up, but keep and eye on the accounts.

The model which is used to find the average credit score is to the advantage of the consumer rather than the commonly used middle score one. In many cases in the USA the average credit score is mainly used by sub-prime lenders. These sub-prime lenders lend money to people who have a credit rating other than an A or A-. With the middle credit score model your lender looks at the 3 scores in your report and looks directly in the middle. For example if you have scores of 720, 676, and 660 the lender takes the 676 number and then your loan conditions are based on the 676 number.

The national average in the USA seems to be anywhere in the 580-650 range for credit scores. Even with the national average you can generally still qualify for loans or credit cards with an average score. Some things that can taint an average score though is missing payments and definitely a past bankruptcy. Having an average credit score by no means you will not qualify for loans or credit cards.

The rating you have can be changed over time, for bad or worse, it all depends on how you pay your bills. Obviously you will get better interest rates on loans and credit cards if you have an above average credit rating. If you are on the lower side of the average credit score than you need to be careful not to dip down too much or it could seriously hurt your credit and defiantly the chance for lower interest rates. Keep on top of your credit rating and make sure to check it at least one time a year so you know where you stand in terms of your credit.

Having an average credit score is by no means a bad thing as you can still qualify for many things but there is always room for improvement as with a better credit score comes more financial advantages.

There are companies out there that claim to be able to repair and restore good credit to those who have fallen onto the bad credit list. There is no quick way to repair bad credit. Some of these companies claim they can guarantee to get you a credit card regardless of your credit history. But often times they will take your money and run with the help of loopholes and fine print on a contract.

The best way to improve your score is to set an example of on time bill paying. The reason most credit scores are low is because of late and delinquent bill paying. This can be changed in six months to a year with committed on time bill paying.

Another way is to get a copy of your credit report. There are several companies that offer a free credit report. You should not have to pay a fee to have copy of this report or to have any changes made to it. Often if there are mistakes it is the credit card company that makes them and they should be the ones to fix them.

After you have done the research and found that you may be better off going at it alone, the first task is to get a copy of your credit report. Go through your report with a fine tooth comb looking for any discrepancies. You have the right to dispute any thing that is on your credit report and have it investigated. You may contact the creditors directly to notify them of any known errors and ask them to correct the mistake. Some blemishes can't be removed but you can repair it yourself by living within your budget and paying your bills on time. After establishing a good credit history over a period of time it will make past mistakes more forgivable.

Another way to fix your credit is with a credit counseling company. These companies need to be researched just like a credit repair company. Do not put your faith and money in a company just because they have a catchy slogan or a cute commercial. When it comes to your money and credit it is important to stay on your toes. A reputable credit counseling company can act as a mediator with your creditors to lower or eliminate high interest rates while you pay off your outstanding balance. They usually require that you cancel your open accounts and pay them off before getting a new credit card. They can be a consolidator of your debt by allowing you to make a monthly payment directly to them and they will in turn make your monthly payments.

People attempting to build credit for the first time or have an already existing bad credit history often have a hard time obtaining a credit card. There are credit cards now available for people in these situations. Obtaining a secured credit card for people with bad credit is the most helpful way to improve your credit score.

The first step to take in obtaining a secured credit card is to do your research. Inquire about fees that may apply and whether or not said fees will be refunded if you are denied credit.

The most common form of a secured bad credit card is a debit card. The cardholder deposits a fixed amount of funds into the account with the card holding company. This amount can range anywhere from $500 to $1000. When a purchase is made using the credit card, money is withdrawn from the account. Funds need to be deposited into the account periodically for continued use.

Secured bad credit cards are normally easier to obtain by people with bad credit scores because the cardholder is supplying the capital which will be charged against. Since the credit card company is not required to supply any funds for any transactions made, they are not at risk. Although the process of obtaining a secured bad credit card is simple, it may become quite costly if fees are involved. For that reason, research is imperative.

It is wise to first apply for bad credit cards at smaller retail stores rather than large institutions. It is recommended not to keep more than three credit cards for risk of over spending.

Obtaining a secured credit card is a useful way to begin to build credit or to attempt to repair a bad credit history. Be sure to make payments on time and you will be on your way to improved credit.

Are you a small business owner? If you have established a good credit rating for yourself, you should consider getting a business credit card. There are many business credit card programs that you can check out. Business credit card offers include low APR, zero introductory interest rates, balance transfer options and rewards in the form of airline miles and cash backs. And if your small business sends you traveling frequently, you can get travel discounts on cars, hotels, travel insurance, and even restaurants when you use a business credit card.

Lower Interest, Higher Credit Limit

If you have credit history that is better than normal, you may be able to avail of a business credit card that has lower interest rate and higher credit limit as compared to other cards. As a business owner, you tend to spend more and maintain higher credit card balance than the average credit card user. This is the reason many credit card companies are willing to offer you better rates and benefits.

Handy for Small and Large Buys

A business credit card is handy when it comes to small and large expenses. You can use a business credit card for items like office furniture or stationary supplies. With a business credit card, you won't need to maintain a small cash account anymore. Since a business credit card has a higher credit limit than a standard credit card, you can use it for unforeseen expenditures and pay it off as soon as you have the cash.

Useful Come Tax Time

Having a business credit card becomes incredibly useful when tax filing comes around. This is because almost all companies that provide business credit cards also offer free quarterly or annual reports categorizing all your expenses. Come tax time, this convenience allows you to keep a tab on your cash flow and separate your business expenditures from personal expenditures.

Superior Customer Service

The customer service available for business credit card holders is far more superior to any other service. Companies provide many 800 customer service numbers for business credit card holders to make sure that they maintain business owners as customers.

Issuing Business Credit Cards to Your Employees

If you have employees, you can issue business credit cards for them too. You or your authorized representative can specify additional credit card holders. Each of them will be given different account numbers but all are hooked up to the main business credit card account.

With this kind of setup, you can easily track and manage the expenditures of your employees. You also would be able to find out if anyone is misusing company funds or abusing his or her credit card.

To cancel any account, a simple phone call to customer service would suffice. Canceling an account will not affect the primary business account. However, as the primary account holder, you remain responsible for charges made on other accounts. One way you can deal with this potential problem is to issue pre-paid cards to your employees. You can load the cards with a specific amount, automatically setting the card's upper spending limit.

Smoothing Out Cash Flow Bumps

Most businesses have lags in their accounts receivables. Having a business credit card can help smooth out those cash flow bumps. You can pay with your business credit card then invoice your clients. You can make the payments once you receive payments from your clients.

Where and How to Get a Business Credit Card

You can apply for a business credit card from any of the major financial institutions. You can choose from the various programs they are offering. From Platinum to Debit cards, these companies offer low rates and no annual fees. You do not need to provide proof such as a business license in order to be approved for a business credit card.

The amount of air travelers is growing every year. As this trend continues there is growing interest in airlines to earn the business and trust of these travelers. Most airlines today offer some type of frequent flyer benefits.

American express and Southwest Airlines were the first companies to offer such packages. Customer loyalty was rewarded with free trips after a threshold of flight miles were logged and use of the American Express credit card counted also.

Today there are lots of choices of banking institutions from which you can obtain frequent flyer type benefits. With the growing number of banks offering these rewards, many have diversified into different types of programs and offers. The frequent flyer model has morphed into an array of ways you can use your benefits. This diversity allows us to better fit the rewards programs to our own lifestyle.

Programs that are available today range from gas stations, drugstores, supermarkets, department stores and of course the airlines themselves. The cards today can also be used at ATM all over the world to access cash when it is needed.

If you are willing to do your home work you can really benefit greatly from the use of these cards. The key is to find cards with rewards that fit your personal lifestyle

Are you a college student? If you are, then you will find student credit cards useful for your school related expenses. These credit cards are specially made to cater to the needs of college students, and are easier to acquire than other types of credit cards. They are useful for establishing credit, but can also cause some major difficulties if you don’t use them wisely.

Student credit cards can be very tempting for college students. Imagine being able to buy things that you want with your credit card. You can easily get carried away on your shopping sprees, and may not realize that you don’t have enough money to pay for your purchases. Unfortunately, the balance you charged for the things you purchased must be paid.

You will be charged for interest if you are unable to pay the full amount within a period of time. Credit card companies charge interest for student credit cards at a percentage of the over due balance. If you have a $100 balance and the credit card company charges an 18% interest rate: you will now owe $118 to the credit card company. The interest may keep on adding up, until you may end up paying only the interest and your credit balance will never be paid off.

If you are interested in obtaining student credit cards, you should examine a few important things. You should find out about the annual fee of the credit card offers. An annual fee is a lump sum that some credit card companies charge to their credit card on a yearly basis.

You should also look at the student credit cards’ interest rate and other fees. In some cases, the interest charges can send a credit card over the limit. When this happens, you will be charged some extra fees, and you can no longer use the credit card. It would be wise to compare the different terms and conditions of various student credit cards, so that you can find the best credit cards. Remember to use them wisely, so that you can get the most benefits from them.

$15,000 over 5 cards is about average credit card debt for an American. The common US credit trap seems to be a combination of too much access to credit with limited education what exactly credit is and how much it ACTUALLY costs. There is some math ahead... so prepare yourself.

Until recently your credit card minimum payment was probably calculated at between 2% and 2.5% of your outstanding balance. This meant that you could charge MASSIVE amounts of things you wouldn't normally be able to afford...and still only pay a small amount of money every month. Sounds great right? The problem shows itself when you actually do the calculations. Lets take a $5000 debt at an 18% interest rate (and cue the math)

Lets use B(n) to signify the size of the unpaid balance(B) on a credit card after n amount of months. With that being said the size of the initial loan will be B(0). We'll use i to be the monthly interest rate . The monthly interest rate is annual rate divided by 12. (For example, if the annual interest rate is 12% then i is .01.) If the minimum payment due is 2% of the unpaid balance, we get the following equation:

Are you someone who has not established credit yet? Are you being denied the same access to credit cards, loans and other credit ways simply because your credit score is too low from not having enough credit or no credit at all. Don't fret, because help is on the way!

If you are planning on getting a personal loan, owning a car, having a home of your own, working in a bank or finally acquiring the furniture you've been longing for a long time then establishing a credit is the answer.

Here are a few ways you can start building up your credit report and get on the road to good credit!

- Start to apply for a guaranteed approval credit card that reports to the credit bureaus. Take your time and always read the fine print in order for you to find the best deal for yourself. These cards are similar to debit cards but they have the Visa or Mastercard logo on them and they report to the credit bureaus.

- Another option might be to check if the lending institution of your choice has a secured credit card being offered. The interest may be higher but you may be able to upgrade to an unsecured card within 12 months if you maintain your payments on time.

- Another type of credit card with easy approval requirements is the merchandise credit cards and department store credit cards. These are an excellent source to start to establish a line of credit. Make sure it's a store where you can purchase a lot of your shopping needs. This way, you don't need to apply for a multiple cards at once which can be seen as a negative on your credit report. One word of caution. Department store credit cards tend to have high interest rates, many of their interest rates start at 15%. So keep an eye on your balance and try to pay as much as you can each month. NEVER make just the minimum payment, especially on a department store credit card.

- Don't forget to fill up any application for a loan or credit card completely. If something doesn't apply put N/A on that line. Include your checking and savings accounts and any accounts you pay for on a monthly basis even if they do not appear on your credit report. If they do not appear on your credit report, please make sure you include a way for your prospective lender to contact them for a trade reference.

If you are thinking about applying for a car loan, it's good to do research on the dealership or car lot where you want to make the purchase. Most dealers will provide a source of financing. Some may carry their own loan and payment plans. Be on the lookout though and read contract carefully if you don't want to get stuck with an interest rate that is through the roof. This venture is where a good cosigner may come into play.

Credit cards are one of the most useful tools in today's business world. As an entrepreneur, you might want to own a business credit card in order for you to efficiently make more money and help your business grow. It is a fact that in order to make money, you need to spend money. With a business credit card, you can get all your business needs in no time at all and get more money in return.

There are different types of businesses that exist in today's world. Therefore, there are also different types of business credit cards that exist. Depending on your business, you can have an open credit card on where you have an unlimited amount of credit or you can have a substantially high credit limit in order for you business to grow or get what it needs to grow.

A business without a credit card is like a ship setting out to sea without a lifeboat. So, as an entrepreneur, you will need this "lifeboat" in order for your business be successful and survive on hard times.

Another advantage of business credit cards is that it eliminates the need for you to carry large amounts of money. This will mean more security for you when purchasing things that is essential for your business to run smoothly.

As the owner of a particular company, you can also supply selected employees a business credit card or also known as corporate credit cards. They can use these credit cards to deal with company expenses they have to make. For instance, your supply manager can purchase office supplies with the use the credit card you issued him or her.

Your company can keep track of the expenses and therefore, will determine on what kind of purchases your employee have made by using the credit card. You can also allow your employee to purchase things for personal purposes like food and other necessities, but you need to separate the personal expenses from the professional expenses not just for tax purposes but also to monitor operating expenses of your company.

Business credit cards are indeed a necessity in every kind of business. Whether your company is big or small, you will need a credit card to keep up with today's fast paced world of business. Not only will business credit cards will help your business operate smoothly, but it can also help in giving your company a good credit standing or credit rating.

With all of these mentioned, it is now time for you to choose what kind of business credit card is suitable for you. Having mentioned this, you have to know that there are different kinds of business credit cards available. You have to know which one is suitable for your company.

In order to do this, you have to ask about the credit limit, the interest rate, the annual fees, and also the rewards that your company can benefit from.

If you consider all of these, you will find a business credit card as one of the most useful tools that your company can take advantage of in order for it to grow. So, if your company still doesn't have a business credit card, consider applying for one. You will see that choosing the right business credit card can be advantageous for your company.

Credit cards nowadays are classified under an individual's bracket of "necessities" instead of "luxuries". It is categorically known as an "asset' rather than a "liability". This plastic contraption is now more of a facade of an ordinary individual who wants to experience more efficient financing rather than a facade of a wealthy individual who is capable of making purchases without bringing a single dollar bill out of his pocket.

There are plenty of reasons why there are now millions of Americans owning single or several credit cards, though it is most attributed to the financial crisis that an ordinary individual is experiencing. Credit cards provide an opportunity for an ordinary individual to make purchases despite the absence of cash. In other words, credit cards help them with their expenditures when they do not have the cash. It is their one of the alternative recourse every time they are "cash-strapped".

However, there are still individuals who get a credit card just because they do not want to carry cash within their pockets. There are also some who wants to get something out of what he spends using his credit cards.

Despite of the varying reasons (whether for necessity or pleasure), credit cards are very popular nowadays. With attractive market offerings provided by various credit card companies, sometimes you will run out of reasons not to get a credit card for yourself. However, before getting yourself involved in the latest financing craze, you need to know something about credit cards.

Credit cards are not just handed out like a box of chocolates.

Just like other existing financing schemes in the market, you need to apply for a credit card first before getting one and using it in the majority of your purchases.

And applying for a credit card requires basic knowledge about the applicable conditions on the use of such cards and the prevailing fees and charges in which you are obliged to pay. Without the knowledge with regards to the basics of credit cards, you will end up paying larger debts that may damage your credibility as a responsible individual.

There are various ways to apply for a credit card. You may try online application, calling the credit card company directly, or fill out credit applications via mail. Remember that in applying for a credit card, you are required to hand out some of your personal information. For instance, credit card companies ask for your social security number because they will use this to run a credit background check on you. At this point, you must ensure that you possess the best credit rating possible to have higher chances of getting approved for a credit card.

You need to conduct some research about the credit card companies that offer the best APR or the annual percentage rate as well as bonus programs. There are companies that offer a lower introductory APR for new cardholders within a certain period of time. If you are quite lucky, you will be able to get zero APR within a one-year credit term. In terms of bonus programs, it varies from company to company. These bonuses usually come into the form of cash rewards, free air mileage, or points that you can exchange with premium items.

The last thing that you should look for when applying for a credit card is the applicable fees and charges as well as your credit limit. There are credit cards that require you to pay annual fees prior to its activation. The applicable fees and credit limit also depends on your income and credit score, so make sure that you are always within average or possibly above average.

If you need a new credit card, it's easy just to fill in the first application form that arrives in your mailbox.

Easy, but wrong. Nowadays there are thousands of different credit cards available, all with different combinations of terms, offers and incentives. It's important to take the time to compare credit cards carefully, therefore, before you actually apply for one.

One essential fact to grasp is that there is no single "best" credit card for everybody. Different cards suit different purposes. Your aim should be to pick a card that will meet your current financial needs and is a good match with your personal circumstances.

If you are currently paying interest on credit or store cards, for example, then you need a credit card that offers 0% interest on balance transfers for up to 12 months. You can then transfer the debts from your other cards to your interest-free card, and aim to pay off the balance before the end of the interest-free period.

If you don't have any current outstanding debts, you could choose a card that offers 0% interest on spending for an introductory period (again, cards offering up to 12 months are available). Put all your everyday spending on the card during this period, and put the money you would otherwise have spent into a high-interest savings account. At the end of the introductory period, pay off the balance on the card and pocket the interest you have earned. Remember, however, that you will still need to make the minimum repayments required by your card issuer during the introductory period.

You could also look for a card offering cashback. This is a popular incentive offered by many credit card issuers. It means that for every dollar you spend, your card company will give you back a small amount, usually in a single payment once a year. The amount returned as cashback is calculated as a percentage of your total spending, and typically ranges from 0.5% to 2%. Some card companies pay higher rates of up to 5% for purchases in certain categories or made through particular retailers. In a year you can earn hundreds of dollars in rebates, but always pay off your balance at the end of each month, or interest charges will wipe out your cashback benefits.

Cashback is a popular incentive, but there are others that may be of greater interest to people with particular lifestyles or interests. Anyone who stays regularly in hotels, for example, might benefit from a hotel credit card, which allows you to claim upgrades, free meals and merchandise at the hotel chain concerned. Sports fans, meanwhile, can get credit cards linked to popular sports such as NFL and NASCAR. Every time you use one of these cards, you get reward points that can be exchanged for sports-related goods and even tickets to see the sport concerned.

Lastly, if you need to borrow over a long period at a low interest rate, consider obtaining a lifetime balance transfer card. The interest rates on these cards are as low as the best personal loans, but with the big advantage that you can choose how long you take to repay your debt.

So if you need a new credit card, do take the time to check and compare different credit card offers and see which one will suit you best. Independent credit card comparison websites can help by listing all the best current credit card offers, and they also provide independent advice and information.