Conquest Credit & Debt Consulting: Black Friday Beware of Department Credit Store Off...

Conquest Credit & Debt Consulting: Black Friday Beware of Department Credit Store Off...: Avoid Making This Mistake on Black Friday! Every year after Thanksgiving it can be so easy to get caught up in the Black Friday shopping ...

Black Friday Beware of Department Credit Store Offers!

Avoid Making This Mistake on Black Friday!

Every year after Thanksgiving it can be so easy to get caught up in the Black Friday shopping frenzy.  There are so many great deals and special offers available and companies are quick to let us know all about them.  We all want a great deal and it feels good to know you saved some money. Unfortunately, we can unknowingly make a huge mistake that can end up hurting our credit score and our bank account....

Signing up for retail store credit cards-
Eager to get that one-time discount that is sometimes offered with a brand new retail store credit card can be very tempting. Our advice? Don't ever agree to a retail store credit card. You won't save money in the long run, and you might hurt your credit score.

Let me explain...  

Imagine that you are doing some Christmas shopping, and you approach the cashier with a few nice tops for your sisters, toys for your kids, and a wallet for your husband. The total is about $163. The cashier immediately makes you an offer:

"Do you want to apply for a retail store credit card? You'll save 15 percent on today's purchases."

No matter how tempting it is to save that $25, don't say yes.

Think about it: The banks and the retail stores that promote these store-specific credit cards offer these promotional savings because they know they are going to recoup the discount... and then some.

Consider all the ways the banks and the retail stores can make money off you:

1) First, you will pay interest on whatever you buy on the day you open the card. Most retail store credit cards have a high interest rate-usually in the range of 20 to 30 percent. So unless you pay your balance in full right away, you are going to pay more than you saved.

2) Have you ever bought something just to take advantage of a coupon? A lot of people have. By signing up for that retail store credit card, you will be put on the store's mailing list, and you will receive coupons that are just for cardholders. They are intended to entice you to the store.

3) In the future, you will be more likely to engage in a little "retail therapy" if you have store-specific credit cards in your wallet. Using credit cards is always easier than using cash; it's also an easy way to get into debt.

4) If you are given a one-time offer to save on today's purchase, you just might pile a few more items into your shopping cart.

Suddenly, that $25 savings doesn't seem worth it, does it?

Keep in mind, your credit score could also suffer if you use retail store credit cards. Here are three reasons...

1) Keeping these cards active can be tough. Credit-scoring bureaus want to know that you can responsibly manage your credit cards. If you let your credit cards go inactive, the bureaus have no idea whether you are able to manage balances and debt. In other words, inactive credit cards do nothing for your credit score.

But keeping a retail store credit card active can be tough. Are you going to buy a dishwasher from Sears each and every month just to keep your Sears card active? Are you sure you need a new pair of jeans from the Gap twelve times a year?

Most likely, you will either keep the card active by making unnecessary purchases (which costs you money), or the card will go inactive. Either way, it's bad news.

2) Let's talk about the second reason I'm opposed to retail store credit cards: You might end up with too many credit cards. The credit-scoring bureaus are the happiest if you have the right number of credit cards (between three and five). If you do not have at least three credit cards, they don't have the information they need to make a judgment about whether you are responsible. If you have more than five credit cards, they know that you are in danger of getting in over your head.

Three to five is the sweet spot. So if you are limited to just three to five credit cards, why waste one on a card that will only be accepted by one merchant? You cannot reserve a car using your Macy's card, but you can purchase a suit from Macy's using a Visa.

Too often, people apply for retail cards each time they are offered a discount. These people must also carry American Express, MasterCard, and Visas for everyday expenses, traveling, and business needs. And they quickly find themselves carrying a lot more than five cards.

3) Finally, let's talk about the third reason a retail card could hurt your credit score: You will definitely add a credit inquiry to your score. Ten percent of your credit score is based on the number of credit inquiries you have on your credit report in the past year. If you apply for a retail store credit card, your score could drop a few points, and this could cost you a lot of money in interest on future loans and credit cards.

So come Black Friday when the holiday-shopping-season officially starts, be a smart shopper and SAY NO to retail store credit cards. 

To learn more about your Credit or how to create and maintain a solid budget, feel free to email or call us anytime.

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Staggering Statistics Reveal a Huge Lack of Financial Literacy and Consumer Credit Education in the United States.

Staggering Statistics Reveal a Huge Lack of Financial Literacy and Consumer Credit Education in the United States.

Financial Literacy and Education:

        93 percent want Financial Literacy taught in high school, but currently only FOUR states require high school students to take a semester-long course in personal finance.

(Visa, Back to School Survey Shows Americans Want Personal Finance Taught in the Classroom, July 20, 2010,http://www.practicalmoneyskills.com/about/press/releases_2010/0720.php)

         41 percent of U.S. adults, or more than 92 million people living in America, gave themselves a grade of C, D, or F on their knowledge of personal finance, suggesting there is considerable room for improvement. This number is highest among Gen Y adults at 47 percent. 80 percent of adults agree that they would benefit from advice and answers to everyday financial questions from a professional, and more than one-third (35 percent) strongly agree.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files/2009FinancialLiteracySurvey.pdf)

·         Almost one-third of college students, when reflecting back on their freshman year, admit that they were not very well prepared for personal money management on campus.

(KeyBank and conducted by Harris Interactive)

·         41 percent of the young adults in Generation Y (ages eighteen to twenty-none) do not pay their bills on time every month.

 (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSN Money)

·         A poll from Gallup shows that 32 percent of Americans put together a budget each month to track income and expenditures, and just 30 percent have a long-term financial plan laying out savings and investment goals.

http://www.gallup.com/poll/162872/one-three-americans-prepare-detailed-household-budget.aspx

Credit Score:

·         In spite of it being free, nearly two-thirds (64 percent), or 144 million people have not ordered a copy of their credit report in the past year, this number grows to three quarters (72 percent) among Hispanic Americans. Additionally, more than one-third (37 percent) admit that they do not know their Credit Score.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling)

Housing:

·         42 percent of adults, or more than 94 million people, currently have a home mortgage and, of those, 28 percent say that the terms of their mortgage somehow turned out to be different than they expected, including: either payment or terms of loan were different than expected, the interest rate or its duration were different, or they had no knowledge of PMI.

·

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling)

Debt and Credit Cards:

·         26 percent, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent. In the last 12 months, 15 percent of adults, or nearly 34 million people, have been late making a credit card payment and 8 percent (18 million people) have missed a payment entirely. More than 13 million adults (6 percent) report that their household carries credit card debt of $10,000 or more from month to month, and the same number have debts in collection, are seriously considering filing for bankruptcy, or have already done so within the past three years.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files/2009FinancialLiteracySurvey.pdf)

Budgeting:

·         Only 42 percent of adults keep close track of their spending. Nearly 16 million adults (7 percent) don’t know how much they spend on food, housing, and entertainment, do not monitor their spending.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling)

Savings:

·         One-third of adults (32 percent), or 72 million people, report that they have no savings. Nearly half (48 percent) of Gen Y adults- more than any other age group- report having no savings. Of those with no savings, more than one in four report that, if faced with an emergency, they would charge that expense to a credit card (29 percent) or take out a loan (26 percent), thus adding to their debt load.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling)

Retirement:

·         One-third of adults (33 percent), or more than 74 million people, do not put any part of their annual household income toward retirement.

(The 2009 Consumer Financial Literacy Survey Topline Report and Data Sheet, The National Foundation For Credit Counseling)

AVOID HURTING YOUR CREDIT SCORE THIS HOLIDAY SEASON

3 Strategies To Control Emotional Spending 

Holidays come and go, but the damage done to your credit can last long after the season is over. Are you still trying to pay down high balances on your credit cards? Are you willing to break the cycle this year?  

Right now is the right time to prevent further damage to your credit and finances! 

The holidays are right around the corner, which means- preparing for delicious dinners, buying and giving gifts, holiday parties, and family gatherings- BUT it can also be that time of year when we are most vulnerable to our emotions, allowing them to take over and control our spending.  The damage done when we give into our emotions leaves us feeling sad, frustrated, lonely, embarrassed, anxious, disappointed and hopeless.

We are all victims of emotional spending at some point in our lives.  Yes, you know you don’t need it, but you can’t stop yourself from buying it.  Emotions can have a strong effect on our logic and reasoning, leading us to do things or buy things we later regret.  During the holidays it can be even harder to be strong and not let sentimentality get the best of us.

Here are 3 strageties that can help you control Emotional Spending.

  Strategy #1  Be Aware of Your Emotions- It’s important to be connected and aware of how you are feeling before you decide you need to go out and buy something.  Sometimes our emotions can lead us to think we need something of material value to feel complete, but that need isn’t really a material need, but a lack or void of something missing in our lives. During the holiday season, it can be even harder to control emotional spending because we want to buy presents for our loved ones.  This year try to spend %50 less than you did last year, try to think of creative ideas to show you care.  For example, a picture frame with a memorable picture and a $25 gift card can be creative, thoughtful and within a reasonable budget.

 Strategy #2  Be Aware of Your Weaknesses-Entering a department or electronic store can be like walking into a battlefield of emotions.  Our eyes visualize how that outfit would make us look, or our ears imagine how that surround sound system would sound in our living room.  Our senses can trigger all kinds of thoughts and emotions.  When we are aware of our weaknesses, it gives us a head start because we are able to prepare and develop a strategy to help us avoid emotional spending.  For example, if you need to purchase an item from the store, and you know you might be tempted to buy things you don’t need, then your first strategy should be to not use a shopping cart.  Often times, we can end up filling up the cart with things we think we need.  If your original plan was to shop for a few things, then take a shopping basket, that way you can avoid excessive shopping.

 Strategy #3  Shop Around, Invest Time and Be Patient- You work hard for your money, so why not work hard to save it!  Many times we immediately go to the first store we think of to get something we need, only to later find it for less or on sale at another store.  You can end up paying full price or more because it’s convenient and quick.  If you need something, instead of going straight to the mall and overpaying, shop around and compare prices and brands.   For example, we found a laptop at Best Buy for $1,299, plus $350 if you get the warranty.  After some research, we found the same laptop at Costco for $999, plus $99 for the warranty, that’s more than a $500 difference.  It takes time to earn a paycheck, so why not take the time to shop around and do some research before spending it.  It will take some time, self-control and self-discipline, but if you are patient and shop around, you will find something worth your time and money.  Remember, impulse shopping gets you what you need right away, but at a price.  Give value to your hard earned money and start implementing strategies that can help  you save hundreds, if not thousands over a lifetime.

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5 WAYS YOUR MONEY COULD BE GOING DOWN THE DRAIN!

Could Poor Credit and Poor Money Management be to Blame?

By Conquest Credit

1.Paying High Interest Fees on Credit Cards- Poor Credit, a low FICO Score and poor money management usually equals higher interest rates and higher balances on credit cards, which can quickly suck your money down the drain.   For example, if you carry a balance of $1000 throughout the year on a credit card that charges an 18% interest rate, you could be spending up to $180 a year on interest rate fees alone. If you have more than one credit card or several credit cards that carry high balances, and high interest rates, not only will your credit score go down resulting in poor credit, but you could also be wasting up to $1000 a year on interest rate fees, compared to someone with Excellent or Good Credit.  

2.Paying High Interest Fees on a Car Loan- Depending on your Credit and FICO Score, the interest rate on a Car Loan can vary between 0% and 22%.  For example, a car loan for $25,000, 0 money down, with an 11% interest rate, and a 60 month payment or 5 year contract, will end up costing you an average of $1,522.72 a year in interest fees. That’s a grand total of $32,613.60. Now compare this to someone with good credit and a high FICO score. A car loan for $25,000, 0 money down, with a 1.99% interest rate, and a 60 month payment or 5 year contract, will end up spending an average of $256.96 a year in interest fees. A grand total of $26,284.80. This person saved $6,328.80.      

3.Paying Late Fees on Bills- Making several late payments on more than one account can quickly add up to hundreds of dollars a year in late fees. Credit Cards, Mortgage loans, Rent, Student Loans, Insurance bills, Utility and Phone bills.  Lenders, creditors and companies are quick to charge you a LATE FEE for missed payments. For example, if you miss your credit card payment by even one day, you will have to pay a $25 late fee ($35 if it’s the second time within six months).  If you miss your Mortgage or Rent, they will usually charge a 5% fee of the monthly amount. For example, if your mortgage payment or rent is $1,200 a month, a 5% late fee would cost you $60. If you are late more than once on several bills throughout the year, you could be spending up to $500 a year on late fees. To avoid these late fee, we recommend you use automatic bill pay

4.Payday Loan Fees- An emergency came up and you had to borrow quick cash from a Payday Loan Center. If you borrowed $300, you most likely paid a $35 fee. The next month comes around and you keep renewing the loan and borrowing the money because you can’t afford to pay it off.  You could be wasting up to $420 a year in fees, and if you have more than one payday loan, you could be spending over $1000 a year in payday loan fees.

5.Paying High Interest Fees on a Mortgage Loan- Depending on your Credit and FICO Score, the interest rate on your Mortgage Loan can vary between 4% and 9%.  On average, a FICO score of 720 will earn you a 4.1% APR on a 30 year fixed loan.  Compare this to a FICO score below 720, on average this score will earn you a 5.4% APR on a 30 year fixed loan.  The difference between both amounts is $242.11 a month.  On average, a better credit score will save you $242.11 a month, which comes out to $2,913.24 a year, and over the life of the loan, a grand total savings of $87,397.20. 

Depending on your financial situation, credit score and money management skills, you could be wasting between $300 and $800 a month on interest rate fees, late fees, and payday loan fees. Your money is literally going down the drain and landing into other people's pockets.

To read more blogs like this or if you would like any advise or help in any of these areas feel free to visit our website and sign up, you can also sign up for our for our Newsletter. Like us on Facebook page and we will send you a free ebook on "Understanding Your Fico Score" No matter where you're at in the US we can help. 

Best Time Of The Year To Repair Your Credit?

Are you aware that the best time of the year to repair your credit is during the holiday season?

Due to the fact that 80% of credit bureau employees, collection company employees and creditors take vacation from November to January, you have a huge advantage when you take action to restore your credit during this time of year.

Under the federal Fair Credit Reporting Act, credit reporting agencies must reply within 30-45 days from the time we submit your investigation. Because there is a time frame that legally must be adhered to for both the credit bureaus and the lenders/creditors, who must verify any items you are disputing, November and December are the optimal times to work on repairing your credit and getting negative items removed.
At CONQUEST CREDIT, our goal is the same as yours: to restore your credit profile in the fastest time frame possible. The best gift you could give yourself is excellent credit, so call us today to get started.

If you take advantage of Credit Repair in the month of November we will take off $100. It will only cost you $99 for a set up/Credit Analysis to start. On top of that you will not have to pay for Credit Repair until the month of February. We understand that the holidays are approaching fast and if your like us we want to save our money for our loved ones, However if you act now, not only will you have a few months to pay the remaining balance but you will have better credit by February,.You can start the new year with a bang! Then you can refinance any loans you have and start saving money in the year 2014!

 To read more blogs like this or if you would like any advise or help in any of these areas feel free to visit our website and sign up, you can also sign up for our for our Newsletter. Like us on Facebook page and we will send you a free ebook on "Understanding Your Fico Score" No matter where you're at in the US we can help. 

4 Ways To Improve Your Credit Score Before Christmas.

Thanksgiving and Christmas is coming up fast and this is a time when many people are celebrating.

However, if you have a bad credit score, it is easy to feel like you do not have much to be thankful for.

Wouldn't it be great to know you can have your credit back on track in time for the holidays? It is definitely possible to improve it by then.

There are ways to noticeably improve bad credit in very little time. Follow these steps and you will have a great shot of having better credit by Christmas.

1. Order your credit report and review for mistakes.

The first step toward fixing a bad credit score is to identify the problem. Order a copy of your credit report from the rating agencies.

This document will list all your outstanding debts, your credit score and the reasons why your credit score has problems. For example, it could show you have missed payments on a car loan or have maxed out a credit card.

Closely review all these negative points. Is there anything you do not recognize?

Credit agencies sometimes make mistakes and it is possible there is incorrect information dragging down your credit score. If so, call up the agencies and ask for this problem to be fixed. They should be able to fix your score just in time for Christmas.

2. Make all your upcoming payments on  time

On-time minimum credit payments are the key to a good credit score. If you make all your payments on time your score goes up, but if you miss even one payment, your score tumbles down.

Have you struggled with missed payments in the past? Make it a goal to hit every single payment on time by Christmas.

Every month you follow this habit, your score will improve. A goal like making every single payment on time for a year might seem impossible, but can you make it just to Christmas?

“This could be your start to

a lifetime of better credit.”

3. Pay down what you can.

Another way to repair your credit score quickly is to pay down your credit card balances.

A big part of your credit score depends on how close you are to maxing out your accounts. If your balances are too high, it negatively impacts your score.

Take whatever extra money you have on hand and pay down as much of your debt as you can. Focus on cards that are closest to their limit.

The rating agencies will see you have less outstanding debt and this will help raise your score by Christmas.

4. Avoid excess holiday spending.

When the holidays come around, it is easy to get carried away with spending. Between preparing family dinners, traveling around the country and buying presents, you can quickly spend a fortune.

All of this spending equals to more money that could have paid down your accounts as well as more debt on your credit card. This is not the way to fix things.

Instead, plan to spend less this year so you can focus on your credit problems. Once things are under control, you can then spend more on future holidays.

If you are serious about fixing your credit, you can take big steps forward by Christmas. Follow the advice in this guide and you will be on track to finish the year with a much better credit score. You can call us anytime for advice at 800 288 4833 or email us at customercare@conquestcredit.org. Like our Facebook page and receive a free ebook on "understanding your fico score" No matter where you're at in the US we can help.