If you’re like me, you probably have received tempting zero percent credit card offers in the mail from time to time. These offers usually loudly proclaim that you are “pre-approved” for a new Visa or MasterCard with a special 0% “introductory” interest rate. This rate is usually dependent on you agreeing to transfer the balance of one of your other high interest rate credit card accounts. While these offers can definitely save you money, they can also be traps which can cost you far more money in the log run than you expect. Below are five potential traps to watch out for if you decide to take the zero percent interest rate plunge: Read the rest of this entry »

Your credit score is the most influential factor in determining whether you will be approved for a loan or mortgage and the interest rate you will have to pay. Your credit score or FICO (the term refers to the company, Fair Issac Corporation, which created the method used to calculate credit scores) is a measurement that the credit reporting bureaus use to predict your creditworthiness and helps creditors determine whether to grant you credit. Your score can be any where between 300 to 850. The higher the number, the more credit worthy you are and the lower the interest rate you will pay. Since having a high credit score number directly correlates with the amount of money your loan or mortgage will cost you, it obviously pays to maximize the conditions that will give you the highest score possible.

Below are six ways to maximize your own credit score: Read the rest of this entry »