Fix Your Credit Report TodayI Got Bad Credit Removed! I Raised My Score Over 200 Points!

Boston bankruptcy clients have been asking us about applying for credit cards under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act of 2009). One “new” aspect of The Card Act, which goes into effect in October, 2011, is regulation regarding consumers who don’t have their own income. In fact, a new ruling by the Federal Reserve forbids banks and credit card issuers from issuing credit cards to folks by using “household” rather than personal, income. Household income is too vague, they say. This may adversely affect clients who have filed for a Massachusetts bankruptcy in that it will make it harder to get credit after the bankruptcy discharge.

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Sometimes, circumstances can cause a person’s credit history to suffer. In the US, thousands of families had been affected by the recent economic recession in one way or another. Many employees found themselves out of work all of a sudden. Even those who enjoy a high position in the company were not exempted from being thrown out of their jobs.

If you presently have bad credit, don’t lose hope. You can take positive action to improve your personal credit one step at a time. In this article, let’s talk about how you can use a secured credit card for rebuilding bad credit.

When in search for a credit card, you will be confronted with a lot of choices. And with so many options available, selecting the best one can be tough.  The new credit CARD law was created to protect consumers against unexpected changes in the terms and conditions. However, the new law does not prevent credit card issuers from making their offers more enticing to the public. In this post, we talk about the most common credit card traps that consumers must watch out for:

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Credit card deals may sound attractive at first.

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In the past years, a 0% interest credit card may seem like an impossible deal.  But as the popularity of credit cards increase and the competition among credit card issuers grow stronger, different types of credit cards with attractive offers have been introduced in the market.

Why Zero Cards Are Popular in The Market

Today, zero percent interest credit cards are getting the attention they deserve.  Besides, who can resist a credit card that gives you the chance to charge balances to your card without interest?  If you have to make a choice between a credit card with a high rate and one with a zero interest offer, without a doubt, you’ll go with the zero interest credit card.

Clearly, credit card companies use the zero interest rate offer to convince a prospective card holder to sign up with them.  Usually, those who have outstanding balances in their old credit cards with high rates are convinced that they should transfer their balances over to a zero interest credit card.  This way, they can focus on paying off their debts minus the interest rate.  But the zero interest doesn’t last forever.  In fact, the zero interest may not even last long.

Sometimes, the card holder is given 6 months to 12 months to finish paying off his balances without interest and credit card companies know that most often than not, the card holder will not be able to complete payments on time.  After the 6-month or the 12-month period is over, the card holder will still have unpaid balances on his account.  Consequently, you will have to continue paying for them and the regular interest rates will be applied.

Points to think about when Getting A 0% Interest Credit Card

Five of the largest credit card issuers in the country reported lower charge-off and delinquency rates in July just as a separate report verified industry-wide improvement.

Bank of America, Capital One, Citigroup, Discover, and JP Morgan Chase all said that charge-offs and delinquencies fell in their credit card units in July. Citi recorded the largest drop, noting that charge-offs in July accounted for an annualized 9.1 percent of accounts compared to 11.5 percent in June.

Delinquencies also fell in July, according to monthly regulatory filings for major issuers’ master card trusts. M

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Credit cards are easy to get if you have good credit but they are just as easy to use to fall into bad credit.

The way you slip into bad credit happens in the most innocent ways. You may not have enough cash in your pocket when you’re at the grocery store or you have to buy seasonal gifts or your car breaks down in the middle of the freeway–and before you realize it you have maxed out on your card and owe more than you can pay back from your next paycheck.

Contrary to popular understanding, in most cases credit card debts are still dischargeable in bankruptcy without a repayment plan (in a Chapter 7 bankruptcy case).  In many cases, tax debts can also be discharged.   This is not new information, so why am I writing this?   Because not a week goes by that I don’t get a prospective client in my office who tells me they thought that when the bankruptcy laws changed in 2005 (yes, 2005) it eliminated the ability to get rid of credit card debt in a Chapter 7 case (as opposed to a Chapter 13 repayment plan).

This is NOT true.   While it was clearly the intent of  Congress to appease the credit card lobby and make it more difficult to eliminate credit card debt, the new bankruptcy laws which went into effect in 2005 made filing bankruptcy more complicated, but certainly did not eliminate the ability to do so.

Credit card debts are just as dischargeable as they were for at least 30 years prior to the recent law change.  They are not dischargeable if incurred through fraud or other exceptions to discharge (see http://www.bklaw.com/discharge.html for more information on this), but otherwise you can still file a Chapter 7 case (or a chapter 13 or Chapter 11) and eliminate credit card debt.

Income taxes may also me discharged under certain circumstances.   The law

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