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Are the bill collectors calling you constantly? Are they harassing you incessantly or sending you letters? If so, here are some bill collector negotiation tactics that may come in handy.

According to the Federal Trade Commission, there are certain standards and regulations bill collectors must follow when pursuing payment of debts. ?The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you?re at work if the collector knows that your employer doesn?t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.?

Before you are contacted by a bill collector, make a list of all debts. Determine, based on your income and expenses, how much you can afford each month. Note: As long as you pay a minimum of $1.00, the bill collector cannot put your account into a collection agency.

* The bill collectors? only job is to collect money. They don?t care what your circumstances are; so do not even attempt to explain.

* Do not offer any personal information. They can use the information to track you down.

* They will try to intimidate you; do not fall for it.

* Stay calm, cool, and collected.

* Experts advise that it may be a good idea to record the conversations so that in the event they cross the line, you can submit the recordings to a Federal agency.

* Write down the name of the person who called, the time, and the date. Take notes as well.

* Send payments by money order, with return receipt requested. This way you have proof of payment.

* Send a letter, along with payment, stating the amount enclosed and that you have now been released from all pending charges. Also cc on the bottom of the letter that you are sending a copy to the Federal Trade Commission and your lawyer, if applicable.

* Check your credit report to ensure that it states that payment has been made.

Furthermore, the FTC states that: ?You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.?

The more you know about the bill collectors, the better able you will be able to negotiate payment.

Your credit score is something that you should be aware of, and something that you need to be diligent about keeping high. Your credit score can dictate how you live your life in more ways than you might think. Your credit score is based on your credit report and the information that it contains and is used when you apply for credit to make major purchases, for credit cards, for insurance, and even for many jobs.

When you apply for a loan to purchase something like a car or a home, your loan company will pull your credit report and look at your credit score. They have criteria that you must meet before they will approve you for a loan and your credit score is at the top of that list of criteria. If your credit score is above average, then you should have no problem obtaining that loan. If it is mediocre then you may need to come up with collateral for the loan or you may have to settle for a higher interest rate in order to get the loan. If your credit score is below average you may need to take an extremely high interest rate and/or offer collateral and/or get a co-signer to guarantee the loan, or it simply won?t be approved at all.

Many insurance companies are now looking at your credit score before they will approve you for insurance. This includes auto insurance, homeowner?s or renter?s insurance, and even health insurance. It doesn?t seem fair that an insurance company can look at your credit score and determine your eligibility for insurance based on it, but they can and they do. The only thing you can do about it is shop for an insurance company that doesn?t use your credit score. Call the insurance companies and ask them if they determine your eligibility or rates based on your credit score and if they say that they do, tell them no thank you. You don?t think it is any of their business. Tell them that your credit score is 690 but you don?t want to give them your business. Maybe if enough people do this they will get the message eventually.

Even less fair is the fact that many employers are requiring credit checks and determining whether they will offer you a job based on your credit score. Why does a job need to know your credit score? Why should that information be any of their concern. If your credit score is low then you may be in need of the job in order to get your bills paid up and raise your credit score. But that fact should not determine whether or not you are qualified for a job and certainly does not determine how well you will do the job. Somehow, though, at some point it became legal for employers to check your credit and they do it. It is unfair and it is an invasion of your privacy, but it is unclear what you can do to stop it if you need a job.

You may have perused several websites in which they are offering you the opportunity to find out what your credit score is. While the number is very important, many of you may want to know exactly what those numbers mean. Here is information to help you understand the genesis of FICO scores and their importance.

The three credit reporting agencies - Equifax, Experian, and TransUnion in conjunction with Fair Isaac Corporation, developed a scoring system in the early 1980s. Although in the beginning these three reporting agencies had different systems, today each of their scoring is equivalent to the others even though they may utilize a somewhat different method.

The significance of the numbers primarily determines whether or not credit is offered. While the scores alone (which can range anywhere from 300 to 900) have no meaning per se, they do matter when individuals apply for loans, credit cards, purchasing a car or a home. For example, if you are seeking a mortgage it is helpful to have a score of 650 or higher. In addition, when you lease a car there is the proverbial meeting with the financial office who checks to determine what your FICO score is at the time. This plays an important part in ascertaining if you can afford the lease payments.

Those individuals with scores ranging from 620 to 625 are considered a good risk, but a score of 600 or lower may indicate that an individual doesn?t have a good track record on payments. Moreover, the higher the score, the better interest rate you can obtain.

So what do the numbers really mean? They offer a good analysis of your credit history. This means that the credit reporting agencies have certain criteria to assess how well or how badly you are maintaining your finances as is related to credit card and loans. They look at your payment history, how much outstanding debt you?ve incurred in relation to your current salary, how long you have maintained your credit cards in good standing, how many applications for credit are indicated on your credit report, and how many credit cards are currently being used.

If you have recently requested your free credit reports as well as your credit score, you may notice that on the score sheet there are specific reasons why you have been given the score from each agency. There is a long list of reasons, which will be outlined for you if you have a low score.

Because each of these credit agencies will not divulge how they arrived at a particular score, it is important to ensure that you:

* Pay your credit card bills on time

* Try to keep the amount owed at 75% of the total credit given

* Decline new applications received in the mail as they impose new inquiries on your report

* Do not close accounts that you have had for years

At a time when we are all concerned about the economy and rising prices for food, gas, and other necessities, it would be incumbent upon us all to refrain from incurring too much debt at this time. Pay down the credit cards you have and in this way your FICO score will increase in the future.

Using a credit card is fine if it is done in a controlled manner. But it is too easy to overspend and so many people find themselves bogged down in debt that they cannot handle. Credit card interest is very high and so unless you can pay back more than the minimum - which is only interest - you will never reduce your debt. So each time you make a payment, make more than the minimum so your principal is gradually reduced. And at the same time, stop using the card for purchases. If you don’t have the cash, then don’t buy it.

If your interest is really high, phone the company and ask for a lower rate. This sometimes works; if it doesn’t work for you, consider transferring to another card with lower rates. And be sure to pay off the debt before the rates go up. If you have savings, use them to pay off the debt because the interest you are earning on that will be lots less than the interest you are paying on the credit card debt. Once it is paid, start saving the interest that you now don’t have to pay.

Once you’ve paid it off, add up all the extra interest and fees that you just paid. Now just imagine what you could have bought with that money if you hadn’t had to pay it away in interest. In the long run, you’ll get more by saving to buy, rather than using credit cards.

Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. It is true, finding the right issuer and building a credit card history is not easy, but it can be done.

When you apply for a credit card the bank will usually ask you questions regarding your previous credit lines. Most young people do not have any type of credit history and this makes the banks unable to positively respond to their application. There are two things that you can do to go around this problem. One is looking for an issuer with a special offer, as there are many banks that offer credit cards for people who are just starting their first credit line. It is true that you will not have an extended credit line at first, but if you prove to be a good-payer and a loyal customer to the bank, you are likely to receive more credit line in time. If, however you cannot find an issuer that will give you a first chance with credit lines, you will need to build a credit history yourself. You can do this by getting credit cards from gas stations or from stores. There are gas stations, as there are supermarkets and department stores, which offer fidelity credit cards to their customers. Once you become the owner of such a card, make sure to balance it wisely and after a couple of months you can re-apply for a bank-issued credit card.

Actually, the most useful tips for those who get their first credit cards now are not those about how to actually obtain the card but about how to use it. Some happy card holders hit the shops as soon as they have the little plastic card and spend much more than they can pay back. The banks will never like that and there are no exceptions or grace periods only because you are new. All late payments count as bad credit and if you make such reckless spending, you are in danger of having your credit ceased as soon as it was approved. You will also be considered a “bad” client if you lose your credit card or if you forget credit card information often. Avoid carelessness when you deal with money and note down all the information regarding your card and the transactions you have made with it. Another good advice that all new card holders should follow is about owning only one credit card in the beginning. This is a good idea because it helps you get familiarized with the banking world, the card system and it is also a test to see if you can balance money. After one year or so, of good credit history you may apply for a second credit card; however, if you’ve had payment problems it is wise to stick to that one single card until you can correctly manage card-money.

It is always difficult for new-comers to break through in the baking world, yet with patience and a bit of wits you can become the owner of a new credit card. The difficult and tricky part begins when you start balancing it. Keeping records of card information, of the transactions made with it, remembering never to overspend or delay payments and generally having a careful and wise banking-attitude will make you a good client and a satisfied customer at the same time.

Cut Up Those Credit Cards!

Credit cards are the bane of society. Yet, ironically, without some type of credit it may be difficult to get a loan, purchase a home or a car. It?s a catch-22 situation in that the FICO score on your credit report is determined by the amount of credit you have. The higher the score, the better positioned you will be to buy the house or the car. Too much credit and you become a risk; not enough credit and you?re still a risk. What?s the alternative? Cut up those credit cards; pay with cash.

If this sounds like a contradiction, perhaps it is. Consider the consequences, however, when you have multiple credit cards with high interest rates. Do you have trouble sleeping because the sheer burden of carrying so much debt is keeping you up at night? You are not alone. Statistics show that consumer debt is over 2 trillion dollars and that most households carry at least $9000 in debt.

Between the credit card applications that arrive in the mail and the credit card machines that are located at every register in just about every venue, there has been a subtle manipulation by the credit card companies that tell you it?s better to use a card than to pay with cash.

Think about it. With millions of websites offering every conceivable item you may ever need ? all requiring a credit card, it?s no wonder plastic has replaced the dollar bill.

This is not to say there aren?t card holders who use credit responsibly. But there are just as many individuals who have maxed out their credit cards and are now faced with the reality that these debts have to be paid one way or another.

Declaring bankruptcy is not an answer; it is only a short term solution. Statistics assert that even though there is a ten-year mark on a person?s credit report after filing for bankruptcy, they are more likely to begin the vicious cycle all over again. In fact, judges advise people how to regain their credit standing.

If you are in debt, there is only one solution. First, cut up all the credit cards except one. Keep that in reserve only for extreme emergencies. Next, pay off the high interest rate cards first, by doubling payments if you can. Then proceed to pay off each subsequent credit card using the same method. Call the credit card companies and ask to have the interest rates lowered.

Make a promise to yourself that from now on you will pay with cash. Make a monthly budget to determine how much you owe, the household expenses, and how much you can put towards paying down the debt. If you have to, put the one credit card you do have in a safe deposit box or give it to a family member to hold on to. The less temptation you have, the better. When you go out shopping - if you can?t afford it, you can?t buy it.

Our parents and grandparents didn?t believe in credit and they were better for it. Credit cards can become the financial ruin of the least among us. The stress alone can cause ill health. One can make this analogy: Computers are like credit cards - utilizing them can be a wonderful experience but when they crash, it can be a nightmare.

It is difficult to imagine trying to live without the convenience of credit cards. Yet many get into financial trouble in part due to their misuse of credit cards. By following a few simple rules you can avoid the missteps and use credit cards to improve you personal finances instead of falling into the credit card traps.

First, don’t use your credit card for loans. Pay off your balance each month. Pretty obvious advice but way way too many people don’t follow it. If you use your credit card for a loans - 98% of the time that is a mistake and big risk to your personal financial future. Don’t do it. There is a reason pretty much all the advice from financial advisers on credit cards starts with this - it is the most important advice.

Second, if you don’t follow the advise above pay off your loan as soon as possible. Payment the minimum payment is huge mistake. You should not be making any discretionary purchases if you are not paying down your credit card debt substantially each month.

Third, pay your credit card bill in full each month on time. The huge fees credit card companies charge if you are late should be avoided. I will admit I have slipped up occasionally but take great care to avoid paying you hard earned money in exorbitant fees.

Fourth, if following the advise above (which you should be) get a card that pays you for all your purchases. Straight cash is simplest and usually best but if you really want to take the time and effort to try and get more advantage through the use of airline miles or some such other gimmick go ahead.

Fifth, ask for reduced fees and interest rates (which you shouldn’t have to worry about since you shouldn’t use the credit card for loans but if you do…). The credit card companies make a great deal off the use of credit cards and the cost of acquiring new customers is high so they are most often willing to negotiate. If you miss a payment or make the payment late (by mistake, once or very occasionally) ask for a reduction in the fee. The fees are far too high and just by calling you can likely get a reduction in the fee.

Sixth, setup an automatic withdrawal of your monthly payment (the full payment) from your checking account. Of course you need to be sure you have the funds to cover these payments in full or you may incur fees not only for your credit card but from your bank. Many banks (and credit unions) will allow you to pre-arrange to have checks or deductions covered by the bank in the event you don’t have the funds in your account though their may be a fee if they cover a payment for you.

Seventh, if you follow the advise above credit cards are a useful tool. You get to buy items and don’t have to pay for them for a month or so (while you can be earning money on you money in a savings account or money market account). And since you are getting paid for a portion of your purchases you not only get a free loan for a month but get paid for the privilege.

If you don’t follow the first piece of advice though you need to look at low interest rates over being paid - but don’t go down that path.

Related tip: create a emergency cash reserve. Until you have built up a cash reserve of 3 month of living expense you should not be making many discretionary purchases. Once you have 3 months saved away then continue to build that to 6 months (but during that time feel free to spend some of your earnings on discretionary items).

Without the cash reserve it is too easy for anyone to take a financial hit and before you have a chance to get back on your feet be severely punished. Credit card companies take advantage of those that don’t plan ahead: Don’t Let the Credit Card Companies Play You for a Fool. And as soon as you slip huge fees, penalties and interest charges will start and you may have trouble getting out of the cycle of huge fees and interest. It is best to avoid every getting into that cycle.

Avoiding identity theft tip: shred your credit card statements before throwing them away.

Credit card companies don’t clearly disclose penalties, variable interest rates and other fees, leaving consumers confused about the true cost of using plastic to pay for everyday transactions.

That’s the conclusion of a new congressional study that looked at the lending agreements and marketing brochures of the six largest U.S. credit card issuers, which account for 80 percent of the nation’s outstanding credit card debt: Citibank; Chase Bank USA; Bank of America; MBNA America, which is now part of Bank of America; Capital One Bank; and Discover Financial Services.

The report by the Government Accountability Office found many consumers do not understand that if a borrower is late on one payment, companies will not only impose a late fee, which can reach nearly $40, almost triple that of a decade ago, but also significantly raise the interest rate on past and future charges, possibly to as high as 30 percent.

Half of the companies surveyed charge interest on debt consumers have already paid. For example, if a consumer charges $500 and pays off $450 before the billing cycle ends, these companies will charge monthly interest for the entire $500, not just the remaining $50.

The GAO, the research agency of Congress, said it could not determine the extent to which penalty fees and interest rates have contributed to consumer bankruptcies, but did find anecdotal evidence from a few court cases where “sizable penalty charges” contributed to individuals’ problems.

The report is the most comprehensive recent study of credit card fees and pricing practices, congressional staff and industry executives said. U.S. consumers now have 690 million credit cards, or about six for every household, and the amount charged each year on those cards has grown to $1.8 trillion, up from $69 billion 25 years ago. The study concluded that regulations have not kept up with changes in industry practice.

Sen. Carl M. Levin (D-Mich.), who requested the study, said it shows not only that disclosures are inadequate, but that major credit card companies often engage in unfair and deceptive practices that need to be stopped.

Travis Plunkett of the Consumer Federation of America agreed. “More disclosure isn’t the answer. Better disclosure is what’s needed,” he said. “But some things should just be stopped. Whacking someone with an unfair interest rate or fee is just not fair, under any circumstances, even if you tell them in advance.”

The Federal Reserve Board, a major bank regulator, is reviewing how to revamp disclosure rules to make them clearer, and a spokesman confirmed yesterday that the agency is also reviewing some practices that Levin and other say are abusive.

The GAO found some changes in industry practice that have benefited consumers. More than half of credit card users are charged a lower interest rate than they were 10 to 15 years ago and most have not been charged a penalty fee for being late or over their limit.

Before 1990 most cards carried a fixed rate of about 20 percent, had few fees and were offered only to people with stellar credit histories. The study found that charges today vary widely. Industry officials say that the range of charges allows them to offer services to higher-risk people who 10 years ago could not get a credit card, and allows them to lower costs for people with better credit histories.

The study found that all of those changes are not clearly spelled out for consumers. While half of American adults read at or below an eighth-grade level, most disclosures were written at a high school level. It also found that less important information is clearly displayed, while more important information, such as what would trigger a hike in interest rates, is harder to find.

The GAO recommends that federal regulators force the credit card industry to put key information in easy-to-understand English and display it prominently in easy-to-read type.

Ed Yingling, head of the American Bankers Association, whose ABA members issue nearly all the nation’s credit cards, agrees. “As the complexity of the product has grown the disclosures have not kept pace. They are written by lawyers and are too legalistic and we need to have an approach that looks at it from the point of view of the consumers,” he said.

Citibank, Chase and Bank of America referred calls about the report to the American Bankers Association. Capital One and Discover could not be reached for comment.

Protect yourself and your money.

On your existing credit card accounts:

* Keep a list of your credit card numbers, expiration dates and the phone number of each card issuer in a secure place.
* Open credit card bills promptly and compare them with your receipts to check for unauthorized charges and billing errors.
* Report promptly and in writing to the card issuer any questionable
charges. Written inquiries should not be included with your payment.
Check the billing statement for the correct address to send any written
inquiries. The inquiry must be in writing to guarantee your rights.
* If any of your credit cards are missing or stolen, report the loss as
soon as possible to your card issuers. Some companies have 24-hour
service and toll free numbers are printed on their statements for this
purpose. For your own protection, follow up your phone call with a
letter to each issuer. The letter should contain your card number, the
date the card was missing, and the date you called in the loss.
* If you report the loss before a credit card is used, the issuer
cannot hold you responsible for any subsequent unauthorized charges. If
a thief uses your card before you report it missing, the most you will
owe for unauthorized charges on each card is $50.

When using your credit card:

* Watch your card after giving it to a clerk. Take your card back
promptly after the clerk is finished with it and make sure that it’s
yours.
* Void or destroy any incorrect receipts.
* Never sign a blank receipt. Draw a line through any blank spaces above the total when you sign receipts.
* Never give out your credit card number over the phone unless you have initiated the call.
* Never put your card number on a post card or on the outside of an envelope.
* Leave infrequently used cards in a secure place.
* Consider closing any inactive accounts with the issuer(s).

If you decide to open a new account:

* Credit card issuers offer a wide variety of terms (annual
percentage rate, methods of calculating the balance subject to the
finance charge, minimum monthly payments, and actual membership fees).
When selecting a card, compare the terms offered by several card
issuers to find the card that best suits your needs.
* Consider transferring balances on higher interest rate cards and accounts to a card with a lower rate.
* Sign new cards as soon as they arrive. Cut up all unwanted cards.

Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market? the business owners or business executives?it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.

What is a business credit card?
Basically, business credit card is for the business people?s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.

Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.

Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.

Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.

Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.

Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.