Shameca Tankerson

For individuals with no credit or those who have experienced a negative credit event like divorce or foreclosure, establishing credit history can be a real challenge. Without proper credit, everything from a car loan to an apartment or even a job can be denied.

When faced with problem credit, many people rely on prepaid cards to manage their daily expenses. However, prepaid cards simply provide access to your own money, not credit from a lender. These cards do not report to credit bureaus and do not help re-establish credit history. People need to demonstrate on-time monthly payments on a credit card in order to rebuild that important credit history.

So how can someone who cannot get a credit card rebuild their credit?

The Public Savings Bank Secured Visa offers people with low credit or no credit the opportunity to re-establish their credit history and work towards improving their credit score. Individuals make a deposit into an FDIC-insured account that acts as a security deposit. They can then make purchases anywhere Visa is accepted or take cash advances up to the deposited credit line amount, currently between $300-$2000. Payments are reported to all three major credit bureaus (TransUnion, Experian and Equifax) so customers can begin to establish credit immediately.

The Public Savings Bank Secured Visa does not require a credit check or even a checking account to apply. Customers can fund their account via Western Union, ACH, wire transfer, check or money order. The card has no annual or monthly fees, and offers 0% APR for 6 months. Rush shipping is available so customers can begin using their card just days after funding their account.

Building good credit is critical at a time when credit is getting harder to obtain. This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favorable terms.

Prospective cardholders can apply at www.publicbankcard.com and be approved within a few hours. Establish Credit Today

ABOUT THE AUTHOR

Shameca Tankerson is a business and personal credit expert, author of "Credit Repair for Entreprenuers", speaker, and founder of the Wealth Builders Network. Wealth Builders takes clients through a corporate credit builder system providing business owners no personal guarantee business credit. She understands how the credit system works and has a great understanding of the challenges that small to medium size business are faced with everyday due to bottom line cash flow. The Wealth Builders Team of experts are extremely successful at facilitating credit and cash flow solutions to hundreds of consumers and small to medium size businesses. From Debt Management to Loan Products Wealth Builder's "Gives Credit Where Credit is Due"!

The Federal Reserve Board on Tuesday approved a final rule to protect credit card users from unreasonable late payment and other penalty fees and to require credit card issuers to reconsider interest rate increases imposed since the beginning of last year.

"The new rules require that late payment and other penalty fees be assessed in a way that is fairer and generally less costly for consumers," said Federal Reserve Governor Elizabeth A. Duke. "Card issuers must also reevaluate recent interest rate increases and, if appropriate, reduce the rate."

Among other things, the final rule, which amends Regulation Z (Truth in Lending):

• Prohibits credit card issuers from charging a penalty fee of more than $25 for paying late or otherwise violating the account's terms unless the consumer has engaged in repeated violations or the issuer can show that a higher fee represents a reasonable proportion of the costs it incurs as a result of violations.
• Prohibits credit card issuers from charging penalty fees that exceed the dollar amount associated with the consumer's violation. For example, card issuers will no longer be permitted to charge a $39 fee when a consumer is late making a $20 minimum payment. Instead, the fee cannot exceed $20.
• Bans "inactivity" fees, such as fees based on the consumer's failure to use the account to make new purchases.
• Prevents issuers from charging multiple penalty fees based on a single late payment or other violation of the account terms.
• Requires issuers that have increased rates since January 1, 2009 to evaluate whether the reasons for the increase have changed and, if appropriate, to reduce the rate.

The final rule represents the third stage of the Federal Reserve's implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which was enacted in May 2009. The provisions of the Act addressed in this rule will generally go into effect on August 22, 2010.

The notice that will be published in the Federal Register is attached.

Consumers can learn more about changes to their credit card accounts by accessing a new online publication, "What You Need to Know: New Credit Card Rules Effective Aug. 22." It explains key changes consumers can expect from their credit card companies as a result of the third phase of the new credit card rules. Additional information about credit cards can be found on the Board's website at: http://www.federalreserve.gov/creditcard/.

ABOUT THE AUTHOR

Shameca Tankerson is a business and personal credit expert, author of "Credit Repair for Entreprenuers", speaker, and founder of the Wealth Builders Network. Wealth Builders takes clients through a corporate credit builder system providing business owners no personal guarantee business credit. She understands how the credit system works and has a great understanding of the challenges that small to medium size business are faced with everyday due to bottom line cash flow. The Wealth Builders Team of experts are extremely successful at facilitating credit and cash flow solutions to hundreds of consumers and small to medium size businesses. From Debt Management to Loan Products Wealth Builder's "Gives Credit Where Credit is Due"!

Credit Repair To-Dos

Credit repair is simple. It may require some effort, but if you take these basic steps you will witness a dramatic transformation in your credit reports and scores. Here is the essential credit repair to-do list that will help you reach your credit goals before you know it.

Do Open New Accounts

Now is the time to get back on your feet. Do not wait until your credit repair project is successful before opening new accounts. You should rebuild now. In fact, your credit scores will go nowhere without open and active accounts. Do not worry about getting denied; secured cards are an easy and guaranteed way to rebuild today.

Do Avoid Store Accounts

Not all forms of credit provide an equal credit repair advantage. Consumer debt, such as store cards, will not give you the same benefit as a MasterCard or Visa, even if you manage them perfectly. But a late payment will cause your score to fall more dramatically than a derogatory event on your MasterCard or Visa. Choose your credit carefully.

Do Keep Your Balances Down

Your credit scores are sensitive to your revolving balances. The higher your balances, the lower your scores will be, and vice versa. There is no lasting harm done by using your credit cards, but if you need your scores to be their best in the short term, you will need to get your balances down, and keep them there until you have achieved your goals.

Do Start a Savings Plan

Too many people have started credit repair, and made great progress, only to see their scores fall because of a late payment. Unforeseen events will happen, it is best to be prepared. If you start a savings plan you will be able to absorb the cost of unexpected expenses without falling behind on your monthly payments. A single late payment can send your scores into a tailspin. Take precautions.

Do Dispute Reporting Errors

If you see something on your credit report that does not look right, dispute it. This is an essential step in any credit repair process. Credit reporting is prone to errors, and errors can easily translate into financial harm. Errors can lower your scores, and lower scores can raise the interest rates you pay on money you borrow. Do not be shy, dispute errors with the credit bureaus. They will be fixed.

Do Stand Your Ground

If you dispute an error with the credit bureaus and that error is verified by them as accurate, you should not give up. Remember that every point on your score is important, and errors can cost you money. If you want your credit repair effort to be successful it is important to stand your ground. You do not have to accept verification as the final word. Write back and push the issue. Stand your ground and you may yet prevail.

Do Succeed

Credit repair works. Make the effort and you will succeed. The process is simple and the results are invaluable. As the months go by you will have the pleasure of watching your credit report improve and your scores go up. As this happens, doors of opportunity will open. Lenders, employers, insurance companies, and even landlords will see you in a new light. Start working on your credit repair to-do list today and success will be yours!

ABOUT THE AUTHOR

Shameca Tankerson is a business and personal credit expert, author of "Credit Repair for Entreprenuers", speaker, and founder of the Wealth Builders Network. Wealth Builders takes clients through a corporate credit builder system providing business owners no personal guarantee business credit. She understands how the credit system works and has a great understanding of the challenges that small to medium size business are faced with everyday due to bottom line cash flow. The Wealth Builders Team of experts are extremely successful at facilitating credit and cash flow solutions to hundreds of consumers and small to medium size businesses. From Debt Management to Loan Products Wealth Builder's "Gives Credit Where Credit is Due"!

If you're looking for a loan to expand your business, purchase equipment, buy inventory or simply increase working capital than this post will provide some helpful information.

First, before you begin searching for a loan it's worth the time to fully understand the types of loans for small business that are available to you. Each type has its pros and cons and it really depends on your particular situation.

Here is a breakdown of the most common loan types for small business:

Term Loans

This is a loan that pretty much speaks for itself. You'll repay the loan over a set term and the interest rate is usually fixed. You can also obtain a short term loan where it's paid in full at the end of the term (usually 12 months or less) instead of dealing with monthly payments.

Secured Loans

This is one of the easiest ways to qualify for a loan because you are putting up collateral like commercial real estate, receivables or inventory to secure the loan. Your rates are usually lower and you have a greater chance of negotiating as well.

Now I wouldn't suggest putting up your home or car for collateral because if you are unable to pay off your loan your personal assets that you pledge can be seized.

Unsecured Loans

A complete opposite of the secured loan is the unsecured loan which requires no collateral. Because these loans carry much more risk lenders place greater underwriting guidelines so strong business credit scores and other factors will come into play so be prepared.

Lines of Credit

This is a popular source of capital because of its ability to obtain large sum of cash, what I call cash on demand. Typically, it works like a revolving credit card but the major difference is that it has a much lower interest rate and higher credit limits than a revolving credit card.

You have payment flexibility and some banks provide special features that require monthly interest only payments which keep payments small when you tap into your credit line.

Merchant Cash Advance

By borrowing against future credit card sales you can receive cash rather quickly with this type of loan. It doesn't matter if you have bad credit or no collateral because the loan is based strictly on credit card transactions and best of all you pay back the loan in small amounts with your credit card sales so no need to track payments or worry about defaulting.

Factoring

Also known as receivables financing you're basically selling your invoices to another company instead of waiting for your customers to pay you. The factoring company pays you usually 75% of the funds immediately with a small fee taken out. Once the customer pays then you get the remaining funds.

Equipment Financing

Qualifying for this type of financing is easier compared to others because the equipment serves as the collateral. You not only benefit from tax deductible lease payments but you also can get a buy-out option as well.

Keep in mind it's always tougher to get a loans for small business when you need it the most. So plan ahead and prepare to provide a well written plan to support your request. It helps to have skin in the game so if you have already committed funds of your own for your startup then make sure you provide this information to the lender if it will help close the deal.

While some of these loans don't require so much due diligence it's always smart business to know what options are available.

Are you ready to access a step-by-step business credit funding engine? A system that provides you access to premium vendors, business credit cards, funding sources and lenders that report to all the major business credit bureaus. Log on to www.Credit4MyBusiness.com and submit your name and email to recieve a free business Credit Workbook ($97 value) =>

ABOUT THE AUTHOR

Shameca Tankerson is a business credit expert, author, speaker, and founder of the Wealth Builders Network. Wealth Builders takes clients through a corporate credit builder system providing business owners no personal guarantee business credit. She understands how the credit system works and has a great understanding of the challenges that small to medium size business are faced with everyday due to bottom line cash flow. The Wealth Builders Team of experts are extremely successful at facilitating cash flow solutions to hundreds of small and medium size businesses.