Credit Card Debt Management

Check out this great post by Banks.com real estate blogger Miranda Marquit on fixing your credit report.

This is nothing to sneeze at. Failure to keep your credit report accurate can have a ripple effect across your entire life, including - as Miranda points out - your ability to get a home loan. It may be a time-consuming process, but one that is well worth it. Be patient and persistent; you have a right to an accurate credit report!

An important side note: Most major creditors now have a victim fraud division, due to the prevalence of identity theft. If the mistakes on your credit report are so completely out of left field that you suspect you may be an identity theft victim, ask to speak with your credit card company’s victim fraud division.

So we have discussed the pros and cons of giving teens credit. Soon we will discuss the joys and potential pitfalls of business owners relying on credit. For now, here is a list of credit cards for business owners.

This list includes my personal favorite, the Advanta Platinum MasterCard. This power-packed card, recommended by SmartMoney magazine, offers 0% APR for 16 months and 7.99% fixed APR thereafter on balance transfers, 7.99% variable APR on purchases, $0 fraud liability, your choice of 5% cash back or travel rewards and no limit on rewards earned.
Business credit cards are truly better than consumer cards in so many areas, so take advantage of them if at all possible.

Also in the meantime, here’s something to cheer about.

We all know teen credit can be a risky proposition. But I am loving this common sense article from Motley Fool which suggests that responsible credit habits in college start in high school. Debit cards just don’t hold the same repercussions, the article states.

Indeed, late fees and interest payments are cold, cruel facts of life for the vast majority of Americans so why not let high schoolers get their hard knocks out of the way earlier rather than later. While Motley Fool’s advice may not be foolproof, it does make sense when coupled with parental supervision and discernment.

Only parents know if their teen is responsible enough to use a credit card. Were it my child, credit card privileges would mean monthly meetings with mom or dad to review credit card statements. It would also mean full payment of the bill each month or working chores around the house to compensate mom and dad if they had to pay it off one month.

Many teen credit card offers offer low credit limits and require a co-sign from a legal guardian. This means mom or dad’s credit record is on the line, which should motivate them to help supervise teen spending and repayment. It may be a hassle, but one well worth it in the end for the possible damage it may prevent on the teen’s credit report.

What do you think?