With the holidays approaching quickly it may be tempting to take unnecessary financial risks to ensure that everyone has a happy holiday. There are, however, a few key mistakes that you should avoid at all possible costs. Everyone, at one point or another, has felt the post-holiday debt blues. It can be quite a let down from the joy and excitement of the holidays. By following a few guidelines you can make those post-holiday blues a little brighter. And save your credit score in the process.

First and foremost don’t spend too much money. You should make a holiday budget and stick to it. Take your time and make sure you include all expenses for the upcoming holiday. It is easy to get caught up in the holiday spirit and spend way more than you meant to. It may be necessary to make a list and keep up with how much you have spent to make sure that you do not go over budget while you are shopping. This way, no matter who you are shopping for, you won’t be as easily tempted to buy “just one more thing” for a person that you have already finished shopping for. A list can also help you avoid forgetting to buy for someone.

These days, every retailer around seems to offer a store credit card with an initial percentage off of your first purchase. If you are shopping at several stores and they offer you this, it may be tempting to accept at each store. The initial savings are great, but your credit score can suffer if you open up too many revolving accounts in a short period of time. The other pitfall is these cards often times have high interest rates that can eat up those initial savings quickly. Many people don’t think that several new store credit card payments coming in at the same time of the month can quickly ruin your regular monthly budget, perhaps forcing you to seek a loan or other finance avenue which could put you further behind the eight ball with your money going into 2014. Try to use the cards that you currently have and forgo the temptation of enjoying the initial savings offered by store cards.

Another mistake people often make around the holidays is running their balances up too high. If you can keep your balance under thirty percent of your credit limit it really helps your credit score. If you must go over that portion of your available balance, try contacting your credit card company before maxing out your limits and getting a limit increase. If you have been a good customer, this should not be hard to attain. A quick phone call asking to raise your limit for holiday shopping can literally save your credit score from getting dinged unnecessarily.

In today’s modern society, it may seem like it is necessary to have a credit card on hand at all times. While you might occasionally shy away from using a credit card, this item is going to help you build your credit and make sure you are always able to purchase what you need. Of course, not all credit cards are created equal, which is why you need to have a guide to finding the best credit card offers for 2014.

Current Bank and Credit Union

The first area to consider is your current bank and credit union. These facilities already have all of your financial information and you don’t have to usually provide additional content in order to apply for a card. Also, it makes paying for the card easier and it is going to often drop your interest rate. Because of this, you need to look into what your bank offers you. Often times, this are just basic credit cards, so if that is alright with you, you are going to find that it should be just fine for applying for the card. However, if you want a credit card with perks, travel points or other benefits, you need to look elsewhere.

Travel Cards

If you love to travel and are looking for a travel card, you need to consider different travel companies you work with a lot, as this is going to give you the most potential use for the travel points. If you typically stay, for example, at a Hilton hotel, or if you always fly with Delta, you can go to their websites, as these website are going to offer you credit cards that help you earn points directly towards stays and flights, which is exceptionally helpful. These are going to prove to be the most beneficial travel cards available to you, although you can go directly to the major credit providers (Visa, American Express, MasterCard, etc.) and see what are directly offered to you. American Express often provides exceptional benefits and points, although it is not going to be accepted in as many locations, and you might have to pay a higher yearly fee.

Credit Fees

With your bank credit cards, these are usually going to come with lower interest rates and, with the general cards, there is almost never a yearly fee. The yearly fess is something you need to look out for. There are many perk-based cards that charge you a fee every year. Credit cards with these larger fees need to be looked at carefully, and you need to determine if you can afford it and if the perks are worth the extra fees. All of this must be in your mind when looking at different credit cards that you are interested in. Often times, you can find a similar credit card that does not have any yearly fees when compared to another that does.

An unsecured loan is now easier to get than ever, but with that emanates the need to look closer for the pitfalls. Finding an online finance company is only a click away using your computer or phone. Finance companies sometimes label these loans as Installment loans, Payday loans, Signature loans or Personal loans. The results yield quick cash for a fixed term. Their application process is convenient, easy to fill out, and the expectation for a great credit record isn’t a stipulation, in fact, there are usually no credit checks.

The application guidelines for an unsecured loan are simpler and the results are faster. They will not inquire why you need the loan, so you will be able to spend this money for whatever you’d like. You‘ll find that most banks and finance companies that offer unsecured loans are quite amiable and happy to assist you.

Unlike a secured loan, the finance company of the unsecured loan will not expect collateral for this loan. As a borrower of this loan, you’ll not be asked for collateral such as land, a home, or an automobile for this loan. Not asking for collateral for an unsecured loan, the finance company recovers its expenses by charging higher interest rates and fees. If the borrower cannot make payments on an unsecured loan, the lender can just take legal actions for repayment of the loan. Nonpayment of an unsecured loan will lower your credit score. Paying off your loan on time is an excellent way to boost your credit scores.

Depending on the lender, there can be a considerable amount of fees associated with your loan, which adds the final amount of the loan. As you read your contract, you may find additional fees beside the interest fees. You need to be aware of these fees because they add up quickly. You may see charges for 1) Application processing fees, 2) late payment fees, 3) fees for extending loan, and 4) penalty fees for paying the loan off early.

Your credit rating drives how high your loan’s interest rate fee will be. If you have good credit, the finance company will be willing to offer you a lower rate. These loans usually have very short payback periods, which make the interest at first seem reasonable. You’ll find a major pitfall of an unsecured loan if you fail to pay the loan off on time, or need an extension on the loan.

Finance companies make their money from the high interest on these loans when people can’t make their payment. It’s in your best interest to pay the loan back at the required time. On a 2-week loan, 15% doesn’t seem too harsh to pay. As you extend over a year with this type of loan, you’re just throwing your money away on interest fees. The interest fee for an unsecured loan over a longer period of time can be excruciating. In addition, keep in mind that interest paid on an unsecured loan cannot be taken off on your income taxes like a secured loan.

Learn to be diligent when discussing the terms of your loan. Setting up a comfortable payment and schedule plan that you can manage will save you grief, and the expense of additional interest and bank fees. A simple loan can become a nightmare, if you underestimate your ability to make your payments. Be honest and let the lender know what you are capable of handling.

The most important pitfall is when people don’t have a comprehensive understanding of the terms of their loan contract. You cannot take the loan contract for granted. Online finance companies will not request a massive amount of information or securities from you for this type of loan. Realize though, you are responsible for the terms of the loan. Reading and understanding the lender’s requirements is important, if you don’t, it will get you into serious financial trouble. Learn what will be required of you and what the terms of the loan are before you sign. Falling behind on payments can be costly and you will end up owing much more than you borrowed.

Responsibility for the additional fees, and interest rates that contribute to the final amount borrowed fall to you. Each finance company has their set of policies that you will be obliged to fulfill in a loan process. When you sign for an unsecured loan, it’s considered a legal contract with that lender, even if you are using an online signature. You will be legally obligated to respect the conditions that you sign for on this loan. If you fail to undertake the terms of the contract you signed, the finance company can take legal actions against you. You can help yourself by knowing the terms of your unsecured loan and avoiding the pitfalls.

Why should you opt for bad credit loans?

The credit market of United States has seen its worst during the last decade. Several mortgage companies have shut shop and the share market tumbled doing great damage to the US economy. This in turn has led to many other factors, one of which was unemployment. Several thousands of executives have lost their elite jobs which had further worsened the already ruined credit market resulting in more defaulters of the loans. It is during this phase that many people have lost their credit scores as they were not able to pay their monthly mortgage or any other loan installments on time. Once the credit score of the borrower goes below the recommended level, it becomes difficult for him to get loans from banks or financial institutions. To help them to get loans, many financial institutions have come out with a plan called as bad credit loans. Bad credit loans are easily available online and have many advantages.

Benefits of bad credit loans

There are different varieties of bad credit loans available online. The loan amounts ranges from as low as $100 to a no maximum limit (the maximum amount differs from one lender to another, however, it is generally $10,000 approx). The amounts are good enough to meet your emergency needs. The processing time of the applications and the APR increases with the amount; however, due to risk involved; the amount offered as loan is much lower. The user gets the same day loans, cash advances and installment loans with very less processing time and with the facility of same day credit. There are many websites available where the users can compare the loans offered by several companies and finish the application online.

What makes bad credit loans quite sought-after ?

Bad credit online loans are different from the payday loans which are mainly been targeted to the salaried individuals who receive regular paychecks from the employers and the borrower is asked to repay the entire loan amount before the next payday. Contrastingly, the bad credit personal loans are open to everybody and they can be repaid for a longer time. However, the online companies which offer bad credit loans have some general eligibility requirements which a person is required to meet. First, the borrower should have a repaying capacity; he may be employed, self-employed, receiving social security, etc. Repaying capacity decides the amount of loans. Second, he should be a citizen of United States and must be above 18 years with a bank account.

Online loans are also offered very quickly. Some of the online companies give an instant approval of the loans applied through a one minute process and the amount being credited in the borrower’s bank account within an hour. This can prove to be highly beneficial for those who need money to meet their emergency expenses such as paying bills or avoiding penalties. Since loans are available online, the borrowers can apply for the credit anytime anywhere.

Credit is the necessity of life and people would require loans to meet their urgent requirements. Online loan companies understand that the bad credit score of your previous loans should not be a hurdle for you to devoid of fair lending.

Few people take the time to keep up-to-date in changes that affect their credit score. Many people will not bother to check their credit report regularly to check for errors. There have been some changes for how the reporting of credit affects an individual’s credit score.

Rental History

A new development for credit reporting in 2013 is tracking or rental payments. Previously the payment for a mortgage way included on a credit report. Bank and mortgage lenders would send information for an individual’s payment history to credit bureaus. Monthly rent and other non-traditional payments will not be used as a factor for calculating a credit score. This means that renters now need to make sure the payment each month is on time.

Payday Loans

There are short-term loans that can be obtained online or from a local payday lender. This is a loan that can be used to make an unexpected payment or any other purpose. The loan is typically paid back on the next payday for the borrower. This is another type of non-traditional loan that is not being tracked on an individual’s credit report. Many other transactions once been under the radar, such as rent-to-own deals and debt settlements are now included in credit score calculations. One thing that this change can do to people is prevent them from withholding payment because of a dispute with a lender.

Better Regulation

The days of fleecing people with arbitrary loan terms and other sneaky methods are becoming less and less common due to increasing regulation. Credit bureaus and many other financial institutions are now under the watchful eye of the Consumer Financial Protection Bureau. Crediting reporting agencies will now have their business practices monitored. New regulations that could be imposed by the bureau can ultimately allow consumers to get mistakes fixed more easily.

Credit Cards

Individual’s with “insufficient income” may be rejected for a credit card. This includes anyone who has recently been divorced or has retired. Provisions in the Credit Card Act of 2009 has made getting credit harder for nonworking individuals. The new law for 2013 means an application for a credit card cannot be based on combined income. If individual’s do not have sufficient income, then an application for the use of a credit card may be denied. People who are also being negatively affected include students who do not currently have any credit history. The problem with this law is that people with no credit history are deemed to be the same risk as people with bad credit. A new rule is set for 2013 to fix many unintended consequences of the Credit Card Act.

Individuals who want to check their credit report can do so for free once each year. This can be done by ordering a report from AnnualCreditReport. If individuals want to track their report throughout the year, then one report will need to be ordered every four months.