The RBS Advanta U scheme follows Virgin, MoreThan and Accucard in allowing customers to configure the interest rate, introductory offer and reward scheme themselves. The marketing schpiel promotes the possibility of trading features off against each other to build 'the perfect card'. It may sound good, but in reality, it's as useful as a parachute when potholing.
Even at it's maximum configuration RBS Advanta U isn't a market beater for most uses. For example, it's best standard rate, using it's Platinum card with no rewards and no intro period is 10.9%, substantially more expensive than both Cahoot and Intelligent Finance.
Thankfully for RBS, it does win in one killer category. New cardholders can configure it to get 0% interest until June, that's longer than any other card's offer, and it pays cash back of 0.75% on spending, in other words for every £100 you spend on the card it gives you 75p. The previous market leader was Egg, which is interest free until March with 0.5% cash back.
The RBS Advanta U service is only available for new cardholders who are on the internet. The best spending card for non-net users, is the standard RBS Advanta card, at 0% interest for both spending and balance transfers until June, though it doesn't pay cashback, best for existing RBS Advanta holders is Egg.
Once the Advanta U introductory rate ends, the interest shifts to it's standard rate of 15.9% to 17.4% depending on whether it's a main or platinum card and the balance transfer rate selected. These rates are very high and there's absolutely no need to pay them. Simply ensure the debt is cleared in full or transferred to another card just before the interest-free period ends. Then use either another 0% introductory offer or a low standard rate card.
Used correctly this card will save you serious cash. Spend £1,000 monthly until next June, making just the minimum monthly repayments, on HSBC's credit card at 18.9% and, credit limit allowing, it's cost roughly £500 in interest. Even Cahoot at it's 7% standard rate, the market's lowest, costs £192. New RBS Advanta U cardholders with no interest and £60 cash back from spending are overall £250 better than Cahoot and £565 better than HSBC.
Everyone knows they can pull their credit report from all three reporting agencies once a year. We also expect to get our free Vantage score from the agencies at the same time they deliver the credit reports. And most people think that requesting it more than once more a year will ding their credit report. There is only one credit score that creditors look at. You can improve your credit score by paying only in cash or with a debit card and closing any accounts you are not using any more. A poor credit report can not prevent you from getting a job. These are some of the myths about credit, credit reports and credit scores.
Busting the Myths
Credit Report Requests
A request from you to receive your credit report is called a "soft pull" and is not counted toward that agency's report. It is does not affect your credit score either. When you apply for a department store credit card and the store requests your report, that is called a "hard pull" and it counts on your report and on your score. Be careful how many department store cards you request because they do count against your credit score.
Credit Scores
There are two scores that count: FICO which comes from the Fair Isaac Company and Vantage which is the scoring system that the three reporting agencies came up with. The two scores do not have to match when applying for credit. The Vantage score is given a letter grade according the three digit number on the report. While both scores are pretty much the same in how they come up with the number, Vantage also gives a 7% edge to how much available credit one has. Editions TV has a good review on improving credit scores here.
Cash/Debit versus PLFinder Credit Cards
The fact is that using PLFinder Credit Cards and paying off the balance every month is the only way to build credit. It shows the creditors and lenders that the person is responsible in managing their credit. Debit cards and paying everything with cash does nothing for credit history. If may not be a bad idea to use a debit card for everyday items like groceries and gas, but every month buy something with the credit card which can be paid in full before the due date.
Closing Accounts
There are people who think that closing a credit account is the best way to manage the account once the balance is paid in full. Lenders look at the proportion of total balances to the total credit limits. If an account is closed, it does not look good to a lender.
Credit Reports and Employment
The myth is that a poor credit report has nothing to do with whether or not you can get a job. The truth is that Federal law allows current and prospective employers to request your credit report. Credit reports for employment purposes can be reviewed manually and never scored. There is a requirement given to employees or possible new hires which request their signature before the report can be requested. In some industries, it is necessary to request a credit report such as retail or banking. But for the most part there is no reason to run it.
Common Credit Questions
Have you always wondered how long it takes the creditor to update a paid in full account to the reporting agencies? According to Experian, it should take no more than 30 days. Remember that requesting a credit report after paying off a balance does not hurt your credit score.
Secure cards allow you to make a deposit on a card and may boost the limit on that card. For example, you get a secure card and deposit $50 as required by the card to start it. The bank which backs the card may boost the credit limit on the card from $50 to $2,000. These kinds of PLFinder Credit Cards are often cited for being a good way to rebuild credit. Just be sure to research which cards are the best.
Good credit matters in so many aspects of our life. Excellent credit gives the holder better leverage when it comes to mortgages and car loans. It makes sense to take every possible step to improve a credit report. It can be tedious and frustrating at times, but it pays off in the long run.
This article is presented by Rachel Dougherty, who is now proactive in checking her credit report and score regularly. Editions TV with Terry Bradshaw is a provocative program which shares valuable information in the topics you care about. Consumer awareness is a hot matter these days as the public is more knowledgeable products, services and the companies which own them.
Can you buy a house if you have bad credit history? The answer is, yes. It is possible to buy a house or get a home loan despite bad credit. Nevertheless, consumers are strongly advice to work on credit improvement first before taking the next big step.
Purchasing a house is a huge investment so before signing up for mortgage, it is very important to carefully weigh the situation and consider the pros and cons of your decision. It is interesting to note that mortgage lenders offer the best deals to customers with good credit history or excellent credit rating.
On the contrary, consumers with unimpressive credit scores may have limited options when it comes to choosing mortgage loan deals. If you can wait for another year before purchasing a home, then you will be in a much better position to apply for mortgage once your credit score has improved.
How to Buy a Home with Bad Credit
Should you decide that you want to buy a home today, what are the steps that you can do? For instance, you may have been discharged from bankruptcy a few years ago and so far your credit score has significantly improved. If you feel that you are ready to take on a mortgage loan, consider the following tips:
Check your credit report. See to it that your credit report contains no error or inaccurate information which could be pulling down your score. If you have been discharged from bankruptcy 7 years ago, request the credit bureau to delete the record of bankruptcy and any other negative information from your report. If you are on your way to good credit, consider waiting a few more months before applying for a loan.
Evaluate your finances. It is very important to make sure that you will be able to keep up with your monthly loan payments from the start until the end of your loan's term. Is your monthly salary sufficient to cover for your expenses and mortgage loan payments? Are you certain that your employment status is stable at least within the next five years? Keep in mind that if failing to keep up with your mortgage payments would mean losing the home to your lender.
Find the right lender. Finding the right lending company is another challenge. Take note that not all subprime loan offers in the market are legitimate and fair. You may come across predatory lenders who may take advantage of your bad credit score by charging excessive interest rates and unreasonable terms. To find a good lender, you need to spend time doing research and comparison.
Choose a reasonable loan package. How much do you plan to borrow? It is very important to get pre-approved first before searching for houses on sale so you do not waste time considering homes that are out of your budget.
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