All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.

A person's credit report is one of the most important tools consumers can use to maintain their financial security and credit rating, but for so long many did not know how to obtain one, or what to do with the information it provided.
Ruben Hinojosa

A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.
Ron Paul

It is only the poor who pay cash, and that not from virtue, but because they are refused credit.
Anatole France

Remember that credit is money
Benjamin Franklin

Money is a poor man's credit card.
Marshal McLuhan

Know Your Credit Score, For Free:
** CreditKarma.com

** Triple Advantage

** CreditReport.com

** TrueCredit.com

** CreditSesame.com

** Quizzle.com

 

But you must remember to cancel within the free trial, after you get your report and scores, or you will be charged monthly.

Know your Credit score. You can get a free credit report many different ways. As a result of the Fair and Accurate Credit Transactions Act, every legal U.S. citizen is entitled to a free copy of his or her credit report every year. The FICO score ranges from 300-850, the higher the better The median falls around 723.

Card churning

"When she calls the 800 number, the airline asks for her address so they can send someone to help her IN PERSON"

"she has so many frequent flyer miles she can book a private jet"

"Her passport is so big from all the stamps she has to check it as luggage"

"she's heard the preflight safety warnings so many times she can recite them forwards and back, in 3 languages"

"Her frequent flyer number is easy to remember-- it's 12"

"FAMs give up their seats for HER"




I have benefited so much from credit card churning; as a result, I have been travelling free for a while now. I will be sharing some of the techniques that have helped me become a much more savvy traveler.





Credit card sign-up bonuses provide the largest amount of free travel of all the techniques I use – often thousands of frequent flier miles/points at once. Capital One, for example, recently offered 100,000 frequent flier miles with an approved credit card. That is huge. And enticing. But beware: This can be a loaded gun for many folks who can’t seem to handle it.

Using credit cards for free travel, or any other reason, requires discipline and the ability to pay off your monthly balance in full at the end of every billing cycle. Interest rates on credit cards are huge, late fees massive, and both have gotten more Americans in credit trouble than any other credit instrument. This free travel technique is not for everyone. You know yourself better than anyone does. So before you begin to churn credit cards for frequent flier miles, honestly answer these questions:

1.Do you manage your money well?
2.Do you have a budget?
3.Do you live within your budget?
4.Are you easily distracted and make impulse purchases?
5.Is your source of income and repayment dependable and reoccurring?
6.Are you just getting by on part-time work?

The decision to use credit card sign-up bonuses for frequent flier miles and points cannot be taken lightly. One mistake or one late payment will haunt you for years. Tread lightly, be honest with yourself and, ultimately, your creditors.

Which travel credit card should you apply for first? That depends on the credit score you have established based on your limited history with a retail charge card and small installment loan. You need to know that score number. You’re looking for these target minimums: 700+ on a FICO scale or 800+ on a Vantage Score Scale.

These are the scores we strive for long-term. If you’re young or you haven’t used credit much, it may be too early for you to have this high of a score. If so, you will have to begin by applying for a less-than-premium credit card. Don’t worry. Your time will come if you pay on time.

If your scores are less than the target range, but over 650 on an FICO scale and 725 on a Vantage Score scale, consider applying for a credit card that does not require a premium score but charges higher interest and fees. Remember: You are paying off the card in full every month or borrowing just a small amount to establish a credit trade line. Your interest expense will be minimal while you establish this trade line. These cards, when offered by the airline’ websites, typically offer you one mile for every $2 spent on the card. That is your indication that you are looking at the right credit card for your less-than-“good” credit score. Premium cards pay at least one mile per $1 spent. Stay away from those unless you have premium credit score. You will within six months if you pay as agreed.

If your credit file shows scores lower than the 650 or 725 ranges, check your credit report for accuracy. There may be an error on the report, such as a medical collection, that you missed. On the other hand, it could be that trade lines you have established are not reporting to the three major agencies. In the event of errors, get them corrected right away. A collection is bad, really bad, and needs to be cleared right now.

If you have lower credit scores, I suggest you talk to your bank about a secured credit card. Not all banks will offer them, but when you find one that does, here is how they work:



You deposit money in an account with the bank and they, in turn, give you a credit card with a credit limit equal to or slightly smaller than the amount of your initial deposit. Does it sound like the CD loan? It is. You are pledging your own money as collateral -- a pledge that you will make your payments on time. If you don’t, the bank will close your credit card and collect from your prepaid deposit. There may be a sign-up fee for this type of credit card. This is something you want to get away from as soon as possible. Before setting up one of these with your bank, be sure to ask if your repayments will be reported to the three major credit reporting agencies. If not, move on to another bank.

Ignoring a problem just makes it get bigger. When you don't pay something you owe,it accumulates collection fees & penalties. These extra fees are called stupid tax for waiting around instead of taking care of a problem. Find a way to pay what you owe.

Too many young people are getting into credit because they are desperate to establish credit.

I would offer the following advice to anyone using credit cards for the first time or who has ever got into trouble through the misuse of credit cards. It is good advice, and it will save you many problems.

1. Never use a credit card to buy anything that is not in your budget for the month (which means, in turn, that you will need a budget). It is tempting to use a credit card when you are on vacation and run out of your allocated vacation funds, or when you need clothes but don’t have the money to take advantage of the great sale in progress, or when you need tires for the car but don’t have the money saved, or when you’re out of work and need food, utilities, and rent. But when you use a credit card as a buffer in place of trusting God, you may fall into a trap that will take you a long time to dig yourself out of.

2. Pay the entire credit card bill each month. I have since discovered that using credit cards or any credit wisely is not just a matter of being able to pay them off on time. Credit cards are the number one tool for impulse buying in our society. And impulse buying is generally the prerequisite for indulgent buying. Simply put, consumers will buy things they don’t need and pay more for them, using credit.

Credit is also less personal than cash in your pocket, and people tend to use it more carelessly. If you don’t pay the credit card charges every month, you will pay a usurious rate of interest. In addition, by accumulating credit card charges you run the risk of debt.

3. The first month you find yourself unable to pay the total charges, destroy the cards. The problem is not the use of credit. It is the misuse of credit.

Look to your health; and if you have it, praise God, and value it next to a good conscience; for health is the second blessing that we mortals are capable of; a blessing that money cannot buy.

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.

- Franklin D. Roosevelt

God is on everyone's side … and in the last analysis, he is on the side with plenty of money and large armies.

- Jean Anouilh

When it's a question of money, everybody is of the same religion.

- Voltaire

The rule is not to talk about money with people who have much more or much less than you.

- Katherine Whitehorn

Wealth may be an excellent thing, for it means power, and it means leisure, it means liberty.

- James Russell Lowell

Money often costs too much.

- Ralph Waldo Emerson

Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed.

- Mohandas K. Gandhi

Business, you know, may bring money, but friendship hardly ever does.

- Jane Austen

The holy passion of friendship is so sweet and steady and loyal and enduring in nature that it will last through a whole lifetime, if not asked to lend money.

- Mark Twain

You have reached the pinnacle of success as soon as you become uninterested in money, compliments, or publicity.

Can anybody remember when the times were not hard and money not scarce?

- Ralph Waldo Emerson

Focusing your life solely on making a buck shows a poverty of ambition. It asks too little of yourself. And it will leave you unfulfilled.

- Barack Obama

Someone asked me why women don't gamble as much as men do, and I gave the commonsensical reply that we don't have as much money. That was a true and incomplete answer. In fact, women's total instinct for gambling is satisfied by marriage.

- Gloria Steinem

People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.

- Joan Rivers

Never work just for money or for power. They won't save your soul or help you sleep at night.

- Marian Wright Edelman

Money is better than poverty, if only for financial reasons.

- Woody Allen

Money is like manure; it's not worth a thing unless it's spread around encouraging young things to grow.

- Thornton Wilder

What this country needs is a good five-cent nickel.

- Frank Adams

A billion here and a billion there, and pretty soon you're talking real money.

- Everett Dirksen

You have reached the pinnacle of success as soon as you become uninterested in money, compliments, or publicity.

- Thomas Wolfe

Simple living is high thinking

Advertisers play on the psyche of most Americans who believe they are entitled to have everything now. Discipline is becoming a thing of the past. Many are unwilling to understand the difference between a want and a need.
This just proves how well the advertising media are doing their job.
YOU watch a fantastic ad (on whatever), YOU want what they show that 'YOU' can have if YOU spend the $$$ for their product. Now, YOU will be successful, popular, beautiful, sexy, etc, etc, etc, blah, blah, blah...........
Do you not understand that YOU are NOT those products ... they only want YOUR $$$ by selling YOU "snake-oil" instant-whatever-success.
These products do not make YOU ... they just make "THEM" richer.
Richness comes from within ... not YOU spending your hard earned $$$ to line their pockets.

Things do not make the person. If you over spend all it makes you is depressed. The person with the fancy car does not give him personality - he is still lonely. The woman who buys expensive clothing does not make her prettier - it just makes her in debt. I buy expensive clothes on sale; I drive a nice car, but not out of my price range. I refuse to allow debt to control me. I control my money and my spending. Get a grip on your life and you will be so much happier. Things will never make you happier.

I use what I call creative financing, always look for bargains, and keep what I own for many years and keep everything in good shape. It is also important to look for items that retain value.

.

You have to be able to suck up your 'pride' and LIVE WITHIN YOUR MEANS for a while...maybe years before you can find just the right 'deals' and actually have the money to take advantage of those deals. Too many of us do not know how to save up for things. We spend all of the money we make & buy more on credit. If you do this, you will NEVER get ahead or have the cash available to take advantage of deals when they show up.

Many millionaires were once broke. But, they had self-discipline, could live well below their means for long enough to save up for a share in a business, a home to flip, or whatever venture finally got them to their current high-level of income.

Make a budget. Allocate 10% to savings first. When you are done, you probably need to add another 10% to account for unexpected expenses. If your income exceeds expenses, you are fine. If not, start cutting from the bottom of your priorities, or find a way to increase your income. The numbers do not lie. Ignoring reality only digs you a deeper hole that will take longer to get out of.

Let’s get smarter about how we spend our money.