Are There Any Advantages of the Stock Market Fall?

By: Andrea Domini

Yesterday all the shares of the leading companies fell down at the stock markets from East to West. The fall started at the Asian markets – in Japan, China, Singapore and some others. Some European countries also experienced a considerable fall of their indices. Russian stock brokers recorded the indices fall of the top systems like RTS and the Moscow Central Stock exchange.
All that is caused by the US economic crisis that threatens to undermine the global economy as well.

Trying to stabilize the situation President Bush suggested reducing the taxes to prevent a prolonged crisis in the USA. The calculations of the authorities are simple – the tax relief must trigger the rise of the consumer activity. The US government assures the world that there are no reasons for worry as they will do their best to prevent the economic recession.
Meanwhile the world's stock markets do not believe that and the main indices are swooping down. Moreover, in spite of the President's assurance, the US building volume has already reduced by 14 %. The financial analysts admit that the US economy has not survived such a fall since the middle of the last century.

It means that, like it or not, quite soon we may face a deep economic crisis in the USA that will inevitable entail the financial collapse of the global economy.

Experienced economists admit that Americans have been living beyond their means for a long time and this cannot last forever. Sooner or later, this will have serious consequences both for the country's economy and the common citizens.

The mortgage crisis in the USA is already one of the results of the consumers' loans which they are in no condition to pay off. What will be with this industry if the rates will rise? Will then credit users be able to cope with their mortgage being insolvent?

It's worth mentioning that a lot of creditors suffer losses on bad mortgage loans given to people with bad credit. After changing the refinance rate, banks had to sell the borrowers' property out. As a result, real estate is falling in price.

The losses have exhausted the banks' funds and they are forced to look for additional sources. The economic slowdown brings credit cards as a source of income into question.
Still, banks and financial institutions are the regulators of the economy, and they will probably give loans to businesses and other consumers to recover it. As a result, the Federal Reserve is going to lower the Fed Rate by 0.75%.

As for the common credit users, they can hope for lower rates though they will be compensated by higher commissions. In the nearest future we can expect the Federal Rate to enable US consumers to take more loans. Thus, you have all the chances to take advantage of the opportunity. It's sensible to apply for a plastic with low APR and fees. Think of applying for a credit card now, if you credit rating is higher than average.

About the Author:
Andrea Domini works for Credit-card-analyzer.com. She is famous in financial circles for her articles and news concerning bad credit card deals, however she is a versatile person and she majors in all credit card deals.

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Good Reasons To Use Bad Credit Credit Cards

It won't be long until the United States at long last progresses to a cashless system of purchases. Every year online buying and new payment methods are becoming a part of the American way of life. Even now it is possible to pay almost any bill online or even set up automatic payments where the account holder need not even raise a finger. While obviously this isn't yet foolproof, the convenience often outweighs any dangers that are present. The question becomes, how can a person with bad credit be apart of these new systems?

Credit cards with low APR are for the most part unavailable to consumers that have bad credit. With the nation as a whole moving into an area of poor credit however, more financial institutions are making products available for this growing market. Credit cards for bad credit are becoming more common, and the availability is quickly spreading.

These bad credit credit cards can be a decisive advantage to consumers with a poor credit history, but if managed badly can do more harm than good. While some people have bad credit as a result of unemployment or illness, most consumers simply manage their finances badly. Bad credit cards handled poorly will keep a credit rating low, or make it worse.

Bad credit cards can be used in the following ways to increase a consumer's credit rating:

Monthly Use – Make at least one purchase each month on the credit card, and pay the balance off entirely. This offers a consistent flow of credit reporting on your account. This consistency is what creditors are looking for in a good customer.

Keep a small balance – Although any financial expert worth talking too will say to pay off your credit card balances as fast as possible, there can be a benefit from carrying one. Credit companies like customers to carry a balance for obvious reasons, so they may increase your balance because of this. DO NOT carry a balance that will cause you to get behind in payments due to high APR.

Charge less than half your available credit – The more debt incurred on credit cards, the less credit worthy you are. A safe point is less than half of your available credit limit across all open credit accounts.

It has become common for creditors to sell customer accounts to other credit companies as credit worthiness changes. This may have already happened to you and you were simply unaware of why. In 2005 Providian sold off much of it's customer base to Washington Mutual. As a customer becomes more credit worthy, they become more valuable to many creditors. To make a profit, some bad credit credit companies will help customers build their credit up, and then sell them to another company. This can be a good thing for the consumer as well, as their new account will probably have better APR.

It is possible to have credit that is so bad that even companies that specialize in bad credit credit cards won't issue you a card. Once this point is reached, possibly through bankruptcy, debit cards and prepaid credit cards become the only options left. Debit cards work the same as credit cards when making a purchase for the most part, and they can't get you into any further credit problems. Prepaid cards work exactly like a credit card, however money must be deposited into the prepaid credit card account before they can be used.

With all of these options open to consumers, there something out there that will allow everyone to take part in the modern economy. With careful effort over time, even the worst credit history can be repaired.

It won't be long until the United States at long last progresses to a cashless system of purchases. Every year online buying and new payment methods are becoming a part of the American way of life. Even now it is possible to pay almost any bill online or even set up automatic payments where the account holder need not even raise a finger. While obviously this isn't yet foolproof, the convenience often outweighs any dangers that are present. The question becomes, how can a per...

Jon Norwood is a managing partner of Bad Credit Advisor, a site providing information on bad credit credit cards, prepaid debit cards, and articles on how to repair your credit history.

Article Source: http://www.eArticlesOnline.com

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