The popularity of switching credit card companies has grown in recent years and with good reason. The climate of the credit card market is so hot that better offers are constantly popping up. Applying for a new credit card is indeed a smart thing to do if you are going to save money and not hurt your credit score.
You may already know but for those who don't, each time your credit score is queried it is recorded and if you accumulate too many of these it will hurt your credit. If at all possible you should not blast a request for credit from multiple lenders in a short time span. You should shop around and find 1 or 2 offers that best suits you and your situation, then apply for credit.
When trying to choose which offers are best for you, only consider the ones that will lower your current interest rate. This should narrow the choices to a handful. At this point you should consider your lifestyle. Almost all companies now offer some type of rewards programs. The goal here is to switch to cards that save you money and offer rewards that you will take advantage of, there is no need to have cards that accumulate skymiles if you do not fly.
It is important not to close old credit card accounts if you do not have to pay a membership fee. These cards are not to use, put them away and forget about them. The reason you want to keep them is they show a long standing credit relationship on your credit report this helps to raise your score. The available open credit limit also shows financial responsibility. The key is to not use these older cards anymore.
These tips should help you choose the right credit card offers and improve your credit score at the same time.
Looking for some credit repair ebooks to help with your credit repair decisions? Both of these are excellent choices: Debt Credit Repair 750 and also Totally Debt Free Lifestyle: Your Transition to a Better Financial Situation is also a good choice.
Here is a good place to check your credit reports. You cant repair what you don't know is on there. They can help: True Credit
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Tuesday, February 5, 2008
Monday, December 31, 2007
Credit Card's Dirty Little Secrets
Do you know about credit cards and their dirty little secrets? I make my living knowing about them and I was unable to answer all the questions at a great quiz from the PBS Frontline program Secret History of The Credit Card at Credit Card Quiz. Take the quiz and see how much you do or don't know about universal default, and other credit card issues. Then read this article for more dirty little secrets this great PBS special offered. Here are a few appetizers:
UNIVERSAL DEFAULT - did you know the credit card company can raise your interest rate if you are late on ANY payment? I don't mean late just to the credit card but to ANYBODY! Be late on your phone bill, car, house... ANYTHING. Or if in the eyes of a creditor you simply have to much outstanding credit, all bets are off regardless of whatever interest rate you signed up for.
The logic is simple. The industry believes it is within its rights to protect its interest in a more risky unsecured loan venture. Therefore, it is not unreasonable to raise rates if it has reason to think risk of being repaid has changed. And as a lender, the creditor has every right to view your credit file any time it wants... all of your file and not just its own payment history.
MINIMUM NOTICE CHANGES - If the above is not bad enough, consider the consumer with on time payments every month on everything. No problem, right? WRONG! Buried within the contract (that contract law attorneys admit they have great difficulty interpreting), is a clause that allows the company to change your interest rate "at any time, for any reason, as long as the holder is given 15 days' notice." That's right. They can change their mind AFTER you make a purchase at 6.5% (for example) and any former agreements are null and void. How can a purchase price be changed after the sale? No other industry can do this but the credit card company.
USURY OR NOT - According to Frontline, "There is no federal limit on the interest rate a credit card company can charge." In fact an interest rate of 35% is not unheard of. This is because in the 1980s South Dakota and Delaware eliminated the cap on usury laws which is what constitutes the maximum allowable interest to be charged. Have you ever noticed the return address on your credit card statement? Chances are it is Delaware or South Dakota. Gee, I wonder why.
DEADBEATS and REVOLVERS - Deadbeat use to mean someone not taking responsible action. This is not true in the upside down credit industry. In credit card bill jargon, "Deadbeats" pay their balances off in full every month. They are deadbeats because the industry receives very little profit off of these responsible consumers. On the other hand, "Revolvers" roll credit card balances over month to month and never pay in full. This is the ideal customer because of the profit generated. Then there are "Rate Surfers" or "Gamers" who shift usage between credit cards based upon interest rates.
FEES - Again quoting Frontline, "In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees. This means simply, there is no limit on the amount a credit card company can charge a cardholder for being even an hour late with a payment." But this has opened a Pandora's box for not only late fees, but over the limit fees and bad check fees as well. A lawyer who worked on the Smiley case says he believes penalty fees which use to be $5 or $10 could rise to $50 in another year. Now the consumer not only must contend with a higher rate, but late fees as well. Additionally what if these fees put them over the limit creating still another fee. It is a never ending spiral towards bankruptcy.
MINIMUM PAYMENT - Consumers use to be required to pay 5% of the outstanding balance. But slick credit card marketers suggested implementing a 2% required minimum payment. This was advertised as consumer friendly with "easy low payments." The truth is, the tactic allowed consumers to increase their debt because of the lower payment which in turn created more profit through higher debt over a longer time period.
Looking for some credit repair ebooks to help with your credit repair decisions? Both of these are excellent choices: Debt Credit Repair 750 and also Totally Debt Free Lifestyle: Your Transition to a Better Financial Situation is also a good choice.
To find out what your credit score is this place can help True Credit
UNIVERSAL DEFAULT - did you know the credit card company can raise your interest rate if you are late on ANY payment? I don't mean late just to the credit card but to ANYBODY! Be late on your phone bill, car, house... ANYTHING. Or if in the eyes of a creditor you simply have to much outstanding credit, all bets are off regardless of whatever interest rate you signed up for.
The logic is simple. The industry believes it is within its rights to protect its interest in a more risky unsecured loan venture. Therefore, it is not unreasonable to raise rates if it has reason to think risk of being repaid has changed. And as a lender, the creditor has every right to view your credit file any time it wants... all of your file and not just its own payment history.
MINIMUM NOTICE CHANGES - If the above is not bad enough, consider the consumer with on time payments every month on everything. No problem, right? WRONG! Buried within the contract (that contract law attorneys admit they have great difficulty interpreting), is a clause that allows the company to change your interest rate "at any time, for any reason, as long as the holder is given 15 days' notice." That's right. They can change their mind AFTER you make a purchase at 6.5% (for example) and any former agreements are null and void. How can a purchase price be changed after the sale? No other industry can do this but the credit card company.
USURY OR NOT - According to Frontline, "There is no federal limit on the interest rate a credit card company can charge." In fact an interest rate of 35% is not unheard of. This is because in the 1980s South Dakota and Delaware eliminated the cap on usury laws which is what constitutes the maximum allowable interest to be charged. Have you ever noticed the return address on your credit card statement? Chances are it is Delaware or South Dakota. Gee, I wonder why.
DEADBEATS and REVOLVERS - Deadbeat use to mean someone not taking responsible action. This is not true in the upside down credit industry. In credit card bill jargon, "Deadbeats" pay their balances off in full every month. They are deadbeats because the industry receives very little profit off of these responsible consumers. On the other hand, "Revolvers" roll credit card balances over month to month and never pay in full. This is the ideal customer because of the profit generated. Then there are "Rate Surfers" or "Gamers" who shift usage between credit cards based upon interest rates.
FEES - Again quoting Frontline, "In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees. This means simply, there is no limit on the amount a credit card company can charge a cardholder for being even an hour late with a payment." But this has opened a Pandora's box for not only late fees, but over the limit fees and bad check fees as well. A lawyer who worked on the Smiley case says he believes penalty fees which use to be $5 or $10 could rise to $50 in another year. Now the consumer not only must contend with a higher rate, but late fees as well. Additionally what if these fees put them over the limit creating still another fee. It is a never ending spiral towards bankruptcy.
MINIMUM PAYMENT - Consumers use to be required to pay 5% of the outstanding balance. But slick credit card marketers suggested implementing a 2% required minimum payment. This was advertised as consumer friendly with "easy low payments." The truth is, the tactic allowed consumers to increase their debt because of the lower payment which in turn created more profit through higher debt over a longer time period.
Looking for some credit repair ebooks to help with your credit repair decisions? Both of these are excellent choices: Debt Credit Repair 750 and also Totally Debt Free Lifestyle: Your Transition to a Better Financial Situation is also a good choice.
To find out what your credit score is this place can help True Credit
Sunday, November 25, 2007
Clearing Up Credit Card Jargon by Michael D. Strauss
Like most things connected with personal finance, the area of credit cards is sometimes awash with jargon and impenetrable language. You only need to pass an eye over your credit card issuer's Terms and Conditions section of their web site to see how fond of technical language they are - in fact, cynics might suggest that card companies like to make their conditions as hard as possible to understand so that they can quietly change the way they operate your account without you noticing.
Although we're unlikely to see simplified wording in the near or even distant future, properly understanding a few of the more common terms will be a great help when you're reviewing the market to choose the best deal on your next credit card.
Allocation of Payments
This phrase refers to how your repayments are used to clear your debt. Although you are shown a single balance on your statement, your account is actually made up of various chunks of debt charged at different rates, for example purchases, balance transfers, and cash withdrawals. The allocation of payments sets out the order in which these debt chunks will be repaid. Normally, the cheapest rate of debt is repaid first - probably a 0% balance transfer - and this must be completely cleared before any of the more expensive debts will be reduced. For the credit card companies, this has the happy side effect of increasing the total amount of interest they earn on your account. For you, it means you should try and stay clear of the expensive forms of debt such as cash advances.
Interest Free Period
If you clear your credit card in full every month, and never carry any debt from one statement to the next, you will normally be able to enjoy a delay between spending on the card and being charged interest on what you've spent. This interest free period is also known as a grace period, and is usually in the region of 50 to 60 days.
Typical APR
The APR, or Annual Percentage Rate, is the basic measure of how much interest your card charges on your debt, and the lower the figure, the better. The Typical APR is the rate that at least two thirds of successful applicants will be offered, and was introduced to stop card issuers heavily advertising extremely low rates that in fact only a tiny minority of applicants would be offered.
Minimum Repayment
This is simply the smallest amount you have to pay each month after receiving your statement. It is normally in the region of 3% but has drifted inexorably down over the years, meaning that if you only pay the minimum it will take longer and longer to clear the debt, costing you dearly in terms of interest.
Cash Advances
These are an expensive way of using your credit card, either by withdrawing cash physically from an ATM using your card, or by using the card in some designated outlets such as casinos. The rate charged is normally much higher than the standard APR, and because of allocation of payments, cash advances will be the very last part of your debt to be repaid and will cost you the most in interest, and so for this reason they should generally be avoided.
There are dozens if not hundreds of other pieces of jargon related to credit cards and finance in general, but hopefully this article has cleared up a few unknowns for you and will be of assistance in choosing your next card wisely.
Michael writes for the credit cards advice and comparison site Card Sense, where you can compare low APR credit cards and balance transfer offers.
Article Source: http://articlefree4all.com
Although we're unlikely to see simplified wording in the near or even distant future, properly understanding a few of the more common terms will be a great help when you're reviewing the market to choose the best deal on your next credit card.
Allocation of Payments
This phrase refers to how your repayments are used to clear your debt. Although you are shown a single balance on your statement, your account is actually made up of various chunks of debt charged at different rates, for example purchases, balance transfers, and cash withdrawals. The allocation of payments sets out the order in which these debt chunks will be repaid. Normally, the cheapest rate of debt is repaid first - probably a 0% balance transfer - and this must be completely cleared before any of the more expensive debts will be reduced. For the credit card companies, this has the happy side effect of increasing the total amount of interest they earn on your account. For you, it means you should try and stay clear of the expensive forms of debt such as cash advances.
Interest Free Period
If you clear your credit card in full every month, and never carry any debt from one statement to the next, you will normally be able to enjoy a delay between spending on the card and being charged interest on what you've spent. This interest free period is also known as a grace period, and is usually in the region of 50 to 60 days.
Typical APR
The APR, or Annual Percentage Rate, is the basic measure of how much interest your card charges on your debt, and the lower the figure, the better. The Typical APR is the rate that at least two thirds of successful applicants will be offered, and was introduced to stop card issuers heavily advertising extremely low rates that in fact only a tiny minority of applicants would be offered.
Minimum Repayment
This is simply the smallest amount you have to pay each month after receiving your statement. It is normally in the region of 3% but has drifted inexorably down over the years, meaning that if you only pay the minimum it will take longer and longer to clear the debt, costing you dearly in terms of interest.
Cash Advances
These are an expensive way of using your credit card, either by withdrawing cash physically from an ATM using your card, or by using the card in some designated outlets such as casinos. The rate charged is normally much higher than the standard APR, and because of allocation of payments, cash advances will be the very last part of your debt to be repaid and will cost you the most in interest, and so for this reason they should generally be avoided.
There are dozens if not hundreds of other pieces of jargon related to credit cards and finance in general, but hopefully this article has cleared up a few unknowns for you and will be of assistance in choosing your next card wisely.
Michael writes for the credit cards advice and comparison site Card Sense, where you can compare low APR credit cards and balance transfer offers.
Article Source: http://articlefree4all.com
Friday, November 23, 2007
College Student Credit Card Debt. Tips For Parents by
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
If you're starting at a university and beginning to ease into a situation where you will be in charge of your own money,college student credit card debt is something to be aware of. However, used wisely a student credit card might be just thing you need to get started!
These days, many universities offer credit cards to their student body and many students have found these cards to be both convenient in terms of day to day life and extremely useful when establishing a good credit line.
One of the first things to think about when considering getting student credit card is that for the most part, you are pre-approved if you are student at the university. One of the most frustrating things that can occur when you are looking for a credit card is being told that you do not have enough of a credit history to apply.
This can work against you in other situations as well; for instance, many apartments do credit checks before allowing you to rent a unit. A university credit card will allow you to both build up credit and take advantage of the convenience of having a credit card right away.
In fact, many universities that offer credit cards allow you to pay online, ensuring that you will have your credit card in a matter of days, rather than weeks. Similarly, you can keep track of all of your transactions while you are online as well, something that the major companies are just beginning to take advantage of,but be aware that college student credit card debt, can build up without you realising it, especially if your parents are footing the bill!
.
Student credit cards, especially as they offered through a university, often have kinder interest rates than otherwise. Do some comparison shopping and there's a good chance that you'll end up with a student card during your university years even if you do qualify for a Visa or Mastercard! While the best plan with a credit card is simply to pay it off immediately, a good line of credit at a low interest rate can really help out if money gets tight. No one wants to make the decision between textbooks and groceries, and a good university credit card help out with that.
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there's nothing wrong with student apartment at the moment. At this juncture of your life, you have different needs than you will later. A student credit card, while not ideal for the rest of your life, is often just the solution you've been looking for when you've newly entered the university life.
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
There are many ways to find out if your university has a credit card available. As soon as you get to campus, you'll probably get a notice regarding it, but if you haven't, check the university web pages, and if there is an information center, inquire there. Sometimes, it's as simple as clicking the right links and filling out a brief application.
Start building up good credit at this point in your life and when you're ready to graduate, you'll find plenty of reasons to be glad you did. College student credit card debt, is not a bad thing and on the whole, students (our future) do a great accountable job. So nothing to worry about parents!
College student credit card debt and it's long term ramifications has intriqued Dr S for many years. A student loan resource and information portal is important for the best credit card interest rates and long term accrued interest.
Article Source: http://articlefree4all.com
If you're starting at a university and beginning to ease into a situation where you will be in charge of your own money,college student credit card debt is something to be aware of. However, used wisely a student credit card might be just thing you need to get started!
These days, many universities offer credit cards to their student body and many students have found these cards to be both convenient in terms of day to day life and extremely useful when establishing a good credit line.
One of the first things to think about when considering getting student credit card is that for the most part, you are pre-approved if you are student at the university. One of the most frustrating things that can occur when you are looking for a credit card is being told that you do not have enough of a credit history to apply.
This can work against you in other situations as well; for instance, many apartments do credit checks before allowing you to rent a unit. A university credit card will allow you to both build up credit and take advantage of the convenience of having a credit card right away.
In fact, many universities that offer credit cards allow you to pay online, ensuring that you will have your credit card in a matter of days, rather than weeks. Similarly, you can keep track of all of your transactions while you are online as well, something that the major companies are just beginning to take advantage of,but be aware that college student credit card debt, can build up without you realising it, especially if your parents are footing the bill!
.
Student credit cards, especially as they offered through a university, often have kinder interest rates than otherwise. Do some comparison shopping and there's a good chance that you'll end up with a student card during your university years even if you do qualify for a Visa or Mastercard! While the best plan with a credit card is simply to pay it off immediately, a good line of credit at a low interest rate can really help out if money gets tight. No one wants to make the decision between textbooks and groceries, and a good university credit card help out with that.
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there's nothing wrong with student apartment at the moment. At this juncture of your life, you have different needs than you will later. A student credit card, while not ideal for the rest of your life, is often just the solution you've been looking for when you've newly entered the university life.
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
There are many ways to find out if your university has a credit card available. As soon as you get to campus, you'll probably get a notice regarding it, but if you haven't, check the university web pages, and if there is an information center, inquire there. Sometimes, it's as simple as clicking the right links and filling out a brief application.
Start building up good credit at this point in your life and when you're ready to graduate, you'll find plenty of reasons to be glad you did. College student credit card debt, is not a bad thing and on the whole, students (our future) do a great accountable job. So nothing to worry about parents!
College student credit card debt and it's long term ramifications has intriqued Dr S for many years. A student loan resource and information portal is important for the best credit card interest rates and long term accrued interest.
Article Source: http://articlefree4all.com
Wednesday, November 21, 2007
How To Repair Bad Credit
How To Repair Bad Credit
Can bad credit be repaired? Most consumers believe that once you have bad credit, then you will never again have good credit. Bad credit is extremely difficult to repair, however, it can be done. What you need to keep in mind, is that bad credit only lasts as long as the delinquencies on your credit report last. Once the negative items on your credit report are removed, then you will once again have good credit.
Okay, so what is the time limit for negative items to stay on a credit report? Bankruptcies stay on the credit report for about ten years and negative items stay on for about seven years. Why do I say "about" seven and ten years for negative items? Typically, the negative items should be removed after seven and ten years, however, it often takes a bit longer for these items to be removed by the credit bureaus. In general, the seven and ten year periods are calculated from the date that the event took place.
One way to repair bad credit, is to negotiate a settlement of delinquent debt. Generally, you can negotiate with the debt collection agency or bank that owns your delinquent debt. A rule of thumb, is to try and pay about thirty to fifty cents on the dollar. You can usually get an agreement, in which the debt owner, will agree to place a "settled in full" statement on your credit report, once you have paid the agreed upon amount. Never pay the negotiated debt settlement amount, until you have an agreement in writing. This is because once you have paid this amount, the debt owner, has no incentive to place the "settled in full" statement on your report. If you pay the debt, and the debt owner fails to place the "settled in full" statement on your report, without an agreement in writing, you will have no proof that the debt was settled in full.
If you don't have any money to repay any portion of the delinquent debt, then another way to re-establish good credit, is to start taking out small loans at a bank or loaning institution. This method also works by establishing timely payments through secured credit cards. It seems quite bizarre, but you can actually drown out bad items with good items. What this simply means, is that if you have fifty loans that are in good standing and ten loans in bad standing, the loans in bad standing, will be eclipsed by the loans in good standing. Keep in mind, that you will have to take out very small loans, and pay these loans back on time, in full, every time. Paying off about twenty to thirty small loans on time, will make a significant difference in calculating your credit score. Many individuals credit scores can raise a few hundred points, in a relatively short period of time, with this method.
What if you have bad credit because of fraudulent activity? First, let's specifically define fraudulent activity. The majority of the consumers define fraudulent activity, as individuals who take out credit cards or loans, based upon someone else's identifying information. That is only partially true. Fraudulent activity, can also be a credit card company illegal raising an interest rate in violation of contract terms, a loan being called in before it is due, a bank demanding an illegally accelerated payment of a loan or credit card, or any other violation of law by a financial institution regarding the repayment of a debt. Most consumers fail to recognize when financial institutions commit fraud. The simple solution for fixing bad credit because of fraudulent activity, is to dispute the activity on your credit report. In real estate, the motto is: location, location, location. When it comes to fraudulent credit activity, the motto is: dispute, dispute, dispute. Consumers have the right to dispute any and all fraudulent activity on the report, whether by individuals or financial institutions, by contacting the three credit bureaus and disputing the debt, in writing.
Bad credit, can and should be, repaired. With a little effort and time, bad credit items can be either erased, settled, or eclipsed by good credit.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Can bad credit be repaired? Most consumers believe that once you have bad credit, then you will never again have good credit. Bad credit is extremely difficult to repair, however, it can be done. What you need to keep in mind, is that bad credit only lasts as long as the delinquencies on your credit report last. Once the negative items on your credit report are removed, then you will once again have good credit.
Okay, so what is the time limit for negative items to stay on a credit report? Bankruptcies stay on the credit report for about ten years and negative items stay on for about seven years. Why do I say "about" seven and ten years for negative items? Typically, the negative items should be removed after seven and ten years, however, it often takes a bit longer for these items to be removed by the credit bureaus. In general, the seven and ten year periods are calculated from the date that the event took place.
One way to repair bad credit, is to negotiate a settlement of delinquent debt. Generally, you can negotiate with the debt collection agency or bank that owns your delinquent debt. A rule of thumb, is to try and pay about thirty to fifty cents on the dollar. You can usually get an agreement, in which the debt owner, will agree to place a "settled in full" statement on your credit report, once you have paid the agreed upon amount. Never pay the negotiated debt settlement amount, until you have an agreement in writing. This is because once you have paid this amount, the debt owner, has no incentive to place the "settled in full" statement on your report. If you pay the debt, and the debt owner fails to place the "settled in full" statement on your report, without an agreement in writing, you will have no proof that the debt was settled in full.
If you don't have any money to repay any portion of the delinquent debt, then another way to re-establish good credit, is to start taking out small loans at a bank or loaning institution. This method also works by establishing timely payments through secured credit cards. It seems quite bizarre, but you can actually drown out bad items with good items. What this simply means, is that if you have fifty loans that are in good standing and ten loans in bad standing, the loans in bad standing, will be eclipsed by the loans in good standing. Keep in mind, that you will have to take out very small loans, and pay these loans back on time, in full, every time. Paying off about twenty to thirty small loans on time, will make a significant difference in calculating your credit score. Many individuals credit scores can raise a few hundred points, in a relatively short period of time, with this method.
What if you have bad credit because of fraudulent activity? First, let's specifically define fraudulent activity. The majority of the consumers define fraudulent activity, as individuals who take out credit cards or loans, based upon someone else's identifying information. That is only partially true. Fraudulent activity, can also be a credit card company illegal raising an interest rate in violation of contract terms, a loan being called in before it is due, a bank demanding an illegally accelerated payment of a loan or credit card, or any other violation of law by a financial institution regarding the repayment of a debt. Most consumers fail to recognize when financial institutions commit fraud. The simple solution for fixing bad credit because of fraudulent activity, is to dispute the activity on your credit report. In real estate, the motto is: location, location, location. When it comes to fraudulent credit activity, the motto is: dispute, dispute, dispute. Consumers have the right to dispute any and all fraudulent activity on the report, whether by individuals or financial institutions, by contacting the three credit bureaus and disputing the debt, in writing.
Bad credit, can and should be, repaired. With a little effort and time, bad credit items can be either erased, settled, or eclipsed by good credit.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Sunday, November 18, 2007
How To Erase Fraudulent Activity On Your Credit Report
Everyone has heard the horror stories. The stories about individuals whose credit score is ruined from errors and fraudulent activity that is posted on their credit report. Stolen identities, stolen credit card numbers, and stolen Social Security Numbers, can all be used to fraudulently apply for credit on your credit history. There are a few simple rules to keep in mind if ever you have fraudulent activity reported on your report.
Always remember to dispute the fraudulent activity on your credit report as soon as you find out about it. Waiting too long, can erode your rights to dispute the fraudulent activity on your report. Make sure to write to all three credit bureaus, when disputing fraudulent activities. Only disputing fraudulent activity with one credit bureau, will not erase the activity reported on the other two bureaus.
Make sure to ask for proper documentation from the financial institutions that are reporting the fraudulent activity. Many times individuals will dispute the activity, but forget to request documentation from the financial institutions reporting the activity. If you don't ask for the proper documentation, then you won't receive it. Usually, the fraudulent activity is some sort of mistake that can be cleared up upon inspection of the credit application and identifying information, given to the financial institution by the credit applicant. In many cases, the financial institutions may have wrongly reported someone else's credit activity on your report, simply by erroneously giving the wrong address, wrong name, or wrong Social Security Number to the credit bureaus.
Keep in mind, that if the financial institution doesn't provide the proper documentation to prove the debt is actually yours within thirty days, then by Federal law, the credit bureaus have to remove the disputed charges from your report. This is defined in the Fair Credit Reporting Act. Don't be under the impression however, that after thirty days, the disputed charge will be removed. Although the credit bureaus are required by law, to remove the disputed charges from your report if the financial institution doesn't provide the appropriate documentation automatically, usually you have to write them again, after the thirty day period expires, to inform them of the failure by the creditor to provide the proper documentation. Persistence is the key.
It usually takes on average, about four to six months, to clear up fraudulent activity on one's credit report. Unfortunately, it is a very slow process. Also, be aware that the individuals who work at the credit bureaus, may not necessarily be legally savvy. It is always a good idea, to provide the credit bureaus with copies of the relevant legal statutes, under which you are making the dispute of charges.
Don't get discouraged if at first the disputed charges are not removed in a timely manner. Remember that persistence is the key. Sooner or later, the financial institution will usually give in, and remove the disputed charges. They are not in business to fight with consumers over disputed charges on their credit report. They are in business to make money from interest charged on the borrower's debt.
Sometimes, the credit bureaus and the financial institution will refuse to remove the disputed charges. If this happens, then you have the right to place a comment along with disputed charges. You can say something like "Credit company refuses to remove fraudulent charges", or "Credit card was issued to someone else fraudulently, and charges are not mine." You may also want to consult an attorney, because you may have the right to sue the financial institution and the credit bureaus, to force them to remove the fraudulent activity on your report.
Always remember, that just because a fraudulent charge is shown on your credit report today, doesn't mean that it has to be there tomorrow.
------------------------
Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Always remember to dispute the fraudulent activity on your credit report as soon as you find out about it. Waiting too long, can erode your rights to dispute the fraudulent activity on your report. Make sure to write to all three credit bureaus, when disputing fraudulent activities. Only disputing fraudulent activity with one credit bureau, will not erase the activity reported on the other two bureaus.
Make sure to ask for proper documentation from the financial institutions that are reporting the fraudulent activity. Many times individuals will dispute the activity, but forget to request documentation from the financial institutions reporting the activity. If you don't ask for the proper documentation, then you won't receive it. Usually, the fraudulent activity is some sort of mistake that can be cleared up upon inspection of the credit application and identifying information, given to the financial institution by the credit applicant. In many cases, the financial institutions may have wrongly reported someone else's credit activity on your report, simply by erroneously giving the wrong address, wrong name, or wrong Social Security Number to the credit bureaus.
Keep in mind, that if the financial institution doesn't provide the proper documentation to prove the debt is actually yours within thirty days, then by Federal law, the credit bureaus have to remove the disputed charges from your report. This is defined in the Fair Credit Reporting Act. Don't be under the impression however, that after thirty days, the disputed charge will be removed. Although the credit bureaus are required by law, to remove the disputed charges from your report if the financial institution doesn't provide the appropriate documentation automatically, usually you have to write them again, after the thirty day period expires, to inform them of the failure by the creditor to provide the proper documentation. Persistence is the key.
It usually takes on average, about four to six months, to clear up fraudulent activity on one's credit report. Unfortunately, it is a very slow process. Also, be aware that the individuals who work at the credit bureaus, may not necessarily be legally savvy. It is always a good idea, to provide the credit bureaus with copies of the relevant legal statutes, under which you are making the dispute of charges.
Don't get discouraged if at first the disputed charges are not removed in a timely manner. Remember that persistence is the key. Sooner or later, the financial institution will usually give in, and remove the disputed charges. They are not in business to fight with consumers over disputed charges on their credit report. They are in business to make money from interest charged on the borrower's debt.
Sometimes, the credit bureaus and the financial institution will refuse to remove the disputed charges. If this happens, then you have the right to place a comment along with disputed charges. You can say something like "Credit company refuses to remove fraudulent charges", or "Credit card was issued to someone else fraudulently, and charges are not mine." You may also want to consult an attorney, because you may have the right to sue the financial institution and the credit bureaus, to force them to remove the fraudulent activity on your report.
Always remember, that just because a fraudulent charge is shown on your credit report today, doesn't mean that it has to be there tomorrow.
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Bryan Pringle, Ph.D., has written many articles on the credit industry, and is the webmaster of websites offering news and information regarding credit cards. For more information, please visit: http://www.apply-forcreditcards-online.com
Wednesday, November 14, 2007
Calling Your Way Out Of Debt
Debt is a four-letter word we all want to avoid. However, the cost of living alone is so demanding that debt follows us wherever we go. We have to pay bills, pay for clothing, food, gasoline, taxes, rent, mortgage, car payments, college, etc, that sometimes it is next to impossible not to find yourself humming this four-letter word.
The best way to solve debt is to sit down and find solutions. Solving problems is the first step you will need to take to find a way out of debt. Once you start to see you have options, you can find it easier to cope with your stress and debts. If you cannot find new ideas to help you find ways out of debt, visit your local library and look for debt solutions and guides that walk you through steps in getting out of debt.
Having many resources can help you to pull up new ideas that lead to solving problems. Rather than allowing problems weigh you down, take action now and find solutions that will reduce your stress and your debts.
If you have access to the Internet, search the engines to find relevant links that guide you into debt relief. Stay away from companies that offer to get you out of debt for a high monthly fee. The concept of getting out of debt is to relieve self of extra burden, such as a new bill. For the most part, you can call your creditors and make payment arrangements. The creditors are often glad to hear from you. Rather than have the hounds from hell hunt you down, the creditors would rather keep you as a friend, since they want you to pay your debt and incur future debt with their company.
You have recourses when it comes to finding ways out of debt. Debt elimination is not an option, since when you get rid of one debt another will follow. You get the point. The solution is getting out of the past debts you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, until gradually you find relief.
To avoid incurring additional debt, stay away from credit cards. Only use your credit cards to pay bills, and payoff your credit card as soon as possible to avoid high interest rates. Stay away from payday loans also, unless you see that you can avoid late fees and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
The above tips are just some of the many ways to keep out of debt and manage the debt that you already have. If you can manage your debt effectively you can save a massive amount of money over the years in interest.
Martin Lukac represents RateEmpire.com mortgage rates marketplace which connects consumers with multiple mortgage companies that compete for their business. RateEmpire.com is a destination site of refinance rates and home equity rates.
Article Source: http://www.information-overload.eu/articleland
The best way to solve debt is to sit down and find solutions. Solving problems is the first step you will need to take to find a way out of debt. Once you start to see you have options, you can find it easier to cope with your stress and debts. If you cannot find new ideas to help you find ways out of debt, visit your local library and look for debt solutions and guides that walk you through steps in getting out of debt.
Having many resources can help you to pull up new ideas that lead to solving problems. Rather than allowing problems weigh you down, take action now and find solutions that will reduce your stress and your debts.
If you have access to the Internet, search the engines to find relevant links that guide you into debt relief. Stay away from companies that offer to get you out of debt for a high monthly fee. The concept of getting out of debt is to relieve self of extra burden, such as a new bill. For the most part, you can call your creditors and make payment arrangements. The creditors are often glad to hear from you. Rather than have the hounds from hell hunt you down, the creditors would rather keep you as a friend, since they want you to pay your debt and incur future debt with their company.
You have recourses when it comes to finding ways out of debt. Debt elimination is not an option, since when you get rid of one debt another will follow. You get the point. The solution is getting out of the past debts you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, until gradually you find relief.
To avoid incurring additional debt, stay away from credit cards. Only use your credit cards to pay bills, and payoff your credit card as soon as possible to avoid high interest rates. Stay away from payday loans also, unless you see that you can avoid late fees and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.
The above tips are just some of the many ways to keep out of debt and manage the debt that you already have. If you can manage your debt effectively you can save a massive amount of money over the years in interest.
Martin Lukac represents RateEmpire.com mortgage rates marketplace which connects consumers with multiple mortgage companies that compete for their business. RateEmpire.com is a destination site of refinance rates and home equity rates.
Article Source: http://www.information-overload.eu/articleland
Credit Score and How It"s Built
Credit Scores are so important because they are used for everything today. They determine the interest rate on loans; auto, personal and mortgages. They determine the premium you will pay for auto insurance etc.
How do you build an excellent credit score? There are three important factors that build you score.
1. History - your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn't updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I'm not saying don't pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I'm saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.
2. Length of Credit - this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.
3. Capacity - this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.
This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.
By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com. and http://www.work-home-today.com; great resources.
Article Source: http://www.articlerich.com
How do you build an excellent credit score? There are three important factors that build you score.
1. History - your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn't updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I'm not saying don't pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I'm saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.
2. Length of Credit - this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.
3. Capacity - this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.
This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.
By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com. and http://www.work-home-today.com; great resources.
Article Source: http://www.articlerich.com
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