Weekly Credit Tips on Surviving the Credit Crunch - Creditnet.com

Trying to Rent with Bad Credit?

Thu, 10 May 2012 00:00:00 -0700

Competition for rental properties is fierce in a lot of cities around the country, which means many businesses managing apartment complexes are choosing to only rent to applicants with the best credit scores. Consequently, if your credit isn't in prime shape, you might find it very difficult...

Notify Your Credit Card Company Before Traveling Overseas

Wed, 02 May 2012 00:00:00 -0700

If you're getting ready to head out of the country on vacation, don't forget to call your credit issuer and let them know when and where you're traveling. It can be a huge inconvenience when you're in a foreign country and all of sudden your credit card is declined...

56% of Americans Don't Have a Personal Budget

Thu, 19 Apr 2012 00:00:00 -0700

It's April, which means Financial Literacy Month is here once again! And as usual, the National Foundation for Credit Counseling (NFCC) recently released the much-anticipated results of its 2012 Consumer Financial Literacy Survey. One of the most shocking statistics the NFCC continues to report is that over half...

There's No Such Thing as Too Much Available Credit

Tue, 10 Apr 2012 00:00:00 -0700

It's a common credit-scoring myth that too much available credit will damage your FICO scores. For example, let's say you have ten credit cards and over $150,000 in available credit, yet you only spend about $1,000 per month on all your credit cards combined. Would that...

Ditch the Debit Card When Shopping Online

Tue, 20 Mar 2012 00:00:00 -0700

There are still way too many consumers who use debit cards to shop online. If you're one of them, it's time to finally ditch the old debit card and make sure you're protecting yourself by using a credit card instead. Unlike debit cards, credit cards place a middleman...

Don't Blow Your Tax Refund

Tue, 06 Mar 2012 00:00:00 -0800

It's easy to think of tax refunds as a free windfall of money that you can blow however you please. In truth, a tax refund isn't free money at all. It's actually money that should've been in your bank account all along, but you chose to lend it...

Prepaid Debit Cards Don't Report to Major Credit Bureaus

Thu, 16 Feb 2012 00:00:00 -0800

Many prepaid debit cards advertise that they report payment history to credit reporting agencies. While this isn't exactly untrue, don't be fooled by the marketing speak! Here's the catch. They may actually report your payment history to an agency, but they won't report it to any of...

Always Keep a Backup Credit Card Handy

Thu, 09 Feb 2012 00:00:00 -0800

One credit card may seem like more than enough to manage your personal expenses, but the fact is it's just not a good idea to limit yourself to one card. Why is that? Well, what if your credit issuer decides to cut your credit limit in half? You may...

Foreclosure and Your Federal Tax Bill

Tue, 24 Jan 2012 00:00:00 -0800

When a lender forecloses on a home, it can choose to either forgive any remaining debt or pursue the homeowner for a deficiency judgment. If the lender chooses to forgive the debt, which is often the case, it will send a form 1099-C to the homeowner...

Student Credit Cards: Don't Get Denied Due to Insufficient Income

Wed, 18 Jan 2012 00:00:00 -0800

College students under the age of 21 have found it increasingly difficult to get approved for student credit cards on their own. This is primarily due to new federal laws that require young adults under 21 to either have an adult co-signer or sufficient income to support...

Trash Those Balance Transfer Checks

Mon, 02 Jan 2012 00:00:00 -0800

Have you been getting a lot of balance transfer credit card checks in the mail recently? If so, you're not alone! As the holiday season quickly approaches, credit issuers know there are a lot of consumers in need of some extra financial help this year. And what...

Use Your Flexible Spending Accounts by 12/31

Tue, 20 Dec 2011 00:00:00 -0800

FSAs (Flexible Spending Accounts) often allow you to set aside up to $5,000 pretax for medical expenses. While this can be a great way to help reduce medical costs throughout out the year, most companies also require that you use those funds by December 31st. Some companies may give you...

Always Pay in Local Currency When Shopping Overseas

Tue, 13 Dec 2011 00:00:00 -0800

If you're traveling out of the country for the holidays, here's a quick tip to help make the most of every dollar you spend abroad. No matter where you're traveling, always pay in the local currency when using your credit cards. Foreign merchants like to take advantage of...

Layaway is Making a Comeback

Thu, 01 Dec 2011 00:00:00 -0800

Think layaway was just something your grandma used to do? Wrong! Major retailers such as Walmart, Kmart and Sears are expecting huge growth in the popularity of their layaway programs this holiday season. As consumers continue to struggle through tough economic times, many shoppers have no access to credit...

Register for Small Business Saturday and Get $25 from Amex

Fri, 18 Nov 2011 00:00:00 -0800

Small Business Saturday 2011 is just one week away, so don't forget to register your American Express card this week! Trust us, you don't want to miss out on this opportunity. After registering, all you'll need to do is spend at least $25 at a small business next Saturday,...

Tackle Your Credit Card Debt with P2P Lending

Fri, 11 Nov 2011 00:00:00 -0800

Interest rates may be at historic lows, but average interest rates for even the best credit cards are still in the double digits. For consumers struggling to pay off high-interest credit card debt, the task can almost seem insurmountable! Peer-to-peer lending, however, has quickly become an excellent alternative...

Hey Students! Don't Cosign Your Friend's Credit Card

Tue, 25 Oct 2011 00:00:00 -0700

New regulations that were part of the Credit CARD Act of 2009 have made it more difficult for students under 21 to get approved for student credit cards unless they have an adult cosigner or sufficient income. Unfortunately, this has led to a situation in which many older...

Interest Rates and Your Credit Scores

Tue, 18 Oct 2011 00:00:00 -0700

If you carry a balance on your credit card, what interest rate you're charged should be very important to you. Obviously, the lower your interest rate, the less you'll pay in finance charges until the debt is paid off. However, it's important to understand that actual interest rates are not...

CARD Act Loophole: Interest Rates Still Increased After 15 Days

Tue, 11 Oct 2011 00:00:00 -0700

The CARD Act of 2009 requires credit card companies to provide cardholders with 45 days' notice when interest rates are increased. While most credit card users assume this means they'll receive notice at least 45 days before their interest rates rise, this actually isn't the case in most circumstances. What...

Denial Doesn't Hurt Your Credit Scores

Fri, 07 Oct 2011 00:00:00 -0700

Consumers are often worried about applying for new credit cards because they don't want to get denied and hurt their credit scores. While no one likes to get rejected, the truth is the rejection itself actually doesn't hurt your credit scores. The small hit your scores will take,...

Paying Taxes on Credit Card Rewards

Thu, 29 Sep 2011 00:00:00 -0700

Expecting a big check this year from your cash back credit card? We hope so. If you are, you may also be wondering if this is considered income and taxable by the IRS. While it's no secret that the IRS wants to categorize as much as possible...

Will Breaking a Lease Hurt My Credit?

Thu, 15 Sep 2011 00:00:00 -0700

Breaking your lease may seem like the easiest way out of an apartment you can no longer afford, but it's important to remember that it could do some major damage to your credit scores too. Breaking the lease itself isn't what will actually hurt your scores. However, by...

Find the Best Credit Cards for Students with No Credit

Sun, 04 Sep 2011 00:00:00 -0700

Savvy college students understand that it's important to secure a credit card and begin establishing good credit while in college. But there are so many credit card offers from which to choose and most students begin with no credit history at all. So which offers are the

ATM Cards vs. Debit Cards vs. Credit Cards

Tue, 23 Aug 2011 00:00:00 -0700

These 3 types of plastic may look alike, but they have very different uses. For example, ATM cards can generally only be used to withdraw cash from an ATM. Debit cards, on the other hand, double as both an ATM card and a way to make purchases...

Know Your Credit Card Billing Cycle

Thu, 18 Aug 2011 00:00:00 -0700

It sounds obvious, but there are actually several reasons why you need to keep close tabs on your credit cards' billing cycles. The first one that should come to mind is you need to know when your billing cycle ends so you can be prepared to make...

CFPB Accepts Credit Card Complaints

Wed, 03 Aug 2011 00:00:00 -0700

Now that the Consumer Financial Protection Bureau is officially up and running, complaints about credit card companies will be collected by one single government agency. While complaints are limited to credit cards at this time, the CFPB does plan to ramp up its efforts as more employees are hired to...

Pay Off Student Loans or Save Extra for Down Payment?

Fri, 22 Jul 2011 00:00:00 -0700

School is behind you and you've been lucky enough to land a decent job, but cutting monthly rent checks is getting old fast. Is it time to bite the bullet and finally buy a place of your own? The decision would be a lot easier to make if it weren't...

FTC and Fed Broaden Free Credit Score Rules

Mon, 11 Jul 2011 00:00:00 -0700

Consumers are now closer than ever to having the right to a free credit score. In fact, there's a good chance you'll receive free copies of your scores the next time you apply for any type of credit, including credit cards. According to a

What Happens to Charge Offs After Debts are Paid?

Tue, 21 Jun 2011 00:00:00 -0700

You finally paid off the collection agency that's been hounding you over an old debt for years, but what about the creditor that originally owned your account? What happens to the charge off they've been reporting on your credit reports? A lot of people expect the charge off...

Using Debit Cards for Car Rentals Hurts Credit Scores

Thu, 09 Jun 2011 00:00:00 -0700

It's a little known fact that most car rental companies have a clause in their agreement that says they have the right to pull your credit reports if you use a debit card to rent a vehicle. What this means is that if you choose debit over...

Should You Add an Authorized User?

Fri, 03 Jun 2011 00:00:00 -0700

Are you thinking about adding an authorized user to one of your credit cards? If so, here are a few things to keep in mind before pulling the trigger. Make sure you choose the person you add very carefully. While an authorized user can make purchases with...

Keep Your Bluetooth Secure

Fri, 27 May 2011 00:00:00 -0700

You're probably lugging around a lot of Bluetooth-enabled devices these days. And while it may be hard to leave home without them, smartphones, laptops, netbooks, iPads and Bluetooth headsets have unfortunately made us all sitting ducks for identity theft. Those nasty hackers love using Bluetooth to steal your personal...

Make Good Use of Your Tax Refund

Fri, 20 May 2011 00:00:00 -0700

The average American taxpayer received around a $3,000 check from Uncle Sam this year. If you're still sitting on your cash trying to decide how to spend it, here's what you should do: 1.) Pay Down Debt: This is always the first option. Want to earn yourself...

Good Credit Saves Big Money

Thu, 12 May 2011 00:00:00 -0700

Everyone loves finding new ways to save money. Some people obsess over cutting the little things from their daily routine, like lunches out with friends and $4 lattes. And while there's nothing wrong with frugality, the truth is a lot of people tend to overlook other areas in...

Get Your Free Federal Tax Receipt

Fri, 06 May 2011 00:00:00 -0700

There's a good chance your largest expense in 2010 was the taxes you paid to Uncle Sam. But do you know exactly where your money went? Probably not. ThirdWay, a think-tank based in Washington D.C., believes that everyone who files a tax return should have the right to a...

Balance Transfers: Don't Miss Your Window of Opportunity

Wed, 27 Apr 2011 00:00:00 -0700

If you recently applied for a no interest credit card and plan to use it to initiate a balance transfer, don't sit on your laurels for too long once the new card arrives in the mail. You certainly don't want to miss out on the 0% interest...

What is a 1099-C?

Tue, 12 Apr 2011 00:00:00 -0700

If you went through a foreclosure, sold your home short, or had credit card debt forgiven in 2010, then you probably received a 1099-C in the mail early this year. Hopefully you didn't ignore it and shove it in the back of your desk, because this is...

Say No to Credit Card Protection Plans

Wed, 30 Mar 2011 00:00:00 -0700

Recent studies show that credit card protection plans, often advertised as a way to guard against unexpected events such as unemployment or illness, are not only expensive but also provide little in return. According to the Government Accountability Office, consumers spent $2.4 billion on credit card protection plans in...

Could Your Credit Report Cost You a Job?

Tue, 22 Mar 2011 00:00:00 -0700

According to a survey released in 2010 by the Society for Human Resource Management, 60 percent of employers perform some type of credit report screening on applicants. Of that 60 percent, 13 percent perform credit checks on all job applicants, regardless of the position for which they're applying. Whether you...

Can the Same Debt be Reported Twice?

Mon, 14 Mar 2011 00:00:00 -0700

Consumers are often surprised when they pull their credit reports and find that one of their old debts is listed twice under different creditors' names. How can this happen? It's actually quite simple. In most cases, the debt is listed as both a charge-off and a collection...

Beware of Debit Card Caps

Tue, 08 Mar 2011 00:00:00 -0800

The new rules haven't been finalized yet, but there's a good chance that "swipe fees" (what banks and card issuers charge merchants when a debit card is used to make a purchase) will be reduced in July. So what does that mean for your wallet? Well, it could lead...

Rent Payments Now Included on Experian Credit Reports

Tue, 01 Mar 2011 00:00:00 -0800

Experian recently announced that it began including residential rental payment data on credit reports as of January 2011. In the past, the only way rental payment information would ever show up on your credit reports was if your account was sent to collections or you were evicted....

Don't Use Retirement Funds to Pay Off Debt

Thu, 24 Feb 2011 00:00:00 -0800

It can be tempting to dip into retirement money when no cash is left in the bank and there are bills to be paid, but you must resist the temptation! Retirement funds are for one and only one thing—retirement. They need to be left alone so you can...

Prepare and e-File Your Tax Return for Free

Wed, 16 Feb 2011 00:00:00 -0800

Tax season is upon us yet again! But before you head out to purchase the latest tax software, did you know that you might be able to get it for free? In fact, if your Adjusted Gross Income (AGI) was $58,000 or less in 2010, the Internal Revenue...

Missing Accounts on Credit Reports

Tue, 08 Feb 2011 00:00:00 -0800

Did you know that your credit reports may not reflect all your credit accounts? The truth is creditors aren't required to report anything to the major credit bureaus, so many lenders simply choose not to do so. Smaller credit unions, local retailers, student loan...

How Loan Modifications Affect Credit Scores

Tue, 01 Feb 2011 00:00:00 -0800

The extent of a loan modification's effect on your credit score largely depends on whether your lender reports the loan to the credit bureaus as a new loan or the same loan with changes. If it's reported as a completely new loan, the changes to your loan balance and the terms...

Foreclosure, Short Sale, Deed-in-lieu: All the Same to FICO

Mon, 24 Jan 2011 00:00:00 -0800

Lots of lawyers, real estate agents, and loan officers love to give free advice about credit scores these days. Unfortunately, many of them have no clue what they're talking about. A common piece of misguided advice often doled out to struggling homeowners is that choosing an alternative to foreclosure, such...

Know Your APRs

Mon, 17 Jan 2011 00:00:00 -0800

Most credit cards have more than one APR. However, credit issuers tend to focus their advertisements on just one—attractive introductory APRs that usually last for 6-12 months after a new card is issued. But while promotional interest rate periods for no interest credit cards can certainly be enticing,...

Take Charge of Your Gift Cards

Mon, 10 Jan 2011 00:00:00 -0800

Do you have a sock drawer full of unused gift cards from the holidays? If so, you're definitely not alone. Some experts believe that consumers leave over $5 billion on gift cards each year. That's a lot of unused dough! However, thanks to a new Seattle-based...

Put Your Social Security Tax Cut to Work

Mon, 03 Jan 2011 00:00:00 -0800

If you pay social security taxes, your withholding rate just dropped from 6.2% to 4.2% beginning January 1st. This tax cut, dubbed the 2011 Payroll Tax Holiday, was actually passed by Congress late last year as a replacement to the expiring "Making Work Pay" tax credit. This is...

Set Your Financial Goals for 2011!

Tue, 28 Dec 2010 00:00:00 -0800

The excitement of Christmas has come and gone, but there's still one week left in 2010. In fact, this is the perfect time to not only reflect upon the previous year, but to also look ahead and set some personal financial goals for 2011. Do you still have lingering credit...

Don't Fall for the In-Store Credit Card Spiel

Tue, 21 Dec 2010 00:00:00 -0800

A recent survey by myFICO, creator of the almighty FICO credit score, reports that 1 in 10 shoppers will sign up for an in-store credit card when offered a discount at the cash register. You know how the spiel goes, right? Just when you're about to make a purchase,...

Check Your Credit Card's Return Protection Policy

Mon, 13 Dec 2010 00:00:00 -0800

Americans love to return things. It's part of our shopping culture. Try buying something in Asia and then returning it a few weeks later because you decided the color just wasn't right. They'll look at you like you're crazy! Return policies become especially important to us around the...

Make a List and Check it Twice

Tue, 07 Dec 2010 00:00:00 -0800

If you're interested in staying within your holiday shopping budget this year, take some advice from the big guy in the red suit—make a list. And after it's made, check it twice before you hit the malls to brave the masses. A carefully prepared list is sure to...

Check Your Credit Card Rewards Bonuses Before Holiday Shopping

Tue, 30 Nov 2010 00:00:00 -0800

The holiday shopping season is in full swing, which means retailers and credit card companies are working overtime to win your business. So what do the retailers have up their sleeves this year? Nothing really new—just sales, sales, and more sales! Obviously they work, or else we wouldn't...

Foreclosure and Your FICO Credit Scores

Mon, 22 Nov 2010 00:00:00 -0800

A foreclosure ranks high among the most damaging hits to your credit score. In fact, FICO has stated that foreclosures will typically result in a loss of 85 to 105 points for someone with a 680 score. And if you have better credit, say a FICO...

3 Credit Reporting Agencies You've Never Heard Of

Mon, 15 Nov 2010 00:00:00 -0800

Everybody knows about the "Big 3"—Experian, Equifax, and TransUnion. But did you know there are 3 other companies out there keeping track of your personal information and selling it to those who want to know more about you? First, Innovis Data Solutions, which used to be known as CBC, is...

720 FICO Score Marks New Threshold for Best Rates

Mon, 08 Nov 2010 00:00:00 -0800

Real estate values continue to drop around the country while interest rates remain at historic lows. If you've had your eye on that perfect home for the past few years, this may seem like the perfect time to finally take the plunge and become a homeowner. But wait—will...

How to Avoid Credit Card Tipping Scams

Mon, 01 Nov 2010 00:00:00 -0700

Dishonest restaurant servers know how easy it is to overlook an extra 50 cents on a dinner bill, which is why one of the most common credit card scams involves waiters adding just a little extra tip for themselves. To protect yourself from this annoying occurrence, try devising a...

How to Activate a Fraud Alert

Mon, 25 Oct 2010 00:00:00 -0700

Ever had a conversation with a shady customer service agent who demanded your FULL social security number and other personal information, which you reluctantly handed over? It can be a rather unsettling feeling when you realize that you probably just gave out way too much information to someone that...

Credit Card Protection Insurance: Is it Worth It?

Mon, 18 Oct 2010 00:00:00 -0700

Credit card companies use a variety of creative names for credit protection insurance, but they all provide essentially the same service. You pay a monthly premium, and in return you get the piece of mind that comes along with knowing your credit card payments (often only the minimum payments)...

Beware of New Debit Card Fees

Tue, 12 Oct 2010 00:00:00 -0700

Debit card issuers can no longer charge hefty overdraft fees unless you opt into their overdraft protection service. And much to their dismay, customers haven't been signing up in droves. So how are they making up for the lost overdraft fee revenue? New fees, of course. But shouldn't...

Credit Card Debt and Community Property Laws

Tue, 05 Oct 2010 00:00:00 -0700

Married couples, especially those that have been separated for a long time, often assume that one spouse cannot be held responsible for the other spouse's credit card debt unless they are joint account holders. Unfortunately, for couples that live in a community property state, this isn't the...

Understanding the Statute of Limitations on Debt

Mon, 27 Sep 2010 00:00:00 -0700

A common misconception among consumers is that their credit card debt will simply go away once the Statute of Limitations (SOL) has expired. However, in reality, the debt goes nowhere and creditors still have the right to try and collect what is rightfully owed to them. So, what...

Small Collection Accounts Ignored by FICO '08

Mon, 20 Sep 2010 00:00:00 -0700

Too many credit scores have been wrecked by something like an annoying $50 medical bill that falls through the insurance cracks and ends up on your credit report before you ever receive a bill. We all know it can happen to the best of us. Fortunately, Fair Isaac...

The Minimum Requirements for FICO Scores

Tue, 14 Sep 2010 00:00:00 -0700

Individuals new to credit are often concerned about how long it will take to actually obtain a FICO credit score. Most think that as soon as some kind of credit is acquired, they will automatically have a FICO score the next day. That's not how it...

How Long Will Inquiries Stay on My Credit Report?

Tue, 07 Sep 2010 00:00:00 -0700

A hard inquiry, which occurs when you apply for credit and your credit reports are pulled as part of the application process, will remain on your reports for two years. Your credit score may also take a small hit as a result of the hard inquiry, but you shouldn't...

How to Begin Improving Your Bad Credit

Tue, 31 Aug 2010 00:00:00 -0700

The first step in any credit improvement process should begin by pulling your credit reports. Why? Because it's important to understand exactly where you stand before you can improve upon anything. Unfortunately, many people choose to ignore their credit reports because they think it's more important to...

HELOCs and Your FICO Scores

Tue, 24 Aug 2010 00:00:00 -0700

Unlike mortgages, which are installment loans, the amount of available credit on a home equity line of credit (HELOC) will increase when you pay down the balance. Sounds like a credit card, right? In some ways, yes, and HELOCs are technically considered revolving credit accounts as well. So don't...

Credit Card Late Fees Capped at Minimum Payment

Tue, 17 Aug 2010 00:00:00 -0700

New fee restrictions included in the Credit CARD Act of 2009 are set to take effect this month. And one important change you may not have heard about yet mandates a new limit on the amount credit issuers can charge for late fees. Effective August 22, 2010, your...

When to Pay Extra on Your Mortgage

Mon, 09 Aug 2010 00:00:00 -0700

Everyone's personal financial plan should include a strategy to pay down existing debt. The big question is which debt should be paid down first? In many households the single largest amount of debt is in the form of a mortgage. But just because it's the biggest and...

How to Deal with a Lost Credit Card

Tue, 03 Aug 2010 00:00:00 -0700

The FCBA (Fair Credit Billing Act) limits your liability for unauthorized credit card charges to a maximum of $50. So if you just realized your credit card is missing, there's no reason to enter "freak out" mode. You're going to be okay. Instead, take a deep...

Beware of Overdraft Fees in Closed Accounts

Mon, 26 Jul 2010 00:00:00 -0700

Credit card users often choose to autopay their monthly credit card bills from a checking or online savings account . While this is a great way to make sure you never miss an on-time payment, it's important to remember that you could run into...

Will Disputing an Account Hurt My Credit Score?

Mon, 19 Jul 2010 00:00:00 -0700

Credit bureaus are large organizations that process enormous amounts of data. They will undoubtedly make mistakes. Fortunately, the FCRA (Fair Credit Reporting Act) provides you with the right to correct or delete any information that's found to be inaccurate or unverifiable on your credit reports. ...

How Payments Are Applied to Credit Card Balances

Mon, 12 Jul 2010 00:00:00 -0700

You may have heard that the CARD Act of 2009 now requires credit card companies to apply payments towards balances with the highest interest rate first. While this is true to a certain degree, there's been quite a bit of confusion among consumers regarding how the rule actually works. Unfortunately,...

Payroll Withholding: Time for a Mid-Year Assessment

Tue, 06 Jul 2010 00:00:00 -0700

We're halfway through the year, which means this is the perfect time to reassess how much you're withholding from your paycheck each month. Did you get a big tax refund last year? If so, shame on you! Wouldn't you have rather had that cash in YOUR pocket...

Can I Be Fired for Declaring Bankruptcy?

Mon, 28 Jun 2010 00:00:00 -0700

The short and simple answer is "no". The Federal Bankruptcy Act prohibits employers from firing employees solely because they've filed for bankruptcy, but there may be other signs leading up to bankruptcy that could serve as cause for your dismissal. If you regularly handle money as part of the job, your...

Identity Theft: Debit Cards vs. Credit Cards

Mon, 21 Jun 2010 00:00:00 -0700

If you're not concerned about identity theft, you should be. More than 11 million Americans were victims of identity theft in 2009, surpassing $50 million in total losses, and these numbers show no signs of slowing down. One way to protect yourself in the event you should become...

Fed Nixes Inactivity Fees

Tue, 15 Jun 2010 00:00:00 -0700

Effective August 22, 2010, they'll be no reason to worry anymore about getting slapped with a big fee for not using your credit cards often enough. A press release, issued by the Fed on June 15th, announced that credit issuers will no longer be able to charge consumers any...

Can I Add an Account to My Credit Report?

Wed, 09 Jun 2010 00:00:00 -0700

It can be quite frustrating for consumers to discover that a credit card, auto loan or mortgage they've been paying on time for several years doesn't even show up on their credit reports. If this has happened to you, you've probably wondered...

Too Much New Credit Bad for Scores

Mon, 31 May 2010 00:00:00 -0700

While it's true that the FICO scoring model rewards consumers who responsibly use various types of credit, applying for too much all at once will likely have a negative effect on your credit scores. "New Credit", which includes the number of recently opened accounts and credit inquiries,...

Credit Reports: How One Baddie Becomes Two

Wed, 26 May 2010 00:00:00 -0700

When creditors are unable to collect a debt for an extended period of time, generally 6 months or more, they will write it off their books. To the debtor, this will show up on their credit reports as a charge-off, which could remain for up to 7 years and...

How Debt Validation Works

Tue, 18 May 2010 00:00:00 -0700

Have you been contacted by a collection agency regarding an old debt you're not sure is yours? If so, you have the right to receive more detailed information before cutting a check to anyone. In fact, under the FDCPA, you have the right to dispute the validity...

Paid Collections May Not Improve Credit Scores

Tue, 11 May 2010 00:00:00 -0700

It seems logical—pay off that nagging collection on your credit report, and you should see an improvement in your credit score, right? Well, that's not exactly how it works. In fact, paying off an account in collections may not do anything to improve your credit score...

Beware of Skimmers & Shoulder Surfers

Mon, 03 May 2010 00:00:00 -0700

Identity theft and credit card fraud already account for billions in consumer fraud losses every year. Unfortunately, these crimes shows no sign of slowing down as thieves grow sneakier and more consumers fall victim to their tactics. In fact, according to Javelin Strategy & Research, more than 11...

Paying Off Car Loan Could Hurt Your Credit Score

Tue, 27 Apr 2010 00:00:00 -0700

It may sound counterintuitive, but paying off your car loan probably won't improve your credit score. In fact, if it's the only installment loan you have, your credit score could take quite an unexpected hit. Here's why: According to the Fair Isaac Corporation, creator of the mighty...

CD Laddering: How it Works

Mon, 19 Apr 2010 00:00:00 -0700

If you're like many consumers these days, you're spending less and saving more. And while high-yield online savings accounts certainly make a great place to stash your savings, their interest rates are variable and thus subject to downward movements in the market. So if you're looking...

Closed Credit Cards Can Still Affect Utilization

Mon, 12 Apr 2010 00:00:00 -0700

Credit utilization, which accounts for a large chunk of your overall FICO score, measures how much of your available revolving credit is being used each month. The higher the ratio, the more it hurts your credit score. You can easily do the math by dividing...

Don't Tap 401(k) to Pay Off Debt

Wed, 07 Apr 2010 00:00:00 -0700

Are you thinking about tapping your retirement funds to get rid of lingering credit card debt? If so, don't do it, and here's why: While racking up too much debt on credit cards may be one of the worst financial moves...

How to Activate a Credit Freeze

Mon, 29 Mar 2010 00:00:00 -0700

A credit freeze prevents lenders from pulling, viewing and thus modifying your credit reports. No one, including yourself, should be able to open any type of credit in your name while a freeze is active. For these reasons, initiating a credit freeze has become a popular...

Watch Your Grace Period

Mon, 22 Mar 2010 00:00:00 -0700

Do you know how long you have to pay your monthly credit card bill before interest starts accruing? If you pay balances in full each month (as you ALWAYS should), chances are your card still provides a 20 to 30 day grace period on new purchases. ...

Credit Counseling: Will it Ruin Your Credit Score?

Mon, 15 Mar 2010 00:00:00 -0700

It's a common belief that credit counseling can trash your credit score. In fact, some people even claim that enrollment in a credit counseling program is as bad as filing bankruptcy, which can often linger as a big black mark on your credit reports for up to...

Put Your Tax Refund to Good Use

Mon, 08 Mar 2010 00:00:00 -0800

If you aren't getting a tax refund this year, congrats—you successfully avoided giving the government an interest-free loan. On the other hand, if you happen to be one of the millions entitled to a big fat refund check, then you're probably already thinking about what you'll do when the...

Paid Collections: Will They Go Away?

Tue, 02 Mar 2010 00:00:00 -0800

Many consumers are surprised when they find paid collection accounts still sitting on their credit reports. Unfortunately, it's a common misconception that paying off an account in collections will simply cause it to go away. The truth is that's not always the case. A paid collection can...

Some Variable Rates Only Go Up

Fri, 26 Feb 2010 00:00:00 -0800

Most credit cards currently carry variable interest rates. And while the term "variable" seems to suggest that an interest rate could vary up or down depending upon the movement of the index to which it's attached, that's not always the case. It's actually becoming more common...

Watch Out for Minimum Finance Charges

Tue, 16 Feb 2010 00:00:00 -0800

Minimum finance charges are on the rise as credit issuers continue to search for creative ways to increase fee revenue while operating within new rules set forth by Congress. Applied when a finance charge on a credit card balance would normally fall below the stated minimum, these charges are...

Say No to Instant Tax Refunds

Mon, 08 Feb 2010 00:00:00 -0800

RALs, or refund anticipation loans, won't be as heavily advertised this tax season in an effort to avoid bad press. However, most major tax preparation chains will still be promoting these "instant" refunds behind the scenes. Touted by tax preparers as the fastest way...

Beware of Tricky Credit Card Payment Terms

Mon, 01 Feb 2010 00:00:00 -0800

Some consumers find it more convenient to pay off their credit card bills in several payments throughout the month. Why would they want to do that? Well, there are several reasons. Perhaps they have a low credit limit and prefer to keep their

FICO Score is No Respecter of Income

Mon, 25 Jan 2010 00:00:00 -0800

The common belief that income directly impacts the strength of one's FICO score is perhaps the longest-living credit myth on record. The truth is whether you make $25,000 or $250,000, your FICO score couldn't care less. While it's true that a six-figure income shouldn't hurt your ability to...

What's the FDCPA?

Mon, 18 Jan 2010 00:00:00 -0800

The FDCPA, or Fair Debt Collection Practices Act, protects consumers from abusive collection techniques and provides legal recourse to fight back against third-party debt collectors who violate the law. Have you ever dealt with debt collectors that call repeatedly before 8:00 a.m. or after 9:00 p.m., use profane...

Considering a Charge Card? Keep Your Credit Score in Mind

Mon, 11 Jan 2010 00:00:00 -0800

Charge cards can be a great way to avoid racking up debt while still enjoying the convenience of paying with plastic. But if you're considering switching your spending from credit cards to a charge card, you should understand that the switch may have an unintended effect on...

Don't Ignore Your Credit Card Mail

Wed, 06 Jan 2010 00:00:00 -0800

Here's some simple financial advice for 2010—don't throw away any credit card mail without reading it first! If you do, you might regret it because those letters cramming your mailbox may still look like shredder-worthy pieces of junk mail, but they could very well contain important information regarding changes...

Pay the First Bill of 2010 to Yourself

Tue, 29 Dec 2009 00:00:00 -0800

Holiday cards from friends and family probably filled your mailbox in December. Unfortunately, something a lot less enjoyable and amusing to read may take their spot in January—the dreaded post-holiday bills. However, if you entered this holiday season with a realistic budget and the determination to partake of the festivities...

Conduct a Year-End Credit Card Inventory

Tue, 22 Dec 2009 00:00:00 -0800

Did 2009 bring some unwanted changes to your credit cards' terms and conditions? If not, consider yourself lucky. Skyrocketing interest rates, reduced credit limits, increased minimum payments, and account closures have left very few credit card users unaffected. That's why this time of year presents...

What's the CROA?

Mon, 07 Dec 2009 00:00:00 -0800

2008 was a tough year for credit repair agencies. In fact, the Federal Trade Commission shut down more than 30 businesses for violations of the CROA - The Credit Repair Organizations Act - which defines how credit repair agencies must operate. The trend has continued into 2009 as...

Don't Forfeit Your Credit Card's Rewards Miles

Mon, 30 Nov 2009 00:00:00 -0800

Banks are sending a clear message to those who enjoy racking up airline miles and hotel points for credit card purchases—pay your bill on time, or forfeit those coveted rewards. Effective January 2010, American Express customers who use rewards cards such as the

How ChexSystems Works

Tue, 24 Nov 2009 00:00:00 -0800

If there's one report in the financial world you definitely don't want your name on, it's ChexSystems. Utilized by U.S. Banks and credit unions as a way to determine if potential customers are too great of a risk to simply hold a checking account, ChexSystems is essentially...

What's the FCRA?

Mon, 16 Nov 2009 00:00:00 -0800

The three big credit reporting agencies—Experian, Equifax, and TransUnion—gather an enormous amount of personal data about consumers, compile their credit reports, and disseminate information to third parties such as credit issuers or employers. The FCRA, or Fair Credit Reporting Act, was enacted in 1970 to protect this...

Do I Qualify for the Homebuyers Tax Credit?

Mon, 09 Nov 2009 00:00:00 -0800

If you didn't qualify before, your chances just got much better. The first-time homebuyers tax credit, which was scheduled to lapse on December 1, will now live on until at least June 30, 2010. And the good news is that President Obama not only signed an extension of the...

Give Your Holiday Budget a Boost

Mon, 02 Nov 2009 00:00:00 -0800

If there's any time of year when we could all use a few extra bucks in our budget, it's the holiday season. Let's face it, all those gifts, parties, expensive dinners and extra travel to visit friends and family can add up fast. However, setting aside some extra...

Beware of POS Overdraft Fees

Mon, 26 Oct 2009 00:00:00 -0700

Many consumers, in an effort to avoid ATM fees, take cash withdrawals during point-of-sale transactions at grocery stores or other retail establishments. While this may be a savvy way to avoid withdrawal fees, you should know that point-of-sale terminals generally won't warn you if you're about to overdraft and...

Holidays are a Hotbed for ID Theft

Tue, 20 Oct 2009 00:00:00 -0700

The Holiday season means more shopping than usual for most of us. Whether you like it or not, you'll probably spend more time than any other season of the year searching for the perfect gifts in crowded shopping malls and on your favorite e-commerce sites. To an identity thief, this...

Right to Opt Out Excludes Minimum Payment Increases

Tue, 13 Oct 2009 00:00:00 -0700

Consumers have the right to opt out of significant changes to their credit card accounts, such as increases in interest rates and other unwanted fees. What's this mean? Opting out basically means you choose to cancel your credit card, make no further purchases, and pay off...

To Co-sign or Not?

Tue, 06 Oct 2009 00:00:00 -0700

If you have good credit, there will likely come a time in life when a close friend or relative asks you to cosign a loan. Should you say yes? The easy in answer is "no", and here's why. Since you've worked hard to build a solid credit...

Is Your Annual Fee Worth It?

Wed, 30 Sep 2009 00:00:00 -0700

Nothing in the Credit CARD Act of 2009 limits annual fees, so credit issuers are already beginning to rethink their annual fee structures in an effort to fight eroding profit margins. In fact, a new strategy is emerging that provides consumers with the option to choose a...

Extra Time to Pay Your Credit Card Bill

Mon, 21 Sep 2009 00:00:00 -0700

Although most of the 2009 Credit CARD Act's major provisions don't take effect until early 2010, bill-paying procrastinators have something to cheer about already. Effective August 20th, you now have more time to get that credit card bill paid after your credit issuer delivers your...

Does Your Card Have an Interest Rate Floor?

Wed, 16 Sep 2009 00:00:00 -0700

Interest rates are near record lows, but many consumers have noticed their credit card rates aren't following suit. Some have unfortunately experienced skyrocketing rates as credit issuers fight to remain profitable amidst tough economic conditions. Others have managed to escaped rate increases but are confused because their credit...

What's the FCBA?

Thu, 10 Sep 2009 00:00:00 -0700

Have you ever noticed that your credit card company mistakenly billed you for something twice? Or perhaps you returned that new flat screen TV because it was too huge to fit on your living room wall, only to find the charge still showed up on your credit card statement without...

When You Can't Opt Out

Tue, 01 Sep 2009 00:00:00 -0700

Effective August 20th, the Credit Card Act requires credit issuers to provide 45-day advance notice of a change in interest rates. The idea is that consumers will now have a sufficient amount of time to review the changes, exercise their right to opt out of the new...

Avoid Credit Card Cancellations Due to Inactivity

Mon, 24 Aug 2009 00:00:00 -0700

If you haven't used one of your credit cards for months or even years, don't be surprised when you receive a letter in the mail notifying you of an account cancellation. Some credit issuers may be kind enough to provide advance notice; however, in many cases you...

Credit Reports May Be Accessed Without Your Permission

Mon, 17 Aug 2009 00:00:00 -0700

It's a common myth to believe that your credit reports can only be accessed with your exclusive permission. So, you may be surprised to find out that the Fair Credit Reporting Act (FCRA) actually includes eight "permissible purposes" for your credit reports to be pulled,...

How Many Points Will My Credit Score Drop From Hard Inquiries?

Mon, 10 Aug 2009 00:00:00 -0700

Hard inquiries are recorded on your credit reports when you apply for new credit products, cell phones, insurance, or maybe even a new job. They are essentially a record of every time a business has viewed your credit report information for the purpose of an application, and...

Authorized User vs Joint Account Holder

Mon, 03 Aug 2009 00:00:00 -0700

If you're planning to add someone, like a spouse or child, to your credit card account, you'll need to first decide whether you want to add the individual as a joint account holder or an authorized user. While this can be a confusing topic for many people,...

Looking for a Loan? Think Small and Local

Mon, 27 Jul 2009 00:00:00 -0700

The "too-big-to-fail" banks have received billions in taxpayer bailouts, yet purse strings remain tight and credit markets remain frozen across the country. Whether you're looking for a new home loan, auto loan, student loan, business start-up loan, or simply a credit card, you...

Under 21? New Rules Limit Access to Credit

Mon, 20 Jul 2009 00:00:00 -0700

New credit card regulations set to take effect in early 2010 will make it more difficult for young adults to gain access to credit. This is an important issue for those moving out of the house for the first time or heading off to college without their own solid...

See What Income-Based Repayment Can Do For You

Mon, 13 Jul 2009 00:00:00 -0700

Are you struggling to keep up with your federal student loan payments? If so, a provision of the , known as IBR (Income-Based Repayment), may be just what you've been waiting for. Although the law was passed in 2007, it...

Auto-pay Credit Cards from Online Savings Accounts

Thu, 09 Jul 2009 00:00:00 -0700

Did you know you can set up automatic payments for many of your credit cards directly from an online savings account? This can be an excellent way to earn the highest interest rate possible on your cash while ensuring credit card bills are always paid on time, so it's...

Closed by Consumer vs. Closed by Creditor

Wed, 01 Jul 2009 00:00:00 -0700

A closed credit card account will show up on your credit report as either "Closed by Consumer" or "Closed by Creditor". The words may not be exactly the same, but a close variation should easily be found on your credit reports. So, which one of these notations packs...

How Many Credit Scores Do I Have?

Tue, 23 Jun 2009 00:00:00 -0700

Unless you don't exist in the credit system for some reason, you actually have three credit scores. And you have three credit scores because you also have three credit reports — one from each of the major credit bureaus. While each credit report should be similar, chances are they contain...

Shop Credit Cards the Smart Way - Compare and Apply Online

Mon, 15 Jun 2009 00:00:00 -0700

The days of just applying for whatever credit card offer you received in the mail are long gone. And that's a good thing, because it wasn't a smart way to shop in the first place. If you were in the market for a new TV, would you buy...

Bid Double-Cycle Billing Goodbye

Mon, 08 Jun 2009 00:00:00 -0700

While the Credit Card Act of 2009 may not be perfect, it will put an end to some of the more egregious practices that have plagued the credit card industry for decades. Among the major changes the law will enact, double-cycle billing is one that consumer activists are especially...

Reward Yourself with the Citi Forward Card

Mon, 01 Jun 2009 00:00:00 -0700

Looking for a new rewards credit card that's forward thinking? Do you pay your credit card bill on time and stay within your credit limit each month? And do you happen to spend most of your entertainment budget on books, movies, music, and eating out? If so,...

moneyStrands Helps Put Your Financial House in Order

Tue, 26 May 2009 00:00:00 -0700

Our personal financial lives can quickly become complex and difficult to track. In fact, if you're like most people, you may already have several online bank accounts, a mortgage, HELOC, savings accounts, and credit cards to manage on a monthly basis. So, how can...

Build Credit with Secured Credit Cards

Tue, 19 May 2009 00:00:00 -0700

For consumers with damaged credit or no credit history at all, secured credit cards are one of the most popular ways to obtain credit and start improving your credit score today. Your chances of getting approved for a secured credit card are high, and most of the major card...

Is a Prepaid Debit Card Right For You?

Mon, 11 May 2009 00:00:00 -0700

Prepaid debit cards have become increasingly popular as credit markets tighten and consumers search for alternative ways to manage their budgets. While prepaid debit cards provide all the flexibility of paying with plastic, there are some major differences you must take into consideration. Unlike traditional credit cards, prepaid...

Can Social Security Benefits Be Garnished?

Mon, 04 May 2009 00:00:00 -0700

Unless you owe Uncle Sam taxes or are behind on alimony or child support payments, your social security benefits cannot be garnished. So, if you've recently lost your job and are worried about your social security payments falling victim to the debt collectors as well, you can...

I Paid My Tax Lien - Why is it Still on My Credit Report?

Mon, 27 Apr 2009 00:00:00 -0700

The IRS has 30 days, according to its own rules, to release a tax lien once you pay or settle the debt. However, in reality this is something that is often overlooked. Unaware consumers may go for years before they notice the pesky tax lien still...

Collection Accounts Linger for 7 Years

Mon, 20 Apr 2009 00:00:00 -0700

It's a common misconception among consumers that paying off a collection account will make it disappear from their credit report. However, the truth is a collection remains on your credit report for seven years from the date the account went into serious delinquent status. This date is often...

Should I Pay My Taxes With Plastic?

Mon, 13 Apr 2009 00:00:00 -0700

Tax week is here again! And in a last-ditch effort to boost future e-payment numbers, the IRS recently announced that some taxpayers will now be allowed to deduct the convenience fees card companies charge to process electronic tax payments. The IRS has made it easier than ever to...

Avoid Credit Card Late Fees: Pay More Often!

Mon, 06 Apr 2009 00:00:00 -0700

The average credit card late fee hovers around $40, which is triple what it was just a decade ago. And it's not just the 40 bucks that will hurt you each time you miss a payment deadline. Punitive increases in interest rates and negative marks on your

Credit Reports Don't Merge After Marriage

Mon, 30 Mar 2009 00:00:00 -0700

There are several common misconceptions about what happens to an individual's credit reports after marriage. One of the most common myths is that when you are married your credit reports will merge together with your spouse's reports, which may even hurt or improve your credit scores depending upon the...

What is a Default Interest Rate?

Mon, 23 Mar 2009 00:00:00 -0700

Has your credit card's interest rate jumped from 12% to 30% in just one month? If so, you have most likely fallen victim to the dreaded Default Interest Rate. Generally looming in the 25% to 30% range, a default rate is significantly higher than the standard...

Don't Ignore the "Schumer Box"

Mon, 16 Mar 2009 00:00:00 -0700

The Federal Truth in Lending Act (TILA) requires credit card companies to disclose certain information in any offer they make to you. In addition, the "Schumer Box", named after Sen. Charles E. Schumer who sponsored the provision to the TILA that requires it, ensures that credit issuers...

Beware of Hefty Over-the-limit Fees

Mon, 09 Mar 2009 00:00:00 -0700

There are few things worse than getting slapped with a hefty $35 fee for spending a few dollars more than your credit limit. However, it can easily happen to the best of us, and the fact is most consumers aren't even aware of the fees until they eventually show...

Beware of Identity Theft on Social Networking Sites

Mon, 02 Mar 2009 00:00:00 -0800

Popular social networking sites, such as Facebook and MySpace, have become all the rage in recent years. And while they are undoubtedly a great way to connect with friends you probably forgot about years ago, they have also become an increasingly popular target for identity thieves who want to...

Is Forgiven Debt Really Considered Income?

Mon, 23 Feb 2009 00:00:00 -0800

If you're in the process of settling a debt or thinking about approaching a creditor to begin debt settlement negotiations, it's important to remember that the IRS considers forgiven debt to be taxable income. What this means is that if you owe $10,000 on a credit card and settle...

Bid Farewell to Your Experian Credit Score

Mon, 16 Feb 2009 00:00:00 -0800

Effective February 14th, FICO credit scores from Experian, one of the three major credit bureaus, are no longer available to consumers. Equifax and TransUnion FICO scores can still be accessed via www.myfico.com; however, Experian FICO scores will no longer be available from myFICO or any...

What's the Best Way to Pay Off Credit Card Debt?

Mon, 09 Feb 2009 00:00:00 -0800

If the only thing that matters to you is saving dollars and cents, the strategy that clearly makes the most financial sense is paying off the balance with the highest APR first. Start out by tripling your monthly payments on the card with the highest APR while continuing to...

Credit Tips for Newlyweds

Mon, 02 Feb 2009 00:00:00 -0800

While it's not the most romantic topic of discussion, newlyweds should make it a top priority to openly discuss their individual credit histories. Of course, it's best to determine a credit strategy as a couple well before you say "I do". However, all too often the dreaded credit...

Beware of Double Negatives on Your Credit Report

Tue, 27 Jan 2009 00:00:00 -0800

The only thing that's worse than a negative account on your credit report is a negative account that shows up twice. Unfortunately, double entries can happen quite easily in the credit reporting system, and it takes a real eagle eye to scour over the details of your...

Don't Sweat the Soft Inquiries

Tue, 20 Jan 2009 00:00:00 -0800

A soft inquiry is recorded on your credit report when an existing creditor reviews your file, a prospective creditor pulls your report for marketing purposes, or you order your own credit report for monitoring purposes. A common misconception is that these soft pulls impact your credit score,...

Why is my Ex's Mortgage Still on My Credit Report?

Tue, 13 Jan 2009 00:00:00 -0800

A common credit myth is that a divorce decree will absolve you from any credit obligations the judge decides your ex-spouse will be responsible for paying. However, the truth of the matter is often discovered the hard way when one spouse stops making the payments on time and the...

How to Build Credit with No Debt

Wed, 07 Jan 2009 00:00:00 -0800

Roughly 50 million people in this country have no credit at all. No credit cards, student loans, auto loans, or mortgages. It's hard to believe, but it's true. Does this mean they are not credit-worthy consumers? Well, since they don't have a credit report or a...

Understand Your Credit Card's Grace Period

Wed, 31 Dec 2008 00:00:00 -0800

The average credit card provides a 20 to 30 day grace period. What that means is your credit issuer will not charge interest on your new purchases during this time period. It's probably as close to an interest-free loan as you will ever get. However,...

The Right Time to Buy a Car?

Mon, 22 Dec 2008 00:00:00 -0800

The violent winds of the current economy seem to be stirring up the perfect storm for great deals on a new car. Auto manufacturers and dealers are obviously hurting and under pressure to find a way to increase sales, so it seems likely that consumers will begin to enjoy...

House Hunting? Keep an Eagle Eye on Your Credit Score

Mon, 15 Dec 2008 00:00:00 -0800

As rates on 30-year fixed mortgages hover around 5 percent and frantic sellers continue to drop prices in hopes of luring potential buyers, it may finally be time to purchase that dream house. If your a first-time buyer that doesn't have to sell an old house before buying the...

Purchase Protection Can Come in Handy

Mon, 08 Dec 2008 00:00:00 -0800

Several credit card benefits are often overlooked by the so-called personal finance gurus that claim consumers should leave their credit cards at home when hitting the malls this holiday season. Paying for everything with cash can certainly be beneficial for those who just don't know how to...

Leave Your Social Security Card at Home

Tue, 02 Dec 2008 00:00:00 -0800

Is it really necessary to carry your social security card around with you like a driver's license? Not at all, yet many people sill tote around one of the most confidential pieces of personal information as if they might need it at any moment. If you do, you're...

Opting-Out of Credit Card Interest Rate Hikes

Mon, 24 Nov 2008 00:00:00 -0800

Citigroup Inc. and American Express are two of the largest credit-card issuers who recently announced they will hit millions of consumers with interest rate hikes just before the start of the holiday season. A two to three percentage point increase seems to be the target,...

What's Loss Mitigation?

Tue, 18 Nov 2008 00:00:00 -0800

What does this financial buzzword you're hearing everywhere really mean? If you're a homeowner facing the possibility of foreclosure, it should mean a great deal to you because loss mitigation is a process available to help keep you in your home. And while loss mitigation includes various methods...

Rates Drop in US and UK, but Banks Fail to Follow

Mon, 10 Nov 2008 00:00:00 -0800

In an effort to ward off a deep depression, the Fed dropped its benchmark rate to a record-tying low of 1 percent, and the Bank of England recently slashed Britain's base rate by a record 1.5 percent. Since many credit cards are pegged to the prime...

750 is the new 650

Tue, 04 Nov 2008 00:00:00 -0800

Prior to a few months ago, there was basically no difference between a credit score of 650 and 800 for most loans. Whether you were looking to get into a car, a home, or simply a new credit card, a score above 650 would land you the best interest...

How Will A Short Sale Affect My Credit Score?

Mon, 27 Oct 2008 00:00:00 -0700

As property values continue to head south, many people are finding themselves upside-down on home loans and possibly facing foreclosure. A "short sale" can provide an alternative to foreclosure if you're able to negotiate a deal with your mortgage lender to take less than you owe on...

Does Your Credit Card Have a Penalty Rate?

Tue, 21 Oct 2008 00:00:00 -0700

Buried deep in the fine print of your credit card's terms and conditions, chances are you will find something known as the "penalty rate clause". In fact, more than 75% of credit card issuers include a penalty rate clause with their card offers, and this number is increasing as...

A Poor Credit Score Influences More Than Lenders

Mon, 13 Oct 2008 00:00:00 -0700

People with good credit are finding it difficult to get loans these days. For those with poor or damaged credit, the task is even more daunting. But what about home and auto insurance? Will a poor credit score affect your ability to get the type...

Times are Tough, but Basic Rules Remain Unchanged

Sun, 05 Oct 2008 00:00:00 -0700

The economy is hurting and credit markets are in the tank. In fact, it's easy to understand why all the media hype concerning the credit crunch has consumers scared about what the future will hold. So should you close all your credit card accounts, begin stockpiling...

How Will Foreclosure Affect My Credit?

Sun, 28 Sep 2008 00:00:00 -0700

The credit markets are in the tank, and mortgage foreclosures are happening everywhere in today's economy. Whether voluntary or involuntary, it's important to understand that a foreclosure on your home will severely damage your credit score. In fact, a mortgage foreclosure will remain on your credit file for 7 years...

What Should I Look For On My Credit Report?

Sun, 21 Sep 2008 00:00:00 -0700

If you already have excellent credit and sparingly apply for new credit, checking your credit reports once a year might be sufficient. However, if you are in the process of rebuilding your credit or preparing to make a large purchase within the next year, you will want...

Credit Talk Forum Helps Users Navigate the Credit World

Sun, 14 Sep 2008 00:00:00 -0700

Are you ready to take matters into your own hands and improve your credit? If so, congratulations for having the courage to do something about your credit problems. Many people choose to avoid the issue in every way possible, so you are taking an important step in the...

Want a Lower Credit-Card Rate? Just Ask for It

Sun, 07 Sep 2008 00:00:00 -0700

Existing credit card customers are of great value to credit issuers, and that will never change. In fact, some analysts estimate it costs credit card companies more than $200 to acquire a new customer. Therefore, once they have you, they really don't want to lose you. So if...

Beware of Voter Registration ID Theft Scam

Sun, 31 Aug 2008 00:00:00 -0700

Identity theft scammers never grow tired of finding new ways to deceive the unknowing into divulging personal information over the phone. In fact, the recently reported that identity theft scammers are hard at work using the looming election day as a new way...

Worried About Missing Your Next Credit Card Payment?

Sun, 24 Aug 2008 00:00:00 -0700

Credit card delinquencies are soaring in 2008 as consumers continue to struggle with the subprime loan crisis, higher energy prices, and a sputtering U.S. economy. In fact, some experts estimate a quarter of American households are behind on at least one bill by a month or more. If...

Leaving Monthly Balances Won't Boost Credit Scores

Sun, 17 Aug 2008 00:00:00 -0700

It's likely you've had friends tell you how they established credit history faster by leaving monthly balances on credit cards instead of paying in full. Hope you didn't fall for this one! The truth is this happens to be one of the most common credit card myths out...

"Same As Cash" Offers Hurt Credit Scores

Sun, 10 Aug 2008 00:00:00 -0700

Even though you really want that new high-def plasma TV with the booming home theater system, $5,000 smackers might sound a bit too rich for your pocketbook at the moment. So why not use a "same as cash" offer to postpone paying the debt for 90 days or maybe...

'Piggybacking' Lives On

Sun, 03 Aug 2008 00:00:00 -0700

Piggybacking, a technique that allows consumers with good credit to boost other's credit scores by adding them as an authorized user, will live on. If you haven't heard the term before, it's not a new thing. Parents have used the technique for many years to help...

Avoid On-the-spot Signups for Retail Credit Cards

Fri, 25 Jul 2008 00:00:00 -0700

Retail Credit Cards can become a huge problem for those who find it difficult to just say no to the "Get 10-percent off your purchase today" sales tactic. Remember credit card companies are in business to make money, and the whole point of a retail credit card program is...

What's the Universal Default Clause?

Fri, 18 Jul 2008 00:00:00 -0700

Hidden deep in the small print of your credit card terms and conditions, you may find the dreaded policy known as the "Universal Default Clause". This clause gives credit card companies the ability to increase your interest rate to the maximum default when you make a late payment on...

What's a "Good" Credit Score?

Fri, 11 Jul 2008 00:00:00 -0700

Everyone seems to care what your credit score is these days. Even insurance companies and employers are taking a look at your credit history to determine if you are a "risk" worth taking. You may pull your credit report regularly and know what your credit score is, but...

Beware of Excessive Debit Card Holds at Gas Pumps

Thu, 03 Jul 2008 00:00:00 -0700

If you are a fan of using your debit card to make everyday purchases, you may want to think twice before filling up this July 4th weekend. Consumers have been complaining across the country about excessive holds on debit card transactions at gas stations. For instance, if you...

How to Save 15-75% on Meals

Fri, 27 Jun 2008 00:00:00 -0700

If your busy life forces you to eat out often, then you should know just how painful it can be on the pocketbook. In fact, eating out is by far the biggest variable expense most families have each month. Take a moment this week to review your credit...

ID Theft Tops FTC's List—Are You Protecting Your Good Name?

Fri, 13 Jun 2008 00:00:00 -0700

For the eighth year in a row, identity theft led the way in 2007 as "the number one consumer complaint category". The also reported that the most common form of identity theft was credit card fraud, which accounted for...

How to Ease Your Pain at the Pump!

Mon, 09 Jun 2008 00:00:00 -0700

The media was talking about the "$50 fill-up" like it was an anomaly just a few years ago. With the average national price for regular gas hitting $4 for the first time, a "$50 fill-up" these days probably means you still had a half-full tank when you pulled into the...

Traveling outside the US? How to avoid foreign transaction fees

Mon, 02 Jun 2008 00:00:00 -0700

Currency conversion fees are often as high as three percent and are charged by virtually all credit card issuers for purchases made overseas. If you are like most travelers these days, credit cards will be your preferred method of payment as you set out on your next adventure. ...

I never use my first credit card anymore - Should I just close the account?

Mon, 26 May 2008 00:00:00 -0700

Closing out your oldest credit card immediately shortens credit history and negatively affects your credit score. Length of credit history accounts for approximately 15% of your credit score, and lenders naturally tend to view borrowers with short credit histories as riskier than those who have responsibly held credit for...

Will too much plastic hurt my credit score?

Mon, 19 May 2008 00:00:00 -0700

Credit is hard to come by these days, and it is more important than ever to maintain a good credit score. So, will having too much plastic in your pocket hurt that solid score you have worked so hard to build? The answer will always depend upon which...

Will shopping the market hurt my FICO score?

Mon, 12 May 2008 00:00:00 -0700

While multiple inquiries at one time for your credit report information can theoretically hurt your credit score, the fact is it probably will not drop too much. If you are searching for the best deal on a home or auto loan, it is definitely worth shopping rates with at...

Emergency funds - A personal cure for the credit crunch

Mon, 05 May 2008 00:00:00 -0700

Do not rely on credit as an emergency fund. Everyone's personal financial plan should include a goal of having at least six months' worth of living expenses saved in a liquid emergency fund such as an online savings account. If you find yourself in desperate need of credit...

There is an error on my credit report - Where do I begin?

Mon, 28 Apr 2008 00:00:00 -0700

Mistakes happen all the time, and it is more important than ever to make sure there are no errors on your credit report. To ensure an error gets corrected as soon as possible, be prepared to write a letter to both the credit bureau and the organization that...

Have trouble making your payments on time?

Mon, 21 Apr 2008 00:00:00 -0700

The best way to prove you are a reliable credit risk is to always make your payments on time. If you find yourself forgetting when your credit card payments are due, take a few moments to set up direct debits for all of your cards from one central checking...