Articles by John Rasor on ArticleSnatch.com

Be Cautious With Debit Cards When on Vacation

Wed, 14 Oct 2009 16:11:04 -0400

Vacationers worried about carrying too much cash often take along a debit card, so they can access cash from their checking accounts as they need it. This can be a good move, or a poor one should the card be lost or stolen. In order to fall under the $50 maximum liability clause in your debit card agreement, bogus charges must be reported within two business days, so it's vital to your financial well-being to keep a close eye on that card and report its loss immediately. Your liability is limited to $500 if you notify the bank within 60 days of a bank statement showing bogus charges, but that won't help you much if you're in a foreign country and suddenly have a bank account with a zero balance. An active thief could clean you out within hours! Be sure you carry the necessary information for notifying your bank immediately of any loss. Keep the information in your hotel safe, and also leave a copy with someone at home that you can reach in a hurry. This is one time when "overkill" could be beneficial. Be careful with your debit card before you leave home, as well. **End Summary** Topics: credit cards]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Consumer-friendly Credit Card Reforms

Mon, 05 Oct 2009 05:54:24 -0400

Credit card companies have come under fire for unfair practices that almost force unwary consumers into default or bankruptcy. The Feds have taken notice, and new rules are in the offing. The bad news is that the new rules are slated to take effect in July 2010. The good news is that in response to consumer outcry, that date may well be moved up. What's going to change? Credit card companies will no longer be able to raise interest rates on balances you already owe, unless your payment is 30 days late. And, they'll be required to give you notice that they're going to raise those rates instead of handing it to you as a surprise on your monthly statement. They'll also be required to mail those statements in plenty of time for you to receive them and mail back your payment before the due date. After the rules take effect, when you send a payment that's more than the minimum, your credit card issuer will be required to apply that excess to the balance carrying the highest rate of interest. At present, they apply it to the lowest. **End Summary** Topics: credit cards]]> credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Identity Theft - Are You Letting The Thieves Get Away With It?

Fri, 02 Oct 2009 18:50:08 -0400

How often do you check your credit report? For far too many consumers the answer will be "Only when I want a loan." That means that identity thieves can use your credit and your good reputation for months or even years before you discover their activities. You might not notice at all until you find your bank account empty. Or, you may receive a notice from the IRS denying your tax refund because it has already been paid - or worse, asking why you didn't report ALL of your income for the year. The fact is, over ten million consumers were victimized by identity theft in 2008, and experts predict that the number will be greater for 2009. Not only are the thieves draining bank accounts and running up huge balances on credit cards, they're using other people's identities to rent homes, gain employment, and access health insurance. You can't insulate yourself from it, but you can nip it in the bud and prevent the thief from continuing to use your identity month after month. I just read about a typical case when a woman wrote an on-line forum to share her distress. **End Summary** Topics: credit report]]> identity theft]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Use Cash-Back Cards Wisely to Protect Credit Scores

Sat, 26 Sep 2009 18:41:08 -0400

Unwise use of cash-back credit cards can destroy your credit scores, so be careful. The temptation is there - when you get a new card that offers to give you twice the reward if you hurry up and use that card in the first couple of months, you might want to get out there and spend money. After all, there are things you need for your home that you'll probably buy over the next few months, so why not do it now - while you can get 4% cash-back? The obvious reason is that no matter when you use the card, you'll eventually have to pay for your purchases, and if you can't write a check to cover them when the statement arrives, you'll have to pay interest. That alone could offset any rewards you might receive. If your new cash-back card is a "general purpose" card that rewards you for every purchase, you might also be tempted to charge all of your monthly expenses on the card, even if you intend to pay it off at the end of the month. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Are All Free Credit Report Offers Created Equal?

Wed, 23 Sep 2009 13:59:08 -0400

I recently searched for my free credit report on line and found that there are more than a few programs out there offering it. What i did not know were the differences between them. We've all seen the attention grabbing commercials with the guy in the pirate hat, playing the guitar, driving the jalope. "Becuase is credit was wacked, now he's driving off the lot in a used sub compact." I'm referring to the freecreditreport.com ads. A few others have surfaced with Ben Stein as the front man but nothing tops those crazy ads we just mentioned. What's in my free credit report? Thats a good question because not all of these offers are created equal. We found the top eight credit monitoring and free credit report offers and here's the skinny. Only two of the eight actually delivered all three of my credit scores from Equifax, Experian, and Transunion. The other six only offered one score from one of the three. Why is it important to know all three credit scores? Banks, Insurance companies, Mortgage Companies, Apartment Complexes, and even potential employers are looking at all three of your credit scores to determine your risk. **End Summary** Topics: free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Seniors Face Growing Credit Card Debt

Sat, 19 Sep 2009 18:28:33 -0400

The burden of excessive credit card debt is a "new neighborhood" for thousands of senior citizens across the U.S. Low to middle income citizens are affected most, but even the upper middle class is taking on new debt. Those who expected to spend their retirement years traveling and enjoying the fruits of their labors are now faced with a new reality. Those investments they made that were supposed to pay high dividends and allow them a comfortable lifestyle have tanked. For some, it means a step downward in lifestyle in place of that luxurious retirement. For others it means going back into the workforce, if they can find a job. For others it means creating a form of self employment to subsidize Social Security income. And for those with no place to turn to cut expenses or produce more income, it means growing credit card debt. Those on a low fixed income have, of course, been hardest hit. **End Summary** Topics: credit cards]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

If You Care About FICO Scores, Don't do Loan Modification

Thu, 17 Sep 2009 22:56:16 -0400

With all the talk about the "Making Home Affordable" program, and with all the layoffs and pay cuts that Americans are facing today, it's tempting to ask for a loan modification even if you are able, somehow, to meet your mortgage payment. Before you decide to make that move, decide whether you're going to need high credit scores in the near future. Under reporting guidelines set forth by the credit bureaus and the Consumer Data Industry Association, your loan modification will be reported as a "Partial Payment Plan." Under the FICO scoring method, that designation will lower your credit scores, even if you have never missed a payment. Consumer advocates argue that this designation is an unfair penalty imposed on consumers. The lender has not reduced the principal balance, nor has it reduced the interest rate permanently. Loan modification is merely a temporary interest rate reduction - no different from a promotional or temporary rate offered by a credit card issuer. For now, however, the reporting designation will stand. Because loan modification is a relatively new solution to excess debt, FICO doesn't have sufficient information to determine whether it should or should not reduce scores. **End Summary** Topics: credit scores]]> free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Money and Marriage: How You Use Credit Cards

Tue, 15 Sep 2009 00:03:02 -0400

Disagreements over credit card use has caused more than one marital disagreement - and money issues in general have caused many more than one divorce. The best course of action is to come to agreement before the fight starts. The first thing couples should agree upon is how much debt they can handle. One spouse may be comfortable owing many thousands, while the other panics at the thought of a $200 credit card balance. Talk about it. Look at your combined income and your other debt - such as car or house payments, and then decide if you want to have yet another monthly debt. Consider your monthly expenses for food, utilities, gasoline, etc. and see how much "extra" you have left over to pay on a credit card bill. Of that extra, how much do you want to spend on extras such as entertainment or an evening on the town? Remember, if you use your credit card for a large purchase and have a debt to pay, making only the minimum payment will keep you paying for many years. So talk about how many months (years? **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Hidden Credit Scores that Affect Your Life

Sat, 12 Sep 2009 23:35:37 -0400

Before you ever receive that solicitation letter from a credit card company urging you to request their card, they've been checking you out. Naturally, they check your standard credit scores. They do want new customers who are most likely to pay their bills each month. But they don't stop there. Sometimes even people who are currently paying their bills turn to bankruptcy as a way to stop. Thus, they'll check your bankruptcy scores. Equifax offers a score called the bankruptcy navigator index, or BNI. This score, and others like it, predict the likelihood that you'll file bankruptcy in the future. But knowing you're a safe risk isn't enough information to put you on the mailing list. They want to know if they're likely to get a good return on investment by mailing to you. More scores help them make the decision to add you to the mailing list, or cross you off their list of potential customers. Sending direct mail isn't cheap, so those lenders want to know the likelihood that you'll make it worthwhile for them. They want to see a high probability that you'll say yes to the offer. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Credit Freezing an Anti-Identity Theft Measure to Consider

Sat, 12 Sep 2009 10:09:23 -0400

Keeping your credit report available to retailers, landlords, and potential employers means that it is also available to identity thieves. Why do they want it? For one thing, so they can see if you have unused credit card accounts. If so, it's a simple thing for a skilled thief to submit a change of address to that card issuer and begin using your card without your knowledge. And of course, a thief with your identity can do all the usual things that trigger a credit check. For instance, they can borrow money to buy a car or open a new credit card account in your name; they can rent a house in your name; and they can apply for a job using your good credit. The benefits of a credit freeze are obvious, so what are the drawbacks? Primarily, you'll have to plan ahead if you want to use your own credit. Instant credit for an unplanned purchase won't be possible. Of course, that could be a good thing for consumers who are trying to cut down on impulse buying. It can also become expensive if you freeze and thaw regularly. **End Summary** Topics: identity theft]]> free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Do You Qualify For Home Loan Modification?

Mon, 31 Aug 2009 07:22:26 -0400

Depending upon your lender and the programs they're involved in, a drop in your income or a rise in your house payment might qualify you for a mortgage loan modification. If you're struggling to meet your mortgage payment every month, consider calling your lender to see if they can offer help. You may be able to get a refinance with more favorable terms, or you may be eligible for a straight modification. If your loan is backed by Fannie Mae - and many are - you could qualify for the Homeowner Affordability and Stability Plan. In fact, Fannie Mae and three 3rd party vendors are right now looking at the loans in their portfolio to see who is eligible. If you are, you'll get a letter from them, so watch your mail. You do risk being overlooked if the reason for your struggle is a drop in income - because they'll base their research on the financial information in their files. They'll see it and know it if your payment has doubled - but unless you tell them, they won't know your income has dropped. They're looking for mortgage payments that exceed 31% of a consumer's income. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

No Quick Fixes for Improving Credit Scores

Sun, 30 Aug 2009 14:06:47 -0400

There are no quick fixes for improving your credit scores. However, you can increase your scores over time by demonstrating that you consistently manage your finances responsibly. Take a peek at these ten tips to live by if you want a good credit rating: 1. Pay your bills on time. This is the most obvious and best way to improve your scores, and it's never too late to start. Even if you've had bad credit in the past, those will count less over time if you keep paying your bills on time. 2. Keep credit card balances low. High outstanding debt can pull down your score. Never max out your credit cards or carry balances that exceed more than half of the total credit limit. 3. Check your credit report regularly for accuracy. It's possible that there may be inaccurate information on your credit report that can be easily cleared up If this proves to be the case, then you should contact one of the three credit reporting agencies-TransUnion, Experian or Equifax. On-line dispute for each bureau: EquifaxDispute online ExperianDispute online TransUnionDispute online 4. Pay down your debt rather than transferring balances. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Do Loan Servicers Really Want to Help Modify Your Mortgage Loan?

Wed, 26 Aug 2009 21:49:19 -0400

They say they do. The government has provided $75 billion in taxpayer money and told them to. But many of them are stalling because helping troubled homeowners is a financial conflict of interest for them. When the "Making Home Affordable" program was announced, financially strapped homeowners expected to find some relief. And some did get relief in the form of a refinanced loan or a mortgage loan modification. However, many others are finding that their mortgage loan servicer is putting them off. Mortgage companies are paid to service mortgage loans and they collect a percentage of the value of the loans they service. They're paid the fee by the investor whether the homeowners make their payments or not. Consumers who are delinquent on their loans are the least likely to find help, because mortgage loan servicers also collect fees of up to 6% of the payment amount each time a payment is late. Thus they aren't in any hurry to help get those loans current. The consumers and the investors are the ones who suffer, while the loan servicers reap huge profits. **End Summary** Topics: mortgage loans]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

The Job Search is Much Tougher for Consumers with Poor Credit Scores

Wed, 26 Aug 2009 10:12:14 -0400

Being jobless for many months can destroy your credit scores. Even if you manage to juggle accounts and keep paying the bills on time, using the credit cards to make up the shortfall between unemployment benefits and monthly expenses is damaging. Worse, as too many consumers have learned, when you start using your credit cards, card issuers start lowering credit lines and raising interest rates. That's a practice that has caused many of the jobless to simply stop paying the credit card bills. Thus, their credit scores have fallen to the basement. Most are anxious to find employment and get back on track with bill payment, but that fallen credit score gets in the way. As of a 2004 survey by the Society for Human Resource Management, 40% of employers were checking credit before hiring. Now, with applicants flooding the job market, that number is likely higher. Many are reviewing credit histories prior to a first interview with a job candidate. Others are checking after hiring, and then terminating employees based on their credit scores. Employers cite it as a good business practice - one that will prevent them from hiring people who are irresponsible or who make bad decisions. **End Summary** Topics: credit scores]]> credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Before You Go House Hunting - You need your free credit report

Mon, 20 Jul 2009 00:00:00 -0400

You may be thinking "Why do I need my free credit report right now when my lender is going to get it before I can get a loan?" Because you need to be prepared. You need to know what that credit report says and how your credit scores stand before you talk to any lenders. That's because every time a lender checks your credit on your request, your credit scores take a little "hit." You should never let any lender, landlord, or service provider check your credit until you are ready to move forward. Do call the lender and discuss the scores that will qualify you to buy a home. Ask him or her about the differences in interest rates offered to consumers with different credit scores and find out where your scores need to be before going forward. Note that when you do decide to buy, you can "shop" different lenders and they can all pull your credit report without doing you harm - as long as it's done in a very narrow time frame. The credit bureaus do recognize that consumers shop for loans just like they shop for homes or cars. **End Summary** Topics: free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Should You Request a Lower Credit Card Interest Rate?

Thu, 09 Jul 2009 00:00:00 -0400

Not unless you can't meet the minimum payment with your current interest rate. Prior to the credit crisis, consumers were advised to request lower rates as a reward for their good credit history, but with the turmoil going on in the credit card industry right now, asking could backfire. Any time you ask for a change in terms - be it a rate reduction or a credit line increase - the credit card issuer will pull your credit report. They will also ask for additional information such as your monthly income, employment history, etc. If your credit scores have been falling due to the closure of inactive accounts or the reduction in your credit limits, then your request could trigger an increase in your interest rate rather than a reduction. And of course, this inquiry on your credit report could bring your scores down yet another notch. Even the most responsible, creditworthy consumers are seeing their credit scores fall because of these actions on the part of credit card issuers. It is no reflection at all on your ability to pay or your money management practices, but since creditors look at your scores, you could suffer for it. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Credit Card Issuers Will See Limits on Fees

Tue, 07 Jul 2009 00:00:00 -0400

Credit card issuers make a lot of money from fees, but that money stream will be slowing down once the Credit Cardholders' Bill of Rights comes into effect. One of their favorites has been over limit fees. When you went into a store and charged just a few dollars too much, they'd approve the charge - but then hit you with a fee. And if you then went into another store and made another charge - you'd get another fee. If you didn't pay attention, this could really add up. Now it saved you the embarrassment of being turned down in public, but it was expensive! After February, you'll have the right to opt out of that "service" so that you will no longer incur over limit fees. If you don't pay attention, you will be turned down in public, however. Then, if the card holder chooses to keep the right to go over limit, card issuers will be limited to one over limit fee per billing cycle - which could save some consumers a great deal of money. Next, the fees for making a payment over the phone or internet are going away. **End Summary** Topics: credit card fees]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Buying a Car? First you need your Free Credit Report

Sat, 04 Jul 2009 00:00:00 -0400

Ordering your free credit report is probably the last thing on your mind when you're yearning for a new car, but unless you're going to pay cash for that new car, it is something you should do before you start to shop. You know that at least 25% of all credit reports contain errors. Making sure that your credit scores aren't being pulled down by some stranger's negative information is reason enough to take the few minutes to order a free credit report. If you wait until you've found your dream car to find out that your scores are low, one of two things will happen: 1. You'll lose out on the car because even if the lender agrees to finance it, you won't be willing to pay the interest rate offered. 2. You'll go ahead and buy at a higher interest rate - and waste thousands of dollars in interest payments. Correcting mistakes can take a couple of months, so you should get your free credit report just as soon as you start dreaming about that new car. Along with a stranger's negative information, your credit report could contain information that should have been removed long ago. **End Summary** Topics: free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Do You Need a Free Credit Report?

Sat, 04 Jul 2009 00:00:00 -0400

You're not thinking of making any major purchases in the near future, so do you really need to get your free credit report? Can't you just wait until you're ready to buy a house or a car? Yes you do need that free credit report, and no, you really can't wait. There's too much at stake. In 2008 over 10 million people were victims of identity theft. And far too many of them had no idea that they'd been victimized until they tried to obtain credit - or until they got a "cranky" letter from the IRS asking why they had failed to report all of their income. By then, the identity thief had done enough damage that some of them still don't have it all sorted out and corrected. Can you imagine how you'd feel if you'd been paying all your bills on time and a loan officer told you that you couldn't qualify for a home loan because of a half dozen unpaid credit cards on your credit report? Or what a panic you'd be in if the IRS implied that you had been trying to evade your taxes by not reporting all of your income? **End Summary** Topics: free credit report]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

How to Save on Credit Card Interest

Wed, 24 Jun 2009 00:00:00 -0400

Credit card interest takes the first dollars from every payment you send, so reducing the amount of interest you pay means your debt will be paid faster. One way to reduce those interest payments is to ask for a lower interest rate, of course. You can also transfer your balances to credit card accounts that charge less to begin with. Many a consumer has gotten in deeper this way - by taking advantage of low promotional rates on balance transfers, only to realize that 3 months later they're paying more interest than ever before. Fortunately for consumers, the Credit Cardholder's Bill of Rights, which was passed by Congress in May, will assure that any promotional rate remains effective for at least 6 months. But beware, this law doesn't become effective for 9 months. Putting any extra cash on your outstanding debt is always a good idea, as is continuing to send the same minimum payment even as your balance goes down. You've noticed that each time you make a payment, the minimum shrinks a little. This is a tactic used by the credit card companies to keep you paying interest from year to year. **End Summary** Topics: secured credit card]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Credit Card Issuers Have Their Own Definition of a Dead Beat and They Might Mean You.

Tue, 23 Jun 2009 00:00:00 -0400

Have you never paid your credit card bill late? Have you never gone over your credit limit? Do you pay the entire statement balance each month? Do you use your rewards card - and collect the rewards? Are your credit rating and your FICO scores rated "excellent?" Then you, my friend, may be a "deadbeat." That doesn't sound like my definition of a deadbeat, and I'll bet it doesn't fit yours either. But the credit card issuers have a different way of looking at things. They think you're a deadbeat because they aren't making any money from you. All they get is the fee from retailers when you use the card. They get no interest payments and no fees from you - and they're giving you back rewards on top of it! They'd like you a whole lot better if you carried a balance so they could collect interest each month, and if you'd pay a day late now and then they'd be pleased. They'd get to collect a fee. The same holds for going over the limit. **End Summary** Topics: credit]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Can Obama Keep Young People Out of Debt

Mon, 15 Jun 2009 00:00:00 -0400

Credit card companies have always targeted college students. Back in the 1960's, when it was still legal to do so, they simply issued a new card in a students name and mailed it to them on campus. That practice was banned when Congress began regulating the credit card industry, but they're still aggressively pursuing those new customers, and the result is that today's average undergraduate student now carries over $3,000 in credit card debt. This is the highest it's been since researchers started tracking data in 1998. The colleges and universities benefit from this aggression, because credit card companies rent space on campuses to set up their tables. There they offer everything from cash to coupons for pizza's and CD's in order to entice students into filling out application forms on the spot. Unfortunately, that means the students don't take the time to study the fine print on their offers. Most, if not all of these cards come with annual fees, conveniently charged to the new card. So the student is in debt before they use it to make their first purchase. **End Summary** Topics: credit scores]]> credit cards]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Credit, Identity Theft, and The New "Red Flags Rule"

Thu, 11 Jun 2009 00:00:00 -0400

Credit has been under attack lately, and in a state of change. Thus, the new "Red Flags Rule" that went into effect on May 1. This rule directs car dealers to play "snoop" in order to prevent ID theft. So, if you apply for a loan to buy a car - new or used - the dealer may ask you questions that you feel are none of his or her business. For instance: "Do you always use your middle initial?" "What's the balance on your American Express Card?" These are questions designed to trick someone who isn't you. Here's how: They ask about the American Express Card because your credit report shows you don't have one. That's something you would know, but a thief probably wouldn't know. So if "you" stutter and say you aren't sure, because your spouse is the one who keeps track of such things, it's a clear sign that "you" aren't you. Dealers are also looking for other inconsistencies, such as a name and address on your application that doesn't match your driver's license or the address listed in your credit report. **End Summary** Topics: identity theft]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Will Your Credit be Ruined by a Utility Bill Charge-off?

Wed, 10 Jun 2009 00:00:00 -0400

Possibly, but possibly not. In fact, the credit bureaus may not even know that it happened. We all pretty much expect that everything to do with our financial lives is an open book - reported to the credit bureaus and there for any and all to see. In spite of privacy laws, credit card companies, insurers, and even would-be employers can get access to our credit reports. But it isn't necessarily true with utility companies and small businesses. The fact is, it costs money to supply information to the credit bureaus, and not all companies want to spend the money just to report on their customers' financial habits. If you don't know if the charge-off appears on your credit report, get your free copy right now and check. If it's there, you might be able to make it go away, if you agree to pay the bill in full. It's worth a try to contact the utility and offer to make full payment if they'll agree to remove the information from your credit report. If so, be sure to get their commitment in writing before you send the payment. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

Responsible Consumers with Bad Credit Scores?

Wed, 03 Jun 2009 00:00:00 -0400

Because credit scores have been dropping for even the most responsible consumers, rumor has it that the change comes from changes in the FICO scoring model. The change actually comes from actions on the part of credit card issuers. Lenders are steadily increasing the number of folks who are getting credit lines decreased and accounts closed - even though they have paid every statement on time and have not had a negative report from any other source. It only makes sense for creditors to minimize their risk and exposure to unsecured debt. By now it's a well known fact that a late payment on one account can trigger a rise in interest or a credit line decrease on other accounts. But for many consumers that's not the excuse. In fact, the only excuse is "We wanted to." A survey by the Federal Reserve Board showed that about half of domestic banks had reduced credit limits for new or existing cardholders, and the trend is apt to continue. Meanwhile, the lowered credit limit lowers a consumer's overall credit score and can thus trigger similar reductions by other credit issuers - further reducing scores. **End Summary** Topics: credit scores]]>]]> About the Author: ]]> http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report , identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.