Fix Your Credit Report


Credit scores depend on the info (both negative and positive) which can be found in your credit file. Just like your health, a lot of people don’t notice it until it becomes a problem. With the changes in the economy many people are now faced with credit challenges. There has been many layoffs, decreased working hours, and also the elimination of part-time workers. This leaves many facing the situation of how to maintain their credit or looking for ways to improve their credit score.

If you do not know what your credit score is… you ought to. Credit scores commonly fall between 300 and 850 points. Potential creditors use it to decide whether you are eligible for financing or even employment. It can be viewed by landlords and merchants. Credit score ratings are compiled using the data gathered from charge card agencies, banks, credit reporting agencies, financial institutions as well as other consumer databases.

If you have a low credit score, just know it is possible to raise your score. The first and best way is to pay your bills on time. Credit score ratings are hurt by late payments, therefore it is crucial that you get those payments in on time. If you are making a late payments your score will reflect that. Keep in mind, there is a big difference between 30 days late, 60 days late, 90 days late or 120+ days late. Another important key to repair poor credit is close unused bank card accounts and remove outdated information from your reports. Also check for erroneous or fraudulent information on the account. Finally, credit ratings are impacted by events as bankruptcy and foreclosure filings.

Your credit history can change even without being aware of it. This is why your credit score shouldn’t be a mystery. It’s your score and it has a big influence on your life. From you finding a mortgage to whether you get the job offer. A growing number of employers are using credit scores to decide how good a prospect you might be. There are numerous ways to improve credit score and the first step would be to know what it is and get an alert system.

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Statement by President Obama on CARD Act Implementation


Statement by President Obama on CARD Act Implementation

Last year, I signed the Credit Card Accountability, Responsibility and Disclosure Act into law to put a stop to deceptive credit card practices and hold credit card companies accountable to their customers.  Yesterday, the final reform provisions of the CARD Act took effect. As of today, consumers will be protected against unreasonable fees and penalties for late payments, as well as unfair practices involving gift cards. This law will also make the terms of credit cards more understandable and puts a stop to hidden over-the-limit fees and other practices designed to trap consumers.  It restricts rate increases that apply retroactively to old balances. And the CARD Act prevents companies from increasing rates within the first year an account is opened.

In addition, the Wall Street Reform and Consumer Protection Act I signed into law last month will empower a new Consumer Financial Protection Bureau with just one job: looking out for consumers in our financial system. This includes making sure that credit card reforms are implemented forcefully and that big banks and lenders are living up to their responsibilities under the law.  And in the wake of a terrible recession, these reforms and this independent consumer watchdog will not only protect consumers, they’ll strengthen our economy as a whole, leveling the playing field for responsible lenders and ensuring that families and small business owners are better able to make financial decisions that work for them.

http://www.whitehouse.gov

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Credit Card Rules Are Changing

The rules for credit card users are changing reports The Wall Street Journal. Good news unless your under 21 – read on…

New Law Forcing Credit-Card Issuers to Play Fair – WSJ.com
By JONNELLE MARTE

The rules of credit are changing. Consumers will see improvements this month as credit-card companies roll out the latest in a big series of government-ordered reforms on how they operate.

The various provisions of last year’s Credit Card Act give consumers more disclosures and restrict credit-card rates and fees. Further, the financial-overhaul bill signed by President Obama last month creates a new consumer-protection agency and entitles consumers to more information.

“Institutions are going to be forced to become more accountable to consumers,” says Adam Levin, chairman and co-founder of Credit.com.

But the news isn’t all positive: Credit-card companies are making up for lost revenue by adding new fees and increasing interest rates.

More Disclosures

The Credit Card Act, formally known as the Credit Card Accountability Responsibility and Disclosure Act, requires card companies to give consumers 45 days advance notice before increasing interest rates, changing certain fees or making other significant changes.

Payments and Fees

Since February, card companies have been required to deliver your bill at least 21 days before your payment is due, and your payment must be due on the same date each month.

Interest Rates

In addition to requiring the 45 days advance notice, the Credit Card Act prohibits card companies from raising rates for the first 12 months an account is open, unless you are more than 60 days late in paying your bill or if an introductory rate has expired — and those must last for at least six months.

Challenges for Young Adults

The law makes it more difficult for people younger than 21 to obtain credit cards, by requiring that they have a cosigner or prove they can afford to make the payments. The restrictions mean some younger consumers may have to turn to alternative methods for building credit.

read more here… WSJ.com

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News Reports Credit Debt Counseling on the Rise

It’s a whole new group of people seeking credit debt help today. This news report shows some that never experienced financial problems are now among those needing debt counseling.


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Consumer 10 Report: Demand for debt counseling even higher now
By Kurt Ludlow WBNS-10TV

As the economy starts to rebound, business is picking up for many industries, including, oddly enough, the debt-counseling industry.

Although it might seem counterintuitive, nonprofit debt counselors in central Ohio report that they’re busier now than they were at the peak of the recession – and that they’re bracing for an even bigger onslaught.

“The call volume has definitely picked up,” said Cara Henry, a counseling supervisor with the Consumer Credit Counseling Service of Central Ohio, a nonprofit group that has worked with more than 11,000 families and individuals in the past year.

Henry said organizations such as hers aren’t just hearing from more people; they’re hearing from different people.

“Over the years, we’ve seen all different types of socioeconomic backgrounds,” she said. “I think more and more today, though, we are seeing folks who are used to higher-paying jobs suddenly faced with unemployment. read more here http://www.dispatch.com

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Pay Your Mortgage or Credit Card?

Here is an interesting trend… Or is it?

More Consumers Pay Off Their Credit Cards and Let Their Mortgages Go
By Jane Bryant Quinn

If unemployment hits, which bills do you cover first? Traditionally, that would be food, utilities, transportation, and housing. If you couldn’t stretch your income to cover credit card payments–well,  you let them go.


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Such thinking is so pre-2008. Since the real estate meltdown, growing numbers of straitened borrowers are changing their priorities. They’re protecting their credit cards and letting their houses go. For anyone who loses a job and has no savings to fall back on, that choice makes a lot of sense.

Pre-2008, your house was your piggy bank as well as your home. If you needed money, you just had to tap your home equity line of credit.

Now, however, you might have no home equity left. If you need emergency money (and, ahem, haven’t saved that mythical six-months worth of income in the bank), your credit card is your fastest source of cash. Read more here… http://moneywatch.bnet.com

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FTC Delays ID Theft Enforcement

Image via Wikipedia FTC pushes back identity theft rules deadline for fifth time By Jaikumar Vijayan The Federal Trade Commission (FTC) has once again pushed back its enforcement deadline for an identity theft regulation called the Red Flags Rule. The rule requires financial institutions and other organizations that extend consumer credit to develop and implement [...]

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The FDIC Offers Credit Card Tips

Just released from the FDIC page are some insights on what to expect from the new credit card rules just put in place. FDIC Offers Money-Saving Tips in the New World of Credit Cards FOR IMMEDIATE RELEASE May 25, 2010 A new credit card law helps protect consumers from most instances of sudden increases in [...]

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Help Your Credit Score With These Tips

Came across this in IBD which has a few good tips on maximizing your credit score. It’s geared towards college grads but the info applies to anyone. Steps For Boosting Your Credit Score By PAUL KATZEFF, INVESTOR’S BUSINESS DAILY Buying a home, owning a car, educating your children … it often takes credit to afford [...]

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Free Credit Scores Not Just Reports

Right now you have to pay to get the “score”. Sure you can get a free credit “report” but it will not include your score. Here is some good news seen on CNNmoney.com reporting that reform may be coming that allows for free credit “Scores” … Washington pushes for free credit scores By Chavon Sutton, [...]

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What Secrets Are in Your Credit Report?

Here’s a brief article that gives some understanding to how lenders may be looking at your credit report… Secrets to help you manage your credit By Jennifer Waters, MarketWatch CHICAGO (MarketWatch) — A happy consequence of this Great Recession is that Americans are widely expected to be better consumers. That means we’ll only take on [...]

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No Credit For American Consumers?

A report from Barrons shows that credit for US small businesses and consumers is still not available… “IF YOU’RE LOOKING FOR CREDIT, you’re better off being a junk-rated company or, even better, a hopelessly over-indebted European country than a small American business or consumer.” Still No Credit Where It’s Due By RANDALL W. FORSYTH | MORE ARTICLES [...]

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