"Learn the Secrets I Used to Wipe Away Negative Items on My Credit Report & Raise My Scores Over 200 Points!"*

Credit Repair Tips - Grab Your FREE report (a $77 value!) Just enter your email addresss to the right & it will arrive within seconds!
E-Mail:

Need Credit Repair Help Right Now? Check Out the Top Credit Repair Services on the Net!

Nov 30, 2008

Identity Theft and Your Credit: Protecting Yourself Over the Holiday Season

The holiday shopping season is almost upon us, and with it comes the additional dangers of identity theft and credit card fraud. Unauthorized charges, opening new accounts, and transferring cash out of existing accounts are just a few of the ways that identity thieves can wreck havoc with your financial well-being. Though the consequences can be severe – a lower credit score, liability for bills and purchases you did not make, and loss of income – there are steps you can take to preserve your credit and avoid being a victim of identity theft. Here are a few tips to help you maintain your credit:

Online Monitoring – if your credit card company allows you to monitor your charges online, take advantage of that to keep track of your charges. Set up an email alert whenever your credit nears its limit, and check for unauthorized charges on a regular basis. Most credit card companies have a 0% fraud liability in place, but this only works on your behalf if you notice a suspicious charge and report it promptly – it can prove difficult to dispute a charge that you don’t notice until months later.

Set Spending Limits – don’t trust your credit card company to hold you to your credit limit. Many companies will allow you to go over your limit in charges, and then access an over-limit fee for each charge that is above your approved credit line. This could mean that a thief with your credit card number might still cash in, even if your cards are maxed out. The best way to handle this is to tell your credit card company not to allow courtesy over-limit spending. While it means you will have to be more careful about your own spending as well, it can prevent a host of problems with over-limit fees down the line.

Leave the Plastic at Home – unless you’re going on a major shopping spree, you probably don’t need every credit card you own in your wallet. Only take one or two, and you minimize your risk if your cards are ever lost or stolen. By keeping excessive cards out of your wallet, you may also cut down on impulse spending, which can help your budget and your credit score in return.

Be Smart about Online Shopping – only shop at reputable sites that you know you can trust. The holiday season is not the best time to be adventurous with online shopping. A merchant website can be up one day and gone the next, so be sure to deal with companies you can trust – and keep your anti-virus, firewall, and browser up-to-date to minimize security risks overall.

Consider Fraud Monitoring – if you can afford it, consider paying for a fraud monitoring service over the holiday season. This will make it simple for you to know if anyone has opened a new account in your name, or is making large purchases on accounts you may not have used actively in some time. Be sure to choose a reputable company, ideally one that will provide a monthly report, either through the mail or online, about your credit activity. Match what you see in the report to what you know you’ve charged, and if you notice discrepancies, contact your credit card company right away.

With credit card fraud and identity theft, the sooner the fraudulent actions are caught, the easier it is to straighten out any potential damage to your credit history. So be alert, shop safely, and always monitor your statements for unusual activity. If you follow these tips, you can enjoy your holiday shopping without worrying about a nasty New Year’s surprise on your credit score.

Posted in credit, credit card fraud, credit monitoring, fraud monitoring, identity theft | No Comments »



Nov 24, 2008

Three Common Credit Myths and How They Can Harm Your Credit Score

With the current state of the economy, having a strong credit score is more important than ever. Unfortunately, common misconceptions about credit and how your credit score can be improved ultimately do more harm than good. With a sea of credit repair companies promising flawless credit, it can be easy to succumb to misinformation. Here are three common credit myths that could potentially damage your credit score:

Myth: Once a Debt is Charged-Off, I Don’t Have to Pay It

Charge-offs may seem like a positive at first, namely because the term sounds very similar to a “discharged” debt, which is one that has been cleared. Charged-off debts, despite the similar-sounding name, do not clear you of the obligation to pay the debt. Instead, it is an indication that the company does not believe you will pay the debt and therefore it has been removed from their accounts receivable. It essentially makes your debt an expense on the record books of the company, but that does not relieve you of responsibility. Charged-off debt classifies you as a ‘high-risk’ to many credit issuing companies, and can severely impact your ability to get future credit.

One Caveat: if the debt is past the time allowed by your state to collect, you don’t have to repay the debt, whether it’s been charged-off or not. Typically, the age of the debt has to be anywhere from 4-6 years before this is the case, but because these regulations vary by state, it’s best to check your local laws to be sure you’re in the clear.

Myth: Credit Repair Services Can Erase All Negative Credit Information, Even if it’s Legitimate

Reputable companies won’t promise to erase legitimate debts. Under the Fair Credit Reporting Act, you are allowed to challenge debts that you believe to be erroneous or questionable. That does not mean that you should challenge any and all debts. In fact, doing so may result in collection agencies and bill collectors ignoring any legitimate requests you may make to have truly erroneous information removed. This is because if the company feels that your dispute is ‘frivolous’ they can ignore it, and leave the debt on your credit report.

There are numerous ways to have negative items on your credit report removed. Disputing them is not the only way. If the debt is legitimate and being reported correctly, you may want to try to negotiate a pay for delete. When using this method, remember to always get the terms in writing.

Your best bet is to choose a credit repair service that has a reputation for success, and that uses ethical and legal methods to improve your credit score. You may not be able to get rid of all negative information, but the removal of even a few items could see your credit score improve dramatically.

Paying Off Old Debts Will Improve My Credit Score

Surprisingly, paying off old debts will not always improve your credit score, and may actually worsen it. This is because paying on an old debt can sometimes make the debt appear to be new. If the amount you owe is substantial, this can make it seem as though you’ve just taken on a lot of new debt. While the credit bureaus are working on finding ways to eliminate this setback, currently there is still a chance you could see your credit score fall as a result of old debts being paid. Be particularly vigilant when it comes to knowing when your debt’s statute of limitations for collections has run out – you don’t want to pay on a debt that is no longer enforceable by law unless there are very special circumstances.

Keeping the truth behind these three myths in mind can help you to avoid unnecessary declines in your credit score. If you need help improving your credit score, always deal with a reputable agency, and be sure to check the facts to be certain the law is on your side in your quest for better credit.

Posted in FCRA, charge offs, charged off debt, credit, credit repair services, credit report dispute, credit scores, paying off debt | No Comments »



Nov 18, 2008

Credit Cards and Fine Print: Why You May Be Paying Fees, Even if You’re Paying on Time

Most people who have taken the time to repair their credit are careful about maintaining it. Paying bills on time regularly becomes a habit, and you might assume that your responsible spending will be rewarded in lower interest rates and better terms on your credit card. While this may be true in some cases, more and more credit card companies are factoring fees and steep interest rates into their profit model. This means that even if you pay your card on time, you may be charged more than you realize. Here are some terms you may see in the fine print of your credit card and what it can mean to you in terms of fees, interest and extra payments.

Universal Default

You may notice that if you miss a payment by even a few days with one credit card account, your other credit cards will revert to a default rate. This is what’s termed ‘Universal Default’ and some credit card companies use it to trap you into higher interest rates. After all, it’s almost certain that you’ll be a little late at some point, and this allows the credit card company to make a bigger profit, even if you aren’t late making payments to their company in particular.

Unfortunately, the only thing you can do to avoid universal default if it is a part of your credit card agreement is to pay all of your credit card bills on time, every time. A better bet is to look for a card that doesn’t have this stipulation in the agreement, and transfer your balances there.

Interest on Late/Overlimit Fees

Some people do not realize that if you are charged a late fee, interest accrues on the fee as if you made a purchase. This essentially means that you are charged more for each time you go over your limit or are late on your payments – and the interest continues to build month to month, so that it becomes more difficult to keep your balances down and avoid more fees and damaging notations to your credit report.

Double Cycle Billing

Double cycle billing is another financial ploy that many credit card holders do not realize is working against them. Essentially, double cycle billing charges interest twice on the same purchases, if you make a partial payment to bring down the balance without paying it off entirely. For example, if you had a zero balance on your card and you made a purchase of $1000 dollars, paying $400 when the bill was due should mean that you would only have interest charges on the $600 that’s left on your bill. This is true with cards that use conventional billing. However, with double cycle billing, you would actually have interest on $1600 the next month. The initial interest would be charged to the $1000 purchase you made, and then additional interest on the $600 balance remaining on the card.

This is another of those instances when it pays to shop around and read the fine print. Be certain your grace period for purchases is spelled out, and if not that the actual interest charges are not double-billed.

“Courtesy” Overdraft

Many times, credit card companies will allow you to keep charging on your card, even if you are over the limit. This means that if you don’t keep a close eye on your balances, you could be charging up a fortune in overdraft fees. While this type of ’service’ is usually called a ‘courtesy’ overdraft, it is actually a disservice that hurts your credit score and makes it difficult for you to obtain more credit, as well as making it difficult to pay off what you already owe.

One of the easiest ways to avoid courtesy overdraft is to set up a reminder that will alert you when you are nearing your credit card limit. Be sure to set the alert at a reasonable amount: $100 to $200 left on your card should give you plenty of notice so that you don’t overspend unknowingly.

If you pay careful attention to the terms on your cards, and plan your credit card purchases accordingly, you can avoid falling into the traps that credit card companies set in order to take more of your money each month. Shop around for fair cards that don’t use deceptive billing practices and you’ll be well on your way to avoiding woes due to fine print.

Posted in courtesy overdraft, credit, credit card fees, double cycle billing, late fees, overlimit fees, universal default | No Comments »



Nov 7, 2008

How To Detect Identity Theft

A victim of identity theft may not realize that somebody is using their identity for months or even years later. Thousands of dollars worth of debt and financial ruin could be happening under the victim’s nose, while blithely enjoying a peaceful breakfast of Cheerios and the morning edition of the New York Times. Luckily, there are many indicators that can keep you from becoming Naive Joe Consumer, Identity Theft Victim. You just need to be on the prowl for such indicators at all times.

Where Did My Credit Rating Go?

The biggest, most obvious sign of identity theft would be when you are unexpectedly rejected when applying for extra credit, such as a credit card or loan. If you have always paid your bills on time, keep very low credit card balances, and have had credit for several years, there is no reason you should be denied a Sears credit card (or some other miscellaneous retailer).

A rejection might indicate that somebody has been doing something on your credit report of which you are unaware. You might want to get a free copy of your credit report as soon as possible and go over it with a fine-toothed comb.

Suspicious “Junk Mail”

Another good indicator of identity theft would be missing bills. The mailman is not perfect and one missing water bill is probably indicative of a haphazard postman and not identity theft. However, if you are missing several bills, it may be a concern. Purchase a post office box and change your addresses with the companies you do business with. Check with the credit bureaus and all of your creditors to see if anything suspicious has happened as of late. It would also not hurt to put fraud alerts on your credit report with all three credit bureaus, to protect yourself from any future damages.

Sometimes junk mail is just that…complete and total junk. But, if you start receiving innumerable credit offers and credit cards for which you never applied, it may be a good sign to start auditing that credit report. A trigger for credit offers often happens when a financial company requests and receives a copy of your credit report. If you did not authorize it, somebody else out there did. This is definitely a sign.

Should you receive an actual credit card, ask about the application. When you file a police report, alert the police of this incident. They may be able to track down your attacker based on the credit application. For example, if someone applied online for a credit card with your information, the IP address of the computer they used to apply will be stored with the creditor. This address could be used to track down the thief and charge them with a Class C felony.

Strange, Small Errors and Charges

The most common type of identity theft manifests itself as a few unauthorized debits, charges, or withdrawals with one of your financial institutions. No matter how small the unauthorized amount may be, contact your creditor. Often times scammers will make small charges to see if the card is “good” before they really go on a spending spree. A five minute call to your financial institution can launch a fraud investigation and prevent your account from further unauthorized transactions.

If you start receiving collection calls from representatives of companies you have never dealt with, immediately request a copy of your credit report. Alert these companies that the inquiries are unauthorized, as you have never dealt with them. The company may require something in writing stating that the charges are unauthorized. Comply with any requests as quickly as possible so you can return to restoring your credit.

It can be an intimidating thing if one or more of these things happen to you. Take the first step and do not let it “work itself out” (it won’t). Scammers are out there making a living by conning you out of your hard-earned cash, reputation, and accomplishments. Be proactive and do not let any resistance stop your goal of returning back to normal consumer life.

Source: CreditIdentitySafe.com, a site full of identity theft protection tips, warnings and scam alerts.

Posted in credit, credit bureas, fraud alert, identity theft | No Comments »



Nov 1, 2008

Holiday Financing and Your Credit

It’s almost that time of year again, and with the economy in an uncertain state, many holiday shoppers may be looking to cut back on large expenditures for the holiday season. Holiday financing can help save money and your credit, if you’re smart about how much you spend and set realistic limits from the start.

Buy Now, Pay Later – At What Cost?

Traditional holiday credit in the form of 90 days of no payments and no interest is common in many stores, and it can help you to improve your credit standings as well, if you’re smart about how you spend. The key is to only purchase what you know you will be able to pay off within the timeframe of the special offer. This will allow you to save money in two key ways – by avoiding the interest payments if you’d charged your purchases to a credit card, and by keeping the balances on your credit cards low during the holiday season.

Where many people fail to shop wisely is by taking advantage of the deferred payment options in addition to spending on their credit cards. This is often a costly mistake – people end up over-extended, and then they are hit with compound interest charges that accrue from the moment of the initial purchase. That’s three months of interest charges added into the initial purchases, and many times, the interest rate is several times higher than that of a typical credit card. So how can you take advantage of holiday financing without breaking the bank? It’s simple if you plan ahead:

  • Make a budget: Plan out your purchases now, before the holiday rush, and get a cost estimate of how much you’re likely to spend before you start your shopping, whether online or in retail stores.

  • Make a plan: Big ticket items can often take advantage of special financing directly from the store so shop around and find the one that makes the most sense for your budget.

  • Stick to the plan: When it’s time to shop, keep your price range in mind – don’t give in to the temptation to use your credit cards to finance your holiday if you’re using deferred payment options as well. You want to be able to pay off all of your holiday shopping before those high interest rates set in.

  • Read the fine print: Make sure that any deferred payment plans you agree to spell out the exact date that payment is due in order to take advantage of the special financing. Be aware that if you miss the initial payment date, the interest rate may default to a much higher percentage – so shop wisely.

One word of caution when it comes to deferred financing – while it can help your credit score to maintain reasonable balances on your credit cards throughout the holiday season, if you default on the deferred payment arrangement, it will undo all of your careful planning and hard work. These finance companies will report any late payments the same as your credit card company, so be certain to budget wisely and don’t overspend. If handled properly, buy now, pay later can pay off not only in interest savings, but in saving you the holiday credit crunch as well.

Posted in budgeting, credit, deferred financing, finance, financing, interest rates | No Comments »