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By Sills, February 16, 2010 4:43 PM

This article was originally published on CBS Money Watch.com and was written by Bob Trebilcock.

The new federal rules for credit cards kick in February 22, preventing issuers from, among other things, jacking up interest rates as easily as in the past. Now four major credit card companies — American Express, Bank of America, Chase and Citi — are now trying to become your new BFF, with “consumer-friendly” cards.

Among the new features they’re offering: lower rates if you pay on time; the flexibility to craft your own rewards program; and the option of paying off some purchases interest-free each month. Some of the cards also have online tools and tracking systems to help you monitor spending.

Consumer-friendly offerings may seem like an about-face for an industry famous for hidden fees and encouraging customers to spend now and pay later, at stratospheric interest rates. And some banks are already finding ways to get around the new law. But with 47% of consumers saying they trust credit card companies less than they did a year ago, according to the Auriemma Consulting Group, issuers need you more than ever. “You can argue their motivation to death,” says Curtis Arnold, founder of CardRatings.com. “But we are seeing more consumer-friendly terms, new cards, and new initiatives.”

For the most part, the rates and fees for these cards are not as low as the ones MoneyWatch recently recommended in “Best Credit Cards for You,” but these new-fangled cards do offer some different features that make them worth checking out. Here’s a rundown on four new consumer-friendly credit cards to consider, with their features and downsides.

If you want to keep things simple …

BankAmericard Basic Visa is a stripped-down card designed for one purpose: making purchases with plastic. There are no rewards, no annual fee, and just one variable interest rate (now 17.25 percent) that applies to balance transfers, cash advances, and purchases. BofA guarantees that the index used to set the rate (prime plus 14 percent) won’t change. And as long as you pay on time, your rate will only rise if the prime rate does.

• Downside: Since most economists expect rates to rise this year, the Basic Visa rate is almost sure to go up in coming months. Even today, it’s about four points higher than the 13.63 percent average rate for variable cards. This is not a good card for anyone who carries a balance; instead check out a card with a lower rate.

If you always pay on time …

Citi Forward Visa is a rewards card that gives you a lower rate and more rewards points for doing what you ought to: paying bills on time and staying under your credit limit. The card starts with a 0 percent rate on purchases and balance transfers for seven months followed by a variable rate of prime plus 10.99 percent (that’s 14.24 percent today) on subsequent purchases. Every time you go three billing periods paying on time and staying under your credit limit, Citi will lower your rate by .25 percent — up to 2 percentage points over the life of the card. Based on today’s prime rate, your Visa card rate could be down to 12.24 percent in two years. To keep you on the straight and narrow, Citi lets you use an assortment of free online credit education and spending tools.

hat same good behavior pays off in rewards points, too. Normally, Citi Forward Visa cardholders earn five points for every $1 spent on restaurants, books, music, and movies and a point for every $1 spent on other purchases. But you earn an extra 100 bonus points each month by demonstrating the wise debt management noted above. Redeem points for merchandise, gift cards, and travel through Citi’s ThankYou Network.

• Downside: This card isn’t a great deal if you’re transferring a hefty balance from another card, since the interest rate givebacks don’t apply to balance transfers.

If you just want to charge big-ticket items …

The Chase Blueprint program allows you to avoid owing interest on items you really can afford to pay in full, while letting you run up a balance on expensive purchases, such as airfare or hotels. Think of it as feature that combines a no-interest, pay-in-full charge card (think American Express) with a credit card that lets you carry a balance. Blueprint is available on all of Chase’s Visa and MasterCards: Slate, Freedom, Sapphire and Ink.

With Blueprint, you separate out the everyday items you’ll want to pay in full every month, such as gasoline, dinners out, or movies. That way, you won’t owe interest on them, even if you carry a balance on other items. Chase also lets you designate a large or unexpected purchase to pay off over two billing cycles without interest, like that winter trip to the Caribbean.

And for a sizable purchase that’ll cost you interest, Blueprint can calculate a monthly payoff plan to minimize your charges. Say your refrigerator goes on the fritz, and you want to pay off the new one within a year: Blueprint will calculate how much you need to pay each month to do it and chart your progress on your statement.

• Downside: Blueprint isn’t of much value if you pay your balance in full every month. If that describes you, sign up for this program only if you like Chase’s rewards programs.

If you want to design your own rewards …

The still-in-beta American Zync card from American Express puts you in control of the card’s rewards program. It’s a little bit hokey, but it may appeal to some: You earn one point for every dollar you spend with the card and can then sweeten the AmEx membership rewards by adding so-called Lifestyle Packs (too bad they sound like condoms), which let you double points for spending in specific categories you designate. There are now four packs, with more coming. The ECO Pack, free to cardholders, pays 2 reward points for every dollar you spend with selected merchants rated “green” by Greenopia, an environmental screener. The other three Packs — “Go” for travel purchases, “Social” for restaurant, concert, and theater spending, and “Connect” for mobile, cable, and Internet services — cost $20 per year apiece and let you get 2 points for every $1 spent in their categories plus discounts when you redeem the points.

Rewards points can be carried over from one year to the next and can be traded in for gift certificates from participating merchants or applied toward future purchases. Zync cardholders also get access to American Express’s Money Manager, a financial management tool that allows you to link and monitor all your bank accounts, credit cards, investment accounts, mortgage loans, car loans and student loans.

• Bonus: Zync’s basic annual fee is just $25. So even if you pay for an extra pack, you’ll pay a $45 total annual fee, versus $95 for an AmEx green card or $125 for a gold card.
• Downside: The rewards payout on AmEx is a little chintzy. Based on American Express’s conversion rate, where 100 points equals $1 in rewards, you won’t qualify for a $100 gift card at a participating restaurant until you’ve spent $5,000 on restaurants, concerts, or theater tickets.

Watch a video with more information at CBS MoneyWatch!

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By Sills, January 15, 2010 2:58 PM

This article was originally published on CBS’ Money Watch website and was written by Barbara Bedway

Don't let it hapen to you!

By the time Lynda Rodriguez saw her BMW’s smashed front window and realized her purse was gone, thieves had already rung up $4,000 in charges not far from her Scottsdale, Ariz. home. Though Rodriguez, 47, acted quickly to shut down her credit card and bank accounts, her purse’s contents — including her pay stubs, checkbook, driver’s license, and medical ID as well as assorted credit cards — still held a potential bonanza for anyone intent on identity theft. That’s because personal information can be sold and traded among criminals for years after it’s stolen, making identity theft the crime that keeps on taking.

Rodriguez, who works in commercial real estate, learned that lesson last June, two years after the break in. That’s when she discovered the reason she hadn’t received her American Express bill: Someone had called AmEx to get the address changed and order a new card. The crook used the new card to charge $4,500 at the Bellagio in Las Vegas. In a Kafkaesque twist, Rodriguez says AmEx refused to provide her with the forwarding address the thieves used, claiming a “right to privacy” issue … for the thieves.

As Rodriguez found out, identity fraud is booming, due in part to the tough economic times. There were 9.9 million victims in 2008 (the most recent figures available), up 22 percent from 2007, according to estimates by Javelin Strategy & Research, a financial-services consulting firm. Javelin president James Van Dyke predicts the numbers will stay high “until more people are fully employed and economic pressures lessen.” Because identity thieves come out in droves during the holiday season, as MoneyWatch blogger Kathy Kristof points out, you may have recently been victimized without even realizing it yet.

What exactly should you do if your identity does get stolen? You may be surprised. In general, you’ll need to multitask at warp speed to minimize the damage to your accounts and to prevent new accounts from being opened in your name. As you contact authorities and financial institutions, keep a detailed log of each conversation. Then confirm what was said in writing by sending a copy of your notes by certified mail, return receipt requested. That way, if your contact leaves or fails to follow up, you’ll have a record.

Here’s a step-by-step guide to follow in case you do become an identity theft victim:

1. Put a Fraud Alert on Your Credit Reports

This is your very first step, even before you call the police, since credit bureaus are better able to shut down new attempts at fraud. Call the three major credit reporting firms (TransUnion, 800-680-7289; Experian, 888-397-3742; Equifax, 888-766-0008) and ask for the alert, requiring merchants to get your approval before granting new credit in your name. “You want to do anything you can to put up a barrier to new false credit being issued,” says Mari J. Frank, an attorney and author of the forthcoming The Complete Idiot’s Guide to Recovering from Identity Theft. Though in theory, you need to tell only one bureau to place an alert — that one is supposed to pass the word to the others — Frank recommends contacting all three to be sure the job gets done.

Fraud alerts normally can be renewed after they expire every 90 days, but once you’ve established you’re an ID theft victim, you can ask the bureaus for an extended alert lasting seven years.

2. Order Your Credit Reports

Once you get the fraud alert, you’re entitled to one free copy of your credit report from each credit bureau. Order these and scour the reports for unauthorized charges. Pay special attention to the “Inquiries” section, which lists businesses that obtained your report for the purposes of issuing you credit. “If you see a Kohl’s on there and you haven’t applied for an account, that’s an early indication someone used your name to open an account,” says Frank. If you spot charges you didn’t make, tell the credit bureaus and your credit issuers in writing and request the bureaus remove all the fraudulently-initiated inquiries.

3. Report the Crime

File a report with the fraud or economic crime unit of your police department. It helps convince lenders and credit bureaus to take you seriously. (You may be told to also contact law enforcement in the city where the fraud occurred.) Be persistent if you encounter resistance: Overburdened police departments may not want to take a crime report, because it requires an investigation. But “your local law officials have a duty to provide you with at least an informational report under most state laws,” says Frank.

If you have trouble getting a report, you may be able to obtain one from a state or federal law enforcement agency or the U.S. Postal Inspector, if the crime involved fraudulent use of the mail. The Federal Trade Commission has details.

4. Fill Out an Identity Theft Form

The Federal Trade Commission has developed an identity theft affidavitthat you can send businesses and creditors when a new account is opened in your name, to help document that a thief used your personal information to open the account. “It’s a kind of summary of what’s happened to you,” says Frank.

5. Notify Banks, Creditors, and Utilities

Ask to speak to someone in the security or fraud department to close all accounts a thief used. You can find the phone numbers on the back of your credit card and account statements. If you don’t have recent statements, Credit.com lists the ID theft contact info for many financial institutions.

Follow up by closing the accounts in writing, sending along copies of your police report, if you have one, and the FTC affidavit. The FTC and the Privacy Rights Clearinghouse have useful sample letters to help you document the fraud. Get new account numbers, PINs, and passwords for each account. If you have any recurring bills paid automatically out of your bank account, make sure you give merchants any new information they need.

6. Consider a Credit Freeze

If someone is still able to open fraudulent accounts more than a month after you’ve reported your identity theft, you may want to ask credit bureaus for a credit freeze. This drastic action prevents credit card issuers and lenders from looking at your credit report, which means they won’t grant new credit in your name while the freeze is in effect. (Because it can take several days to lift a freeze, you’ll need to plan ahead if you want to apply for a new card or loan once the freeze is in effect.) In most states, security freezes are available at no charge to identity theft victims. You can request a freeze online or in writing.

7. Keep Ordering Your Annual Credit Report

Since credit issuers aren’t always diligent about observing fraud alerts, you need to monitor your credit reports consistently to see if fraudulent accounts are opened in your name. You’re entitled to one free report each year from each of the three bureaus, in addition to the free reports you’re allowed when you place fraud alerts on your credit files. So a few months after getting your free credit reports from the fraud alert, order the free reports all consumers are entitled to receive through annualcreditreport.com; 877-322-8228. If you find a problem on the reports, contact the lender or credit issuer who provided the inaccurate data and make sure the firm has all the necessary documentation of the fraud.

Have you been hit by identity theft? Tell us your story, and what worked best for you, by signing in and adding a comment below.

BetterCredit101 recommends the following books on this topic: The Wall Street Journal. Complete Identity Theft Guidebook: How to Protect Yourself from the Most Pervasive Crime in America (Wall Street Journal Identity Theft Guidebook: How to Protect) and 50 Ways to Protect Your Identity and Your Credit: Everything You Need to Know About Identity Theft, Credit Cards, Credit Repair, and Credit Reports

Additional Resources:

myFICO is the ONLY place where you can get your FICO scores, the scores that lenders use, from all three credit bureaus.

Monitor Your FICO® Score & Equifax Credit Report

Lexington is the largest and most trusted credit report repair firm in America. They offer exceptional service at a very affordable price. In over 15 years of practice, Lexington Law has helped more than 300,000 clients clean up their credit reports. With its superior record, with the BBB, you can depend on Lexington!

identity theft

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By Sills, December 30, 2009 8:32 PM

It starts with a sign – a sudden drop in your checking account balance. A call from a debt collector about a cell phone service plan or credit card you never signed up for.

The first sign that you’ve been a victim of identity fraud is always unsettling. But for many people, that first sign is just the beginning. Depending on the skills and determination of the thief, and the length of time it happens, the damage could be much greater. On average, victims of identity theft spend 500 hours and more than $3,000 repairing the damage.*

The mental and emotional stress can be significant as well. The creditors and debt collectors you have to deal with aren’t concerned with the fact that your identity was stolen, they are focused on getting their money back.

Dealing with identity theft is never easy. Knowing what to expect is the first step toward being prepared.

Damaged Credit

The most common effect of identity theft is damaged credit.The thief runs up numerous charges in your name, doesn’t pay the bill, and your credit suffers. When you apply for a credit card, a mortgage, a new apartment, etc. you have a major strike against you.

Cost to Repair Damage

Erasing fraudulent charges and correcting your credit record takes time – and money. The average victim spends 500 hours and $3,000 undoing the damage from identity theft.

Financial Loss

One of the most devastating effects of financial identity theft is when the money you’ve worked hard to save suddenly goes missing — the work of thieves who got your ATM card or checking account information. Bank policies vary as to how much they will replace, but for many victims, this money is gone forever.

Medical Benefits & Health Coverage

If someone seeks treatment with your health insurance information, the thief’s treatments could show up on your record, be taken out of your benefits, and even disqualify you from new health insurance. And most dangerous of all, if the thief’s medical history is confused with yours, your own medical care could be jeopardized.

Criminal Record

If an identity thief gives your name and personal information when he or she is arrested, the crime goes on your record. Some victims of identity theft have even discovered they’re wanted in states they’ve never visited. The negative consequences range from legal fees or jail time to problems getting a job because of convictions on your record.

Social Security Benefits

If a thief gets your Social Security number, they can begin collecting your benefits or take a job using your name, leaving you liable for their taxes. Fixing this can take years of wrangling with government bureaucracy.

TrustedID has an effective proactive solution to identity theft prevention that has been recognized and praised by The Wall Street Journal, Newsweek, The Identity Theft Resource Center and The New York Times. Our subscribers enjoy our spyware protection for their computers, fraud flag placements, junk mail reduction, medical record, personal and financial data scanning, free annual credit reports and our $1,000,000 service warranty.

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By Sills, December 30, 2009 8:20 PM

Jewelry, electronics, your car – in the past, if a thief wanted to rob you they stole your valuable possessions. But in today’s information-based world, there’s something even more valuable that thieves can take from you: your identity.

Armed with personal information such as your Social Security number, credit card number, name, and address, an identity thief can drain your bank accounts and commit fraud in your name. It is possible that you won’t find out you are a victim until the thief is long gone.

More than 15 million people become victims of identity theft every year. An identity is stolen every two seconds in the United States – the fastest growing crime in the U.S. for the past four years.

How Identity Theft Happens

Your identity is one of your most valuable possessions. Your Social Security number, bank account numbers, and personal information are all a thief needs to commit identity theft.

How do thieves get your personal information? They use every trick in the book – and they’re constantly coming up with new ways.

Mailbox Raiding & Dumpster Diving

Mail from banks, institutions, and even new credit card offers contain valuable personal information which identity thieves can use to drain accounts and open new credit cards in your name. They get the information by stealing mail right out of your mailbox, or as in the case of dumpster diving, out of the trash after it has been thrown out.

Phishing

If you’ve ever received an email from a “bank” or other financial institution asking for account information, thieves could have been phishing for your identity. (The word is derived from “fishing,” because the emails are like bait.) Clicking on their link will send you to a site that looks the same as the actual institution, but actually belongs to the thief. When you enter your information, the thief has won.

Vishing

A combination of the words “voice” and “phishing,” vishing is like phishing, except the thieves use the phone instead of email. They may leave a message pretending to be your bank or some other company. When you call back, they’ll take your personal information.

Medical Benefits Fraud

Increasingly, thieves have started seeking treatment using another person’s name and medical insurance information. They can get it by stealing your wallet or hacking into a doctor’s or hospital’s computer system.

Spyware

Spyware is a malicious computer program that installs itself on your PC and then allows thieves to record your personal information – like a credit card number, password, or Social Security number.

Skimming

Skimming is a way for a thief to get your ATM or credit card information by installing their own card reader on an ATM machine. When you pass your card through the skimming device, it records your card information.

Corporate Data Breach

Trusted businesses, like your employer, your local bank, and other organizations have a great deal of your personal information stored on their computers. Thieves can gain access to this information by hacking into the network, by posing as a business partner, or after an employee loses a computer, disk or box of files.

Are you on Facebook and MySpace?

Social Networking Sites

Identity thieves are using social networking sites like Facebook and MySpace® to find out your personal information. They use the information they find on the site to pretend to be someone they’re not and coax other information out of you – like your Social Security number.

Child Identity Theft

Child identity theft works the same way as it does for adults: the thief acquires a child’s personal information, and then creates fraudulent accounts in their name. But because children usually don’t have financial accounts until they are older, no one may find out about the theft for many years, allowing the problems to be greatly compounded.

Senior Identity Theft

Seniors are particularly vulnerable to identity theft, because most have significant accumulated wealth, and are often unable to monitor their accounts carefully. Many are also less knowledgeable about technology, and more trusting of strangers and marketers, increasing their vulnerability.

Student Identity Theft

College students are another high-risk group. School registration days and frequent unsolicited offers for new credit cards provide many opportunities to share personal information and Social Security numbers. Combine that with frequent address changes and unforwarded mail and it’s a group ripe for picking by identity thieves.

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By Sills, September 21, 2009 5:21 AM

We live in a world where our entire credibility is dependent on our credit score. It is scrutinized whenever we go for a loan, a job, and a home rental. People with a good credit score are seen as a good risk for credit cards, loans and so forth. Landlords may determine your ability to pay your rent by examining your credit score. There are some jobs where a good credit score is seen as important and it also means you are more likely to be able to pay your bills.

Without this good credit score, the opportunity of buying things you want or need is more difficult. Sure, there are lenders who will let you borrow but at an extremely inflated interest rate.

So, as you can see, having a good credit score is very important. However, if you have a bad credit score, there are ways to fix it. This needs to be done as soon as possible and there are a number of ways to go about it.

One of the most important things is to stop your bad credit before it gets any worse than it already is. If you pay your overdue debts, it will cut off the bad credit reports. Although it won’t make your credit score any better, it will put you on track to fix your credit history.

Open a new bank account and apply for a secured credit card. This will be at a higher interest rate but that will control your spending and raise your credit score. Pay your credit card bill on time every month and your credit score will rise significantly.

Following the above advice will eventually lead to an improvement in your credit rating but your past credit history will still remain for around five to seven years before it expires. It all takes time but, if you are patient and diligent, you will see your credit score change.

If you make positive steps, your creditors will pass that information on to credit reporting agencies. If you always pay your loan payments and credit cards on time, you will get a good credit rating. This also applies to utility bills, rent, and so forth. You will eventually have a good credit rating so it’s worth the effort. Future financial opportunities could come your way and you wouldn’t want to miss out because of a poor credit score.

Anne is the owner of two websites http://www.ebooksbargains.com which has a huge range of books on a variety of subjects and http://www.therepairables.com that is a site which can help you in times of financial problems.

Author: A. Wolski
Article Source: EzineArticles.com
Provided by: PC gaming

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By Beth Pardue, September 21, 2009 5:21 AM

Thanks to the Internet, it has never been easier to receive and submit credit card applications. It can be very tempting to fill out all of the online forms available to you. But be careful, it could end up costing you–consider the following issues before hitting that “send application” again.


Be aware of card offers promising “pre-approved” credit. You may be a prospective customer, but you still have to apply for credit. Each time you apply, the card company obtains a copy of your credit report. All these credit card applications count as inquiries that, if concentrated over a short period of time, can negatively affect your credit score


With online credit card applications, you should also consider the security of your personal credit information. Take Security and privacy concerns seriously. Limit your online application to card companies that use industry-standard practices for security and privacy. Look for 128-bit encrypting, which scrambles your application data and requires a de-scrambler to read it.


Additionally, the card company’s Web server should use Secured Sockets Layer (SSL) technology. Look for an online application on a secure screen of the Web site. This is usually identified with a padlock or similar icon, or has a URL that begins with the word “https.” The company should also clearly state its privacy policy for handling your financial data.


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Note: This article may be freely reproduced as long as the authors bio paragraph at the bottom of this article is included, the article is published as is (unedited) and all URLs are made active hyperlinks with no syntax changes.

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About The Author
This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about credit reports or to get a free credit report online please visit: http://www.credit-report-credit-score.com

Author: Beth Pardue
Article Source: EzineArticles.com

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By Sills, September 21, 2009 5:21 AM

1.
Step 1

A secured credit card is a line of credit in which you secure with a deposit in the amount of extended credit. You can start small, such as a $300 limit to start. Then, as payments are made and your finances allow, you can increase your limit to as much as needed by simply increasing your deposit. A better way would be to obtain a second secured card. This will allow for two positive accounts on your credit report.
2.
Step 2

To start building your credit with a secured card, you will first need to determine where you would like to obtain your card. There are hundreds of websites online that offer secured credit cards. Most local banks and credit unions also offer these type of cards.
3.
Step 3

Once you have obtained your card, it is very important to make every payment on time. It would be wise to mail your payments in as much as three weeks before the due date. This will ensure that your payments arrive on time and avoid any late payment strikes on your credit report.
4.
Step 4

Also, keep very close track of the use on the card to avoid going over your limit. Using it strictly for the purchase of fuel for your vehicle is a great way to use and track (with receipts) these types of cards.
By dovinea
eHow Community Member

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By Sills, September 21, 2009 5:21 AM

There will come a time in everyone’s life that they need to borrow money for a major purchase such as a car or three-bedroom/two-bath home in the suburbs. Having a high credit score and excellent credit history will allow you get the best possible interest rate and the most advantageous loan terms on your automobile loan or home mortgage, so you should begin improving your credit score now. One of the most effective ways to raise your creditworthiness is to use a few credit cards wisely to prove your ability to manage your finances.

First, get one or two credit cards if you don’t already have one. Avoid getting a lot of them, though. It may seem like having several cards with little or no balance is better than having one or two, but opening too many accounts (especially over a short period of time) is not wise. Lenders view this in a negative way, and the credit bureaus decrease your overall score.

Next, use your credit cards. Some people mistakenly believe that just having the credit card is enough, but a credit card that sits in the kitchen junk drawer does not help your rating. The idea is to show that you can use credit and pay it off. That shows responsibility.

Finally, check your credit report on a regular basis to make sure the information it contains is accurate. When you work hard to keep your credit history solid, you don’t want errors to ruin your efforts.

Check Out our Blog For More Informative Articles! Credit Repair Facts is a must.

If You Can Read and Write at The 5th Grade Level I Can Show You How to Raise Your Credit Score Up to 249 Points in 90 Days! Raise Your Credit Score Now is the place to visit.

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By Sills, September 21, 2009 5:21 AM

By: jensholz@gmail.com

When it comes to choosing a credit card, you have many options to consider as a means of achieving your goal. Ultimately you want a credit card that is the cheapest, and that gives you the most flexible terms and conditions. However, judging those two factors can be difficult for those of us that are not credit card experts. Before you decide for sure that you wish to get a credit card, why not consider the alternatives that are available?

The Alternatives

Debit Card should you want a credit card as a means of ensuring that you can pay with a card, then why not consider getting a debit card instead? This will mean that you are not borrowing any money and that they money is coming out of your bank account.

Bank overdraft you should consider using a bank overdraft if you are wanting to borrow money over a longer period of time, as you may find that it will work out cheaper than a credit card. A bank overdraft is basically like a loan of money, however all it means is that you are allowed to have a negative balance in your bank account.

Bank Loan a bank loan is often the best solution when you need a loan of money over a longer period of time, or if the amount you need to borrow is a larger amount than what a person would usually borrow using a credit card or a bank overdraft.

Friends and Family if you want to borrow money, then you could consider asking your friends and family rather than asking a financial institution. Although many people are in a position where they are not able to do this; some are, and if they can, then it can often work out to be a good solution.

Factors to Consider when Choosing a Credit Card

APR when choosing a credit card, one factor you need to look at it APR. APR is the amount of money that you will get charged for borrowing money. This amount means the interest rate that you will be charged over the course of a year, and is usually presented in percentage form.

Limit this is the amount of money that you will be allowed to borrow. When you reach the limit on your credit card, then that is you; you are back to having no money. Despite that, limits can often work well for ensuring that you keep any debt under control.

Credit Rating if you always pay your bills on time, then you will most likely have a good credit rating. If you manage to always pay your bills on time with a credit card, then this will also help to make you look like a person who is more than capable of sound financial management. Because it is important to keep a good credit rating, you should always do whatever it takes to keep your credit rating as good as possible.

About the author:
Jens Kleinholz is a president of pollera. He writes about billig Kredit and schufafreier Sofortkredit.

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By Sills, September 21, 2009 5:21 AM

Credit Scores are so important because they are used for everything today. They determine the interest rate on loans; auto, personal and mortgages. They determine the premium you will pay for auto insurance etc.

How do you build an excellent credit score? There are three important factors that build you score.

1. History – your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn’t updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I’m not saying don’t pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I’m saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.

2. Length of Credit – this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.

3. Capacity – this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.

This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.

By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com and http://www.work-home-today.com – great resources.

Author: Lisa Burkhardt
Article Source: EzineArticles.com
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By Sills, September 21, 2009 5:21 AM

First-person accounts from mortgage professionals

Douglas Muir, CEO, Credit Justice Services

As published in Scotsman Guide’s Residential Edition, September 2009.

As the owner of a national credit-repair company, I have had to surmount much criticism. I feel for the mortgage industry and the bum rap it has received of late — but the credit-repair business often receives an even worse repute and is sometimes painted as illegal and even evil.

Fighting labels such as “scam artist” and “liar” can be tough, but honest and transparent communication can help do just that. I also believe that educating clients — and making sure to educate myself — makes a big difference.

In 2007, when discussion had just begun about the since-passed Credit Cardholders’ Bill of Rights Act, I was invited to visit with staff members of Sen. Carl Levin’s (D-Mich.) office to speak about the three major credit bureaus and credit cards.

After noting a 2004 Massachusetts Public Interest Research Group study that showed 79 percent of credit reports contain inaccurate information, I challenged the group to allow me to pull credit reports on several individuals. One intern volunteered for the sampling.

When we pulled his credit report, he was shocked to discover the report indeed contained inaccurate information. His tri-merge report showed a late credit card payment that he said he made on time. The score also was 60 points lower than that of a free report he had pulled days earlier.

As we discovered these things, I told the group about consumers’ legal rights and how the Fair Credit Reporting Act empowers consumers to control their credit information. The law states that the three major credit bureaus must prove consumers’ credit reports to be true and accurate. If the reporting bureau can’t verify the information, it must be removed.

It was an honor to speak with the senator’s office and to participate in a small way with the passing of the Credit Cardholders’ Bill of Rights Act, which President Obama signed this past May. The act, which is set to take effect in February, is designed to prevent universal default, a practice in which banks raise consumers’ interest rates based on their payment behavior on other, unrelated accounts. It also will prohibit banks from randomly changing the terms of consumers’ existing contracts and will allow card-holders an opportunity to cancel cards or pay off accounts if a legitimate reason justifies an interest-rate hike.

The act also will help consumers avoid sudden hits to their credit scores resulting from lowered limits, which can create a balance greater than 40 percent of available credit and cause a credit score to drop significantly.

In essence, the bill gives U.S. citizens an important voice — their own — when it comes to credit-report fairness. It also will assist mortgage professionals, who share the goal of helping consumers fulfill their dreams of new, ongoing and secure homeownership. By confirming consumers’ rights, the Credit Cardholders’ Bill of Rights Act will provide consumers protection from banks that in the past raised rates at their whim. For mortgage brokers, this should mean fewer surprises during the loan-approval process.

As the economy continues to struggle, first-time homeowners face a tight credit market, and many existing homeowners struggle to avoid defaulting on difficult mortgage payments. Mortgage brokers and credit-repair specialists should team up to provide these consumers advice and guidance.

One way to best serve clients is to educate and inform them about their rights, choices and options. A client empowered with information is more able to make informed decisions and more likely to think of brokers and credit-repair experts with esteem rather than with contempt. As we move forward, I think brokers and credit experts can agree that our mission is to create financially independent consumers who enjoy the comfort and security of homeownership. Together, we can do that better.

Douglas Muir is a credit-industry expert and CEO of Credit Justice Services. He speaks to mortgage professionals internationally about the importance and effects of credit. Since opening in 2004, CJS has helped more than 18,000 consumers improve their credit scores, and the company is the fourth-largest credit-repair company in the U.S. Contact Muir at (904) 757-0880, dmuir@creditjusticeservices.com or www.creditjusticeservices.com.

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By Donny Lowy, September 21, 2009 5:21 AM

In this area, your work is definitely easier now than in the past. Because of the pressure from consumer advocates and regulators credit reports are much easier to read now and there have been significant changes in the credit-reporting industry. You should know that the rise of identity theft was a key consideration for lawmakers when Congress wrote the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act. When that process was taking place, consumer advocates and others called attention to the growing importance of consumers understanding how the credit system works.

Nowadays, bad marks on your credit report can determine whether you land the job you’re applying for, how much you pay for auto and homeowners insurance, and your credit card interest rate, plus whether you have to pay your utility or cell phone company a deposit. Keep in mind that you have to focus on identifying what’s bad on your reports and the information you’ll need for planning your repair effort. Remember that there are different styles and formats of credit report. However, most of them derive from one of the three super-bureaus that supplied the information being reported.

Congress understood that an informed consumer would be less likely to fall to scams, and would be able to have a stronger control of their financial well being, provided that they could understand and have access to information.

For this reason Congress mandated that credit reports be written so as to make their information
very clear to the consumer.

http://www.Justurbanlife.com is your source for credit. You can obtain loans, mortgages, credit cards, cash advances, even if you have a poor credit score. http://www.justurbanlife.com is also perfect for you if have a good credit score. For personal or business needs, http://www.justurbanlife.com is your source for cash.

Author: Donny Lowy
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By Sills, September 21, 2009 5:21 AM

COMING SOON!!

BetterCredit101.com will be featuring MORE information on how to establish credit, apply for credit, and how to get a credit card! Keep checking back…we’re going to continue to add information that YOU can use to get Better Credit.

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By Sills, September 21, 2009 5:21 AM

There’s a lot of confusing information about credit scores out there. There are people out there who believe that they don’t have a credit score and many who think that their credit score doesn’t count for much. Your credit score can spoil your chances of getting some jobs, of good interest rates and even your chances of getting some apartments.

The fact is if you have bills and a bank account then you have a credit score and your credit score matters more than you might realise. Your credit score is may be refered to by a number of other terms, including a credit risk rating, a credit rating, a FICO rating, a FICO score or a credit risk score. All these terms refer to the same thing the three-digit number that allows lenders get an idea of how likely you are to repay your bills.

Each time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartment living your credit score is checked.

In fact, your credit score can be checked by anyone with a legitimate business and reason to do so. Your credit score is based on your past financial responsibilities and past payment records and credit and it provides potential lenders with an easy snapshot of your current financial state and past repayment habits.

Your credit score lets lenders know fast how much of a credit risk you will be. Based on your credit score lenders decide whether to trust you financially and give you better rates when you apply for a loan. Apartment managers will decide whether you can be trusted to pay your rent on time. Employers will decide whether you can be trusted in a high responsibility job that requires you to handle money.

There’s quite a bit of misinformation circulated about crdit scores especially through some less than scrupulous companies who claim that they can help you with your credit report and credit score, for a fee of course.

Advertisements and suspect claims can mislead you to the point where you may come away with the idea that in order to boost or fix your credit score, you will have to pay a company or leave credit repair in the hands of the so-called ‘experts’. This is not necessarily the case. It is possible to bring down debts and boost your credit by yourself with no expensive help at all.

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Credit Score An Introduction