Credit crackdown gets personal

People late paying their mobile phone bills or who forget to settle even a minor credit card payment are being blacklisted for credit cards and loans as lenders take a hardline approach to protect themselves from bad debts.

Lenders are securing access to ever more personal data when deciding whether to offer credit cards and loans, and lapses that would have had little effect on a credit rating a year ago are being used to deny credit.

Read More

Introduction to Debt Management

(ARA) - If you are among the nearly seven million Americans whose short-term debt exceeds 20 percent of their annual net income, a debt management program may be able to help you.An effective debt management program consolidates your bills into one payment with several benefits:
1. Lower payments by up to 50 percent.2. Pay off debt in 36 to 60 months.3. Rebuild credit rating.4. Stop harassing phone calls and letters.


Read More

Have Rate Cuts Reached Your Credit Card?

Our friends at the Fed recently lowered interest rates sharply -- and then did so again. My Foolish colleague Chuck Saletta doubts Fed Chairman Ben Bernanke's wisdom, while Matt Koppenheffer sees merits in his actions. And while you probably know that the rate cuts will affect those taking out or refinancing mortgages, you may not know that the credit cards in your wallet could be affected, too. .

Read More

Folks need to curb love affair with debt

IN A RECENT online discussion, I received a question about a problem that plagues many people. It has to do with the Joneses, or rather, the ubiquitous family name used to refer to the friends, family, co-workers or neighbors we try to emulate with our own purchases.

Intellectually, we know it's wrong to want to keep up with the Joneses. In an economic downswing like the one we're having now, we learn that the Joneses aren't really so well off themselves. Their accumulation of bling has made them as broke as anyone else. And yet it's still hard to watch others amass stuff without feeling envious. Or worse, it can make you feel like a financial failure by comparison.

That's what one person was feeling when she wrote to me during the chat. She opened with: "Michelle, I need you to smack me on the head, PLEASE."

I liked the use of all caps for "please." It meant she knew the answer but just needed confirmation.

Read More

Contest takes swipe at credit card debt

The Service Employees International Union, never shy in its criticism of credit card issuers, announced Wednesday a video contest for students who want to spread the union's manifesto.The contest is called Keep It In Your Pants, as in Keep Your Credit Card in Your Pants. The union is trying to draw attention to what it calls "Debt Disease" among young people. "You can't tell if someone has it ... It only takes one time to catch it," the union says in a statement, by way of attracting contestants.

College students are vulnerable to credit-card debt, the union said, since banks market heavily to them. "Including the nation's largest bank by deposits, Bank of America," the union said, singling out the Charlotte bank.

The video contest is open to students in middle school, high school, college and grad school.

Read More

Kerry Bill Would Ease Small Business Credit Crunch

Today Senator John Kerry (D-Mass.), Chairman of the Committee on Small Business and Entrepreneurship, introduced legislation to address the expanding credit crunch, which is now beginning to squeeze small businesses. His bill would reduce loan costs and help more entrepreneurs access the capital they need to start and grow their businesses. On Monday, the Federal Reserve released a report showing one third of U.S. banks have tightened their lending standards for small business loans. Government guaranteed loans are also down by up to 23 percent.

The mortgage crisis that is forcing hundreds of thousands of families to sell their homes or face foreclosure is now preventing many small businesspeople from getting the financing they need to start or grow their businesses, said Kerry.

Read More

Your credit rating explained

Each agency will provide more detailed information - including in some cases instant, continuing and online access to your file - for a higher fee.

Correcting any mistakes

You have the right to dispute inaccurate information on your credit file, and to have errors corrected. But you cannot get information removed just because you find it embarrassing.

If there is negative information on your file about people in your family with whom you have no financial connection, you can ask the agencies to "disassociate" you from them.

If you want to dispute the accuracy of something else on your file, first contact the relevant creditor. If the information is wrong, it must update its internal records and notify the credit reference agencies it deals with, usually within 28 days.

Read More

A Free Credit Check that Doesn't Decrease Your Credit Score

(ARA) - There are a lot of numbers that are important in life, but none quite as influential as your credit score. Having a high credit rating can give you better interest rates on credit cards, car loans and even your mortgage. On the opposite side, a poor credit rating can make many aspects of living difficult. It's important to check your credit score to learn where you stand.By viewing your credit activity on a regular basis you can manage any detrimental items that need to be removed or fixed. These actions will create a better rating under your name and benefit you throughout your life. The easiest and fastest way to do this is by going online.GoFreeCredit.com is an easy way to check your credit from all three major credit bureaus. You can try this service free for 30 days to monitor any activity and make changes in your life so that your score increases.


Read More

Eliminate Credit Card Debt

(ARA) - You've heard the old adage, pay down your credit card debt each month to avoid the nasty interest rate charges and fees that result from revolving balances. But if you're like many of us, you need to carry a monthly credit card balance to pay for basic living expenses and emergency purchases. This is exactly what the credit card companies want you to do - it's how they make money! One thing you may not realize is that by simply making your minimum payments it will take you a long time to eliminate credit card debt. Moreover, what happens when this credit card debt becomes too great of a burden, when you can no longer afford to keep up with your monthly minimum payments? Or worse, what happens if you experience a period of unemployment, or are facing unexpected medical costs? The short answer is that credit card companies still want and expect you to pay back your credit card debt.


Read More

Popular credit rating system to change

MELVILLE, N.Y. - Bob Friedrich always pays his bills on time ... well, almost always.

Three years ago, he sent in his monthly mortgage payment as usual, but it got lost in the mail. He thought the problem was history after he paid the overdue balance the next month. But when he got his credit report last month, he found the single late payment with a note that it was negatively affecting his credit score. Friedrich, 53, an accountant who lives in Glen Oaks, wasn't happy, even though his score was still an impressive 790 out of 850.

"I think it was improper," said Friedrich, who contested the blemish and hopes it won't appear on future reports, which he checks yearly. "It was a single late payment that wasn't my fault. It was the post office's fault."

Friedrich, however, probably won't have to worry about the late payment affecting his score when he pulls his credit report this coming December.

Read More.

Freezing Your Credit Report

Eyewitness News Everywhere uncovers a way to protect you from identity theft!

Finding out you have been a victim can leave you feeling helpless. The problem is so widespread now, that the state of Tennessee has taken action.

There is a new law on the books you might not know about that could be your best defense, permanently freezing your credit report.

In the past, people have been able to temporarily freeze their credit for a few months at a time, after becoming an identity theft victim. But now, a new law allows you to be proactive to protect your finances.

Denise Mustiful-Martin, a doctor from Collierville, has been the victim of identity theft twice.

"I was angry, betrayed. You get kind of cynical and you want retribution."

Both times, someone in her office did the dirty work, stealing thousands of dollars. In one case, the officer worker took the routing and account number from her business checks and ordered new ones, then started cashing them.

Read More