Posts Tagged ‘credit’

Check Your Credit Score Before Applying For Credit Builder Credit Cards

Saturday, January 7th, 2012

Someone’s credit score indicates how credit-worthy and financially responsible they really are. A credit report is usually acquired from the nation’s three big credit bureaus, which includes Transunion, Experian and Equifax. Nevertheless, the big three are not immune to errors and big flaws. On the advice of some credit experts, these three agencies incur error rates in the range of twenty to thirty percent, even though some of the mistakes may be nothing more than reporting the wrong month of a delinquent account. However, any simple credit report errors can still have a damaging effect on the person’s credit score, which could lead to the individual getting rejected for a much-needed line of credit. Here are 5 ways to dispute errors in your credit report.

Order a Copy Of Your Credit Report From One of The Major Credit Agencies. First of all, get a copy of the credit report straight from each, or just of the three big credit agencies. Don’t get your credit report from third-party agencies, as chances are you could be disputing errors or flaws that aren’t real. According to the US Fair Credit Reporting Act (FCRA), the major credit agencies are responsible for putting straight or reducing any mistakes in their credit reports. The FCRA therefore, enables you to directly contact these credit bureaus, and formally relay your disputes or complaints.

Make Sure Each Report Is Not Past The Seven Year Limit. Once you get a copy of your credit report in front of you, compare all of the reports, and make sure that these aren’t over the seven year limit for reporting of any errors or erroneous information. Additionally, check if the status and delinquency dates are correctly noted.

How To Dispute Any Errors You Find. Once you personally find any mistakes, you can dispute them through registering your complaint online, in addition to sending a letter to the specified credit agency. Although sending your dispute on the Internet may be much faster, it only offers you a few options for explaining your case. Nevertheless, if you write a letter, make sure you limit it to around one hundred to one hundred fifty characters, or thirty words, to succinctly state your complaint. To file your dispute online, visit the agency’s Web site, and search for the “Dispute” link or button. Type in your identifying information, and proceed to state the complaint. In sending a dispute in the mail, find the agency’s official mailing address, normally located towards the end of your report, and include your name and address, report number, as well as the account numbers you’re disputing.

When you get a copy of your credit report from a credit bureau, the it is normally given 45 days to send the results of your complaint. If you paid for the report, the agency will usually get this to you in around thirty days. When you spot any errors or flaws in your credit report, it’s important that you question and question all those inaccuracies, and never assume that something is correct, just because it’s reported by one of the major credit reporting agencies.

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What You Can Do To Avoid Credit Card Fees

Saturday, January 7th, 2012

Paying a credit card monthly can be a real pain. A pain on your wallet, that is, as you struggle to make ends meet while staying current. However, this hypothetical scenario does not apply to everybody – there are people who spend within their limit and exercise discipline when spending and making payments, yet there are others who swipe their cards like there’s no tomorrow only to see their chances of coronary disease go up when they get the monthly bill. No matter what your situation is however, there is always one thing you will not, under any circumstances, want to see on your monthly credit card bill, and that is a credit card fee.

There are various credit card fees and different circumstances which may lead to your incurring them on your bill, but fortunately for you, you can avoid these fees by following a few helpful hints and making sure you are disciplined in matters of the pecuniary sort. The most important way to minimise the fees you receive from your credit card company is to pay your bill on time and in full each month. In most cases, if you follow through on this, you will not be billed with finance charges based on your interest rate, and you will be able to have, in a way, a month of absolutely free credit through your card. Staying on top of your finances and managing your credit cards this simple way would reap benefits for any card holder.

However, many people cannot pay their account in full each month, therefore, they incur the most common of all credit card fees, and this is finance charges. Simply put, banks and credit card companies often charge extremely high interest rates to card holders, so if you may only need the extra quid for only a few months rather than on a long-term basis, it would be much more favourable to go with other options, but not a credit card account. Compared to maintaining a large credit card balance, you end up spending less simply paying off a short-term loan.

The late fee is yet another credit card fee, assessed when a card holder fails to clear the bill when it is due. Many people who have more than enough money to make their repayments simply through a lack of organisation miss payments and incur large fees. The consequences may be more dire if you are in some sort of financial trouble and having difficulty making repayment – you may need to undergo financial or debt counselling in order to avoid getting into even more dodgy circumstances.

You may own a Chase card, a B&A card or some other credit card, may it be a Visa, Mastercard or Amex – the credit card fees these companies charge go far beyond what was discussed above, and it is your responsibility to know how and why they are incurred if you wish not to see them on your statements.

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Credit Cards – Servant And Not Your Master

Saturday, January 7th, 2012

There’s an old story about a man who wanted to go on vacation for a couple weeks, but was very careful with his money and didn’t wish to pay to pay for his car to be garaged for that time – nor did he wish to park it on the street while he was not there. He drove to a bank and asked the manager for a short term personal loan to pay for his vacation, to which the manager of the bank inquired, “Do you have any collateral?” The man answered, “Yes, I’ve got a car” The small loan was duly made available, and the automobile was put in the locked garage area underneath the building. When the man returned from his vacation, he went to the bank and paid back the loan entirely, including $15 interest.

The bank manager was perplexed and asked of the man, “Why take a loan when you obviously didn’t have need of it?” The man smirked, “Where else in this city could I get safe parking for 14 days for just $15?”

Of course, it’s an amusing urban myth, but it does indicate the right direction when it comes to managing our financial matters. Take credit cards, for instance. Originally created to give financial flexibility in the high consuming period of the nineteen fifties, they quickly became indispensable in the Western world, but unfortunately have also brought trouble to a lot of people. While it’s a reality that these little pieces of plastic can seem too easy to charge, with care they can be a great help, we just need to use them in the correct way.

Nowadays, competition in the market place has caused companies to create innovative types of specialized cards, for slightly various clients and uses. If your credit score is more than 700, for example, you could get a card with a low (ApR) annual interest rate. Even though you can still apply for cards when you have lower credit ratings, bad credit or perhaps bankruptcy, the conditions are different.

If there is a large balance on your current card, and you need to make your payment burden a little easier, why not transfer your balance to a new card? There are cards out there which boast extended periods with no interest to pay, which gives you a great opportunity to reduce the balance or remove it completely. Another possibility is to apply for credit cards which give some rewards when you them, rewards like cash back, air miles or points that can be changed for products. A secure card isn’t really a credit card at all, but is only of use if the account is topped up first, by putting money into it. However, these cards get reported to the major credit agencies and so are a real help in repairing your credit score when you have experienced past payment problems.

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