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TITLE: Tips on Finding a Credit Card For Good Credit CONTENT: How to Find a Credit Card For Good Credit\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nWhen your credit is in good shape, you don’t have to look too far to find a credit card you qualify for. But that’s not to say you should take whatever offer turns up first. On the contrary, the better your credit, the deeper you should dig for the best deal. Because a better deal is out there and you deserve it.\n**Know Your Credit Score**\n--------------------------\nIf you don’t know it, you can purchase your FICO score through myFICO.com. Credit scores change all the time, so if it’s been a while since you’ve seen it, double-check your score before you start the card application process. (If you discover your credit is worse than you thought — and you’re in subprime territory — here’s how to find a credit card for bad credit.)\n**Know Where to Look**\n----------------------\nBankrate lets you search by card type (e.g., 0% APR cards, balance transfer cards, reward cards, etc.), credit score, and card issuer.\nNerdwallet lets you search by card type; credit score; fees; monthly spend; card network (American Express, Discover, VISA\/MasterCard); financial institution; years you’ll keep the card.\n**Choose the Right Credit Category**\n------------------------------------\nMake sure the credit card you apply for is one for which your credit score qualifies you for. That means knowing your credit score and just how good it really is. Here’s the general breakdown of credit score ranges:\n* Excellent: 750 to 850\n* Good: 700 to 749\n* Fair: 650 to 699\n* Poor: 600 to 649\n* Bad: 300 to 599\nThat said, you’ll notice the ranges may vary from one site to the next, so do your best to choose the category that best applies to you. For instance:\nNerdwallet breaks it down by Excellent (720 to 850), Good (690 to 719), Average (630 to 689), and Poor (350 to 629), and eliminating Fair altogether. Use your credit score number to determine which of these categories you choose.\nBankrate and CardHub limit the choices to Excellent, Good, Fair, Bad, and No Credit History, eliminating Poor altogether (which shouldn’t affect you if you have good credit).\n**Compare Costs and Features**\n------------------------------\n**Fees.** Look at annual fees (which you should do your best to avoid), APR, fixed vs. variable interest rates, balance transfer fees, cash advance fees, international use fees, late fees, and over limit fees.\n**Cash back and rewards.** Do they offer cash back? If so, what percentage? Do they offer a rewards bonus? If so, how much do you have to spend to get it? What categories of spending are the rewards points tied to? Do you spend in those categories?\n**Narrow it Down to One Card**\n------------------------------\nEvery time you apply for a credit card, the issuer will pull your credit, which counts as a hard inquiry on your credit reports. Hard inquires put dents in your credit score so the last thing you want to do is plan on applying for multiple cards in hopes that one of them approves you. On the contrary, you only want to apply for one card.\nThink of it as a purchase you can’t return. Do your homework and get it right the first time.\n**What to Do if You Are Turned Down**\n-------------------------------------\nMaybe your credit isn’t as good as you thought. Maybe it’s only Average or Fair. Or maybe it’s really Bad and all you qualify for is a secured credit card. Look at all of these possibilities carefully and make sure you know where you stand before applying again. END

TITLE: Knowing Someones Credit Score Affect Who You Date CONTENT: \"What's Your Number?\" Get a Credit Score By The Third Date\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nThere is nothing wrong with wanting to know how a potential partner handles their finances. And there's nothing wrong with asking about it during the dating phase. But is it really okay to ask for a credit score on the first date? Many people are doing just that these days. There's even an online dating site — CreditScoreDating.com — that incorporates credit scores into compatibility results.\nWith 30 percent of women and 20 percent of men saying they will not marry someone who has bad credit, it's definitely best to get to the credit score sooner than later. But if you're planning to ask about their credit score, do yourself (and your date) a favor and give yourself until the third date.\n### First Date: Avoid the Ask\nLet's face it. First dates are a dime a dozen. Whether you met online, a chance encounter, at work, or through a friend, you never know what the chemistry and communication between you will really be like until you're in \"date mode.\" Why muddy the already murky waters with any extra pressure to perform?\nThe fact is, there are plenty of other reasons to weed out a first date mate besides their credit score. Fortunately, these are qualities you can assess through observation alone, and they need your full attention.\nHow's your chemistry? Your conversation? Do they make you laugh? Do you have interests in common? Would you look forward to spending time with this person again?\nOf course, these aren't questions you need answered on the date itself. They're things to reflect on after the fact when you're not face-to-face trying to like them, but back on your own considering him or her from an objective, level-headed perspective.\nIn other words, you may not know whether you even want a second date until the first one is over, making the credit score ask on the first date most-assuredly premature and, in turn, unnecessarily uncomfortable.\n### Second Date: Be Open To It\nYou've already broken the ice and found yourselves on at least one of the same pages — you like each other enough to go on a second date. Granted, this is still a discovery period, but it does imply potential interest in pursuing other dates down the line. After all, the first date went well, and hopes are high the second date will go even better.\nWhat you've reached at this point is a level of comfort that may include room for an exchange of your credit scores. But don't force it, and don't count on it. Instead, try focusing on things that should help give you a good idea of their financial life in general.\n**Do they rent or own their home?**\nIf they're renting that will tell you less about their finances than if they own. It's possible they rent because they don't have the credit to get a home loan, but they also may have stellar credit and just not be interested in owning a home right now. On the other hand, if they own their home, it's probably safe to assume their credit is good.\n**Do they drive a brand new car or an old clunker?**\nThis one should be considered within the context of other financial clues. Driving a brand new car probably means they have good credit, but it could also mean they live way above their means. You should know by now what they do for a living. Do the two add up? As for the old clunker, plenty of people with great credit drive their cars until they just won't drive anymore, which could be a sign of a saver.\n**Does it seem like they're spending money in a manner meant to impress you?**\nThere's nothing wrong with a date spending money on you. In fact, the nicer the places you go, the more likely their credit is good. But as with the brand new car, it's always possible they're spending (i.e., charging) beyond their means. You probably have no real way of knowing this yet, but when a date goes out of their way to show off how much they can spend, it could be a sign of spending habits that would mean trouble down the line. Again, it may be helpful to consider this within the context of what they do for a living.\n### Third Date: Bite the Bullet\nIf a bad credit score is a deal-breaker in your book, get it out of the way on the third date. By now you know mutual interest is high. To move to a fourth date is to move into pre-relationship territory. So before you let it get that far, cut to the chase.\nThere is no one right way to ask your date their credit score, but here's one way to do it, which you can edit according to whatever feels appropriate and comfortable.\nSomewhere in the middle of your third date, say something like, \"I've been having so much fun with you and am really excited about getting to know you better. One thing that's really important to me is financial compatibility, so I was wondering if we could talk about that for a little bit.\" Then leave room for your date to talk, as they will hopefully share a similar interest. The conversation will likely unfold pretty naturally. If they don't bring up their credit score first, share yours and they likely will too. If not, ask.\nNote, if at any point in the conversation about finances your date becomes defensive or aggressive, and unwilling to talk about it, let it go. Whether they have shady finances they'd rather not share, or they simply aren't comfortable discussing finances at this point, you're both best-served continuing your search for someone with more similar sensibilities. END

TITLE: Prepaid and Debit Cards Can Rebuild Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nHave you recently been rejected after filling out a credit card application because of poor credit? You are not alone. The problem is, a major credit card is often needed to make a hotel or airline reservation or placing an order online. For those with bad credit, not having a credit card to use for these types of transactions can make life difficult, if not down right depressing.\nWhat is a Prepaid Credit Card?\n------------------------------\nA prepaid credit card is a card issued by a financial institution that is preloaded with funds and is used much like a normal credit card.  A prepaid card work in the opposite way of a normal credit card, because instead of buying something with borrowed funds (through credit), you buy things with funds that have been already been paid.  With a prepaid card, the credit limit is determined by the amount of money you deposited into an open checking or savings account. Once you fund the account with a designated amount, you are issued a prepaid credit card that can be used anywhere one would use a regular credit card.\nThe best part about a prepaid credit card is that one can not spend more than the amount of the deposit and there are no interest charges or late fees since the money is already there to use if you do not pay your monthly bill on time.\nWhat is a Debit Card?\n---------------------\nA debit card is not like a prepaid credit card. A debit card immediately deducts funds from your account associated with the card.\nWhy Are These Called Credit Cards?\n----------------------------------\nThe reason why the word \"credit\" is associated with these prepaid cards is because most cards carry a credit card brand (such as Visa or MasterCard) and can be used in similar ways. It's really no more than a stored value card that can be used in multiple locations due to the Visa (or other credit card) insignia. As more consumers require a suitable solution to rebuilding credit, recent changes have allowed some credit card companies to offer pre-paid credit cards to help rebuild credit. However, they are harder to find, and many have higher fees associated with them; so make sure you do your research. Many pre-paid products falsely claim they will improve your credit rating.\nBenefits of a Prepaid Credit Card\n---------------------------------\n* There is no such thing as over-drafting your account; you cannot exceed your limit.\n* Prepaid credit cards can be a big advantage to low-income consumers who might otherwise be stuck dealing in cash, unable to make such basic transactions as paying for gas at the pump, paying bills online, or making car rental or hotel reservations.\n* Contingent on the card you select, your money may be protected if your card is ever lost or stolen.\n* A pre-loaded credit card is a convenient way to pay for goods when traveling, even outside the U.S.\n* Prepaid credit are often marketed to teenagers for shopping online without having their parents complete the transaction, or as a convenience for parents wishing to provide funds to children away from home.\n* Obtaining a prepaid credit card is easy, fast, and requires no credit check.\n* Some prepaid credit cards today report card history to major credit bureaus, so cardholders may be able to build or rebuild their credit using a prepaid credit card without the risk of damaging it along the way.\nPrepaid credit cards are a good solution for anyone who does not want to be tied down to a banking institution, anyone wanting a more secure way to carry their money than simply cash, or anyone having troubles being approved for a credit card. In today's society that is more and more cashless, somebody who doesn't have access to cashless transaction vehicles is at a major disadvantage.\nDisadvantages to Prepaid Credit Cards\n-------------------------------------\nThere are a number downsides to the prepaid card. Most cards require a start-up fee, and while for many companies this fee is minimal, some of them are substantial. In addition, you'll most likely have to pay additional fees each time you deposit more cash into your prepaid credit card account; perhaps not as much as the initial fee, but a fee, no less. Some cards will allow you to add more funds for free, but may charge a monthly \"maintenance\" fee instead. Another downside is that many businesses that accept automatic payments from bank or credit card accounts may not accept them from prepaid cards. For most consumers this is a minimal annoyance, but for some it can be a significant setback.\nAs with any credit product, when selecting a prepaid card you should always do your research and make an informed decision on the best card to meet your individual needs. As stated previously, there may be a number of different fees associated with using a prepaid credit card, some of which might be high enough to offset any benefits. A prepaid credit card will generally carry more fees than a secured or unsecured credit card (presuming you pay them off monthly) therefore a prepaid card may only be a good option for those who cannot obtain any other form of credit, but require the convenience of a credit card.\nWhat to Look For When Choosing a Prepaid Credit Card\n----------------------------------------------------\nThere are a lot of products out there and the only way to get the best card for you, is to ask some questions and read all the fine print before choosing a prepaid card. Below are some recommended things to looks for and ask about when picking out a card to suit your lifestyle.\n**Sign-up or Start-up Fee:**  Self-explanatory. May range from free to $50.\n**Transaction, POS, or Usage fee:**  A fee assessed each time you use the card at a store, online, by phone, etc. Typically it is \"no charge\", but there might be a small fee, under a dollar.\n**ATM Withdrawal fee:**  Can range from free to $5 or more. May be higher for International withdrawals.\n**Monthly Maintenance Fee:**  A fee charged to your account each month. Sometimes there is no fee for the first few months, and then one kicks in after 6 months; can range from free to $10 or less.\n**Reloading or Recharging Fee:**  A fee charged to you for adding more money to the account where your money is being held. Depending on the method used to add or transfer the money (at a retail location, using another credit card, cash, etc) the fee may differ. Typically free to less than $5.\n**Balance Inquiry Fee:**  A fee to provide you information about your available balance. Can vary contingent on the method you use to request the information: online, telephone, ATM. May range from \"free\" to $3.00 or less.\n**Monthly Statement Fee:** A fee for obtaining monthly transaction history. May be up to $10 if sent by mail, however is typically free of charge if you go to the card issuer's website.\n**Cancellation\/Refund Fees:**  A potential fee for canceling your card altogether or requesting a partial refund of monies loaded onto the card.\n**Insufficient Funds\/Overdraft Fees:**  A fee charged if you attempt to make a transaction and it is refused to to inadequate funds in your account; or, it goes through anyway but you exceed your limit. Usually under 3 dollars.\n**Foreign Currency Conversion Fee:**  A fee, usually a percentage of the total amount spent, charged to convert from another currency during international transactions\/travel.\n**In Summary:**  Check out the various types of prepaid credit cards on the market. Read the terms and conditions carefully, and define your objectives for needing this product. Depending on your individual needs, you may find that a traditional credit card, a secured credit card or a debit card will work better for you and save you money in the long run. END

TITLE: How Does Your Credit Score Compare to Other Americans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nHow does your credit score stack up against the average American credit score or even _most_ Americans? FICO scores range from a low of 300 to a high of 850 (a perfect credit score which is achieved by only 1 percent of all consumers). The national average credit score is 700, and only 13 percent of the nation's population has a score above 800. Roughly 15 percent of the population has a credit score lower than 550. A good credit score is anything above 700 and a very good credit score is 720 or higher.\nHow Does Your Credit Score Compare?\n-----------------------------------\nWhen comparing your number to others, you need to know which credit score model is being used to calculate the score, and what credit score range is being used. To reiterate, there are many different credit score models, including versions of Vantage Score, FICO scores and even educational credit scores. Some of these have different credit score ranges, so while VantageScore 3.0 and FICO scores run from 300 – 850, there are others that may run from 501-990 or 360–840, for example. You can generally find out what score’s in use by looking at the sheet or site on which the score is being supplied.\nWhat is a Good Score?\n---------------------\nAgain, different models have different ranges, and lenders make their own decisions about what they consider acceptable. The scores typically range from 301 to 850, with categories from bad to excellent. Here’s how the credit tiers generally break down:\n* **Excellent Credit:** 750+\n* **Good Credit:** 700-749\n* **Fair Credit:** 650-699\n* **Poor Credit:** 600-649\n* **Bad Credit:** below 600\nBased on data compiled by WalletHub, there is a correlation between age and average credit scores, with scores rising along with age. According to their data for 2016, the average credit score by age is as follows:\n* 20 & Under — average credit score is 631\n* 21 to 34 — average credit score is 634\n* 35 to 49 — average credit score is 655\n* 50 to 69 — average credit score is 700\n* 70 and older — average credit score is 730\nThe Experian National Credit Index study found that people in the 18-39 age group has the greatest number of late payments. The 40 to 59 age group held the greatest amount of debt; and the 60+ age group used the least amount of credit that was available to them.\nExperian's 2016 State of Credit report showed the following facts:\n* The national average VantageScore was 673.\n* Consumers had an average of 2.35 bankcards with an average balance of $5,551.\n* Average debt per consumer was up 0.59 percent from the previous year to $39,216.\n* Mankato, Minnesota had the highest average credit score in the nation — 708.\n* Greenwood, Mississippi had the lowest average credit score in the nation — 622. END

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TITLE: Choose the Best Cash Back Credit Card CONTENT: How to Pick the Best Cash Back Credit Card\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nIf you're tempted by a cash back credit card — the lure of getting back some of the money you've already spent — who in their right mind wouldn't want that? Unfortunately, while cash back credit cards can be rewarding, they can also be confusing. And if you're not careful, they can even be costly. Here's what you need to know to choose and use a cash back credit card wisely.\nWhat is a Cash Back Credit Card?\n--------------------------------\nTo entice consumers, credit card issuers offer some cards with cash back rewards.\nWhen you reach a pre-determined spending level, you receive a percentage of your money back. This not only entices consumers to apply for the card in the first place, but also encourages consumers — once they're cardholders — to use the card more frequently than they probably would otherwise.\nHow is a Cash Back Credit Card Different From a Regular Credit Card?\n--------------------------------------------------------------------\nAbout half of credit cards offer cash back rewards. The others (i.e., \"regular\" credit cards) offer no such incentive.\nHow Much Can You Earn With a Cash Back Credit Card?\n---------------------------------------------------\nCash back rewards vary from card to card, but generally range from .5 to 1 percent. That said, you will see card issuers offering cash back as high as 2 to 6 percent. However, this usually requires an annual fee or qualifying spending limited to certain categories. These qualifying categories tend to change often, making it difficult to reach the required spending goal.\nAre There Annual Fees For Cash Back Credit Cards?\n-------------------------------------------------\nSome cash back credit cards come with annual fees, others don't. The wisest choice to avoid annual fee cards. If you're pretty certain the rewards you can earn over the course of the year will exceed the annual fee, you may want to consider it. Just read the fine print carefully, as there may be restrictions that make it more difficult to earn cash back than you realize. Again, qualifying categories tend to change frequently — as often as every 3 months — making it difficult to reach required spending goals.\nWhat Purchases are Eligible For Cash Back Rewards?\n--------------------------------------------------\nIt depends on the card. Most seem to offer .5 to 1 percent cash back on all purchases. But spending within certain categories may garner you much larger cash back returns. Again, though, these can be spending goals hard to reach before the qualifying categories change on a quarterly basis.\nHow to Redeem Cash Back Rewards\n-------------------------------\nEase of redemption varies. Some credit card issuers require you to request your rewards; others award them to you automatically. As for how your rewards are distributed, it depends on the card. You may be able to have the rewards credited back to your balance. You may be able to shop for merchandise online. Or you may be able to get a good old fashioned check in the mail.\nIs There a Cap on How Much Cash You Can Get Back Over the Course of a Year?\n---------------------------------------------------------------------------\nThere may be. Again, read the fine print.\nCan You Lose Cash Back Rewards?\n-------------------------------\nIt varies by card, but you could lose your rewards points if you go a certain amount of time without using your card, for example, or if you miss monthly payments. Also, keep in mind that credit card issuers reserve the right to change their terms at anytime.\nWhat Are Cash Back Credit Card Best Practices?\n----------------------------------------------\nOnce you receive a cash back credit card, follow the same best practices you would for any other card. Only charge as much to the card as you can afford to pay back by the end of the month (i.e., avoid carrying a balance from month to month). This could prove tough with a cash back credit card, as you're trying to reach qualifying spending goals. But remember, any rewards you earn will likely be negated if you're paying monthly interest rates. END

TITLE: Secured Credit Cards Rebuild Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nFor whatever reason — the economy, youthful negligence, health problems or general ignorance — you may find yourself with a low credit score and no way of getting a small business loan, home loan, or a car loan. What you need is a way to increase your credit score in a hurry and credit cards are a great way to do just that. But people who have never had credit or need to repair a poor credit history may not qualify for an unsecured credit card. For them, a secured credit card may be the only way to establish credit.\nThere are a lot of \"bad\" secured credit cards, so you want to make sure you do your homework first before getting one of these cards. Getting the right one and using it the right way, will go miles in the journey of rebuilding your credit and increasing your credit score.\nWhat is a Secured Credit Card?\n------------------------------\nA secured credit card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.\nYou should look for the following conditions in a secured credit card:\n* No application fee and a low annual fee.\n* The ability to convert to a regular, unsecured credit card after 12 to 18 months of on-time payments.\n* The card issuer should be reporting your payment history to ALL THREE credit bureaus.\nWe have put together a listing of secured credit cards you can apply for.\nRebuilding Your Credit With a Secured Credit Card\n-------------------------------------------------\nYour best bet is to make arrangements with all of your current creditors to pay off your current debt and then make your payments on time. But this alone will not build a good credit score, it'll simply undo some damage to your credit score. You need to have a credit card you can use at least once per month and pay off in full each month to make your credit score go up quickly.\nEven in the present economy, a person with a bad credit score can get a credit card. And, you don't even have to stoop down to cards with annual fees. A secured credit card issued by your bank allows you to rebuild your credit score quickly, if you use it responsibly. You only need to make a small purchase each month and then pay the card in full each month. After several months of doing so, and if you are faithful with your other debt payments, your credit score will quickly rise.\nAfter about six to nine months of responsibly using your secured credit card, you will find your credit score rising sharply. At this point you should also know how to use your secured credit card responsibly. This is an important part of rebuilding credit scores. You need to continue using your secured credit card responsibly or your credit score will soon be damaged again.\nBuilding a Credit History\n-------------------------\nFirst, get a couple of secured cards. Next, spend small amounts wisely and pay it all off every month and pay it right when you get the bill, don't wait for the due date and don't be late.\nFor people with poor credit or no credit, a secured credit card is the fastest, most effective way to re-establish themselves as good credit risks in the eyes of lenders. Secured cards are easy to get and the card issuer reports your payment history to major credit bureaus every month.\nUsing Credit Cards Responsibly\n------------------------------\nUsing credit wisely is important since your credit reputation influences the rates that will be paid on a loan for a house or car, or for a credit card. The better your credit reputation, the lower the interest you will have to pay. Although secured cards tend to have higher interest rates and annual fees, they provide a valuable steppingstone to unsecured credit.\nIf you cannot use your secured credit card responsibly, it is time to consider that loans and credit cards are not for you. Some personalities simply don't work with credit. There is no shame in being someone who must live on a cash basis, but there is shame in taking on lines of credit when you are someone who must live on a cash basis.\nEstablish a Sound Payment History\n---------------------------------\nEstablishing a payment history will help you qualify down the road for the major credit cards. Using this secured card appropriately and within the set parameters will help rebuild your credit. Only make small purchases and pay the bill in full when it arrives and well before the due date. Doing this regularly over time helps build your credit history as a prompt payer.\nDon't fall into the trap of overspending and\/or making minimum payments. Once you have built a solid credit history over 12 months or more, you can apply for an unsecured card. Or, you can talk to the card issuer about converting from your present card to a regular card. END

TITLE: Credit Cards for Big Spenders CONTENT: Best Credit Cards For a Big Spender\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nWe seem to talk a lot about secured and prepaid credit cards for those who have bad or no credit. Those types of cards are for people that are in the process of fixing their credit so they can later obtain a credit card meant for those with excellent credit. But what about all of you out there who DO have excellent credit and want to use your credit cards to pay for just about everything from food to gas. If you are one of these people, you need to get your hands on a card that will offer you huge rewards, cash back or other perks. The more money you spend, the more rewards you can earn. So, if you are giving your credit cards a serious workout every month, why not make the most of it?  Here is a list of the best credit cards for big spenders who want big rewards.\n1\\. **Chase Sapphire Preferred** - This has been named the top travel credit card because you can earn double points on travel and dining. Another perk is the fact you won't pay a cent in foreign transaction fees when you travel abroad. You get 40,000 bonus points when you spend $4,000 within the first 90 days. Annual fee is $95 (waived the first year) and 15.99% APR.\n2\\. **Starwood Preferred Guest Credit Card** - Another great credit card for traveling in the U.S. or abroad. You can use points at over 1,100 hotels and resorts and over 150 airlines, with no blackout dates. Check their website for details on points earned on purchases as that changes, but there is a $65 year annual fee (waived the first year) and an interest rate that starts at 15.24% APR.\n3\\. **United MileagePlus Explorer Card** - This is the card for you if United Airlines is your airline of choice. You can earn double miles on United Airline tickets, no foreign transaction fees, your miles never expire, and you and a companion can check your first bags for free. You also get 30,000 bonus miles after you spend $1,000 in the first three months of signing up. No annual fee the first year, then it is $95 a year thereafter, with a 15.99% APR.\n4\\. **Barclaycard Arrival Plus Word Elite MasterCard** - This card earns you double mileage points for every $1 you spend, regardless of type of purchase. Additionally, you can earn 40,000 bonus miles when you spend $3,000 in the first 90 days. The annual fee for this card is $89, waived the first year, and the purchase rate is 14.99% APR and in introductory 12-month zero APR on balance transfers.\n5\\. **Club Carlson Premier Rewards Visa Signature** -  Offered through U.S. Bank, this is a great credit card if you like staying at high-end hotels, such as Carlson Rezidor Hotels. As with the other cards listed above, you get points for signing up and points for spending money in the first 90 days, but you also get 40,000 points when you renew your card each year. At 13.99% APR and only $75 annual fee, this is a pretty good deal in our books.\nBesides the top 5 credit cards for big spenders listed above, these also made our list:\n* Blue Cash Preferred Card From American Express\n* Citi Hilton Honors Reserve Card\n* Southwest Airlines Rapid Rewards Premier Card\n* Ameriprise World Elite MasterCard\n* Platinum Delta Sky Miles Credit Card\nSpending money has never been so lucrative and these top credit cards are looking for consumers with excellent credit and who love to use their credit cards. As always, make sure you pick the card that is going to fit into your spending habits, that way you will maximize all that card has to offer. Keep in mind to always pay your balances in full each month so you do not eventually loose your excellent credit status. END

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TITLE: CFPB Free Credit Score Inititaive CONTENT: CFPB's Free Credit Score Initiative\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhile you are legally entitled to a receive your credit reports for free once a year, the same is not true of your credit scores. Though your scores are determined by the information you can see on your reports, it is impossible to have a clear understanding of how you are being judged by lenders if you do not know the number they use to rate your creditworthiness.\nThe Consumer Financial Protection Bureau (CFPB) aims to change all this via an initiative encouraging credit card issuers to inform their cardholders of their credit scores. CFPB Director Richard Cordray sent letters requesting as much to CEO's of the nation's top credit card issuers, followed up by personal phone calls.\nIt appears, though, that some credit card companies need no such nudging. Some were way ahead of the curve, offering free credit scores months before the CFPB's call for action.\nWhy Offer Free Scores Now?\n--------------------------\nAll of this comes in response to FICO's 2013 announcement of its FICO Score Open Access Program. Lenders already purchase FICO credit scores on borrowers. The new FICO program allows said lenders to share these scores with cardholders at no additional charge.\nAre Credit Card Companies Required to Provide Cardholders With a Free Credit Score?\n-----------------------------------------------------------------------------------\nNo, you will only receive a free credit score from a credit card issuer if:\n* you are turned down for a credit card,\n* you receive a less favorable interest rate than you applied for, or\n* your interest rate goes up.\nWhich Credit Card Issuers Provide Cardholders With Free Credit Scores?\n----------------------------------------------------------------------\nIn Fall 2013, Discover, Barclaycard, and First Bankcard started providing free credit scores to their cardholders.\nHow Are Free Credit Scores Provided by Credit Card Issuers?\n-----------------------------------------------------------\nFree credit scores may be included on monthly credit card statements and\/or displayed on cardholder online accounts.\nAre the Free Credit Scores Provided by Credit Card Issuers Real Credit Scores?\n------------------------------------------------------------------------------\nAs you may know, there are already plenty of offers out there for free credit scores, most of which require you to sign up for a credit monitoring service. However, these free credit scores are usually not the same scores seen and used by lenders. So the idea behind free scores provided by credit card issuers is that the numbers provided are the same ones they use to determine your creditworthiness, interest rates, etc. Even the credit scores you purchase through FICO itself aren't necessarily the same scores used by lenders.\nWhy is it Important to See a Credit Score Every Month?\n------------------------------------------------------\nIn prepared remarks at a Consumer Advisory Board meeting in February 2014, CFPB Director Richard Cordray presented a number of reasons why keeping a close eye on your credit score matters so much:\n* \"If scores are lower than expected or if they change over time, more consumers may take the initiative to request their credit reports. This will allow them to address concerns, dispute errors or fraud-related entries, and improve negative aspects of their credit usage.\"\n* Plus, \"Customers who monitor and manage their credit standing should, on average, be less likely to become delinquent or to default.\"\nIs Offering Free Credit Scores Via Credit Card Issuers Really the Best Way to Go?\n---------------------------------------------------------------------------------\nTwo-thirds of Americans have at least one credit card, so it does seem a pretty effective means of raising credit score awareness. However, Cordray hinted at the February 2014 Consumer Advisory Board meeting that the initiative probably won't stop there; \"I see no reason why this approach should not be replicated with customers across other product lines as well.\" END

TITLE: Monitor Your Credit Score - Is It Worth the Monthly Fee CONTENT: Is It Necessary to Monitor Your Credit Score?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nYour credit score is something every smart consumer should know, but it is really necessary to monitor it every month? With identity fraud becoming so widespread and prevalent in today's society, it would seem a good argument for one to sign up for one of those credit monitoring services. Recently, the Justice Department estimated identity theft is a $5.5 billion problem worldwide. Stats like that would make it tempting but are these services really worth it?\nHow Do Credit Monitoring Services Work?\n---------------------------------------\nYou have probably seen the pop-up ads as you surf the Internet trying to entice you to sign up for their credit monitoring service. These services are offered by credit reporting bureaus, banks, and other third-party companies, promising to ease your mind with 24\/7 access to your credit report and score.\nSo, you click on the ad and it has you fill out a form to start your \"free trial\" and immediate access to your score. Of course, free is only free for a short time and then you have to start paying them a monthly fee of anywhere between $19 to $40 a month.\nUsually you are only going to see one score from one scoring model but you may or may not receive credit reports from all three credit bureaus such as Equifax, Experian, and TransUnion. Read the fine print before you sign up to make sure you understand exactly what you are getting for your money.\nAlong with access to your credit report and score, you will also receive alert notifications when changes to your account occur. These changes could be someone making a credit inquiry, a credit card balance change, a credit score change, and possibly a new credit account opening without your knowledge — hence, the reason for credit monitoring. Bottom line, the whole point of the monitoring is to make sure someone has not stolen your identity and opened up a charge card or two and is on a shopping spree at your expense.\nAdvantages of Using a Credit Monitoring Service\n-----------------------------------------------\nIf you are thinking of signing up for a credit monitoring service, here are some of the pros to doing so:\n* It can help you become aware of where you are with your finances.\n* You will be notified as to small changes in your credit file which could be a sign of ID theft.\n* Changes in your credit score may be a sign of ID theft or maybe you forgot to pay a bill.\n* With all of the possible data breaches possible on the Internet, you will be notified immediately if any of your accounts have been hacked.\nDisadvantages of Using a Credit Monitoring Service\n--------------------------------------------------\nNot everyone is sold on the usefulness of credit monitoring services. Here are some of the cons to signing up for one of these programs:\n* Consumers can monitor their own accounts without paying for this service. Checking your accounts on-line and ordering a yearly copy of your credit report are completely free and something everyone can do on their own.\n* These services can not tell when a child is a victim of fraud, or if the fraud has targeted someone who is deceased.\n* There is no way to tell if someone received medical treatment in your name or is using your medical insurance unless you receive a collection notice.\n* You will not know if you are a victim of tax fraud until you file a return and find out you are not getting the refund you thought you were getting.\n* The credit score you get for free with the service, might not be the one a potential lender is going to use. There are over 50 different credit scoring models so ask your lender which credit scoring model they will be using to approve your loan.\nThe bottom line is, before you sign up for that free credit score make sure you read all the fine print. You might get a free score from either Equifax, TransUnion, or Experian, but is that going to be the score you need to know to get a loan? With so many different scoring models out there, chances are the answer to that question is a big fat \"no.\" So if you are just signing up for the service to get your score, this is not the best reason.\nIf you are worried about identity theft and you want a service that will send you notifications if there are any changes in your credit profile, then this is what you need. But, be warned, what you are paying someone upward of $40 a month to do, you can do yourself. Although it might take a little work on your part, you can monitor your credit card accounts and bank accounts very easily on your own. And, you are entitled to a free yearly credit report. So, do it yourself and save the money for a nice dinner out with your special someone instead. END

TITLE: Monitor Your Credit Score - Is It Worth the Monthly Fee CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Monitor Your Credit Score - Is It Worth the Monthly Fee CONTENT: | | | | \n: . END

TITLE: Using Credit Card Rewards Points CONTENT: How to Maximize Your Credit Card Rewards and Frequent Flyer Points\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nYou've spent the money by using your one or two reward credit cards to pile up reward points. Now comes the fun part - cashing them in. Just as the number of available reward cards has mushroomed over the years, so has the selection of stuff you can cash in on.\nIn a recent survey conducted by American Express, over half of the people they polled stated they participated in some type of rewards program. That means there are increasing numbers of people trying to figure out how to maximize their reward benefits and points.\nTips to Maximize Your Reward Points\n-----------------------------------\n1. **Look at the rewards linked to your airline, hotel, or retailer credit card.**  You can find good deals on plane tickets - especially expensive ones - buy using an airline rewards card. Sometimes these deals are better than cashing your points in on a cheaper flight.\n2. **Compare awards on multiple cards.**  According to a study by Colloquy, the average American has 1.9 reward credit cards. So, examine the points needed from each one on say, a rental car, and use the card that has the better deal. You need to do the math between your reward cards.\n3. **Find smaller awards.**  There has been a big shift in recent years toward making awards available on the cheaper end - that is - using less points. Also, some reward programs will allow you to pay for an item with a mix of points and cash.\n4. **Consider gift cards.**  About 55 percent of all reward redemptions were in the form of gift cards. Gift cards are flexible and can offer a better value.\n5. **Look up the current price of the item you are eyeing.**  Credit card companies generally pay less than retail for merchandise so check online to see what that item is currently costing at a few retail stores. No point in using up your points on an overpriced item.\n6. **Check out the specials.**  Just as you would at a store, look for sales in your rewards program. A lot of rewards programs offer a changing list of specials - typically items that aren't moving and they want to get rid of them.\n7. **Combine your points with someone else's.**  An increasing number of rewards programs allow you to transfer your points to others, which means two people could share a gift that neither could reach individually.\n8. **Look for cash-back options.**  Redeeming points for cash back might not be flashy, but it could make sense if you need this case to pay your bills.\nHow to Keep Track of Your Points\n--------------------------------\nThere are a number of websites available to help consumers track and get the most out of their hard-earned credit card points, rewards, and airline frequent flyer miles. Although some services charge an annual fee, they may offer worthwhile perks such as email alerts regarding when miles will expire and award listings. Here are a few websites to check out.\n* **MileTracker.com -**  This site offers a free downloadable application sponsored by USA Today. MileTracker currently supports more than 100 frequent flier and loyalty programs. Once you create a profile and insert your multiple account information, you will not need to input it again. When you open MileTracker and tell it to display or update your accounts, it automatically and simultaneously goes to all the accounts your have listed in your profile, inserts your personal information required for each account, and retrieves the account data to be viewed on your computer desktop.\n* **Points.com -** This website allows you to track reward miles and points for free. It also allows you to trade with other users on the sites Global Points Exchange, GPX, but there is a fee involved. There is a processing fee per trade, plus whatever additional trading fees that may be required by the airline or rewards program.\n* **PlasticJungle.com -** Here is a site for gift card exchange and services, for consumers who want to either buy gift cards at substantial savings, sell them for cash, or trade pre-owned gift cards for others. Given that many credit card reward programs offer gift cards as one of their available redemption choices, this site may be handy if you end up with a gift card you'll never use. Plastic Jungle guarantees all transactions and offers industry-leading features like gift card replacement protection in case they are lost or damaged, and instant alerts via text or email. Users may list gift cards for free on Plastic Jungle, with successful transactions charged a 10 percent fee when their gift card is sold or traded. END

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TITLE: Credit Card Rewards and Rebate Offers CONTENT: Rebate and Reward Credit Cards - Deal or Rip-Off?\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nAccording to a survey by the Federal Reserve Bank of Boston, about 60 percent of all credit card holders have a reward card. Consumers also said rewards were the second-most important reason for choosing a specific card, behind no annual fees and ahead of a lower interest rate. Even more surprising (or really maybe not that surprising) is that one-third of consumers choose which card to use in order to maximize card rewards.\nThe bottom line is to apply and use the card with the rewards program that best fits your preexisting spending habits. If you already travel a lot on Delta Airlines, it would make more sense to get the card that gives you rewards for miles flown on Delta, not on Southwest. Make sense? Also, you don't want to carry a balance on a rewards card that carries an interest rate of 24.99 percent. Instead, use a card with an interest rate of 9.99 percent, if you plan on carrying a balance on your credit card. But before we get into all the nuances of rebate and reward cards, let's see how this all started.\nHistory of Reward, Rebate, and Cash Back Cards\n----------------------------------------------\nAccording to Curtis Arnold, founder of CardRatings.com, Discover introduced the first no-fee cash-back credit card during a commercial on Super Bowl Sunday in 1986. Over potato chips and beer, consumers were stunned to learn that for no annual fee, they could get a cash rebate of up to 1 percent on every purchase, an unheard of deal at the time.\nSoon after was the birth of airline rewards cards. Citibank's Advantage card debuted in 1987 and people began to see the appeal of these cards. To this day, now that almost every card issuer has jumped on the bandwagon, the competition is stiff and credit card companies have marketing departments that are constantly barraging consumers with new types of great offers and bonus rewards.\nHow to Choose a Rebate, Reward, or Cash Back Credit Card\n--------------------------------------------------------\nWe can not emphasize this enough, if you don't think you'll be able to pay off your balance in full each month, do not choose a reward card. Choose a card that has the lowest APR if you need to carry a balance; there are plenty of these available. Better yet, avoid credit altogether. Although cash back and rebate\/reward credit cards can offer some relief for costly essential items, they often carry higher annual percentage rates than traditional credit cards, according to Consumer Reports. A recent study on reward\/rebate credit cards found that rates varied from 9.75 to as much as 19.99 percent. Any benefit reaped by the reward is quickly eliminated by high APRs. If you know you won't be paying off your bill each month, you should find a card with a low interest rate.\nLet's get back to the question at hand, which type of rewards program is best? The answer is, that totally depends of you, your lifestyle, the products you buy regularly, services you utilize, how much you travel, and the amount of money you spend each month. Here is a short list of some of the most common scenarios offered by credit card companies.\n* **Airline Reward Cards.** Extremely popular, but sometimes difficult to reap the benefits due to blackout dates, expiration, and simple lack of availability. If you travel a lot and have flexibility in your schedule, this type of credit card may be optimum for you.\n * PROS: Many cards offer large bonus miles upon sign-up, thus you may be eligible for a free ticket in very little time, at least initially.\n * CONS: In most cases, you need to use airline miles fast. Airlines are always changing their redemption rules, and considering how much the big carriers are struggling these days, holding onto unused miles can cost you. Additionally, you need to consider fee such as booking fees and annual fees (if applicable) as often the airline rewards cards will have annual fees associated with them; it is crucial to determine if the fees outweigh the potential rewards.\n* **Cash Back Cards.** According to an online poll conducted by CardTrak LLC, 57 percent of Americans prefer cash-back rewards cards (compared to 12 percent favoring airline miles). And they are right on target; good old fashioned cash can be used for any purchase, and the cash back accumulates without you actually having to do anything.\n The typical account of this type will post credits ranging from 1 to 5 percent, usually up to a monthly limit, or cap, of about $500 of spending in the appropriate categories, depending on the card. Once you accumulate a minimum amount of cash or points credit (anywhere from $20 to $50) you typically can request account credit, ask for a check to be mailed to you, or use the money to purchase goods in a designated store.\n The exception to this, the Discover More(SM) Card (and possibly other card issuers) offer you a bonus of 10 to 25 percent if you redeem your cash or points for gift cards; if the gift card is for a product or service you need anyway, you can get a $50 gift card instead of $40 cash or account credit.\n* **Gas Reward Cards.** There are some great credit cards out there that provide rebates (or cash back) specifically on purchases at qualifying gas stations. Traditionally, gas cards have been affiliated with the big oil companies (such as Shell, Mobil, etc) but this ties you to one particular brand and often, the savings is \"negated\" by higher prices for \"name brand\" gas.\nSuggestions For Using Rewards, Rebate, and Cash Back Cards\n----------------------------------------------------------\n1. If you don't pay your balance off every month in full, you may want to pass on the rewards cards altogether. Rewards cards often have higher interest rates, you may end up paying much more in interest than you reap in rewards.\n2. Consider where you shop. Opt for cards that will earn rewards at stores and services you use most often, or offer savings on items that you actually buy regularly; this will maximize your rebate based on your individual spending patterns.\n3. Carefully review reward program rules. Read the fine print or better yet, call the company and ask if X, Y, or Z qualify.\n4. Always review your monthly statements and track points or cash back levels.\n5. Keep your eyes open for new and better offers. Competition stimulates change, so don't set loyalty to any particular card.\n6. Avoid cards with annual fees.\n7. Charge as much of your required monthly expenditures as possible.\n8. Avoid temptation. Research has shown that credit card customers are tempted to charge more in order to earn points toward a reward, in essence overspending for a freebie they don't even need.\nRebate and reward cards are an ever-evolving business. Inorder to keep on top of the game, pay off the balances each month and know the fine print of the program. If you can control your expenditures to items you need, without adding extra expense just to obtain rewards, they can be a great way to supplement income with little effort on your part. END

TITLE: Credit Card Rewards and Rebate Offers CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Tips Using a Debit Card When Traveling Overseas CONTENT: Safely Use Your Debit Card Abroad\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nWhen you go on vacation, you expect an interruption in your daily habits, but that hair-trigger use of your debit card probably isn't among them. It's become second-nature, hasn't it? From a $200 grocery trip here, to a $5 coffee there, most of give our debit cards a swipe a dozen more times a week - quicker than cash and, in most cases, smarter than credit cards. But when it comes to foreign travel, while you most certainly can and should take your debit card with you, there are a whole host of reasons to limit its use.\n1. Ask your bank if your debit card is accepted in the foreign country to which you are traveling. If not, ask about your options.\n2. Only plan to use your debit card for cash withdrawals at ATM's. The goal is to avoid having anyone else handling your debit card, as special card readers can be used to copy and store the information on your card's magnetic strip. This information can then be used to create a clone of your card. So if you are going to use a card for purchases, make it a credit card, as fraudulent charges are more easily disputed than that of a debit card.\n3. Ask your bank if there are other banks whose ATM's you can use interchangeably, with no additional fee. Otherwise, just like in the States, you will be charged an extra fee for using an ATM from that of another bank.\n4. Ask your bank what the daily limit is for how much cash you can withdraw from ATM's. Plan your trip accordingly, making daily withdrawals, if necessary, to be sure you have enough cash on hand to fund the entirety of your trip.\n5. Ask your bank whether they charge a flat fee for withdraws, or a percentage of the withdrawal. Then plan your withdrawals accordingly. For instance, if they charge a flat rate for every transaction, the more you can withdraw at a time, the better. If they only charge a percentage, though, your withdrawals can be more flexible and frequent.\n6. Take with you a back-up debit card. Though it may happen rarely, ATM machines do eat debit cards on occasion.\n7. Avoid use of \"non-bank\" ATM's. Just as in the States, these third-party ATM's charge a higher fee than bank ATM's.\n8. Supplement your debit card - which, again, should only be used for ATM cash withdrawals - with credit cards and traveler's checks.\nFollowing some of this simple steps can make your overseas traveling much more enjoyable. Doing a little homework prior to your trip will alleviate any mishaps down the road. You want to be as prepared as possible before you go on your trip because who wants to spend their vacation time worrying about their debit card and how to get money. END

TITLE: Tips Using a Debit Card When Traveling Overseas CONTENT: | | | | \n: . END

TITLE: Financial Reform Bill HR 4173 CONTENT: Free Credit Score with Financial Reform Bill\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nThe passing of the \"Wall Street Reform Act and Consumer Protection Act\", HR 4173, on July 21, 2010, brought consumers many benefits in terms of financial protection and oversite. Of the top changes that the financial reform brought to the table, the one we will talk about in this article is the ability for consumers to get their credit score for free. In a nutshell, this bill established an independent consumer bureau within the Federal Reserve which protects borrowers against abuses in mortgage, credit card and other types of lending.\nCan You Get Your Score For Free?\n--------------------------------\nHaving said all of that, what in the world does HR 4173 have to do with getting a free credit score? Well, before the passage of this bill, consumers were only able to see their credit score if they paid for it or if they signed up for a credit monitoring service. Now, consumers are able to get a free credit score:\n1. If you were denied a job, insurance or loan due to your credit. Or, if you feel that you are getting a higher interest rate or insurance rate due to bad credit, but you will need to find a way to document this.\n2. If you have suffered some kind of adverse action due to your credit. Include a copy of the letter you received about being denied credit.\nHow to Get Your Free Credit Score\n---------------------------------\nIf you have been denied credit or suffered some kind of adverse action due to your credit, you will need to do the following:\n1. Write to the three credit bureaus documenting your reason for requesting a free credit score. Here are the contact addresses for the credit bureaus.\n2. Send your letter certified, return receipt requested.\nWhat if I Don't Qualify for a Free Score?\n-----------------------------------------\nAs you can tell, the financial reform bill was designed to help those who may have been wronged by a lending institution or feel they may have been denied a loan erroneously. If you suffered one of the above actions, you are entitled to see your credit score for free so that you know what your score is and then you can work on making it better. If you do not qualify for a free score, you will have to either pay for when you request a copy of your credit report from www.annualcreditreport.com. You can also check out our pages on recommended ways to get credit reports or credit monitoring services.\nEither way, it is always a good idea to pull your credit report at least once a year and make sure to remove any negative information. Doing this will make sure you have an adequate credit score for the next time you apply for that credit card or auto loan. END

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TITLE: Travel and Safety Tips Using Credit Cards on Vacation CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nIf you are planning a trip in the near future, whether it be domestic or abroad, an important part of your vacation planning process should include consideration of how you will handle money and expenditures on your trip. In most cases, a credit card is the best bet when you travel, especially in a foreign country. But there are certain precautions that you should take when traveling with plastic.\nWhen you travel abroad, the odds are in your favor that you will have a safe and incident-free trip. Travelers are, however, sometimes victimized by crime and violence, or experience unexpected difficulties. No one is better able to tell you this than the U.S. consular officers who work in more than 250 U.S. embassies and consulates around the globe. Every day U.S. embassies and consulates receive calls from American citizens in distress.\nKeep Your Credit Cards and Money Safe During Travel\n---------------------------------------------------\nBelow we've created a list of items you should review and be aware of to use as a guide for credit card and monetary safety during travel.\n* **Select appropriate credit cards for your destination.**  Visa and MasterCard are the most widely accepted cards just about anywhere in the world, so if you have these you likely will be covered. If you have access to a local guidebook for the destination you plan to visit, these generally will address the subject as well. It is a good idea to have two different cards (from different issuers), in the event you have a problem with one.\n* **Confirm your card limits and expiration dates.**  Likely to be common sense, but many of us are tuned to idiot gages, we don't change our oil until we see the light come on, we don't know our card is expiring until the new one comes in the mail. Make sure the card(s) you bring will be useable for the entire trip length.\n* **Find out what fees to expect.**  If traveling abroad, call your card issuer and ask what their foreign currency exchange fee or foreign transaction fee(s) are. Fees generally range from 1 to 2 percent, so you should try to select cards with the lowest fees. The Capital One card is the only card that we are aware of that does not charge a fee for foreign transactions.\n* **Confirm contact information for your card issuer.**  Typically the customer service 800 numbers printed on the back of your card are not good abroad; call your card issuer and get the appropriate telephone number for the region you are traveling to. While you are at it, inform the issuer that you will be traveling at this location, as often an unusual change in charging habits or location may result in the fraud department placing restrictions on your account.\n* **Backup your critical information.**  You will want to have a list of your credit card information and phone numbers for card issuers in the event they are lost or stolen. Additionally, you should photocopy your passport and airline tickets and keep these in the same place in case those are lost or stolen along with your cards. Keep this separate from your wallet and cards; if you have any secure information on it, you should keep it in a hotel safe or a secure area on the internet that you can safely access. It is also a good idea to leave copies of the front and back of each credit card, and any other important documents you are carrying, with a friend or close relative back home.\n* **Confirm acceptance of your credit card prior to your purchase.**  The presence of a credit card logo on a door, window or cash register is not a guarantee of acceptance, so it is important to ask prior to committing to the service or meal lest you will be seeking other payment methods.\n* **Keep all your receipts.**  This is a good rule of thumb for all credit card expenditures, but particularly for those made abroad. If a charge appears later that is inaccurate, you will have the proof available for your dispute. Keep them for several months in the event charges are delayed, which is not unusual with foreign transactions.\n* **Treat your plastic as if it was cash.**  Don't leave it unattended in your luggage or hotel room; store it in your wallet or money belt, and keep these out of view of others while traveling. Beware of pickpocket scams, a common scenario is someone bumping into you and another distracting you while the pickpocket lifts your wallet or grabs a purse.\n* **Beware of duplicate charges.**  This may most often occur when you have used a credit card to hold a reservation for lodging or car rental, and then you pay the bill in cash instead. As stated above, keep all your receipts whether it is cash or credit to ensure you have proof of payment in the event of this sort of error.\n* **Keep some cash on hand at all times.**  Carry enough for a day's safety net in the event that you run into problems with your credit card.\nA few preventative measures will help keep the loss or theft of your wallet a minor annoyance instead of a vacation-halting affair, while making your trip a more relaxing and safer adventure. END

TITLE: Travel and Safety Tips Using Credit Cards on Vacation CONTENT: | | | | \n: . END

TITLE: How Your Credit Score is Calculated by the Credit Bureaus CONTENT: What Goes Into Calculating Your Credit Score?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nA credit score represents a person's creditworthiness and this score is used by just about all lending institutions to determine whether or not they are going to lend you money to buy a house, a car, or issue you a credit card. Your credit score is based on your credit history and your credit history is compiled by the credit bureaus. The three main credit bureaus are Experian, Equifax, and TransUnion. These bureaus, or credit reporting agencies, obtain your credit history from a variety of sources and they organize it into an easy to read report.\nWhat's in Your Credit Score?\n----------------------------\nThat is a great question and one that is not so easy to explain. FICO is one statistical method to come up with a score and so is VantageScore. Both of these programs use all of your data, put it into a program to analyze the data, and out comes a number. The exact computation is a highly guarded secret but we do know what items go into arriving at your score. According to the FICO website, here are the percentages of importance of each of the following categories which are used to determine your FICO Score:\n* Payment History — 35%\n* Amounts Owed — 30%\n* Length of Credit History — 15%\n* New Credit — 10%\n* Types of Credit Used — 10%\nYour FICO Score takes into consideration ALL of the above categories, no one piece of information or factor alone will determine your score. Keep in mind lenders look at more than just your score. They are able to weigh other factors, such as income and job stability, when evaluating you as a credit risk.\n### Payment History\nYour credit report will contain all account payment information such as the type of account, number of timely or late payments, delinquencies, past due items and number of accounts paid as agreed.\n### Amounts Owed\nThis portion of your credit history shows amounts you owe on open accounts, number of accounts with balances, proportion of credit lines used, and proportion of installment loans still owing. This data is used to determine if your accounts are maxed out or if you are able to keep your accounts with low or no balances.\n### Length of Credit History\nWhen reviewing the accounts you have open, certain weight is given to the time since you opened the account and how much time has lapsed since you had any activity on a certain account. In other words, the longer you have a credit card account open and they can see you have used it recently, the better it bodes for your credit score.\n### Types of Credit Used\nThis factor may not carry a lot of weight percentage-wise, but it is an important factor when determining your credit score. Do you have a lot of different types of accounts such as revolving, installment, mortgage, or other consumer finance accounts? They more diverse your account portfolio, the better.\nWhat Makes a Good Credit Score?\n-------------------------------\nIf you want to see approximations of how much weight certain factors are given in comparison to others, read our article on Credit Scores and What Influences Them.\nFrom the TransUnion's website, these are the kinds of \"trades\" (types of credit listed on your credit report) that go into a perfect credit score:\n1. A few (say, 3 or 4) revolving credit cards, each with very high lines of credit ($10,000+), and very low carried balances on only 1 (or maybe 2) of them at a time.\n2. At least one charge card, such as American Express, Diners Club, etc.\n3. All trade lines at least 6 months old, and at least 1 more than 3 years old.\n4. No derogatory notations.\n5. Very few inquiries — no more than 1 to 3 in a six month period.\n6. At least one installment trade line in good standing, i.e., a mortgage, auto loan, or student loan.\nAs you can see, it takes a diverse and negative free credit history to be able to achieve a high credit score. Don't feel defeated, you can raise your credit score by addressing each one of the contributing factors and making sure to clean up any negative or late payments. Start to pay your accounts on time and make sure to keep low balances on them. Diversify and maybe consolidate some accounts so you don't spread yourself too thin. With some work, you can have an excellent credit score and reap the benefits of low interest rates and money saved! END

TITLE: How Your Credit Score is Calculated by the Credit Bureaus CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: How Your Credit Score is Calculated by the Credit Bureaus CONTENT: | | | | \n: . END

TITLE: Credit Card Use Before and After a Disaster CONTENT: Credit Card Tips Before and After Disasters\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nWhen disaster strikes, the last thing you want to have to worry about is how you're going to pay for the aftermath. Yet, money matters rear their ugly heads certainly, and almost immediately, in the wake of a disaster. It's in cases like these when credit cards may be used to their full potential. May this serve as yet another reason to keep your credit in check.\n1\\. Keep Your Credit Card Balances Near Zero\n--------------------------------------------\nThis way, if and when disaster strikes, you will have credit available for emergency expenses. Plus, the lower your balances, the better your credit utilization ratio and, in turn, the better your credit score. Of course, this need not — and should not — mean you avoid use of your credit cards on a regular basis. On the contrary, use them every month to make a purchase here or there, but with the intention of paying off the balance every month. If and when you do carry a balance month-to-month, make it a priority to at least make more than your minimum payment and avoid using the card again until the balance has returned to zero.\n2\\. Record Your Credit Card Information\n---------------------------------------\nIn the event that your credit cards are lost in a disaster, a list is invaluable and should include:\n* Name of the credit card and the issuing bank\n* Your account number\n* Toll-free number for the issuing bank\n* Recurring payments scheduled to be made from each account\nAs for where to store this list, you may consider your cell phone, provided you use password protection and encryption features. Otherwise, you may consider a safe deposit box or fireproof lock-box in your home. In fact, it may be a good idea to store a couple of copies of this information in a couple of these places, just in case one or the other proves inaccessible.\n3\\. Research Credit Card Emergency Assistance Programs\n------------------------------------------------------\nA number of credit card issuers have emergency associated programs, which can help facilitate the search for hotel accommodations and travel. Ask your current credit card issuers if they have such programs or, if you're in the market for a new card, make this a priority feature.\n4\\. Call Your Credit Card Issuers As Soon As Possible After Disaster Strikes\n----------------------------------------------------------------------------\nIf you have lost your credit card, request another, which the issuer should be able to send to you via overnight mail. Also, ask them to consider suspending your minimum monthly payment and\/or providing you with a credit limit increase to help you cover the cost of emergency expenses.\n5\\. Use a Credit Card to Cover Housing, Food, Clothes and Other Disaster-Related Expenses\n-----------------------------------------------------------------------------------------\nThough you may have insurance that covers the cost of most or all of the expenses associated with a disaster, it will probably be some time before insurance claims are processed and paid. This is the one time when it is advisable to live off your credit cards! If you've done a good job of keeping your balances low, you may even be able to use your cards to fund any necessary restoration or reconstruction projects.\n6\\. Pay Down Your Credit Card Balances as Soon as Possible\n----------------------------------------------------------\nIt's devastating enough recovering from a disaster. The last thing you need is for it to instigate a mountain of debt that will only compound your anxiety and stress for months, even years to come. So if you do receive insurance money, put it fully toward any debt you charged for disaster-related expenses. And if none of these expenses are covered by insurance, take the time to sit down and review your budget. Once your basic living expenses have been provided for, and things have returned to relative \"normal\" again, cut back where you can to make more than your monthly minimum payments on your cards until they're paid down to zero. END

TITLE: Credit Card Use Before and After a Disaster CONTENT: | | | | \n: . END

TITLE: Factors That May Influence Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nA question we get all the time about credit scores is what influences them, i.e., exactly what actions have what affect on your credit score? This has been a mystery and will probably remain a mystery for quite some time. There are journalists who have been able to extract some information from FICO, but exact numbers and calculations will be a forever highly guarded secret. Below you will see a chart roughly summarizing the affects of certain actions on a person with an excellent credit score and then a person with an average credit score.\nIf your score is 680\nIf your score is 780\nMaxed-Out Card\n down 10 to 30 points\n down 25 to 45 points\n30-day Late Payment\n down 60 to 80 points\n down 90 to 110 points\nDebt Settlement\n down 45 to 65 points\n down 105 to 125 points\nForeclosure\n down 85 to 105 points\n down 140 to 160 points\nBankruptcy\n down 130 to 150 points\n down 220 to 240 points\nBesides giving out how much your score will drop, there is still not much we know about how the starting score is calculated. Your FICO Score, which is used by the majority of all lending institutions, was developed by Fair Isaac. This scoring model did not start out to be the industry standard, but has since become an integral part of the credit granting process. The FICO scoring model took years to develop and Fair Isaac has all kinds of empirical data to back up the accuracy of their model. The lending industry, who finds comfort in numbers, gets a warm and fuzzy feeling of fairness by using this model: since almost everyone uses it so it gives the impression that everyone being measured by the same yardstick.\nFactors That Influence Your Credit Score\n----------------------------------------\nYour credit score is based on information taken from your credit report. According to Experian, there are about 30 individual factors used to determine your credit score. Some factors have more weight than others and one factor may be more important to you than another person based on the differences in each person's credit report. Also, each factor can change as your credit report changes. Here are the five categories used when determining your credit score:\n1. **Payment History** — Payment information on credit cards, installment loans (such as a car loan), mortgage loans or finance company accounts. Details on late or missed payments, including how much was owed, how late the payments were and how recently they occurred. How many accounts show no late payments. According to Fair Isaac, this category usually determines about 35 percent of your score.\n2. **Outstanding Debt** — Amount owed on all accounts and on different types of accounts, such as credit cards or installment loans. How many accounts have balances? How close are you to each credit limit? According to Fair Isaac, this category usually determines about 30 percent of your score.\n3. **Credit History** — How long have you been building a credit history? How long specific accounts have been established and how long since you used each account? According to Fair Isaac, this category usually determines about 15 percent of your score.\n4. **Pursuit of New Credit** — How many inquiries and new accounts does your report show, and how recent are they? How long has it been since the most recent inquiry? Whether you have made on-time payments to re-build your credit after a period of frequent late payments. According to Fair Isaac, this category usually determines about 10 percent of your score.\n5. **Type of Credit in Use** — How many accounts are reported for bank cards, travel and entertainment cards, department store cards, installment loans, and so on. According to Fair Isaac, this category usually determines about 10 percent of your score.\nAlso informative is the list of reasons that may be provided to account for why a score isn't higher. When lenders request your credit score, they also receive a list of the four most significant reasons your score is not higher - they should share the reasons listed on the report with you. Possible FICO reason are:\n* Amount owed on accounts is too high.\n* Delinquency on accounts.\n* Too few bank revolving accounts.\n* Too many bank or national revolving accounts.\n* Too many accounts with balances.\n* Consumer finance accounts.\n* Account payment history too new to rate.\n* Too many recent inquiries in the last 12 months.\n* Too many accounts opened in the last 12 months.\n* Proportion of balances to credit limits is too high on revolving accounts.\n* Amount owed on revolving accounts is too high.\n* Length of revolving credit history is too short.\n* Time since delinquency is too recent or unknown.\n* Length of credit history is too short.\n* Lack of recent bank revolving information.\n* Lack of recent revolving account information.\n* No recent non-mortgage balance information.\n* Number of accounts with delinquency.\n* Too few accounts currently paid as agreed.\n* Time since derogatory public record or collection.\n* Amount past due on accounts.\n* Serious delinquency, derogatory public record, or collection.\n* Too many bank or national revolving accounts with balances.\n* No recent revolving balances.\n* Proportion of loan balances to loan amounts is too high.\n* Lack of recent installment loan information.\n* Date of last inquiry too recent.\n* Time since most recent account opening too short.\n* Number of revolving accounts.\n* Number of bank revolving or other revolving accounts.\n* Number of established accounts.\n* No recent bankcard balances.\n* Too few accounts with recent payment information.\nKeep in mind, many lenders use their own credit scoring models along with the FICO scoring model so you may get different scores from each model. Your score will also change over time and some creditors may not report to all the credit bureaus. So having said all of that, there is really no clear cut answer as to what exactly influences your credit score and how much. There are general guidelines provided but no clear cut numbers to quantify how much your score will increase\/decrease with a certain action. Best advice, just work on cleaning up your credit and paying your bills on time. END

TITLE: Factors That May Influence Your Credit Score CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Factors That May Influence Your Credit Score CONTENT: | | | | \n: . END

TITLE: Credit Score Myths - What Does Not Affect Your Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nKnowing your credit score allows you to make changes and improvements to your overall credit profile. But did you know, 42 percent of Americans fail to regularly check their score which is equivalent to a financial grade point average. As one senior director of Visa, Inc. puts it, \"not checking your credit score at least once a year is like driving with your eyes closed, you are risking a financial collision.\"\nMyths Surrounding Credit Scores\n-------------------------------\nYour credit score impacts your ability to get a home loan to being hired for a job. But do you really know what does and does not affect your score? According to a study done by Visa, Inc., many Americans don't know what goes into determining a credit score. In the study, 60 percent of those surveyed thought employment history factored into their credit score and 17 percent thought gender was a factor. These people are wrong on both assumptions.\nBelow are the percentages of respondents who incorrectly thought these factors were included in determining their credit score:\n* Employment History: 60%\n* Interest Rates on Debt: 59%\n* Amount of Money in Savings Account: 53%\n* Your Age: 39%\n* Where You Live: 25%\n* Ethnicity: 22%\n* Ability to Speak English: 22%\n* Your Gender: 17%\n* Your Race: 16%\nFactors Which Do Not Affect Your Credit Score\n---------------------------------------------\nThe reality is, the above mentioned factors do not have the slightest affect on your credit score. It would be illegal for Fair Issac to consider race, religion, birthplace, gender, or marital status when determining your credit score. According to myFICO.com, here is a list of **what is not** considered in your FICO score:\n* **Your race, color, religion, national origin, sex and marital status.**  U.S. law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.\n* **Your age.**  Other types of scores may consider your age, but FICO scores don't.\n* **Your salary, occupation, title, employer, date employed or employment history.**  Lenders may consider this information, however, as may other types of scores.\n* **Where you live.**\n* **Any interest rate being charged on a particular credit card or other account.**\n* **Any items reported as child\/family support obligations or rental agreements.**\n* **Certain types of credit inquiries.**  FICO does not count consumer-initiated inquiries, requests you have made for your credit report, in order to check it. It also does not count promotional inquiries, requests made by lenders in order to make you a pre-approved credit offer. Nor does it consider administrative inquiries,  requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either.\n* **Any information not found in your credit report.**\n* **Any information that is not proven to be predictive of future credit performance.**\n* **Whether or not you are participating in a credit counseling of any kind.**\nNow, we are not saying _nobody_ cares about such things as your income or work history. A landlord or loan officer will likely want to know about your salary or employment history but it in no way affects your credit score. END

TITLE: Credit Score Myths - What Does Not Affect Your Score CONTENT: | | | | \n: . END

TITLE: Unexpected Things That May Lower Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you have thought about fixing your credit or maybe you are already in the midst of the credit repair process, you know the end result is a higher credit score. Throughout this site, we give you tips on what to do to increase your score but we haven't really touched on what NOT to do. We uncovered some surprising things you might unintentionally do that will affect your credit score in a negative manner.\n### Renting a Car\nYes, you read that right, renting a car may have a negative impact on your credit score. Reason being, there are a few rental car companies that will pull a hard inquiry on your credit prior to renting a car to you. One such company, that does this as a routine practice if you are trying to rent a car using a debit card, is Dollar Rent-A-Car.\nAs you know from our article on How to Erase Credit Inquires From Your Credit Report, a hard pull inquiry can affect your score. So, before you rent a car, make sure to ask the company if they are going to pull your credit and if so, go to a different company or use a credit card to rent your next car.\n### Applying For Credit\nThis is a good segue from the prior point because applying for credit is another way of getting an inquiry on your credit report. Every time you apply for credit, be it a credit card or loan, a hard inquiry is placed on your credit file which may lower your credit score. It may be a few points, but the more you apply for credit, the more the negative points add up. To avoid this scenario, talk to the lender first before they pull your credit and see what their criteria is for a loan. If you are fixing your credit, chances are you already know your credit score so you will know if you qualify for that loan or not.\n### Having Credit Cards But No Loans\nOne very important part of your credit score is the diversity of your accounts. According to FICO, the category of \"types of credit used\" makes up 10 percent of your credit score. That may not seem like a lot, but it is an important factor when determining your credit score.\nWhen evaluating the types of credit used, the credit bureaus are looking for different types of accounts such as revolving, installment, mortgage, and other consumer finance account. The more diverse your credit portfolio, the better.\n### Just a Single Late Payment\nWe actually just wrote an article on this very topic, One Late Payment Makes a Big Impact On Your Score - True or False. Guess what, it is TRUE! If you are thinking about paying on the credit card late or missing a payment altogether because you think it won't matter — it will.\nOne way to avoid this is to determine with the lender, how late is late? How many days can go by after the payment due date before they consider your payment late. Is it 10 days, 25 days, 30 days? And, while you are at it, give them a call to explain your situation. Chances are, your lender will be more willing to work it out with you if you call them then to just miss a payment altogether.\n### Divorce\nWhile you were married, chances are you bought a house together, a car, and probably obtained a few credit cards which were all in both of your names. Now you are divorced, but does that mean you are off the hook for that loan on the car your husband took in the settlement? Well, if you were a co-signer on the loan, you are still on the hook for the loan and this loan is going to show up on your credit report until it is paid off.\nAny joint accounts will remain on both parties credit reports. If your ex declares bankruptcy, creditors will come after you for balances on any joint accounts. And, any late payments will show up on your credit report as well. The best thing to do prior to and during a divorce, is to get these loans into one or the others names alone. That may mean applying for the loan all over again but it will be worth it down the road if your ex becomes financially insolvent.\n### Closing an Account\nMany people think getting rid of a credit card they no longer want is a good idea as it will show lenders they are not so credit-dependent. But, this is a bad idea for two reasons:\n1. It can raise your utilization percentage.\n2. A closed account is often purged from your report sooner (7 to 10 years) than an open one, which can remain on your report indefinitely causing you to lose all of the positive credit history associated with that account.\nSo, as you can see, there are few surprising things you might inadvertently do that could lower your credit score. We always talk about what to do to increase your credit score, but we also need to be aware of those little things that could lower it as well. Now, go ahead and start working on repairing your credit — you have all the tools you need right here on our website to increase your score and fix your credit. END

TITLE: Figuring Out Your Credit Utilization Ratio CONTENT: How to Figure Your Credit Utilization Ratio\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you don’t know your credit utilization ratio, it’s time to find out. Fortunately, it’s an easy figure to calculate. It’s simply a matter of doing the math on relevant revolving accounts. It’s also an easy figure to fix if you discover yours is too high.\n**Do the Math**\n---------------\nYour credit utilization ratio is how much you owe compared to how much credit you have available. Here’s how to figure yours.\n**1) Make a list of your revolving accounts**\nA revolving account is a credit line that may have a different balance every month, as well as a different minimum monthly payment (depending on what you owe).\nSo when making your list to figure your credit utilization ratio, include credit cards, department store cards, gas cards, and any other type of retail card. One exception is your home equity line of credit (HELOC). Though technically a revolving account, FICO does not include HELOCs when calculating your credit utilization ratio.\nOther things NOT to include in this list are auto loans, student loans, a home equity loan, or _charge_ accounts that require you to pay the balance in full every month (like an American Express charge card).\n**2) Add up your total credit limit**\nIf you have a $10,000 credit limit one card, a $5,000 credit limit on a second card, and a $5,000 credit limit on a third card, your total credit limit is $20,000.\n**3) Add up the balances on each of these cards**\nIf you have a balance of $5,000 on the first card, $2,500 on the second card, and $2,500 on the third card, your total balance is $10,000.\n**4) Divide the balance by the credit limit**\nIf your total balance is $10,000, divide that by your total credit limit of $20,000. In this example, your credit utilization ratio would be 50 percent.\n**Aim for 30 Percent or Less**\n------------------------------\nAs a general rule of thumb, most credit experts recommend that your credit utilization ratio not exceed more than 30 percent. That’s because a big chunk of your FICO score (30 percent) is determined by how much you owe on your credit accounts.\nWhy does credit utilization ratio matter so much? Because the more available credit you use, the more you may be overextending yourself, and that’s a credit risk.\nFor example, if you have a $20,000 credit limit, you do not want to have a balance of more than $6,000 at any given time. That’s 30 percent. You might think it doesn’t matter as long as you’re paying your balances in full every month, right? Wrong.\nAs FICO states on its website:\n_\"Your account balance on your credit report will reflect the account balance your lender reported to the credit bureau (typically the balance from your latest monthly statement).\"_\n_\"So even if you pay your credit card balances in full each month, your account balance won’t necessarily show on your credit report as $0.\"_\nThat’s okay. It just further punctuates the importance of trying not to use more than 30 percent of your credit at any one time. But if you do, then make as large a payment as you can right away to bring that ratio down as soon as possible.\n**More Than Your Credit Score to Think About**\n----------------------------------------------\nYes, keeping your credit utilization ratio low is good for your credit score. But it’s also good for your bank account. The higher the balances you carry, the greater the possibility that you will get in over your head and start carrying debt from month to month, which means more debt and costly interest fees.\n**Need to Lower Your Credit Utilization Ratio?**\n------------------------------------------------\nTry the avalanche or snowball method on your outstanding credit card balances. END

TITLE: Information on Credit Cards, Debit Cards, MasterCard, Visa CONTENT: Everything You Need to Know About Credit Cards\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nThere are so many credit card products available today — it can be overwhelming and confusing. Everyone at some point in their lives has received a credit card offer in the mail, but how do you know if that is a good credit card for you?  And, with all of the cards now available, what types of cards are the best deals today? We have tried to compile as much free credit card information as possible and listed the most frequently asked questions below. With information always changing, we try to keep this page updated but it can be challenging at times. Always do you own due diligence before filling out the next credit card application to make sure you are getting the best deal for your situation.\nWhat Types of Cards Are Available?\n----------------------------------\n* **Credit Cards:** The credit card issuer gives you a card. You use the card to pay for items and services up to a certain total amount — your credit limit. The store merchant or service provider collects what you owe from the card issuer, whom you repay.\n* **Charge Cards:** These are also called travel and entertainment cards and are a little different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as you want, but are required to pay off your entire balance when your bill arrives.\n* **ATM Cards:** ATM cards are issued by banks, essentially to give bank customers flexibility in their banking hours. In most areas, you can use an ATM card to withdraw money, make deposits, transfer money between accounts, find out your balance, get a cash advance, and even make loan payments at all hours of the day or night.\n* **Debit Cards:** Debit cards combine the functions of ATM cards and checks. When you pay with a debit card, the money is automatically deducted from your checking account.\nIs a MasterCard Better Than a VISA? What About American Express or Diners Club?\n-------------------------------------------------------------------------------\nMasterCard and VISA don't actually issue cards — they are just the payment network that transactions are processed over. In the U.S., almost any establishment that takes MasterCard takes VISA, and vice versa.\nAccording to WalletHub, at the end of 2016, VISA had 335 million cards (52.8%) in circulation. Compared to MasterCard with 200 million (31.6%), American Express with 47.5 million (7.5%) cards, and Discover with 51.4 million (8.1%) cards in circulation.  \nAmerican Express, Diners Club, and their kin were originally aimed at the more upscale \"travel and entertainment\" market. They are accepted at many places, though not as many as VISA and MC. Some places don't take MC and VISA but do take American Express or Diners Club.\nAmerican Express used to be very handy for traveling in Europe. Among other things, it would let you cash personal checks drawn on your U.S. bank at any of their many offices. Nowadays, however, with your VISA or MasterCard, you can get cash advances at local banks at a better exchange rate.\nThe best card for you is the one that is accepted where you shop and charges you the least amount of money for the services you actually use. For example, if you always pay off your balance each month, it is important to get a card with a grace period; the interest rate doesn't matter much.\nWhy Do MasterCard\/VISA Cards Have Different Rates and Fees?\n-----------------------------------------------------------\nMasterCard and VISA rates are set independently by the banks issuing them. In fact, a given bank may offer several different rate and fee schedules. Sometimes you can pick which one you want; other times the bank will offer you a single set of terms with no option, even though it offers another customer a different set of terms. That's why it's worth shopping around rather than just applying for \"a MasterCard\" or \"a VISA.\" \nWhat is a Secured Card?\n-----------------------\nSecured cards require you to make a bank deposit up front. The limit on the card is usually related to the amount of the bank deposit. The bank has the right to take money from your deposit if you don't pay your bill.\nSecured cards are usually approved for people who have credit problems and can't get an unsecured card. A secured card from a bank is a great way for someone to rebuild their credit and eventually, the issuing bank may switch the card to an unsecured card if the customer pays their balance on time and proves they are now a more favorable credit risk.\nA secured MasterCard or VISA looks just like a regular credit card and the law ensures that it has all the same consumer protections.\nYou can see a list of secured cards we recommend.\nWhat is an Unsecured Card?\n--------------------------\nYou probably won't hear this term often because it is the norm. A \"regular\" credit card is and unsecured card. Unsecured simply means the bank can't take specific assets of yours in the event that you don't pay your bill, but rather would have to sue you or force you into bankruptcy to collect.\nWhat is a Debit Card?\n---------------------\nAs its name implies, it is not a credit card. Instead of running up a bill that you pay at the end of the month, the debit card runs down your checking account at the moment the sale is made. Merchants like these because they get instant payment without worrying about bad checks.\nDebit cards are convenient but they do have drawbacks. It is a lot more painful to resolve a problem with a purchase if the money is gone from your account (as with a debit card) than if it's just numbers on a piece of paper (as with a credit card). And if you lose a debit card, your whole account can be emptied with no recourse for you. You decide whether you want to take that risk.\nConsumers in the know don't like debit cards because they offer less protection than credit cards in the event of a billing dispute. See our document on billing errors and overcharges.\nHow Does an ATM Card Differ From a Debit Card?\n----------------------------------------------\nAn ATM (automatic teller machine) card is a form of debit card but you use it in a cash machine by punching in your code number. A debit card looks very much like a credit card and is treated like a credit card by most merchants but the purchase is immediately deducted from your checking account. An ATM card looks nothing like a credit card, has no Visa or MC logos on it, and is only good for making cash withdrawals from your checking account at cash machines.\nThe ATM card is a little less dangerous if you lose it, since nobody can use it to drain your account without knowing your PIN (personal identification number). Also, most banks limit the amount of cash that can be withdrawn with an ATM card in a day. A VISA or MasterCard debit card allows a thief clean out your entire account with one purchase.\nWhat is a PIN?\n--------------\nA PIN is a password that goes with your card and allows you to make certain types of electronic transactions involving your card. In some countries, most credit card purchases are validated with a PIN. Although you can still use your card without one, they may sometimes have to phone for authorization. Also, if you have a PIN, you can get cash advances from many cash machines. Note however that it is best to get a 4-digit PIN; longer PINs are not accepted by some networks.\nAlso, protect your PIN as if it were cash. Do NOT write it down anywhere near your card. With this number, and your card, a thief could run your card to its maximum in cash advances.\nSome Common Credit Card Terms\n-----------------------------\n**Annual Fee** \nA flat, yearly charge similar to a membership fee\n**Annual Percentage Rate (APR)** \nA measure of the cost of credit that expresses the finance charge, which includes interest and may also include other charges, as a yearly rate.\n**Finance Charge** \nThe dollar amount you pay to use credit. Besides interest costs, it may include other charges associated with transactions such as cash advance fees.\n**Grace Period** \nA time, about 25 days, during which you can pay your credit card bill without paying a finance charge. Under almost all credit card plans, the grace period **only** applies if you pay your balance in full each month. It does not apply if you carry a balance forward. Also, the grace period does not apply to cash advances.\n**Interest Rate** \nInterest rates on credit card plans change over time. Some are explicitly tied to changes in other interest rates such as the prime rate or the Treasury Bill rate and are called **variable rate** plans. Others are not explicitly tied to changes in other interest rates and are called **fixed rate** plans.\nHow Do Credit Card Companies Calculate Credit Card Interest Each Month?\n-----------------------------------------------------------------------\nTo calculate the interest on your card each month, the lender multiplies the card's interest rate (the APR) times your card balance. This will give the interest for the entire year. The lender will divide this interest calculated by the number of months in the year, or 12. The sticky part is calculating the credit card balance. This is why it's important to choose a card with a grace period (see last question). If you do have a balance on your card, there are three methods of calculating it:\n**Average Daily Balance** \nWith average daily balance (the most common method), the issuer calculates the balance by taking the amount of debt you had in your account each day during the period covered by the billing statement and averaging it.\n**Previous Balance** \nWith this method, the issuer uses the balance outstanding at the end of the previous period-- that is, the period prior to the one covered by the current billing statement.\n**Adjusted Balance Method** \nWith this method, the balance is derived by subtracting the payments you've made from the previous balance. END

TITLE: Information on Credit Cards, Fraud Prevention, Types of Cards CONTENT: General Information About Credit Cards\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nIf you have been looking for easy to understand information on credit cards, you have come to the right place. Over the years, we have talked to thousands of people and we always seem to get the same questions over and over again. So, we have compiled the most popular questions with answers with regards to credit cards. If you need information about good and bad credit cards, we have another articles addressing those questions.\nThere are many types of credit cards such as secured credit cards, prepaid, low interest rate, reward based, ones for bad credit, and the list goes on and on. We have other articles that can help you find the perfect card to fit your needs but for now, check out the questions below to obtain the general information regarding credit cards.\n**What Do The Digits On a Credit Card Mean?**\n---------------------------------------------\nANSI Standard X4.13-1983 is the system used by most national credit card systems. Phone cards, gas cards, and department store cards have their own numbering systems.\nThe first digit of the card identifies the type of card.\n* 3 is a Travel & Entertainment Card\n* 4 is a Visa\n* 5 is a MasterCard\n* 6 is Discover\n* American Express starts with 37\n* Carte Blanche and Diners Club start with 38\nOn AMEX, the third and fourth digits are type and currency and the fifth through eleventh digits are the actual account number. On a VISA card, the second through sixth digits are the bank number and the seventh through fifteenth is the account number. On a MasterCard credit card, digits 2 through 6 are the bank account and the remaining digits are the account number.\n**What to Do If a Credit Card is Lost or Stolen** \n--------------------------------------------------\nIf you have lost your credit card or if it was stolen, call the issuer right away. Check one of your monthly statements for the customer service number. If you don't have access to these statements, look up the issuing bank on the Internet or if you have access to your credit card account online, get the number off of their website.\nThe important thing is to act fast and don't wait a day or even a minute. A lost or stolen credit card has the potential to cause a lot of damage, especially if you have a high credit limit. Once you have reported the card lost or stolen, you should follow-up with a letter stating the following:\n1. account number\n2. date of loss or theft\n3. date it was reported to the card holder\n4. last authorized transaction including date and amount\nThis will protect you from being liable for any further charges on the account.\n**What is the Toll Free Number for Customer Service?**\n------------------------------------------------------\nFor Discover, call 1-800-347-2683, or 1-800-DISCOVER.\nFor American Express, call 1-800-528-4800.\nFor VISA and MasterCard, the issuing bank handles service of its own customers. The customer service number will be printed somewhere in your bill, or on a page in the packet of stuff the card company sent you when you enrolled. Check the Internet to see if you can find a number listed or you can call directory assistance at 1-800-555-1212 to find out if the bank maintains a toll free number.\n**Reasons You May Have Been Turned Down For a Credit Card**\n-----------------------------------------------------------\nBeing turned down for a credit card or loan can be a shock and you might be a bit worried as to why this happened. Your best bet is to ask the issuing bank why you were declined if they did not provide an explanation in the denial letter you received from them. Before you try to apply for another credit card, read some of our helpful articles on credit repair and getting a reading your credit report.\n* Credit Reporting Agencies - How to Contact Them\n* Getting and Reading Your Credit Report\n* Fixing Your Credit\n**Is It Safe to Give a Credit Card Number Over the Phone?**\n-----------------------------------------------------------\nYou should NEVER give your credit card number to anyone who calls you. Such a call is almost certainly a scam. This is true even if the caller claims to be from your card issuer. Anyone from the issuer who legitimately has your phone number also has the rest of your records, including your card number, right?!\nIf you're making a call in response to a postcard from some company you've never heard of, be very wary. There have been a lot of frauds reported where the victim gave a credit card number and found lots of unauthorized charges on the next month's bill. We are sure that some of these \"you've won a free trip, just give us your card number for the $149 processing fee\" offers are legitimate. But how can you tell over the phone?\nEven when you place the call to a bona fide merchant (such as a mail order company), never give your card number out over a cellular phone. Scanners that snoop on these conversations are available for a few hundred dollars at Radio Shack and your voice can be received by one for a far greater distance than the maximum useful range of your cordless phone. Often these lines are monitored to obtain your credit card, or your vacation plans.\nOf course, if you're calling an established mail order company, giving them your card number is as safe as anything is these days!\n**What Creditors Do If You Can't Pay Your Bill**\n------------------------------------------------\nCredit card debt, like any other debt, does not give your creditors license to harass you. The Fair Debt Collection Practices Act (FDCPA), a Federal Law, was enacted to protect you from creditors. The FDCPA forbids the following collection actions:\n* The use of violence or other criminal means to harm the physical person, reputation or property of any person.\n* The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.\n* Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.\n* The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.\n* The false representation or implication that any individual is an attorney or that any communication is from an attorney.\n* The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment or sale of any property or wages of any person, when such action is unlawful or the debt collector does not intend to take such action.\n* The false representation or implication that the consumer committed any crime or other personal conduct, in order to disgrace the consumer.\n* Communicating credit information to any person which is known to be false, including the failure to communicate that a disputed debt is disputed.\n* The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.\n* The false representation or implication that accounts have been turned over to innocent purchasers for value.\n* The false representation or implication that documents are legal process.\n* The false representation or implication that documents are not legal process forms or do not require action by the consumer.\n* Communication with debtor at unusual (or known-inconvenient) times or places.\n* Communication with third parties without debtor consent.\n* False or Misleading Representations including:\n * The threat to take any action that cannot legally be taken or that is not intended to be taken.\n * Communicating (or threatening to communicate) credit information to any person which is known (or which should be known) to be false, including the failure to communicate that a disputed debt is disputed.\n * The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.\nThe Federal Reserve Bank puts out a free pamphlet titled \"The Fair Debt Collection Practices Act.\" For a copy, call (215) 574-6115 or write the Federal Reserve Bank of Philadelphia, Public Information\/Publications, P.O. Box 66, Philadelphia, PA 19105-0066. END

TITLE: Information on Credit Cards, Fraud Prevention, Types of Cards CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Credit Inquiries May Affect Your FICO Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nCredit inquiries are requests by a legitimate business to check your credit. When you apply for a new credit card, auto loan, or mortgage loan, that lender is going to pull your credit report so they can analyze whether or not you are credit worthy. You may also see inquiries from businesses you do not know as these credit checks are made by businesses looking to offer you goods or services such as promotional offers by credit card companies.\nAccording to myFICO.com, as far as your FICO score is concerned, credit inquiries are classified as either \"hard inquiries\" or \"soft inquiries\" and only hard inquiries have an affect on your FICO score.\nSoft Credit Inquiries\n---------------------\nSoft inquiries are all credit inquiries where your credit is not being reviewed by a lender. These may include:\n* Inquiries where you are checking your own credit.\n* Credit checks made by businesses to offer you goods or services, such as a promotional offer by a credit card company.\n* Inquires made by lenders with whom you already have a credit account.\nHard Credit Inquiries\n---------------------\nHard inquiries are all credit inquiries where a potential lender is reviewing your credit because you have applied for credit with them. These types of credit checks could be from:\n* Application for an auto loan\n* Application for a credit card\n* Application for a home loan\nEach of these type of credit check counts as a single inquiry, except when you are rate shopping. FICO considers all inquiries made with a 2 week period for an auto or mortgage loan to be a single inquiry.\nWill All Hard Inquiries Affect Your Credit Score?\n-------------------------------------------------\nHard inquiries may or may not affect your FICO score. A FICO score takes into account only voluntary inquiries that result from your application for credit. The information about inquiries that can be factored into your FICO score includes:\n* Number of recently open accounts and the type of accounts. Opening several credit accounts in a short period of time may lower your score.\n* Number of recent credit inquiries. The only time this will not affect your score is if you are rate shopping.\nHow Will Credit Inquiries Affect Your Score?\n--------------------------------------------\nThat seems to be the million dollar question and FICO is not going to give that exact information out to just anyone. In fact, they give that information out to no one. According once again to myFICO.com, \"the impact from applying for credit will vary from person to person based on their unique credit histories.\" How's that for vague. Furthermore, credit inquiries have a small impact on one's FICO score, generally less than 5 points.\nStatistically, people with 6 inquiries or more on their credit reports can be up to 8 times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries can often play a part in assessing risk, they only play a minor part. Much more important factors for your score are how timely you pay your bills and your overall debt burden as indicated on your credit report.\nSo how many inquiries are too many? We can't really tell you for sure, but obviously, you want to keep them to a minimum. END

TITLE: Understanding the Different Kinds of Credit Card Fees CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nWhether you’re searching for a good credit card or just looking to minimize fees on ones you already have, this guide is a good go-to for saving money. You may not be able to avoid credit card fees altogether, but you can most of the time.\nAnnual Fee\n----------\nWhile there are plenty of credit cards that charge no annual fee at all, you’ll find them pretty prevalent within three categories — rewards credit cards, secured credit cards, and subprime credit cards. The trick to avoiding them is shopping around. That said, there are a couple of exceptions when you may want to pay the fee anyway:\n1) The rewards you expect to earn are greater than the fee\n2) You expect to carry a balance (never ideal, by the way) and the interest rate is low enough to make an annual fee worth it\nDo the math and choose accordingly.\nIf you already have a credit card for which you’re paying an annual fee, you can always look at switching to one that doesn’t.\nInterest Fee\n------------\nIf you carry a balance on your credit card, you are going to be charged an interest fee. Ideally, you want to avoid this fee by paying off your balance by the due date every month. In reality, you may end up carrying a balance now and then. If and when that’s the case, you want your interest fee to be as low as possible. That’s why this is such an important factor to take into account when shopping around for a credit card. Always look for the lowest rates.\nOf course, the rates you qualify for will depend on your credit. The higher the score, the lower the rates. The lower the score, the higher the rates.\nIf you already have a credit card with high interest, try lowering it. Here’s how to ask.\nBalance Transfer Fee\n--------------------\nIf you already have credit card debt, one helpful way of getting it under control is to transfer the balance to a new card with a lower interest rate. However, don’t forget about the balance transfer fee, which is typically a percentage of the amount transferred. It may not be worth the transfer, especially if you’re not sure you can pay off the balance before the introductory interest rate on the new card expires.\nCash Advance Fee\n----------------\nIt’s nice knowing you can use your credit card to get your hands on cash when you need it, but you want to keep these transactions to a minimum. You’ll be charged a cash advance fee every time, which is typically a percentage of the amount you withdraw. Plus, unlike regular credit card transactions, interest may start accruing immediately. As though that’s not bad enough, the interest is usually higher on cash advances than purchases.\nForeign Transaction Fee\n-----------------------\nIf you use your credit card outside of the U.S., you may be charged a foreign transaction fee. So if you want to use your card internationally, be sure to use a credit card that doesn’t charge this fee. If you don’t already have one, look for one. They’re out there.\n**Late Payment Fee**\n--------------------\nPay on time, every time, and you never have to worry about this one. But, as with carrying a balance, there may be a time when you’re late with a payment. Should that time come, you want the penalty to be as low as possible. So if you’re shopping around for a card, make sure you know this fee before you sign up.\nOver-limit Fee\n--------------\nIf you use more than your available credit, you’ll be charged an over-limit fee…_if you opted-in for it_. Translation: Don’t.\nThis is about more than just avoiding the fee. This is about keeping your credit card balance under control. The dream scenario is returning your balance to zero every month. The nightmare scenario is getting so close to your credit limit that your next purchase would push you over the edge, thus charging the over-limit fee. That’s the wrong kind of mindset to manage a credit card.\nWhether it’s a new credit card or an old one, make sure you’re _not_ opted in to this possibility of maxing out and exceeding your limit.\nReturned Payment Fee\n--------------------\nIf you pay your credit card bill from an account that doesn’t have sufficient funds to cover the payment, your credit card issuer may charge you a returned payment fee. For this reason, and a myriad of others, it’s a good reason to keep a close eye on the balances in all of your accounts, particularly ones you’re making payments from on a regular basis.\nWe recommend credit card comparison sites Bankrate, Nerdwallet, Credit Karma, and CardHub. END

TITLE: Can One Late Payment Affect Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nHave you ever wondered if that one late payment will tank even the most stellar of credit histories? If you are having trouble making ends meet, you are probably trying to resist the temptation to be late with a payment. Assuming this is your first offense, it may not be a big deal but is that really the truth?  Below are some commonly asked questions and we are going to play true or false. Then, you decide if it is worth missing that one payment and if it will affect your credit score.\nWill the Following Affect Your Credit Score — True or False?\n------------------------------------------------------------\n**1\\. The Better Your Credit Score, the More Your Score Suffers From One Late Payment.** _True_. If you have a FICO score of 780 or higher, you can see that number fall by as much as 100 points from just one late payment. By comparison, a score of 680 may see just a 60 to 80 point drop from one late payment.\n**2\\. All Lenders Report Late Payments After 30 Days.** _False_. If you have a long, solid history of making your payments on time, it's possible that the lender will not report the payment as delinquent. That said, don't count on it. Check your credit report and if, indeed, it includes the late payment, refer to point three below.\n**3\\. Once a Late Payment is on Your Record, You're Stuck With It.** _False_. Lenders have the right and ability to remove negative listings from your credit report. This includes late payments. So, if you do make a late payment that gets reported to the credit bureaus, you may ask the lender to remove it. Of course, they are under no legal obligation to do so, meaning you have your work cut out for you. Give them a call and give it a try with the following in mind:\n1. Give them a good reason for missing the payment.\n2. Assure them this is an exception that shouldn't happen again.\n3. Do so in as respectful and patient a manner as possible.\nOf course, if you are unable to have the late payment removed, you can expect it to impact your score in some manner for up to 7 years. That said, the impact of late payments 30 to 60 days late will negligible compared to the impact of payments 90 days late or more.\n**4\\. One Recent Late Payment is More Harmful to Your Score Than Several Late Payments Reported Some Time Ago.** _True_. If you were 30 days late with a payment last month, it will more negatively impact your credit score than several late payments of 30 days or more reported last year, for example.\n**5\\. The Impact of One Late Payment on Your Credit Score Depends Solely on Just How Late You Are.** _False_. While a payment that's 90 days late certainly has more of a negative impact on your score than a payment just 30 days late, other factors come into play. The larger your outstanding balance on the delinquent account, the shorter your credit history, and the greater the number of delinquencies on your other accounts, the more a late payment will hurt your score. END

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TITLE: Pros and Cons of Credit Card Cash Advance CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nUsing your credit card to make purchases is a no brainer and something we all do without even thinking about it. We use our credit cards to pay for gas, groceries, college tuition, food, utilities — just about everything. When was the last time you carried cash in your wallet or better yet, when was the last time you used cash to make a purchase?  We have become so accustom to paying for things with our credit cards that we have lost touch with handling cash. But what if you need cash in a pinch and you need more money than you currently have in your checking or savings account? This is when a cash advance may come in handy but before you go down this avenue, make sure you know all the pros and cons of using a credit card cash advance and if this is the right financial move for you.\nWhat is a Credit Card Cash Advance?\n-----------------------------------\nA cash advance is a loan service provided by your credit card company which allows you to withdraw cash through an ATM, bank withdraw, or by using a \"convenience\" check. Terms and conditions for this type of transaction vary widely from credit card company to credit card company so make sure you review the details in the terms of your card. Typically, you are able to withdraw sums ranging from $50 to a few thousand and your cash advance limit is different from your credit card limit. So, make sure to find this information in your account details as this amount will be listed differently.\nWhy Use a Credit Card Cash Advance?\n-----------------------------------\nA cash advance from one of your credit cards can be an option if you need money right away and you don't have enough cash on hand. If an unforeseen emergency has come up or a one-time expense that cannot be paid for out of funds in your checking or savings account, using a cash advance may be the answer. \nHow Does a Cash Advance Work?\n-----------------------------\nIt might feel the same but a cash advance is very different from using your debit card at an ATM. When you use a debit card, the money is immediately taken out of your account to pay for the purchase and if you don't have enough money in your account to cover the purchase, your purchase will be declined. On the other hand, a cash advance will show up as a charge to your account. Cash advances are more like short-term loans and come with their own fees and interest rate - typically higher than a regular credit card purchase. Again, before you use the cash advance option on your credit card, make sure you know what fees you will be charged and what the interest rate will be on this loan.\nOver the years, consumers using a cash advance to pay for unexpected expenses has decreased dramatically. This is not a surprising statistic due to the costs associated with using a cash advance. Before you decide to use this type of loan, ask yourself these questions:\n* Can I pay the money back in a month?\n* Is there another way I can deal with this financial situation?\n* Do I really need what I am about to buy?\n* Do I need help in the form of a financial make-over or a lifestyle change?\nPros and Cons of Using a Credit Card Cash Advance\n-------------------------------------------------\nA cash advance is relatively easy to get and it doesn't require any money available in any account. But, this convenience can come with a pretty hefty price in the form of high fees and interest rates. Fees generally fall between 2 and 5 percent of the total amount of the cash advance and there are very few cards that do not charge this type of fee. On top of this high fee, there is also going to be a high interest rate associated with your cash advance. Another drawback to using a credit card cash advance is the fact there is no grace period and interest begins to accumulate as soon as you get the cash. Lastly, taking out a cash advance can also raise your credit utilization rate which may negatively affect your credit score.\nIf it seems like the cons out weigh the pros, you are right. Although getting a cash advance from your credit card may be quick and easy, it is a very expensive way to get money fast. Before you opt for this type of loan, you might want to consider some other ways to get the money you need. Maybe try a credit union, borrowing money from friends or family, or try selling some of your personal property on eBay or CraigsList. While a cash advance can help you fund an unexpected expense, it can be a very expensive short-term loan. It is important to examine your finances carefully and do what it right for you. If you do decide to use a credit card cash advance, make sure you pay it off quickly and get your finances back on track as soon as you can. The quicker you pay this loan off, the better your finances and credit score will be. Using this type of loan once in awhile has its purpose - just don't get in the habit of using this type of high interest loan very often. END

TITLE: Pros and Cons of Credit Card Cash Advance CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Pros and Cons of Credit Card Cash Advance CONTENT: | | | | \n: . END

TITLE: Does Renting-to-Own Help Your Credit Score CONTENT: Rent-to-Own Won't Help Your Credit Score\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen you have bad credit and a low credit score, making big purchases can be a challenge, if not down-right impossible. After all, if using a credit card isn't an option, all you're left with is paying cash, and coming up with hundreds, or thousands, of dollars up-front can be tough for just about anyone. Thus, the appeal of rent-to-own, a temptation to be avoided in just about any circumstance.\nWhat is Meant By Rent-to-Own?\n-----------------------------\nRent-to-own most commonly refers to an agreement in which a consumer rents merchandise, with the option to buy, from a rent-to-own store that carries merchandise ranging from furniture, to electronics, to appliances. Payments that include high interest rates are made on a weekly, bi-weekly or monthly basis.\nDo You Need Good Credit to Qualify For Rent-to-Own?\n---------------------------------------------------\nNo, rent-to-own stores do not check credit reports or credit scores, which is what makes them so attractive to those with bad credit histories. Unfortunately, those with bad credit are often already deep in debt. So the last thing they need to do is pay an average of 2 to 3 times more for rent-to-own purchases than if they were to buy the same items at regular retail price. Yet that is precisely what millions of us do. According to a report that includes 2014 statistics from U.S., Mexico, and Canada, there are more than 4.8 million rent-to-own customers, taking in $8.5 billion a year business, supporting as many as 9,000 rent-to-own stores.\nAre Consumers Who Enter Into Rent-to-Own Agreements Obligated to Pay?\n---------------------------------------------------------------------\nNo, consumers may simply rent the merchandise and return it at any time. Of course, this does not include any form of reimbursement, as all payments made up to the point of return have been made in exchange for the rental period. On the other hand, the merchandise automatically transfers ownership to the consumer once a certain number of payments have been made. In fact, 70 percent of rent-to-own customers do end up making all of the required payments in order to own the merchandise. That's an awful lot of people paying 2 to 3 times more than if they'd been able to purchase at regular retail price.\nWill Timely Payments Help Your Credit?\n--------------------------------------\nHere is the sad part, no it won't. Rent-to-own stores do not report to the credit bureaus. Avoid doing business with any store that claims otherwise, as rent-to-own salespeople have been known to stretch the truth on this point.\nWhat if You Stop Making Rent-to-Own Payments?\n---------------------------------------------\nIf payments are late or missed, the rent-to-own store may repossess the rented items.\nCan Late Payments or Merchandise Repossessions Hurt Your Credit?\n----------------------------------------------------------------\nNo, as rent-to-own stores do not report to credit bureaus. But even this isn't much of a silver lining considering that loss of the merchandise means loss of all the money already put toward its purchase.\nPros and Cons of a Rent-to-Own Agreement\n----------------------------------------\nAs with anything, there are always pros and cons to a given situation. We have come up with a few good reasons to go the rent-to-own route and then there are some bad reasons.\nPROS:\n* Rent-to-own may be a practical, cost-effective option if you are living temporarily in an unfurnished residence. Under these circumstances, renting furniture, electronics and\/or appliances for a couple of months will save you the expense of buying new, and the hassle of selling or moving it once it's time to go.\n* If you have poor credit, maybe you just emerged from filing bankruptcy, and you have no real savings with which to make a large purchase. Getting furniture or appliances from a rent-to-own store may be your only option at this point.\n* Maybe you are recently divorced and are forced to move out of your primary residence with just a suitcase of clothes. Getting an apartment may have used up all of your free cash so this is a good way to get some furniture.\nCONS:\n* You will end up paying almost 5 times more for the item than if you purchased the same item with cash.\n* Your one-time payments will not be reported to the credit bureaus. So, this purchase and your timely payments is not helping your credit score.\nSo, the bottom line when deciding whether or not to use a rent-to-own store for furniture or appliances, make sure to weigh the pros and cons and make your decision based on your current financial situation and needs. If you can live without that big screen TV until you save up some money, that would be a wiser decision than paying five times more for a TV that will be outdated by next year. Make smart purchases that will benefit you in the long run. END

TITLE: Does Renting-to-Own Help Your Credit Score CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

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TITLE: There are Times When You Need a Credit Card CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nIt may seem we are always preaching to our readers not to use credit cards. Reason being, if you are visiting our site, chances are you have way too much debt and\/or your credit is bad and you are looking for ways to straighten out your finances. So, using a credit card is probably the last thing you want to do in a situation such as this.\nBut, there are times when you absolutely need a credit card — for no fault of your own — some transactions require the use of a credit card. It is during these times you will need access to a credit card, so having one for just these types of emergencies might be a good idea.\nRenting a Car\n-------------\nIf you have done any traveling lately, chances are you rented a car while at your destination. Then you already know the rental car agencies practically want your first born before they will rent you a car. While it may be possible to rent a car without a major credit card, it is very difficult. Rental car companies will require a deposit, several forms of identification, and proof of insurance.\nDebit cards will not work when renting a car. Reason being, the rental car company puts a large hold on your card to cover any expenses - and debit cards are not capable of handing this type of hold. If you do not have a credit card, or maybe you can not qualify for one, the next best thing to get is a secured card. Make sure to get a secured card with a sizable limit, of say up to $2,000, if you are planning to use it for renting a car.\nChecking Into a Hotel\n---------------------\nSimilar to rental car agencies, most hotels require a credit card to make a reservation and then they require a credit card when you actually check-in to the hotel. Without a credit card, you will need to place a deposit on your room in order to insure against damages and to cover any incidental expenses. These deposits are often made as a hold on a debit card, which can take several days to clear. If you are planning to visit multiple hotels within a week, these holds can add up to over a thousand dollars. Putting a bit of a damper on your travel plans if you don't have enough money in your banking account to cover these holds.\nBuying Something From an Unfamiliar Seller\n------------------------------------------\nLet's say you are going to buy something from a business or person you do not know. A feature that credit card holders enjoy is the ability to request a \"chargeback\" in the event that goods or services paid for are not provided. If you pay for merchandise with a credit card, you can quickly have the charges reversed if you are dealing with an unscrupulous merchant or a company that has gone out of business. If you pay this person with cash, your only recourse is to take them to small claims court and that can be very costly.\nWhen pursuing a chargeback, the merchant must then submit documentation supporting their claim in order to make the refund permanent. And since excessive chargebacks are extremely costly to retailers, just the threat of a chargeback is often enough to convince many companies to stop fighting you and do the right thing - refund your money.\nDuring an Emergency\n-------------------\nDisaster can strike at any time and it usually happens when you are on vacation. Let's say you and your family are taking that vacation to the Grand Canyon and your car breaks down half-way there. You will need a credit card for any repairs to your car and use it to pay for a hotel room while your car is being fixed.\nEven better, if you used a credit card to say, book your airline tickets, and you encounter a travel disruption, chances are the card you used comes with travel insurance or a concierge service. This could be very useful in the event of a personal crisis or natural disaster.\nWhen You Are Robbed\n-------------------\nIf you have your wallet or purse stolen, not only will the thief get all the cash you had on hand, they will also have access to your credit cards. Unfortunately, the cash is long gone but if the thief tries to buy something with your card, you will not be responsible for this charge.\nBy federal law, cardholders are not liable for unauthorized transactions in excess of $50, but actually, rarely do cardholders have to pay for any charges made using a stolen credit card. You must notify the credit card company immediately of the theft so they can close your account and put a theft warning on it. This way, you will not be held responsible for any fraudulent charges and they just might catch the thief.\nHaving and using a credit card is not always bad - you just have to know when to use it. There may be times in your life when you absolutely have to use a credit card, so having one handy could be the difference between staying in that nice hotel or staying in the bed-bug infested one down the road. You should have a credit card handy just for these types of uses and one that has a decent credit limit on it. Just make sure to resist the temptation to use this card for frivolous purchases and racking up the balance - then it will be no good to use when you really need it. END

TITLE: Will Buying a Home Hurt Your Credit Score CONTENT: Will a Mortgage Loan Hurt Your Credit Score?\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIn today's housing market, it takes pretty stellar credit to qualify for a home loan. Yet the irony is, if you're not careful, that very same mortgage can lead to the undoing of your credit score. If you're thinking about buying a home, make sure you know how to protect the credit you've worked so hard for.\nShopping For the Best Interest Rate\n-----------------------------------\nThe lower your interest rate, the lower the cost of your mortgage. So take the time to shop around for the best deal. This maximizes the probability that you will be able to maintain your monthly payments and, in turn, good credit standing over the life of your loan.\n### Are You Doing All Your Interest Rate Shopping Within 14 to 45 Days?\nEvery credit inquiry made by a potential creditor counts against your credit score. However, you need not let this deter your from checking with as many lenders as possible for the best interest rate on your mortgage. Simply be sure that all your mortgage inquiries are made within the same 14 to 45 day period and it will only count as one inquiry on your credit reports. In other words, before applying for loans, be sure you have the time, interest and down payment to jump in with both feet!\nCan Your Afford the Monthly Mortgage Payment?\n---------------------------------------------\nEven if you qualify for the lowest of interest rates, it's possible your monthly mortgage payment will be more than you can afford. Make sure you know exactly what that payment will be, plug it into your budget, do the math, and be honest in your estimate of whether this is a debt you can afford. The last thing your credit score needs are late payments, missed payments or, worst-case-scenario, a foreclosure.\n### Make Sure Your Monthly Payments Won't Affect Ability to Pay Other Bills on Time\nIt's all fine and good to give your mortgage payment precedence over all others, ensuring the account remains in good standing. But your credit will surely take a nosedive anyway if paying your mortgage forces credit card accounts, auto loans or other credit lines into late payment, missed payment, collections or charge-off status.\nCan You Afford the Cost of Moving?\n----------------------------------\nThis is an expense almost always underestimated — from the cost of the moving truck, to deposits required for turning on your new utilities. Do the math and make sure these necessary expenses don't force you to be late on any of your credit accounts.\n### Are You Able to Furnish Your New Home Without Giving in to the Temptation of Charging Up Your Credit Cards?\nWhether you already have furniture from your old place or you're starting from scratch, chances are you'll want some new furnishings for your new home. This is a perfectly natural, exciting response to buying a house. However, all too often new homeowners let themselves get carried away, more concerned with filling their space than being mindful of keeping new debt at a minimum. Only charge as much to your credit cards as you can afford to pay off at the end of the month. While this may mean buying secondhand or simply going without for a while, it's far preferable to carrying a balance on your credit cards. Considering all the expenses associated with your move, monthly mortgage payments included, there is the chance all you can afford to make are minimum payments on your cards. In that case, you'll being paying interest and driving up your credit utilization ratio which is one of the main influencers on your credit score. END

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TITLE: Credit Card Company Tricks to Get Your Business CONTENT: Ways Credit Card Companies Try to Fool You\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 22, 2017_\nAre you in the market for a credit card? If so, then you know there are a lot of different kinds of credit cards and credit cards companies have to come up with all kinds of sales pitches to lure customers to their products.  But, no matter how much or how often you are confronted with credit card company tricks of the trade, these ploys can be tantalizingly difficult to resist.\nPre-Approved Credit Cards\n-------------------------\nOn the surfaced, it may seem awfully flattering to find out you have been singled out to get this credit card, but that's pretty much it. The only thing you've been \"pre-approved\" for is to receive a credit card application. Receiving the card itself is more than a matter of accepting the offer. You must still fill out and submit the application so the credit card company can make a \"hard credit inquiry\" to see if your credit is worth the risk. Not only is there the chance you won't qualify — a good chance if you have bad credit — but the hard credit inquiry will remain on your credit report for up to two years and affect your credit score.\nOffering Low Interest Rates\n---------------------------\n\"As low as...\" never means guaranteed. Only those with the best credit qualify for the lowest of rates offered with that particular card. In other words, what's implied, but only made evident in the fine print, is that your interest rate could be \"As high as...\" the highest rate the company dares to charge. And even if you are approved for the lowest rate possible, there's always the possibility the credit card company will raise your rate \"at any time, for any reason,\" a decision they need only make you aware of two weeks prior to the hike.\nBlurred Credit Limits\n---------------------\nInstead of cutting you off at your pre-established credit limit, credit card companies may allow you to exceed it. On the surface, this sounds like a good deal — your credit card company bending a little to help you get more of what you want. On the contrary, all this does is help the credit card companies get more of what they want — your money. Not only are you incurring more debt for which you will be charged interest, but you'll be slapped with a fee for going over your credit limit.\nOffering Cash Back Rewards\n--------------------------\nThis incentive can be especially seductive: Your credit card company paying you for using your credit card? Not quite. Whatever the cash back reward, it likely comes with restrictions that make it far less helpful than it seems. Just because an offer says \"cash back up to five percent,\" for example, it could mean as little as one percent cash back. And it likely only applies for a certain amount charged to the card, and within a certain period of time. While this may still sound like a good deal, not so much if it's this incentive that compels you to charge more and\/or sooner than you normally would. In that case, cash back rewards could end up costing you more in the form of interest in the long run.\nZero Percent Interest on Balance Transfers\n------------------------------------------\nIt's unlikely these days that any balance transfer will enable you to avoid any sort of transfer fee. Plus, you only benefit from the zero percent interest rate on the balance transfer itself. Any new debt charged to the card will have its regular interest rate apply. That's pretty widely understood, but this isn't: your payments will probably go toward the lower interest rate balance first, giving the credit card companies more time to rack up interest on your new debt until the original balance transfer amount is paid off.\nCredit Cards With Fancy Names\n-----------------------------\nOur egos love this one. Surely not just anyone can qualify for a card deemed gold, platinum, elite, or the like. Whether you need it or not, the appeal to apply and see just how special we are can be a lot to resist.\nSmall Business Credit Cards\n---------------------------\nThe difference between a small business credit card and a personal credit card is in name only. Oh, unless you count the fact that business credit cards do not carry the same protections for you as personal credit cards do.\nNow, none of this is to suggest complete avoidance of credit cards. Not only can they be a helpful supplement to our financial lives, but they also help build good credit. The key is to use this information to make the best possible credit card choices. And chances are good the best among them don't come calling for you in the mail, but are ones you seek out and weed out for yourself via a deliberate search for the best deal. END

TITLE: Prepaid Credit Cards for Teenagers CONTENT: Prepaid Cards Can Teach Teenagers About Money\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nOn the heels of the most recent Great Recession, more and more people are experiencing a newfound dedication to becoming financially literate and more careful about how they spend their money. Gone are the days of frivolous spending as many families have had to tighten their belts and give up those extravagances we all took for granted.\nAll of this new found conservation is not going unnoticed by our young Americans. They are seeing how mom and dad have had to pinch pennies and they realize they need to become more careful with their money.\nAdded to all of this financial turmoil was the passage of the CARD act, which barred teens from getting an unsecured credit card. This left parents wondering how they were going to give their child some financial independence. Hence, the exploding popularity of prepaid and preloaded cards and the variety of products now available from all sorts of credit card companies to fill this surging market.\nPros of Getting Your Teen a Prepaid Card\n----------------------------------------\nThe biggest advantage of getting a prepaid card for your teen is being able to teach your child how to manage their money. Having them use this type of card will show them how to use plastic responsibly without the horrors of having them rack up a huge credit card balance. Think of a prepaid card as \"training wheels\" for credit cards.\nAnother positive is the ability to give your teenager financial independence. You, or your child, can load the card with money and then they will be able to use it anywhere, just like a credit card, but without the fear of your child getting into debt. They can only use the amount deposited into the account, so it teaches your child to budget their money.\nCons of Getting a Prepaid Card for Your Teenager\n------------------------------------------------\nThere are a few red flags you need to watch out for when you are selecting a prepaid card for your kid. One of the biggest things to watch out for are the fees - prepaid cards are loaded with fees because that is how the bank profits from these types of products. Since there is no interest rate on balances, the banks have to make their money somehow. But fear not, there are some prepaid and preloaded cards that won't kill you in the fee department.\nAnother disadvantage to using a prepaid card is that is does not help build a credit history. Although they may have a credit card company logo on them, they are NOT credit cards. You are using your own money instead of borrowing it and paying it back.\nBest Prepaid Cards on the Market Today\n--------------------------------------\nAccording to a recent blog post by a well known credit card review company, here are the best prepaid cards for your teen.\n1. **Kaiku Visa Prepaid Card -** This newcomer to the prepaid card market claims to have the lowest fees in the industry. The monthly maintenance fee is $3\/month and there are no ATM fees if you use one of their 55,000 in-network Allpoint machines. There are not fees for bill payment, activation, replacement, inactivity, or foreign transactions. It features a Funds-ometer to keep track of your spending as well as mobile check loading.\n2. **Card.com Vis Prepaid Card -** This card has no overdraft fees, no late fees, no minimum balance, $0 sign up fees and no credit check. The fees you have to pay attention to include a $5.95\/month fee (which is waived if you load at least $800 in the prior 30 days via direct deposit), $3 ATM or over the counter withdrawal fee, and a $1 balance inquiry.\n3. **Mango Money  -** The Mango Money prepaid card allows for you to save money, and it offers an APY of up to 6 percent.  There is a monthly fee of $5 but it is waived if you load at least $500 each month. There are ATM fees but they aren't out of the ordinary. No sign-up fees, bank transfer, or customer service fees.\n4. **Green Dot Card** - The Green Dot Card has long been known as a leader amongst prepaid cards. You can avoid the $4.95 activation fee by purchasing the Green Dot card online, and there are no ATM charges. The monthly $5.95 can be waived if you load at least $1,000 to the card each month.\n5. **American Express Serve** - The Serve has many features, including no fees for activation, cash reloads, and using ATMs in its network. The monthly fee is just $1, which is waived if you use direct deposit or add $500 during each statement period. It's also easy to load money via 27,500 CVS\/pharmacy, Family Dollar, Walmart, and participating 7-Eleven locations. END

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TITLE: Learn How to Increase Your Credit Score CONTENT: Increase Your Credit Score and Improve Your Credit Report\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 27, 2017_\nIncreasing your credit score and repairing your credit are a bit like losing weight — it takes time and there is no quick way to get to where you want to be.  In fact, if you see any advertisements claiming they can improve your credit score quickly, beware! Some methods used for this \"quick fix\" may backfire on you. Our best advise for rebuilding your credit is to manage it carefully over time and take the time to do it right.\nIf you are planning to buy a home or car in the near future, you will need to get your credit cleaned up so you can qualify for that lower interest loan. With a little foresight and due diligence, you can reap giant rewards in the form of a lower mortgage or car payment by qualifying for better loan.\nCheck Your Credit Report\n------------------------\nThis really should go without saying — before you start any type of credit repair process you need to get your credit reports and review what is being reported. You can get a free credit report once a year from AnnualCreditReport.com, or you can read our article on how to get your credit reports for free or for a fee. Either way, get your reports first.\nPay Down Your Credit Cards\n--------------------------\nPaying off your installment loans _may_ can help your score, but typically not as dramatically as paying down, or paying off, revolving accounts like credit cards. The FICO model, and even the Vantage scoring system, weigh credit card debt more heavily. Each individual card as well as your total revolving line should be below 25 percent. If your goal is to increase your credit score, forget about paying down your high interest rate cards first. Work on getting those balances down over higher interest rates to reap the most improvement in credit score.\nDon't Max Out Your Credit Cards\n-------------------------------\nYour available credit is averaged over your billing cycle, which is sometimes less than 30 days. If your limit is say, $5,000 and you charge $5,000, even if you pay it off each month, your credit balance is still going to show $2,500 (a 50 percent usage limit), which is going to make your score plunge.\nFor most small business owners, their credit cards are the way they purchase goods and supplies every month. If the card's limits are used to the hilt this can hurt. But wait you say, these are _business_ cards. Yes, they are and most small business owners still have to personally guarantee their business cards, which means they show up on personal credit reports. If you need to use all of the available credit line on your cards, you may want to consider getting a new card to spread out the credit lines a little.\nMake Sure Your Credit Report is Correctly Reporting Your Credit Limits\n----------------------------------------------------------------------\nIf not, you can call your credit card issuer and ask them to update the list. You can also challenge the limits with the credit bureaus.\nBecome an Authorized User\n-------------------------\nAsk a friend or family member to add you to one of their older credit cards as an authorized user. The older your credit history, the better. If your mother agrees to put you as an authorized user on a card that she has had for 20 years, you could see your score increase dramatically. And with the authorized user plan, you don't even have to have the card in your possession.\nAsk a Creditor for Forgiveness\n------------------------------\nIf you've been a good customer for years, but had a rough patch and missed a payment, you might be able to ask your creditor to forgive a negative listing. You can do this with a goodwill letter. There is no guarantee that a lender will do this, but this method has had lots of success.\nGet Student Loan Payments Current\n---------------------------------\nIf you have a student loan that you have defaulted on or have missed payments, you can enter into a \"rehab program\" which will get your account back on track after 12 months. Sallie-Mae regularly upgrades your loan status to \"Paid as Agreed\" if you make a series of 12 on-time payments.\nDispute Old Negatives\n---------------------\nSay your insurance company never paid a medical bill and now you have a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as \"not mine.\" The older and smaller a collection account, the more likely the collection agency won't have bothered to update good ole eOscar with the correct info and the credit bureau won't be able to match up computer records.\n### Remove a Debt By Paying It Off\nThis method is called pay for delete and it works like a charm on smaller amounts of $500 and under, especially medical collections. Remember to get the agreement in writing before you pay them anything, and only send a money order after you get them to agree. Check here for more info on settling debts.\n### Dispute with Original Creditor\nOur method of disputing with original creditors really works, especially accounts which have been purchased by other banks or are currently with a bank who has gone through some of those massive mergers in the last 10 years. And you have the cases (more common than you think) where some banks just don't keep good records at all. This method is relatively quick.\n### Remove Easy Errors\nTarget the easy errors on your credit report that have a big bang for the buck.\n* Dispute negatives that are not yours such as late payments, charge-offs, or collections.\n* Dispute any accounts listed as anything other than \"current\" or \"paid as agreed,\" if you paid on time and in full.\n* Dispute any accounts that are still listed as unpaid that were included in a settled bankruptcy.\n* Remove any negative items older than 7 years which should have automatically fallen off your report.\n* Dispute any account that is listed as \"closed by the credit grantor\" when it wasn't and should be fixed as this is definitely a negative. END

TITLE: Millennials Love Using Prepaid Debit Cards CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: June 15, 2016_\nFor years, prepaid debit cards were the ugly stepchild of payment card options, wrought with high fees and used predominantly by the unbanked who do not have access to traditional credit or debit cards. But as an April 2015 survey by TD Bank reveals, prepaid debit card use is skyrocketing, with Millennials leading the charge.\nHigher-earning millennials are most likely to be prepaid card \"power users.\" Millennial GPR prepaid card users earning $50,000 to $99,900 per year averaged 10.1 uses per month, compared to an average of 6.2 uses among all GPR prepaid card owners who had used a card that month. One-third of Millennials use prepaid debit cards, and 21 percent of them make over $100,000 a year.\nWhat’s to love about them?\n**Use like a credit card, minus the debt**\n------------------------------------------\nYou can swipe prepaid debit cards anywhere credit cards are accepted, minus the possibility of ever carrying a balance. That means no interest fees. That means no monthly payments or due dates. And it means no debt, a Millennial’s dream come true.\n**Better for your budget**\n--------------------------\nFrom food, to clothes, to vacation spending money, you can load prepaid debit cards with only as much as you have designated in your budget. That means no chance of going over (as with a credit card) and no chance of losing track of where your money goes (as with cash).\n**No credit check**\n-------------------\nApproval is instantaneous (with ID verification). If you want a prepaid debit card, it is yours!\nLimited fees.\n-------------\nWhile prepaid card issuers are notorious for charging high fees, the new generation of prepaid debit cards limit their fees considerably. That’s not universal though, so be on the lookout for activation fees, transaction fees, monthly fees, annual fees, and the like.\nSafer than carrying cash\n------------------------\nLose your cash, you’re out of luck. Lose your prepaid debit card, and you can report the loss (or theft) to the issuer. They should be able to cancel the card and issue you a new one (though a fee may apply).\n**Prepaid Cards vs. Secured Credit Cards**\n------------------------------------------\nIt’s important to understand the distinction, especially if you are trying to rebuild your credit. Prepaid debit card issuers do not report to the credit bureaus. However, many issuers of secured credit cards do.\nFind the right prepaid debit card for you. And, for credit repair purposes, you may want to look into a secured credit card, too. END

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TITLE: Habits to Follow for a Great Credit Score CONTENT: Habits of People With Excellent Credit Scores\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWe all know them, people who have an excellent credit score and can get a credit card or low interest loan without batting an eye. These are the types of people we are all envious of because they can apply for a loan with little to no stress knowing they will be getting a great deal on an interest rate. As they say, imitation is the ultimate form of flattery and this can be true for people with good credit. In order to be like them, we need to know what kind of spending, saving, borrowing habits they have and then we can be just like them. Wouldn't you love to be able to walk into a car dealer and walk out with the best deal, or being able to buy a home with the lowest possible interest rate? You can and we will let you in on these habits so you will have more choices in financial providers and lenders - making it easier for you to get a deal on your next loan or credit card.\nMaintain a Budget and Record Your Expenses\n------------------------------------------\nDid you know that over 60 percent of Americans DO NOT maintain a budget and\/or track their expenses? No wonder there are so many people in debt! If you are monitoring your budget, you are more apt to not miss a payment or find yourself short of money when a bill is due. The first step in preparing a budget is to take a look at your monthly income and regular expenses, such as rent\/mortgage, car payment, food, utilities, health care, and keep a monthly report on a spreadsheet. After a few months, you will be able to see where you might be able to cut back or maybe spend more. Having all of your expenses clearly written out will give you the info you need to know where your money is going each month and if you have any extra at the end of the month. Doing this will help you pay your bills on time which helps to increase your credit score.\nHave a System in Place to Pay Bills on Time\n-------------------------------------------\nSetting up automatic payments for your reoccurring bills is a logical next step after monitoring your budget and expenses. This is very important since 35 percent of your FICO score is based on payment history — late payments equal lower credit score.  Just about every bank account lets you set up automatic bill payments through an account. But, if you are not comfortable with that, you could always set reminders on your smart phone or calendar. There are also a lot of companies that will offer automatic bill pay and will even offer perks to use it — such as bonus offers or lower payments. In this age of high tech gadgets and Internet access, there really is no reason why you should not take advantage of this technology and make sure you have a fail-proof system in place to pay your bills on time each and every month.\nMonitor Your Debit and Credit Card Balances\n-------------------------------------------\nThis is a great transition from the previous habit as this can also be done electronically. Keeping on top of how much you put on your debit and credit card is important if you want to keep your credit score high. Make sure you go through your credit card statements and look for any inaccurate or outstanding charges. All banks allow you to do this over the Internet so you don't have to wait for a paper statement to do this — you can pretty much do it daily, if you wanted. This is a great habit to get in to so you can monitor what you are spending your money on and if it looks like your spending is getting out of hand, you can put that card somewhere where you won't use it.\nMinimize Use of Available Credit\n--------------------------------\nAlong with paying your bills on time, your FICO score takes into consideration how much credit you have available — this is called your credit utilization ratio. According to myFICO.com, people with credit scores of 800 and above use on average only 7 percent of their available credit. That means, if you've got credit cards with a combined total limit of $20,000, you need to maintain a balance of $1,400 or less on them.\nIf your credit utilization is higher, then this will drag down your credit score and maxing out credit cards is a sure sign that you are at risk of missing a payment or being over extended. To improve your credit score quickly, pay off the outstanding balances on your credit cards or other loans to increase your amount of available credit.\nThink Twice Before Applying for New Credit\n------------------------------------------\nApplying for a new credit card because your current one is maxed out is NOT the right reason for getting new credit. Each time you apply for new credit, the lender is going to perform a credit check, which is considered a \"hard\" inquiry. Too many hard inquiries can have a negative effect on your credit score. So, unless you really need that new line of credit, think twice before applying for a new credit card or loan.\nRegularly Check Your Credit Reports\n-----------------------------------\nIn order to improve your credit score, you need to know what your score is and what problems you might need to fix. The only way to find this out is to check your credit reports regularly — something people with great credit scores do once a year. You can get a free copy of your credit report every 12 months from AnnualCreditReport.com. This report will show your credit and loan providers, amounts owed, and your payment history. If there are any problems or discrepancies, you need to contact the credit reporting agency right away and dispute these errors.\nTaking the above habits to heart will lead you down the road to a higher credit score and better credit. A few of these habits may be hard to get used to at first, but stick with it because the overall rewards will outweigh the struggle. Once you get into a good habit of budgeting, spending, and reviewing your finances, it will all seem like second nature. You will wonder how you ever got along without these habits. END

TITLE: Chargebacks Dispute Fraudulent Charges, Consumer Protection CONTENT: Chargebacks Provide Protection to Credit Card Users\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nThe chargeback exists primarily to protect consumers. The **Fair Credit Billing Act**, which is part of the **Truth in Lending Act**, was written to protect the consumer against inaccurate and unfair credit billing and credit card practices. Not every situation qualifies as a chargeback, so before you go pursuing this you need to understand what you can and can not dispute with the credit card company.\nDefinition of a Chargeback\n--------------------------\nCredit cards provide protection against fraudulent charges in the form of a chargeback. Let's say you made a purchase, either in-person or on-line, and you later feel wronged by the transaction. Meaning, you did not get the item you ordered or the item you received was not was you thought it was going to be. So, you try to get a refund from the merchant and they won't refund your money.\nOnce you come to this impasse, the next thing for you to do is file for a chargeback. You make your claim with your credit card company giving them all the details of the transaction and why you feel you have been wronged. The issuing bank will investigate the claim and if they find in your favor, they will remove the funds from the merchant's account and put it back into yours - thus giving you a chargeback.\nSteps in the Chargeback Process\n-------------------------------\nThe chargeback process involves a number of steps and may take months to resolved. The typical steps involved are:\n1. The cardholder contacts their card-issuing bank to dispute a transaction.\n2. The card-issuing bank determines whether or not there is sufficient evidence to support the cardholder's claim.\n * If sufficient evidence is not available, the dispute is declined.\n * If sufficient evidence is available, a temporary credit is provided to the cardholder. The card-issuing bank will also start the chargeback process and seek to obtain credit from the merchant's processing bank for the amount in dispute.\n3. The merchant's processing bank researches the chargeback.\n * If they determine the chargeback is invalid, they will refuse the chargeback and return it to the card-issuing bank.\n * If they determine the chargeback is valid, they will accept the chargeback and remove the disputed amount from the merchant's account and provide the merchant with a written notification.\nWhat Does Not Qualify as a Chargeback\n-------------------------------------\nPursuing a merchant for a chargeback may sound like a pretty good idea, but don't get carried away. This process is not meant to dispute any and every credit card purchase just so you can get your money back or just because you think a retailer did you wrong. If a product never arrives at your doorstep or it is defective, your first course of action is to call the merchant and try to work out a refund with them first. It's only when the merchant will not refund your money or replace the item should you even consider getting your bank involved.\nNow, if you received the product and you simply do not like it, that is not grounds for a chargeback. According to law, you can not raise a complaint about the quality of merchandise or services you bought in the form of a billing dispute. In these instances, you will have to pursue this under the retailer's return policy.\nWhen it comes to presenting your claim to the card-issuing bank, make sure you have all the supporting documentation to give to them. Don't dispute a charge unless you have some evidence to back up your claim.\nIn summary, a chargeback is a powerful tool when dealing with merchants and fraudulent charges on your credit card. If you have been wronged by a retailer, just the mere suggestion of a chargeback may be enough to resolve the matter in your favor. But, if the retailer is not responding to your threat, don't hesitate to follow through and contact your card-issuing bank and start the chargeback proceedings. END

TITLE: Chargebacks Dispute Fraudulent Charges, Consumer Protection CONTENT: | | | | \n: . END

TITLE: Good Mix of Credit for Good Credit Score CONTENT: What's the Right Credit Mix?\n----------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWe know FICO says the variety of your credit account types, or \"credit mix,\" counts as 10 percent of your credit score. And we know VantageScore says the impact of your credit mix is \"highly influential\" on your credit score. So clearly it is important that we have variety of credit accounts. The question is, how many do we need of each one?\nWell, as you may have guessed, there is no magic number or formula for a credit mix or you’d probably have heard it by now. The best we can do is understand the three main categories of credit accounts, use a mix of them, and do it well.\n**Three Types of Credit to Throw Into the Mix**\n-----------------------------------------------\n**1) Revolving Accounts**\nThese are credit accounts that:\n* Do NOT need to be paid in full every month\n* Have minimum monthly payments that fluctuate depending on your balance\n* Accumulate interest on any balance that is carried over into a new month\nExamples of revolving accounts include bank credit cards, credit union credit cards, retail cards, gas cards, personal lines of credit, and home equity lines of credit.\n**TIP**: Just because you don’t have to pay revolving credit accounts in full every month doesn’t mean you shouldn’t. In fact, when it comes to credit cards, your goal should be only charging as much as you can afford to pay immediately so you can return your balance to zero every month. This not only proves responsible credit use, but also keeps you out of debt and saves you from interest fees.\n**2) Installment Accounts**\nThese are credit accounts that:\n* Do NOT need to be paid in full every month\n* Have the same minimum monthly payment over a set period of time (by the end of which, the loan will be paid in full)\n* Accumulate interest on the balance until it is paid off\nExamples of installment accounts include mortgages, auto loans, student loans, business loans, personal loans, and home equity loans.\nTIP: As important as it is to have a mix of credit, don’t take out an installment loan for the sole purpose of improving your credit. If you’re in the market for a new home, great. If you need a new car, absolutely. If you want to take out a personal loan to consolidate some credit cards, do it. The point being, make sure the installment loan you’re taking out is for something you really do need.\n**3) Open Accounts**\nThese are credit accounts that:\n* DO need to be paid in full every month\n* Do NOT accumulate interest\n* Typically don’t report to the credit bureaus unless you are delinquent\nExamples of open accounts include cell phone accounts and utilities\nTIP: Keep these accounts current. That may not add good credit (since they don’t typically report to the bureaus if you’re in good standing). But they absolutely DO report unpaid balances, which can do bad things to your credit score.\nBottom line, consumers with a good credit mix tend to have the highest credit scores. So do your best to add variety, but only with responsible credit usage. Even if you could achieve the \"perfect\" credit mix, it wouldn’t do you much good if the way you use it drags down your credit score. END

TITLE: Good Mix of Credit for Good Credit Score CONTENT: | | | | \n: . END

TITLE: Swipeless Credit Cards RFID and EMV Smart Chip Technology CONTENT: RFID and EMV Chips Now in Credit Cards\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIf you were one of the estimated 9 million Americans who fell victim to identity theft last year, you know that getting billed for someone else's credit card charges stinks. Enter the RFID (radio frequency identification) and EMV chips in credit cards, which are designed to provide an extra layer of protection against identity theft. \nAn RFID card transmits credit card information through radio waves from a chip embedded in your card. If you are using a card with an RFID chip, and your merchant has a compatible reader, you don't have to swipe your card when making a purchase. You just hold your card inches from the scanner and voila — your sale is transmitted.\nSince October 2015, credit cards in the U.S. have slowly been replaced with new cards that contain the chip-and-PIN technology that the rest of the world has had for years. That means, no more black magnetic stripes; no more signing on the dotted line for purchases.\nHow Does this New Technology Work?\n----------------------------------\nA traditional credit card uses a magnetic strip to store account information, which is retrieved when swiped through a credit card machine. These new credit cards use an RFID to store the same information within a smart chip. The chip is embedded within the credit card itself. When exposed to a contactless credit card reader, the electromagnetic waves emitted by the reader initiate the chip to respond via a small radio antenna, which then transmits the data to the reader and on through the card issuer's network.\nChip and Signature vs. Chip and PIN Cards\n-----------------------------------------\nThere are two different implementations of EMV technology: one is called Chip and Signature, while the other is called Chip and PIN. The vast majority of EMV cards issued in the United States use Chip and Signature, which still requires a signature at the point of sale. Chip and PIN cards are compatible with terminals that require a PIN number, which is often the case at unattended kiosks in Europe and elsewhere. Locations that require Chip and PIN equipped cards include train stations, toll booths, and gas stations.\nWhy is this New Technology so Important?\n----------------------------------------\nThe first reason is security. In the aftermath of so many high profile security breaches at major retailers, the recent move to EMV enabled cards can’t come soon enough. When a retailer is hacked, or when credit card numbers are stolen by other means, criminals can easily encode this information onto another credit card’s magnetic strip, a process called cloning. And one of the easiest ways to acquire credit card numbers is to use a magnetic card reader, either when your card is out of your hands, or by affixing a card reading device to a gas pump or ATM, a process called skimming. With the EMV chip system, skimming and cloning cards become vastly more difficult (though not impossible).\nThe second reason why American cardholders should embrace EMV technology is compatibility. Anyone who has been to Europe lately has probably found that an EMV chip card is now essential to ensure that your credit card transactions are completed smoothly. Sometimes the magnetic stripe works, but other times it unpredictably and stubbornly refuses. Many frustrated Americans traveling abroad have been unable to use their cards in certain locations, and the problem now extends far beyond Europe, as EMV readers are rapidly being deployed in South America, Canada, and other parts of the world. END

TITLE: Swipeless Credit Cards RFID and EMV Smart Chip Technology CONTENT: | | | | \n: . END

TITLE: Learn How to Become a Member of the 800 Credit Score Club CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 24, 2017_\nWe have all heard that popular song \"All About the Bass\" — well we are here to tell you it is \"All About the Credit Score.\" If you are fixing your credit, chances are you have seen your credit score and it is not good. According to CNN Money, the average U.S. credit score is now 700 — the highest average credit score since FICO began tracking 12 years ago. Even though the average credit score may be slowly creeping up, there is still a very small percentage of Americans who are in the \"800 or higher\" club. Want to become a member of this exclusive club? Membership includes great interest rates on loans, great deals on credit cards, and piece of mind knowing you will be approved for just about any type of loan. Being in this club also means you have extra money to save because you are paying lower interest rates. Keep reading and learn how to get a credit score of 800 or higher and become a member of the 800 club.\nGet Your Credit Reports and Credit Scores\n-----------------------------------------\nThe Huffington Post revealed nearly 30 percent of people surveyed did not know their credit score. In addition, nearly half of the people surveyed earning less than $30,00 annually did not know their score at all. You need to know your score before you can start to increase your score. It might cost you a few extra dollars, but when you request all your credit reports make sure to get your scores. Keep in mind that each credit reporting agency will have a different score for you so it is a good idea to also get your score from FICO.com. Now you will have a starting point with which to work from and you will have your credit reports so you know where you need to improve.\nLook for inaccurate or damaging information and be prepared to challenge this information with the credit bureaus and creditors. Eliminating this negative information is the first step to increasing your credit score. Delinquent accounts, bankruptcy or other issues can have an impact on your score for up to 10 years. So try your hardest to get these blemished off your credit reports.\nEstablish a Long Credit History and Pay Bills on Time\n-----------------------------------------------------\nMaintaining and managing old accounts is the best way to improve your creditworthiness. The ideal credit history is 10 years or longer. Keeping your older accounts open and active is the best way to increase your credit score.  Remember that credit card you had way back when? Well, don’t close that account just because you don’t use it anymore. In fact, if you still have the card associated with that account, use it a few times each year just to shake the cobwebs off of it. Keeping that account in use and paid off will go a long way to helping get you to the 800 club.\nAlong with using those old credit accounts, make sure to pay all of your bills on time and keep your credit utilization ratios low. According to FICO, 35 percent of your credit score is based on payment history and another 15 percent is the length of your credit history. These two important aspects of credit use make up almost half of your credit score!\nMonitor Your Credit Card Usage\n------------------------------\nMost of us think of credit cards as a bottomless bank account. That is not how the 800 club members view their credit cards — they think of credit cards as a tool and use them sparingly. They keep their credit utilization ratio at 10 percent or less and they always pay their bills on time. Think of it this way, if you have 2 credit cards with $1,000 credit limit on each, that is $2,000 of available credit. You will want to keep your balances at $100 or less on each card or better yet, pay them off each month to avoid accruing interest. Careful use and monitoring of your credit cards will go a long way to increasing your credit score. When you look at what goes into your credit score, 30 percent of it is determined by how much you owe. So, keeping that debt ratio low will jack up your score in no time flat.\nDiversify Your Credit Accounts\n------------------------------\nDiversity in your choice and use of credit accounts makes up 10 percent of your FICO score and those in the 800 club know how to use different types of credit. You need to have a good mix of credit cards, personal loans, auto financing, and mortgages to show creditors you are able to manage multiple accounts. Now, if you do not have some of these types of account, don’t go all gang-busters and apply for them at once. Apply for these loans gradually to avoid placing too many hard credit inquiries on your credit report. As we have said in some of our other articles on repairing your credit, slow and steady wins the race and this could not be truer when trying to increase your credit score.\nIf you have a low credit score and you want to add some of these types of accounts to your portfolio, a great place to apply for these is at your local credit union. Credit unions are a bit more relaxed in their lending practices and they offer those with less than perfect credit the chance to obtain personal or auto loans at competitive interest rates. Once you establish a good rapport with a credit union, getting additional types of credit from them will be easier in the future. You can also try some smaller, local banks, too, as they offer a bit more personalized service compared to the big box banks like Chase or Bank of America.\nCut Your Spending and Lower Your Liabilities\n--------------------------------------------\nWe feel these two tips go hand in hand — kind-a like peas and carrots. Budgeting your money and living a bit more frugally are the sure fire ways members of the 800 club got into the 800 club. Budgeting is a vital part of credit health and keeps you on the steady course of financial stability. Although income is not factored into your credit score, 800 club members know the importance of living within their means and don’t allow comfort of living to interfere with the credit score aspirations. Those in the club don’t try to \"keep up with the Jones’s\" and they make big ticket purchases only when they have the means to pay for them. Plain and simple, don’t buy a Mercedes if you have a Volkswagen budget.\nIn addition to living frugally, members of the club limit and lower their liabilities. Protect you credit score in the following ways:\n* **Limit Co-Signed Accounts:** Allowing a friend or relative to rely on your credit score is kind, but it could also backfire and damage your credit. Be careful who you help and limit the number of times you offer to help someone. You don’t want to spread your good credit too thin.\n* **Limit or Eliminate Bad Credit Cards:** Many lenders offer lines of credit to people with bad credit and you might have one of these types of cards in your possession from years gone by. If so, try to negotiate a better interest rate with the bank or just pay it off all together and cease using it for purchases. We know we said use old credit but we mean use old GOOD credit cards. Bad ones won’t do you any good in the long run.\n* **Lower Your Liabilities:** As we have mentioned before, lowering the amount of money owed is a vital part of what goes into calculating your credit score. So, before you take out a loan to buy that fancy car, make sure you have paid off some other smaller loans first. Piling up more debt on top of debt is not what members of the 800 club practice in their financial affairs.\nGaining membership to the elite 800 club is not out of reach and you can join those lucky few that have an excellent credit score by following our tips. It might take a few years to get there, but when you do, it will be well worth of all the work you put into increasing your credit score. Remember, it is a slow and gradual process so make sure you committed for the long haul. Your financial outlook and bank account will be happy you did. END

TITLE: Learn How to Become a Member of the 800 Credit Score Club CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Learn How to Prevent Credit Card Fraud CONTENT: Ways to Avoid Credit Card Fraud\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nAccording to the _Consumer Sentinel Network, U.S. Department of Justice_ report dated July of 2014, 10 percent of all Americans fell victim to some type of credit card fraud in 2013. The average amount reported on credit card fraud was $399 with a total worldwide amount of $5.55 Billion. Using counterfeit credit cards was the number one type of credit card fraud at 37 percent followed by lost or stolen credit cards at 23 percent. The state of Nevada had the highest incident of credit card fraud followed closely by Colorado and New Hampshire.\nA typical victim spends 44 hours recovering from credit card fraud\/identity theft and an average of $500 repairing the damage to their credit. We urge you to review your credit reports, if you haven't done so in the last 6 months, and check for any fraudulent information. In the meantime, we have some useful information for you on how to avoid credit card fraud and what to do if you are a victim of credit card fraud or identity theft.\nWith the high tech world we live in, your credit card information is always at risk for theft. Check out the following ways to keep it safe:\n1. **Keep Your Credit Cards Safe.** This may seem a bit obvious but it is the number one way people can steal your identity. Keep your credit cards in a purse or wallet close to your body where it can't be easily snatched away. If you are planning to shop in a high traffic area or maybe out of town, only carry one or two of the credit or debit cards you'll be using - leave the others at home.\n2. **Shred Anything With Your Credit Card Number on It.** Don't just toss your credit card billing statements in the trash - shred them first before throwing them away. Shred anything that has your credit card number on it before tossing it in the garbage.\n3. **Don't Sign Blank Credit Card Receipts.** Always verify the amount on your credit card receipt before signing it. If there are any lines that are blank, write \"$0\" on them or draw a line through it. That way, no one can go back later and fill in an amount to charge to your account.\n4. **Avoid Giving Out Your Credit Card Information.** Only give out your credit card number on calls you initiate to customer service using the number on the back of your credit card. Don't return calls to a phone number left on your answering machine and don't give your credit card number to anyone who calls you requesting the number. Credit card thieves have been known to pose as credit card issuers and other businesses to trick you into giving out your credit card number.\n5. **Be Safe With Your Credit Card Online.** Never click on email links from anyone pretending to be your bank, credit card company, or other business who uses your personal information, even if the email looks legitimate. These links are often phishing scams and the scammers want to trick you into entering your login information on their fake website. And, before making any purchases off of a website, make sure the site is secure. There will be a lock in the lower right corner of your browser or you can look for a \"https\" at the beginning of the URL.\n6. **Report Lost or Stolen Credit Cards Immediately.** The sooner you report a missing credit card the less likely it is that you'll have to pay for any fraudulent charges made on your credit card.\n7. **Review Your Billing Statements Each Month.** Again, that is something that should be done without saying. If you notice any unauthorized charges on your statement, no matter how small, immediately report them to your credit card issuer. You may have to close your account to avoid any further fraudulent charges.\nWhat To Do If You Are a Victim of Credit Card Fraud\n---------------------------------------------------\nPrevention is the best course of action and we have some companies we recommend to help you monitor your credit and fight identity theft. But, if you are a victim of credit card fraud or identity theft we have some tips for you to do immediately:\n1. **Contact the Credit Bureaus.** Place a \"Fraud Alert\" on your credit reports by calling any one of the credit bureaus. This alert can stop a thief from opening additional accounts in your name.\n2. **File a Police Report.** File a report with your local police station and keep a copy of the report if you have to deal with any creditors.\n3. **Contact the Card Issuer.** Immediately contact the issuer of the credit card that was lost or stolen. Follow up this call with a letter so you have the report documented.\n4. **File a Complaint with the FTC.** The FTC handles complaints from victims of identity theft, provides information to those victims, and refers complaints to major credit reporting and law enforcement agencies. The FTC can also refer your complaint to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces. END

TITLE: Learn How to Prevent Credit Card Fraud CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Learn How to Prevent Credit Card Fraud CONTENT: | | | | \n: . END

TITLE: Increase Your Credit Score to Get a Good Mortgage Loan CONTENT: Increase Your Credit Score Before Applying for a Mortgage Loan\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you have been sidelined from buying a house, you are not the only one. After the real estate market crash of 2008, a lot of homeowners either lost their homes in foreclosure or were so upside down in their loan vs house value that they could not even think about selling their home to buy another one. It does seem as though the housing market is coming back, so this might be a good time to think about jumping in to buying a house. If you have not reviewed your credit reports in a while, you may be in for a surprise and buying a house might not happen as quick as you think. Here are some tips on getting ready to apply for a mortgage and ways to increase your credit score in preparation of getting a good interest rate on a home loan.\nReview and Carefully Analyze Your Credit Reports\n------------------------------------------------\nIf you have not pulled your credit reports in quite a while, then we suggest you go to annualcreditreport.com and pull your credit from all three credit bureaus. You are able to request your reports for free once a year. If you have used this service within the last year, you will have to use one of the other services, like myFICO.com or one of our recommended companies and you will have to pay for them. If you also want to see your credit score, there may be an additional charge or you might have to sign up for a monitoring service. It is worth it if you want to make sure your score is increasing as you are working on fixing your credit.\nNow that you have your credit reports in your hand, go over them very carefully and look for any items that are inaccurate and look for information that isn't verifiable. Remember, the credit bureaus have to be able to verify the information on your credit report and if they can't, it has to come off. For more information on disputing these items, read our articles on how to repair your credit.\nPay Your Bills On Time\n----------------------\nRemember that your payment history accounts for 35 percent of your FICO credit score and current balances have much greater weight on your score than older entries. Bottom line, it is very important to pay your bills on time months before you are even thinking about applying for a home loan. \nThe next piece of that puzzle is paying down the money you owe. If you can, start using extra cash you have on hand and pay down or pay off all of your credit card balances. Do not close these accounts, just get the balances as close to zero as you can. If you don't have any extra cash, see if you can borrow some money from a friend or family member — that way this \"loan\" won't appear on your credit report. If you can't get a loan that way, try getting a loan from peer-to-peer lender. We have heard from some readers that some P2P loans did not show up on their credit reports, but we suggest you find out firsthand from the lender if they report to the credit bureaus or not.\nConsider Other Ways to Boost Your Credit Score\n----------------------------------------------\nSome people approach people they are very close to and ask them to add them to their existing credit card account. As long as that person's credit account has been open for two years or more and they add you as joint or co-owner, you'll see a fast bump in your credit score. Of course this approach exposes both you and your friend to risk, so take this step very carefully.\nThere are many other ways to give your credit score a boost. Our article entitled Build Your Credit has a lot of other ideas on how you can rebuild and build up your credit.\nPay Off Old Debt, But Make a Deal\n---------------------------------\nOnce a legitimate negative is placed in your credit file, it only comes off if the creditor or credit bureau wants it off or seven years pass. Before paying off old bills, contact the creditor and tell them you want to pay off the old amount in exchange for a written guarantee they will remove the old negative item from your credit report. This is what we call \"pay for delete\" and we have devoted an entire article about how to do this correctly and in your favor.\nSome creditors will balk at this but since they have the power to put items on your credit report, they have the power to remove them. If they want your account settled badly enough, they will work you.\nBe Patient\n----------\nFixing your credit and increasing your credit score will take some time so don't be in a rush and then become frustrated when it is not happening fast enough. Give yourself plenty of time to get the results you want before you apply for a home loan. If you are looking to just shave off 10 to 20 points, that may only take a few months. If you have more serious items on your credit and need to increase your score by 50 points or more, that could take a year or more. The take away on this is to not be impatient and rush into buying a property before you have finished all the clean up work. If you take your time and keep at it, your score will be high enough that you will be approved for a loan and better yet, you will get an outstanding interest rate. That alone with save you thousands of dollars a year and will be well worth the wait! END

TITLE: Prevent Personal Information From Being Sold to Mailing Lists CONTENT: Prevent Credit Bureaus and Other Companies From Selling Your Identity\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nIsn't it annoying to walk down to your mailbox only to find junk mail from companies trying to get you to apply for their credit cards, catalogs offering every imaginable product, or envelops filled with coupons? Americans receive nearly 90 billion (yes - that is billion) pieces of advertising mail. A whopping 59 percent of the mail you receive is junk mail. Obviously, these advertisers think we are going to read all this mail when in fact we might read only half of it.\nNot only does all this mail kill trees, fill up your trash bin and tempt you unnecessarily, you run the real risk of having someone steal your discarded mail and apply for the card for you, essentially hijacking your identity. This is not a pleasant experience. Below are some places to contact either via email or on the Internet, where you can opt out of all of this junk mail.\nOpt Out of Credit Bureau Mailing Lists\n--------------------------------------\nYou can protect yourself from identity theft by taking your name off of the credit bureaus mailing lists. The credit bureaus are one of the biggest offenders when it comes to selling your name and information to the credit card companies who in turn send you all those pre-approved applications. One call to the Opt Out Request Line (for Equifax, Trans Union, Experian and Consumer Credit Associates) is all it takes to permanently remove your name from all marketing lists that the credit agencies supply to direct marketers. You can also opt for a two-year period, renewing your request at any time in the future by calling 1-888-567-8688.\nOpt Out of Credit Card Offers\n-----------------------------\nYou can also fill out the form online www.optoutprescreen.com to opt out of all credit offers sent to you in the mail.\nGet Rid of Junk Mail\n--------------------\nTo get rid of most other junk mail, write a letter giving your complete name, name variations and mailing address to:\n* Mail Preference Service \n Direct Marketing Association \n P.O. Box 9008 \n Farmingdale, NY 11735\n**Call 1-800-407-1088** to opt-out from all mailing and telemarketing lists.\nOnce you write, you'll remain on the Direct Mailing Association opt-out list for five years. It may take up to three months before you notice a significant reduction in the amount of direct mail and phone calls you receive.\nTo be removed from the mailing lists of the major data compilers, call or write to these firms. (Note: These companies also subscribe to the DMA's Mail Preference Service.)\n* R. L. Polk & Co. \n List Compilation \n 26955 Northwestern Highway \n South Field, MI 48034 \n (810) 728-7000\n* First Data Info-Source Donnelley Marketing, Inc. \n Data Base Operations \n 1235 \"N\" Ave. \n Nevada, IA 50201 \n (888) 633-4402 or (515) 382-8321\n* ADVO-Systems \n Director of List Maintenance \n 239 West Service Rd. \n Hartford, CT 06120-1280\n* Metromail Corp. \n List Maintenance \n 901 West Bond \n Lincoln, NE 68521 \n (800) 426-8901\n* Database America \n Compilation Dept. \n 100 Paragon Dr. \n Montvale, NJ 07645 \n (201) 476-2000 or (800) 223-7777\n* Haines and Company,Inc. \n Criss-Cross Directory \n 2382 East Walnut Avenue \n Fullerton, CA 92631\n* Donnelly Marketing \n Database Operations \n 416 South Bell \n Ames, IA 50010\n* Acxiom Corporation \n 1 Information Way \n Little Rock, AR 72202 \n (501) 342-2722\nTelephone Solicitation Lists\n----------------------------\nTo remove your name from many telephone solicitation lists, send your complete name, address and phone number with area code to:\nTelephone Preference Service \nDirect Marketing Association \nP.O. Box 9014 \nFarmingdale, NY 11735\nStop Receiving Coupons\n----------------------\nTo reduce or stop receiving coupons, ads and\/or product samples in your mail, you will need to contact the companies distributing these materials to your residence. You can write or call these companies and request that your name and address be removed from their company's mailing lists. One such company mailing these materials is:\nAdvo Incorporated \nDelivery Services \n1001 West Walnut Street \nCompton, CA 90220-5191 \n(310) 637-0438\nStop Yellow Page Phone Book Delivery\n------------------------------------\nGo online to get a list of local directory publishers. Visit YellowPagesOptOut.com and input your zip code to their search field. The results will show you local directory publishers and how to contact them.\nOpt Out of Online Databases\n---------------------------\nrights.org END

TITLE: How Rapid Rescore Increases Your Credit Score CONTENT: Rapid Rescore May Increase Your Credit Score Fast\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nImagine this — you are getting ready to close on your home loan when your loan officer calls to say your credit score went down 20 points from when they originally pulled your credit. A 20 point decline means the difference between putting 10 percent down on your loan to now having to come up with 20 percent. Unfortunately, you don't have that extra money because you scraped the initial 10 percent together and now you are tapped out. What are you going to do?\nYour loan officer says, \"Let's do a rapid rescore to get your score back up.\" If you are like most people, you have no idea what he is talking about nor do you even know what a rapid rescore is or if it will even help you. We are here to tell you it does work but you need to know the in's and out's of this procedure before you agree to have it done.\nWhat is Rapid Rescore?\n----------------------\nRapid rescoring is just what you might think it sounds like, a rapid way to adjust your credit score. What might take 30 days or more, can take 3 to 7 business days. A rapid rescore is essentially an immediate updating of your credit file.\nIf you try to dispute a legitimate error on your credit report with the credit bureaus, they have 30 days to investigate the dispute and get back to you with their answer. This is far too long to wait if you are trying to finalize a mortgage loan when there are contractual deadlines that need to be met. If you have to wait for the credit bureaus to get back to you in 30 days, chances are your whole deal will probably fall apart.\nSo, instead, what your loan officer will do is provide the proof to the credit bureaus that the errors are bogus and have them immediately recalculate your credit score. This can all be done in a matter of a few days.\nDisputing erroneous information is not the only way you can increase your credit score. Say for instance you have a high balance on one of your credit cards, your loan officer can run what is called a \"what if\" simulator. Basically, this mathematical simulator used by mortgage companies can determine \"what if they paid off their credit card, how much would this increase their score.\" If the loan officer sees this might increase your score enough to get you that better loan, they can suggest you pay off this credit card or pay it down below 30 percent of your credit limit. Once you pay down your card, you can print off your new balance and this can be submitted to the credit bureaus for an immediate update.\nIs Rapid Rescoring the Same as Credit Repair?\n---------------------------------------------\nDoing a rapid rescore is not the same as credit repair for a number of reasons. First of all, rapid rescoring should only be done through a mortgage broker or lender and is not offered by credit repair companies. It will typically cost between $25 to $30 per updated account and this fee should be paid by the lender or broker. This is because according to the Fair Credit Reporting Act, borrowers are not allowed to be charged for disputing inaccurate information on their credit reports. So, if the borrower paid for a rapid rescore, that would be in violation of the FCRA.\nSecondly, you can only dispute inaccurate information when you have acceptable supporting documentation indicating a change in your credit report. Rapid rescore is not a means of disputing negative but accurate information such as late payments, foreclosures, bankruptcies and the like. For instance, you can't pay off a delinquent account and expect it just to fall off your credit report. Having that done takes a lot more effort than just sending in the paid off information to the credit bureaus, something like that needs to be handled with the collection agencies first.\nReasons a Lender Might Suggest Doing a Rapid Rescore\n----------------------------------------------------\nThe bottom line as to why a lender may suggest doing a rapid rescore for you — to close on a loan you might not otherwise qualify for in the first place. Which in the long run means money for the lender and getting a better loan for their customer.\nAs stated before, mortgage brokers or lenders are the only ones who should be providing rapid rescores. According to a Rapid Rescoring website which provides lenders this service, here are some of the steps you may need to follow:\n1. Find out how many points you need to qualify for the better loan program.\n2. Which one of the three credit bureaus do you need contact to raise your score. Since all three bureaus will have different scores, which is the one hurting you?\n3. Run the \"score simulator\" associated with the program your lender is using. This will lay out what you need to address to raise your credit score.\n4. You as the borrower will need to address all the suggestions that came out of the \"score simulator\" and give this completed documentation to your lender. Be it a new balance on your credit card or maybe some other documentation to support the new information.\n5. Your lender will provide this information to the credit bureau and you should get a new credit score 3 to 7 days later.\nIn the eyes of the lender, doing a rapid rescore for you is not an inexpensive procedure but they will make it up in the revenue they receive from closing the loan. In the end, rapid rescoring can be a win-win situation for the borrower and the lender. Just remember, this is not a form of credit repair and there may be some negative issues still lingering on your credit reports. To remove those final few blemishes, you will need to follow our tips on credit repair or hire a credit repair company to do it for you. END

TITLE: How to Stop Automatic Bill Payments CONTENT: How to Stop Automatic Payments to Your Credit Card\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nThere is nothing like having your bill paying set on auto pilot. From your gym membership to the cable bill, just about anything can be set up as an automatic payment. In fact, most vendors would rather have it this way as they are assured they are going to get paid on time.\nBut what happens when the neighborhood gym keeps deducting your monthly dues long after you terminated your membership? Stopping them can be a hassle, especially if the company you were paying isn't cooperating. If you're having a hard time working with the company that is automatically charging your credit card because they won't answer their phone, here's what you can do to stop the charges.\nRead the Contract\n-----------------\nFirst of all, read the contract. Some companies make it difficult for you to contact them. In some cases, the only way per the contract to cancel is to call some non-800 number and you get a 30 minute wait on hold. They may also stipulate that you can only stop the charges in writing, another great way to delay stopping the charges. If you see either of these in the contract, we recommend not setting up re-occurring billing with them.\nContact the Billing Department\n------------------------------\nIf notify the billing department of a certain company in writing that you want the service stopped, it could take up to two weeks for them to process your request to stop. This could be dangerous. Some billing cycles happen at odd times of the month; don't count on the fact that if they received it by the end of the month, the next month's payment won't go through. If you decided to send them a letter, send the letter by certified mail, return receipt requested so that you have proof that you sent it in case they fail to respond. Just the fact that you sent a certified letter should encourage compliance. Their mailing address should be on their invoice. If it isn't, or you can't find an invoice, look them up on the web.\nContact Your Bank or Credit Card Company\n----------------------------------------\nYou certainly can complain to your credit card company about the charge. As the article link we just gave you points out, you must at least have attempted to contact the company and request the stop. Once you call the credit card company, follow this up with a letter to your credit card company (also certified) outlining that you have notified the billing company, in writing, of your desire to terminate the service. Include the name of the product or service being cancelled and the amount and frequency of the charge. Be sure to keep copies of both letters and the return receipts.\nMake it clear to your bank or credit card company the fact this charge is \"unauthorized\" as some banks will not charge a fee to stop these types of debits.\nClose Your Credit Card Account\n------------------------------\nClosing your credit card account can definitely a hassle as you must wait for a new card to arrive in the mail. You may also have other automatic payments being made through this card so be sure and keep a list of all the services being automatically charged to a card. If the card involved is a debit card, you won't have to close your checking account just tell the bank the card was lost. The will void out your old card and reissue a new card with a new account number on it.\nWe hope one of the above methods will stop the automatic payments from being deducted from your credit card. If your efforts to stop the charges are still met with no success, contact your State Attorney General office. Most A.G. offices have a consumer protection division and helping citizens who are being taken advantage of is one of the things they do best. Businesses do not like to be investigated by the Attorney General's office and will usually do the right thing after being contacted by them. Another feared agency is the Better Business Bureau — a threat to report to this agency sometimes works wonders. END

TITLE: Minimize Damage to Your Credit Score From a Short Sale CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen you’re struggling to make your mortgage payment every month, the relief that comes from a short sale can be worth any hit your credit score is going to take. That said, there are things you can do to minimize the damage.\n### **Know What You Are Getting Into**\nThough a short sale may sound preferable to foreclosure, your credit score is still going to take a big hit. While your credit report listings won’t say short sale, they will state that you settled the debt for less than what you owed, and no potential creditor likes to see that. While there is no set number of points you can expect your score to drop, it’s reportedly on par with the same damage you might see from a foreclosure. Also, a short sale will show on your credit report for up to 7 years, so you’re in it for the long haul.\n### **Make Mortgage Payments Until Short Sale is Final**\nLenders are not required to approve a short sale on your home loan. A good incentive for them to do so, however, is to see that you are staying current on your mortgage payments. Plus, you’ll avoid the negative impact of late mortgage payments on your credit reports.\n### **Stay Current With All Other Bills**\nWith a short sale on your credit reports, the last thing you need are any other negative listings. Stay current on everything else, from your car payment and utilities, to credit card bills.\n### **Pay Down Credit Card Debt**\nThe lower your credit utilization ratio, the better you credit score. So give your credit a boost by paying down (and off) any existing credit card debt.\n### **Keep Credit Card Accounts Open**\nJust because you pay off a credit card doesn’t mean you no longer need it. An _open_, paid-off credit card can significantly improve your credit utilization ratio and, in turn, your credit score. The only time to close a credit card account is if you find it impossible to resisting maxing it out.\n### **Keep Using Credit Card Accounts**\nLetting an open credit card account sit idle means missing out on opportunity to significantly improve your credit score. Use the account at least once a month, but only on things you would have to pay for anyway, like gas or a utility bill. Then simply pay off the balance every single month. That’s how you show responsible credit usage and, in turn, build your credit score.\n### Attack Old Debt via Debt Validation\nBefore paying off old credit card debt that was sold to a collection agency, try debt validation first. When a debt is sold, the documents proving your ownership of the debt don’t always change hands. So make the debt collector prove you owe the debt. If they can’t do that, you’re not legally responsible for it and it must be removed from your credit reports.\n### **Negotiate Debt Settlements**\nYou may be surprised at just how little debt collectors will accept to settle a debt, especially if they don’t sense that you’re in any rush to do so. That said, it can be an intimidating process, and one you could pay someone else to do. Fortunately, there is nothing a debt settlement company can do that you cannot do for yourself. Here’s how to settle debts on your own.\n### **Build Emergency Fund**\nIf you’re in the habit of using credit to pay for unexpected expenses, from car repairs to medical bills, then you need to build a bigger emergency fund. While six months of living expenses may be ideal, if you have nothing in your emergency fund at all, shoot for $500 to $1,000 to start. If you set aside just $25 to $50, you’ll be there before you know it.\n### **Build New Positive Credit**\nAfter your credit score takes a hit in the wake of a short sale, you will have trouble qualifying for new credit. However, there are other ways of making a positive impact on your credit score. Try a secured credit card, becoming an authorized user on someone else’s credit card, co-signing on a loan, and\/or peer-to-peer lending.\n### **Monitor Credit Reports and Scores**\nEveryone should check their credit reports at least once a year. It’s free to do so via AnnualCreditReport.com. However, when you’re recovering from a short sale (or any other significantly negative impact on your credit), it’s a good idea to review your reports more often, say two or three times a year. Beyond that, check your credit scores, too, so you can see if and when your positive credit behavior starts making a difference. END

TITLE: Increase Your Business Credit Score CONTENT: How to Build Up Your Business Credit Score\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nIf you own a business, you likely have a credit score based on credit reports that require the same diligent monitoring and maintenance as that of your personal score and reports. Unfortunately, business owners tend to overlook this all-important task, many unaware that a business credit score exists at all, presuming everything gets covered under the personal score and reports associated with their name.\nWhether you're well aware of your business credit scores, or this is the first you're hearing of it, now is the time to ensure you're doing all you can to maximize its potential. After all, the better your business credit score (ranging from 1 to 100), the better the interest rates you'll get on business credit accounts.\nObtain Your Business Credit Reports\n-----------------------------------\nAs with your personal credit reports, you can request copies of your business credit reports from the three major credit reporting agencies. You will request it almost the same way as your personal report, the only difference is you will have to input the name of your business and the city and state where the business is located.\nIt is imperative you review all three credit reports for accuracy and errors. If you do find any errors, you will need to dispute them with each of the bureaus. Much the same as you would for your personal credit history. You can find the procedure for disputing inaccurate information in our complete directory of credit repair articles.\nOne major difference between business and personal credit reports is that everyone has access to your business report. Reason being is that lenders or potential customers may want to determine your business's reliability before working with you. Further stressing the fact you should review your report for any inaccurate information on a regular basis.\nVerify Lenders and Vendors Are Reporting to the Credit Bureaus\n--------------------------------------------------------------\nIf you don't see them listed in your credit reports, contact said lenders and\/or vendors and ask them to start reporting your account activity. The process is very similar if a business was going to report late payments made by a vendor, you can have one of your lenders or vendors report on your timely payments.\nFor example, let's say you own a business that makes dog beds and you purchase fabric from XYZ Fabrics (a vendor) fairly regularly. At the end of the month, XYZ Fabrics invoices you for the fabric and you turn around and cut them a check. It would be a great to have XYZ Fabrics report your timely payments to all three major credit bureaus so that your credit history will show you pay your bills on time.\nMake Timely Payments to Your Lenders and Vendors\n------------------------------------------------\nExpounding on what we just mentioned above, once you get a vendor to start reporting to the credit reporting agencies, it is important to make timely payments. Not only will these timely payments show up as positive credit, it will also increase your business credit score. So, having said that, if you make any late payments to your vendors that will cause your credit score to go down.\nApply for a Business Credit Card\n--------------------------------\nUsing a business credit card for purchases related to your business is preferable to using your personal credit card for a few reasons.\n1. You can easily distinguish between business and personal purchases because you will have a separate listing from each credit card. You will really appreciate this come tax time.\n2. A business credit card account can offer you certain privileges you would not ordinarily get with a personal credit card.\nIf you don't already have one, you can easily apply for one through most of the major banks such as American Express, Chase Bank, Capital One, Wells Fargo, or Bank of America. You can also check with your local credit union to see if they offer business credit cards. As with personal cards, use it regularly to establish activity on the account, but only charge as much as you can afford to pay off by the end of the month. You need not carry a balance for the card to help your credit, but you do need to use it.\nMonitor Your Business Credit Score and Reports\n----------------------------------------------\nJust because you're making timely payments on all your business credit lines, never take for granted that they're being reported accurately. Follow up to ensure lenders and vendors are, indeed, reporting your payment activity accurately. And keep in mind, consumers and businesses alike find errors on their credit reports all the time. Make it a habit of checking at least once a year, perhaps at the same time as your personal score and reports. END

TITLE: Learn to Increase Your Credit Card Limit CONTENT: How to Raise Your Credit Card Spending Limit\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nCredit card companies try to give new card holders enough credit so they will spend money, but not too much credit so that they spend too much and default on their balance. If this is your first credit card or if you have a low credit score, chances are you were approved for a credit card with a very low credit limit. This means that you may only have a small amount of borrowing power to make purchases, transfer balances or obtain cash advances. If this low credit limit is restricting the kinds of purchases you want to make, you may want to request the credit card company to raise your credit limit. Here are some ways you can accomplish this goal.\nWait for Automatic Increase\n---------------------------\nCredit card issuers may periodically review a customer's account to see if they are worthy of a credit limit increase or not. If so, a card holder may see an increase magically show up on their next billing statement. This typically happens on lower limit accounts. With the recent rash of un-collectable credit card debt running rampant, an automatic increase may not be as easy as it once was. So, we wouldn't recommend holding your breath for this to happen to you. You will probably need to take a little bit of control of the situation so keep reading.\nImprove Your Credit Worthiness\n------------------------------\nYou need to work on improving your perceived worthiness to borrow money from your bank. Your credit score shows lenders what kind of credit risk you are for them, and tells banks whether or not you are trustworthy and able to handle credit responsibly.\nThe easiest way to build your credit worthiness, and thus raise the amount of your line of credit, is to put everything you buy on your credit card. Don't save your card for emergencies. Your credit card company wants to see that you have the ability to spend wisely and to pay back the amount you credit to your card. If you rarely use the card, the company will wonder why you would need a higher credit limit.\nMake Timely Payments on the Balance Due\n---------------------------------------\nThe second best way to improve your credit limit is to pay as much as possible on your outstanding balance every month and pay them on time. If you can, make every attempt to pay the entire amount; in any case, always pay more than the minimum required. By doing this, you will demonstrate to the credit card company that you are striving to improve your credit rating. You'll be showing them that you do deserve a higher credit level.\nProvide Proof of Income\n-----------------------\nSome credit cards may require proof of income before they will grant you a higher credit limit. With others, you may find their website has an online feature with which you can request a raise in credit limit. If you use this feature judiciously, not more often than every four or five months, you may be able to increase your line of credit. Other companies will automatically extend your credit limit if they see you are spending up to your current limit — and paying it back regularly. That last phrase is most important!\nBenefits of an Increased Credit Limit\n-------------------------------------\nIf your credit card company does raise the limit on your credit, it means that you have shown them they can trust you as a borrower of their money. You should realize, however, that a higher credit level may incur more fees, as well as increased interest charges. Be very careful as you begin to operate within a higher limit, to make sure interest rates don't spiral out of your comfort zone.\nThere are plenty of websites on the Internet that offer tips on using your credit wisely and carefully. You may wish to look at some of these to increase your understanding of how credit works, and how you can protect your own credit rating. Keep in mind that granting you increased credit is the way your bank expresses its confidence in you as a borrower — and be sure you are worthy of that confidence. END

TITLE: FICO Scoring Model is Used the Most Out of All Scoring Models CONTENT: Why the FICO Score Reigns Supreme\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen we talk about credit scores, 9 times out of 10 we're talking about FICO Scores. The Fair Isaac Corporation isn't the only predictive scoring player on the field. True enough, but FICO did invent the game.\nFICO Invented Credit Scoring\n----------------------------\nWilliam Fair, an engineer, and Earl Isaac, a mathematician, founded the Fair Isaac Corporation (FICO) in 1956. Two years later, Fair and Isaac sent letters to 50 of America's largest lenders introducing the credit scoring model. Forty-nine of these letters went unanswered, but it only took one to jumpstart the FICO credit scoring empire.\nIn 1958, FICO built its first credit scoring system for American Investments. Slowly but surely, other lenders came around, including Montgomery Ward, Connecticut Bank and Trust, and Wells Fargo.\nBut it wasn't until 1981 that FICO introduced the first FICO credit bureau risk score. Eight years later, FICO partnered with one of these bureaus, Equifax, to create the first general-purpose FICO score. Two years later, these general-purpose FICO scores were available through all three major credit bureaus, Equifax, TransUnion, and Experian.\nFICO Has 53 Credit Risk Scores\n------------------------------\nAll of the possibilities for predictive scoring cannot be incorporated into one general credit risk score. In fact, there are so many behaviors to track, measure, and predict, that FICO has managed to create 53 different types of credit risk scores. This enables lenders to tailor their credit risk management to the specific nature of their industry and\/or goals.\nFICO Expanded Predictive Scoring Beyond Credit Risk\n---------------------------------------------------\nSince its founding, FICO has received more than 100 patents for its analytics and decision management products. In addition to scoring for credit risk, FICO has predictive scoring models for:\n* Fighting first-party and third-party application fraud.\n* Limiting merchant-related risk for banks and acquirers.\n* Driving profitable growth of bankcard portfolios.\n* Forecasting patient adherence to prescription medication.\n* Enabling healthcare insurers to detect and prevent fraud.\n* Extract the most predictive, actionable insights from transaction data.\n* Helping businesses make predictive management decisions.\n* Giving insurers real-time decisions at all point-of-sale opportunities.\n* Clearly, FICO is the go-to guru on all things predictive scoring, credit-wise and beyond.\nFICO Has Virtually No Competition\n---------------------------------\nIn 2006, the credit bureaus came together to create their own version of a credit score, VantageScore. While FICO felt threatened enough to sue VantageScore in 2007, Fair Isaac could only prove a negligent loss of business to its new competitor. FICO dropped the lawsuit after the court ruled in VantageScore's favor, and the rest is history. Today, 90 percent of lending decisions are made using the FICO score.\nBottom line, your FICO score matters a lot, so do all you can to score well.\nYour FICO score is determined by the listings on your reports with the three major credit bureaus. So if it's been more than a year, request your free copies at AnnualCreditReport.com. Then come back here to Credit Info Center for step-by-step instructions on how to analyze your reports and what to do about negative listings that are dragging your FICO score down. END

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TITLE: Lower Your Credit Card Interest Rate CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIn a perfect world, your credit card interest rate would be irrelevant because you would never carry a balance on your credit card account and, in turn, would never be charged interest. In reality, you probably carry a balance now and then, or you might find yourself wanting or needing to at some point in the future. If you have looked at your interest rate lately, chances are it is over 20 percent and you are paying way too much each month in interest charges. How can you fix this? Learn to master the art of asking your credit card issuer to lower your interest rate. \nWill a Credit Card Company Lower the Interest Rate Because You Asked?\n---------------------------------------------------------------------\nNot necessarily, but the chances are far better than simply waiting around for your credit card company to notice how much you really do deserve a lower interest rate. They are, after all, in the business of making money. So why in the world would they go out of their way to make less money for a service you seem perfectly fine paying more for?\nIn other words, the only way you're going to get a lower interest rate on your credit card is if you ask for it. Granted, your credit card company is under no obligation to give it to you but, done right, many a happy credit cardholder can attest that this approach does work.\nBest Time to Ask a Credit Card Company For a Lower Interest Rate\n----------------------------------------------------------------\nThe longer you've held an account in good standing, the more likely your credit card issuer is to lower your interest rate.\nFor instance, if you have a credit card that you've been making on-time payments to every month for a year or more, it's the perfect candidate. On the other hand, if you have a credit card you've only had a couple of months or that you've had a recent history of making late payments on, wait and make at least 3 to 6 months worth of on-time payments before calling in with the ask.\nWhat Interest Rate Should You Ask For?\n--------------------------------------\nThis depends on your credit score, but it's a good rule of thumb to shoot for 9 to 12 percent.\nWhat Kind Of Credit is Needed to Lower the Interest Rate?\n---------------------------------------------------------\nYour credit need not be excellent for you to receive a lower interest rate on your credit card. However, it definitely helps if your credit is better than it was when you opened the account.\nHow Does a Credit Card Company Decide Whether to Lower the Rate?\n----------------------------------------------------------------\nA few factors go into a credit card company's decision to lower your interest rate, including:\n* How politely you ask for it.\n* Your payment history.\n* Your current credit score compared to your score when you opened the account.\n* The prospect of losing your business to a competitor already willing to offer you a lower interest rate.\nHow to Ask a Credit Card Company to Lower the Interest Rate\n-----------------------------------------------------------\nPolitely. Yes, it's a great big credit card company you're dealing with, but the decision really lies with one person - your customer service rep.\nHere's a general how-to of things:\n1. Hold onto the credit card offers you receive from other issuers with offers of interest rates lower than your current card in question.\n2. Before you make the call, find out your credit score. Do a little research to see what interest rates and credit cards are being offered for borrowers in your credit score range.\n3. Call the phone number on the back of your credit card.\n4. Tell the customer service representative that you are calling to ask for a lower interest rate on your credit card. Chances are slim they will make you an offer at this point. If they do (and it's competitive), great. If not, move on to step 5.\n5. If they tell you that your rate cannot be lowered, explain that you have received other offers for credit cards with lower interest rates as low as \\[quote the offer\\]. Then tell them you'll be taking your business elsewhere unless they can lower your interest rate accordingly. The interest rate you ask for need not match what you are being offered by another card issuer, particularly if the new offer is very low. You are far better off asking for an interest rate ranging from 9 to 12 percent.\nWhat If They Won't Lower the Interest Rate?\n-------------------------------------------\nIt's not the company saying no, it is just one person. Call back a different day and you just might be on the receiving end of a friendlier voice.\nWhat If I Call Back and the Credit Card Company Still Says No to a Lower Interest Rate?\n---------------------------------------------------------------------------------------\nIf the credit card company still won't budge, you can do one of two things:\n1. Wait a few months then try again.\n2. Transfer the balance to a card with another issuer that is offering you a lower interest rate. Just be sure to shop around for the best rates you can find -- on interest rates, of course, but also balance transfer fees.\nToo Afraid to Ask For a Lower Rate?\n-----------------------------------\nGet over it. Rest assured, your credit card issuer is very accustomed to cardholders calling in to request a lower interest rate, so there is nothing odd or out of the ordinary about it. As with anything else in life, the more confidently and calmly you ask, the more likely you are to get what you want. END

TITLE: The Ins and Outs of Purchasing with Credit Cards CONTENT: Questions Regarding Making Purchases with Credit Cards\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nIn today's fast paced world, the majority of purchases made are done using a credit card. Credit cards are a convenient method of paying for everything from gas to groceries. Writing a check is so passe as now everyone uses either a debit card or a credit card to make purchases. There are some pitfalls and problems you can encounter if you are not an informed consumer. We have complied the most frequently asked questions from our readers below.\nWhich is better - check or credit card?\n---------------------------------------\nIn general, it's better to use a credit card. When you pay by credit card, the U.S. Fair Credit Billing Act gives you a lot of protections. See our article on Billing Errors and Overcharges. These safeguards don't apply if you pay by check or by debit card.\nCan a merchant ask for my address or phone number?\n--------------------------------------------------\nThis hardly ever happens anymore, but sometimes merchants will ask you for this. Politely refuse.\nLaw: There is no Federal law on the subject. According to Bankcard Holders of America, the laws of CA, DE, GA, MD, MN, NJ, NV, and NY prohibit recording personal information in connection with credit card transactions. Note the word \"recording.\" Strictly interpreted, this means they can ask you to show a driver's license but can't write anything down from it.\nMerchants are not supposedly not allowed to refuse a sale made by Visa or MasterCard solely because the customer refuses to provide additional personal information. According to Bankcard Holders of America, the same is true when you use your American Express card, but not when you use Discover.\nHowever, if merchants have sufficient reason to suspect you are not the authorized card holder, they may ask for further ID. If they do ask for ID, they must not write the information down. If merchants do ask you for any information that that actually write down or put into a computer, it's going to be your zip code, which will help them with sales databases.\nWhat should I do when asked for personal information I don't want to give?\n--------------------------------------------------------------------------\nThe most effective response is to ignore the request. When they say, \"I need your signature and phone,\" simply sign in the proper place and hand them the charge slip without your phone number. Don't comment on the request in any way. More often than not, they won't follow up.\nIf they do notice that you didn't put down the personal information, and ask you again, simply say, \"I don't give that out.\" If they still insist, you have to decide how important it is to you to make a point. If you don't much care, give them what they want so you can get on your way.\nIf you're a privacy fanatic, you can point out that Visa and MasterCard rules don't allow them to require this information and wait to see what they do. If someone is really going to make it that tough on you to hand over your money, walk away.\nCan the merchant charge credit card users more than cash customers for the same item?\n-------------------------------------------------------------------------------------\nYes, if the merchant goes about it the right way. The Federal Truth-in-Lending Act prohibited surcharges on credit card purchases until 1984; since then, there has been no Federal law on that subject. (Other provisions of the law are still in force.) The states of CA, CO, CT, FL, KS, MA, ME, NY, OK, and TX have laws against surcharges, according to Bankcard Holders of America.\nDiscover allows surcharges on credit card purchases, except in the above states. Visa and MasterCard prohibit them. American Express discourages them in general, and specifically prohibits them by merchants that also take MasterCard or Visa because Amex doesn't allow merchants to discriminate against it.\nThere is a loophole: merchants are allowed to give cash discounts. This means in practice that they can't charge you more than the labeled price if you pay by credit card, but they can charge you less if you pay cash. Some companies announce (usually in tiny print in the catalog) that all prices \"reflect cash discount\" of x% so credit card users must pay x% more than the stated price. This may be legal but it certainly violates the spirit of the law or the regulations. I don't know about the \"service fee\" charged credit card users for things like ordering tickets over the phone, but they're certainly not allowed to charge you a higher price in person than if you pay cash.\nI made a hotel reservation and guaranteed it with my credit card. When I showed up, the hotel denied my reservation. Have I any recourse?\n-----------------------------------------------------------------------------------------------------------------------------------------\nThat depends. Most hotels and motels (but not all) subscribe to the \"Lodging Services Addendum\" in their merchant agreement with Visa. If the hotel is one that participates, and they have no room for you when you arrive with a guaranteed reservation, their agreement with Visa requires them to:\n* Provide the cardholder with at least comparable accommodations for one night at another establishment.\n* Provide transportation for the cardholder to that establishment.\n* If requested, allow the cardholder to make a 3-minute local or long distance call.\n* If requested, forward all messages and calls for the cardholder to the alternate establishment.\nHowever, your unsupported word is not exactly proof that you had a reservation. Next time, write down the date and time you called, the rate you were quoted, which credit card you used for the guarantee, and the confirmation number. (You may have to ask for a confirmation number.) You need that info if there's a problem with your reservation, or if your plans change and you have to cancel.\nSome state laws may protect you when you have a guaranteed reservation, whether you guaranteed it by a deposit or by credit card.\nI paid by check and the merchant wrote my credit card number on the back. If the check bounces, can the merchant charge my card?\n--------------------------------------------------------------------------------------------------------------------------------\nThe answer to this one is no, with a couple of caveats. The merchant shouldn't be writing down your credit card number, your driver's license number or anything else on the back of that check, though they can certainly ask for ID. Most of them can run the check through a scanner using the codes on the bottom of the check to see if it is good, so writing anything down is superfluous.\nFor you rubber check passers: if your check bounces, the merchant can come after you for the amount of the bounced check, something that happens pretty often. If you lose in court, the merchant can garnish your wages. But if they try and charge your card, you can lawfully call the credit card company and claim a false charge.\nCan mail-order merchants charge my card before they ship?\n---------------------------------------------------------\nAccording to Janet Hug of Visa USA, \"a merchant is not permitted to bill ahead of time\" except in case of a deposit or down payment that the customer agrees to. MasterCard said in a letter that a merchant can charge you before shipment only if s\/he tells you and you agree to \"the terms and conditions of the sale.\"\nAmerican Express said the merchant can charge your card as soon as you give your account number; but if you receive the bill before the merchandise, call Amex customer service and you don't have to pay while they investigate.\nIs there any official document that I can take with me to show merchants who violate the rules?\n-----------------------------------------------------------------------------------------------\nYes. If you really think it's necessary, you can print out a copy of your rights from the Federal Trade Commission's website. That should be official enough for any merchant.\nWhere should I report merchants who break the rules?\n----------------------------------------------------\nIf merchants violate any of the above laws, you can report them to your state's or city's consumer protection office or attorney general. If they violate any rules of American Express, the company would like to know about it. Report violations of Visa or MasterCard rules to the bank that issued your card. If the sale was completed, you can also send a letter with a copy of the charge slip to the Visa or MC address given earlier in this section.\nDoes my payment have to reach the lender by the \"due date\" on the bill or is it enough if I just mail it by the due date?\n-------------------------------------------------------------------------------------------------------------------------\nThat's a good question and the answer varies. The Uniform Commercial Code says that a bill is considered paid on the postmark date of the payment, but many states have different laws. Even in states where the bill is considered legally paid on the postmark date, you may find that lenders will consider it paid on the date they process it.\nMy personal practice is to avoid hassles by always mailing payment a reasonable time before the due date. Even if I could push it legally, I don't believe the couple extra days of \"float\" is worth the aggravation of fighting with the lender over this point.\nI have a checking account at the same bank as my Visa. Can the bank freeze my account or take money from it if I miss a payment on my credit card bill?\n-------------------------------------------------------------------------------------------------------------------------------------------------------\nProbably yes. You should check your cardholder agreement. The typical agreement gives the bank the right to take the money in any of your accounts with them if you are delinquent on your bill. Even if there's not such a provision in your cardholder agreement, it's probably buried somewhere in the fine print that governs your deposit account. However, the Fair Credit Billing Act does not let them take any collection action at all if you have properly notified them of a dispute. END

TITLE: Credit Scoring Model Used by Credit Bureaus CONTENT: VantageScore Scoring Model: The Basics\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nLaunched in 2006 by the nation's three major credit reporting agencies, VantageScore is a scoring system that was suppose to compete with the FICO Score that was produced by the Fair Isaacs Corporation. In October of 2010, VantageScore 2.0 was launched and this updated algorithm was designed in response to a changing credit economy and a shift in the real estate industry from 2007 to 2009. Then in 2015, VantageScore 3.0 was released which created a more predictive and consistent credit scoring model. This new model is also meant to generate scores for the 30 to 35 million \"un-scoreable\" consumers.\nHistory of VantageScore\n-----------------------\nThe big three credit bureaus, TransUnion, Equifax, and Experian created the VantageScore model to create a consistent credit score model across the three bureaus to compete with the FICO score. Thus, they can offer lenders a more \"standardized\" score from the bureaus and cut out the Fair Isaacs Company. With the launch of VantageScore 3.0, it is being touted as \"The New Standard in Credit Scoring,\" but can it successfully compete with the stranglehold FICO has on lenders. It just depends on whether lenders will be willing to change to a different model.\nVantageScore Credit Score\n-------------------------\nUnder the FICO scoring system, scores range from 300 to 850, with the higher numbers indicative of a better credit risk. The older VantageScore systems used a slightly different scoring scale which was confusing to consumers. With the release of 3.0, VantageScore is now more aligned with FICO using the familiar 300 to 850 scoring scale. \nKeep in mind, your VantageScore may still vary between the three credit bureaus. While they all use the same scoring model, the information on your credit report may differ from bureau to bureau.\n### Contributing Factors For Each Credit Score\nThe VantageScore is based on six main variables, versus FICO Score's five variables. Here is a brief comparison of the two with weighted percentages:\n**FICO Score**\n* Payment History: 35%\n* Amounts Owed: 30%\n* Length of Credit History: 15%\n* Types of Credit Used: 10%\n* Amount of New Credit: 10%\n**VantageScore**\n* Recent Credit: 30%\n* Payment History: 28%\n* Utilization of Credit: 23%\n* Account Balances: 9%\n* Depth of Credit: 9%\n* Available Credit: 1%\nAdvantages of VantageScore\n--------------------------\nVantageScore claims to score thin file consumers (a consumer with a limited or brief credit history or not enough credit accounts to generate a credit score) more accurately by providing \"predictive\" scores for consumers with limited histories.\nSecondly, VantageScore is based primarily on the last 24 months of actions on a consumer's credit file. Which is beneficial for someone who has been working on repairing their credit and the most recent activity is positive activity.\nLastly, the VantageScore model can consider utility and rental payments provided they appear on the borrower's credit history. However, most landlords still do not report rental history to credit bureaus but if they did, this is one aspect that can be used in a VantageScore and not in a FICO score.\n### Additional Information Regarding VantageScore\nThere is a lot of information on the Internet regarding VantageScore. Here are just a few sources:\n* Here is what Equifax has to say about VantageScore.\n* Here is what Experian has to say about VantageScore.\n* Here is what TransUnion has to say about VantageScore.\n* Here is a link to the VantageScore main website. END

TITLE: Calculate Interest Charged on Your Credit Cards CONTENT: How Credit Card Interest Rates Are Calculated\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nWhen you are approved for a credit card, it comes with an APR, or annual percentage rate. It’s this rate that’s used to determine how much interest you’re charged if you carry a credit card balance. But its use isn’t as straightforward as you might think. Here’s how credit card interest rates are calculated using your _daily periodic rate_ and _average daily balance_.\n**Turn APR Into a Daily Periodic Rate**\n---------------------------------------\nThough it’s called an annual percentage rate, you’re actually charged interest on a daily basis. To do this, credit card issuers use the APR to determine a daily periodic rate.\nTo find your daily periodic rate, they take your APR and divide it by the number of days in the year – 365, of course. Well, I say “of course” but there are actually issuers that use 360 days instead. For the purposes of this example, let’s stick to the one that makes the most sense (i.e., the actual number of days in a year).\nIf your APR is 15 percent, divided by 365, then your daily periodic rate is .041 percent.\n**Figuring Your Average Daily Balance**\n---------------------------------------\nOnce they have your daily periodic rate, it gets applied to your average daily balance.\nTo find your average daily balance, they look back at the balance you’ve carried every day over the course the month.\nLet’s say your balance was $500 the first 15 days. Then you made a payment of $250, bringing the balance down to $250 for the other 15 days of the month.\nIn this example, your average daily balance would be figured like this:\n1) Multiply $500 by 15 days = $7,500\n2) Multiply $250 by 15 days = $3,750\n3) Add $7,500 and $3,750 = $11,250\n4) Divide $11,250 by 30 (days) = $375\n$375 is your average daily balance for the month.\n**Figuring Your Interest Charge**\n---------------------------------\nHow your interest gets calculated depends on whether interest gets compounded monthly or daily.\n**If your credit card issuer compounds interest on a _monthly_ basis**, then that would mean multiplying $375 (your average daily balance) by .041 percent by 30 (the number of days in the month) making your interest charge $4.61.\n**If your credit card issuer compounds interest on a _daily_ basis** – which is far more common these days – then your interest charge is going to be higher. Here’s how that works:\nAt the end of day one, you’re going to be charged the .041 percent on whatever balance you’re carrying. If it’s $500, then the interest charge is 21 cents. That 21 cents gets tacked on to your balance. So, on day two, you’re going to be charged interest on $500.21. You can see how that would start to add up over the course of the month. It’s in this way that the interest you actually end up paying over the course of a year can be higher than your APR.\n**Minimizing Interest Charges**\n-------------------------------\nThe best way is to avoid interest charges altogether is by paying your balance in full every month. Thanks to credit card grace periods, you will be charged zero interest as long as you pay the balance down to zero by your due date.\nIf you know you can’t pay off the full balance by your due date, the second-best way to minimize interest charges is to pay as much as you can. Not just on your due date, though. As soon as you make a new charge to your credit card, start paying it down right away. Make two, three, even four payments if you can over the course of the month. The goal? To bring that balance down as much as possible so you can minimize the interest charged, especially important if it’s compounding on a daily basis.\n**How to Get Out of Credit Card Debt**\n--------------------------------------\nIf you’re drowning in it, your interest charges are going through the roof. So if you’re not already, start digging yourself out of debt. END

TITLE: Using Balance Transfers on Credit Cards CONTENT: Considering a Balance Transfer? Answer Yes to These Questions First\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nWhen you’re trying to pay off credit card debt a high interest rates can make it near impossible. That’s the beauty of a balance transfer —  you may be able to qualify for an interest rate of as little as zero percent on the transferred amount. Be forewarned, this dream scenario can turn into a nightmare if you haven’t first done your homework on the different types of credit card offers available.\nDo you qualify for an interest rate lower than your current one?\n----------------------------------------------------------------\nWe’re not talking here about the introductory offer. Obviously, the only reason to transfer a credit card balance is if the interest rate will be lower on the transferred amount than the one you have already. But that’s only for a limited time and _only on the balance you transfer_. That doesn’t apply to new transactions made on the card or transactions made after the introductory period has expired.\nIs the amount you’ll save on interest rates higher than the balance transfer fees?\n----------------------------------------------------------------------------------\nDo the math. How much will the new credit card issuer charge you in annual fees and transfer fees? Compare that to how much you’ll save on interest rates before the transferred amount is paid off.\nCan you pay off the transferred balance before the introductory interest rate expires?\n--------------------------------------------------------------------------------------\nThis one is key. Introductory interest rate offers may last anywhere from 6 to 18 months. If you do not pay off the entire balance within that time frame, you’ll be charged your regular interest rate on the remaining amount from that point forward.\nCan make every monthly payment on time?\n---------------------------------------\nMake one late payment, and the terms of your introductory interest rate are likely null-and-void. Should this happen, expect the regular interest rate to kick in on any balance you have remaining on the card at the time of your late payment.\nCan resist putting new charges on the new card?\n-----------------------------------------------\nAgain, the introductory interest rate for a balance transfer only applies to the transferred amount. If you make new charges to the card, expect the regular interest rate to kick in on those transactions.\nHave you researched multiple credit card offers?\n------------------------------------------------\nThe one you got in the mail probably isn’t the best deal. Shop around for the best credit card offer, carefully read the fine print, comparing:\n* Introductory interest rate.\n* Length of the introductory offer.\n* Regular interest rate.\n**Other Tips**\n--------------\n* Only apply for credit cards geared toward your credit score range. This will increase the chances of approval and minimize the need to apply for multiple cards, as that does negatively affect your credit score.\n* If you have multiple credit card balances, you may be able to transfer two or more to one new card.\n* If you cannot find one credit card that will transfer the entire amount of your balance, you may be able to split the balance in two. Just be sure to do the math first, as you’ll then be facing double the annual and transfer fees for moving the balance from one credit card to two.\n* If, despite your best efforts, you find yourself unable to pay off the balance before the introductory interest rate expires, start shopping around for a new balance transfer offer. END

TITLE: FICO and VantageScore - Fair Isaac vs VantageScore System CONTENT: FICO vs VantageScore — Which One is Better?\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWay back in 2006, the three national credit reporting agencies, Equifax, Experian, and TransUnion, jointly announced the creation and availability of VantageScore, a new credit scoring model. This model has since been independently marketed and sold through each of the three credit reporting agencies via a licensing agreement with VantageScore Solutions, LLC, a company the agencies established.\nBefore VantageScore, There Was FICO\n-----------------------------------\nWith the popularity of credit cards in the 1960s and the enactment of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) by the mid-to late 70s, lenders were looking for a way to fairly and consistently evaluate credit applicants. To their rescue came the Fair Isaac Corporation with their credit scoring model, FICO Score, that evaluated each applicant based on impartial and unprejudiced information and gave lenders a consistent way to evaluate credit risks.\nThe FICO Scoring model was released for credit agencies back in 1981. Then in 1989, they launched the first FICO score for general purpose and was and still is the industry leader for credit scoring.\nSince Experian, Equifax, and TransUnion had to pay Fair Isaac to license their proprietary FICO scoring algorithm, they decided to get together and develop their own credit scoring model. Thus, VantageScore was launched in March of 2006 with a second version unveiled in October of 2010 and then a third version was released in March of 2013.\nWho Uses FICO Scores and Who Uses VantageScores?\n------------------------------------------------\nAccording to myFICO.com, 90 percent of the largest lenders base their credit decisions on the FICO scoring method.\nEven though VantageScore has been around for a little more than 10 years, they still have failed to break into the majority of the large lending institutions. When you request a credit score from one of the three big credit bureaus, you will be getting a Vantage credit score.\nDifferences Between FICO and Vantage\n------------------------------------\nThere are many differences in these scoring models and each ones has their own unique algorithm. Having said that, the most obvious difference is what goes into your score. As you can imagine, the exact formulas for each are a well guarded secret so the following information is pretty general and can be found on each of their websites.\n#### What Goes Into Your Score\n**FICO Components**\n**VantageScore Components**\nPayment History - 35%\nPayment History - 40%\nLenght of Credit History - 15%\nUtilization - 20%\nAmount Owed - 30%\nDepth of Credit - 21%\nTypes of Credit Used - 10%\nBalances - 11%\nNew Credit - 10%\nRecent Credit - 5%\nAvailable Credit - 5%\nWhich is Better?\n----------------\nNow we come down to the million dollar question — which is better, FICO Score or VantageScore? It depends. Admittedly, the general opinion is that since VantageScore is not widely accepted, your VantageScore is not really looking at the score a lender is going use when approving you for a loan. But who knows, VantageScore has only been around for 10 years and FICO was been in use for 30 years — so maybe in the next 20 years the tables will turn. But for now, if you want to know how lenders are going to evaluate you as a credit risk, it is best to know your FICO Score because chances are that is your real credit score when it comes to your credit health. END

TITLE: Release of FICO 9 May Boost Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhether you’ve exhausted every possibility for cleaning up your credit, or you’re just getting started, FICO 9 was made available in Fall 2014 and could go a long way toward furthering your goal.\n### If you pay debts that are in collections, they no longer count negatively against your score.\nOne of the most frustrating aspects of the previous FICO scoring model was failure to reward consumers for paying off debts that had previously been in collections. Even though they were paid and resolved, the debts continued to count as a mark against your credit score.  That is now a thing of the past.\nUnder FICO 9, you are no longer penalized for debts in collections once you have actually paid them. That said, before you go paying off all your unpaid debts, do yourself a favor and go through the debt validation process first.\nThe more times your debt has been sold from one collector to the next, the less likely that supporting documentation has changed hands. And if the debt collector cannot prove you owe the debt, you are not legally required to pay it AND it must be removed from your credit reports.\nNote, debt validation is an especially effective tool for old credit card debt.\n### If you have unpaid medical debt, it no longer counts as negatively as other types of unpaid debt.\nIn a study of consumer credit reports over 2 years’ time, the Consumer Financial Protection Bureau (CFPB) discovered that consumers with unpaid medical debt are more creditworthy than the previous scoring model gave them credit for.\nAs stated in the CFPB’s Data Point: Medical Debt and Credit Scores:\n* Consumers with more medical than non-medical collections had observed delinquency rates that were comparable to those of consumers with credit scores about 10 points higher.\n* Consumers with more paid than unpaid medical collections had delinquency rates that were comparable to the rates of consumers whose credit scores were roughly 20 points higher.\nIn response, FICO 9 now considers unpaid medical debt as less important than other types of unpaid debt. In fact, if the only negative debt weighing down your credit is of the medical variety, you could see your score go up as much as 25 points.\n### If you don’t have much credit history, there’s a new technique for projecting your creditworthiness.\nIt’s unclear what this technique is, but FICO 9 evidently has a new and improved means of giving credit where credit is due regardless of your credit history.\nOn the whole, what all of this adds up to is a win-win situation for consumers and lenders alike.\nFICO boasts that more people will fall into higher score ranges, increasing the number of consumers that lenders can extend credit too.\nThat said, consumers may be harder-pressed to guard against taking on more debt than they can handle. Certainly, a higher FICO score is something to be celebrated and taken advantage of in the form of lower interest rates, but always within the larger goal of staying as debt-free as possible. END

TITLE: Number of Credit Cards You Should Have CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIf you're asking yourself how many credit cards you should have in your wallet, it's likely for one of two reasons:\n1. You're thinking about getting more credit cards\n2. You're thinking about letting some go\nLet's get number two out of the way first.\nIt is almost never a good idea to close credit card accounts. This is especially true of older accounts that are contributing to the length of your credit history. One exception would be if you cannot seem to resist grossly mismanaging your credit card debt and, in turn, making your credit scores even worse, not to mention your financial situation.\nAs for scenario number one, there is no clear-cut answer.\nNo matter how many credit cards you already have, it could very well be a good idea to apply for more of them. It's all in how your credit cards are managed.\nHaving one credit card that you manage responsibly is far more beneficial than having five credit cards that you abuse on a monthly basis.\nBottom line, there is no magic number of credit cards to give you the ideal credit score. The magic is in how you get them, how you use them, and how long you've had them.\nHow to Get a Credit Card\n------------------------\n### Don't Apply For Multiple Credit Cards at Once\nEvery time you apply for a credit card, it counts as a hard inquiry on your credit reports, which can have a negative impact on your credit scores. Obviously, this is unavoidable, and really nothing for you to worry about, provided you keep credit card applications at a minimum.\nIf a hard inquiry does affect your scores, it may be by as little as 5 points, but could have a greater impact if you have very few credit accounts or a short credit history. One or two hard inquires is nothing to worry about, but avoid racking up any more than that within a short period of time, as a flurry of credit card applications demonstrates risky behavior.\n### Apply For Credit Cards You Are Confident You'll Qualify For\nThere is never any guarantee that you will be approved for a credit card, so check to be sure that the card you're applying for is intended for borrowers with your credit score. In other words, if you have a credit score of 650, you do not want to apply for a credit card that states it's intended for those with Excellent credit. This minimizes the possibility for being turned down and, in turn, racking up more hard inquiries via subsequent applications.\nHow to Use Credit Cards\n-----------------------\n### Keep Credit Utilization Ratio Below 30 Percent\nYour credit utilization ratio is the percentage of your available credit that you use per month. As a rule, try not to utilize more than 30 percent of it. So for example, if you have $10,000 in available credit, you do not want to charge more than $3,000 a month. Your credit utilization ratio represents 30 percent of your credit score, so shooting for the ideal percentage is critical (e.g., 10 to 25 percent).\n### Charge Only As Much As You Can Afford To Pay Off Each Month\nCredit cards should be used as a tool for establishing credit, not as a source of income. Never charge more to your credit cards than you can afford to pay by the end of the month. The goal: a zero balance. This not only saves you from paying interest fees, but also eliminates the possibility that your credit card debt could get out of control.\n### Make Monthly Payments On Time\nIdeally, you're paying off the balance every month before your due date. But if you get into a situation where that's not possible, at the very least make the payment on time. Pay as much as you can or, worst-case, the minimum payment required.\nHow Long You've Had a Credit Card\n---------------------------------\n### Don't Close Old Credit Cards\nThe length of your credit history counts for 15 percent of your credit score. So even if you have an old credit card that never gets used, resist the temptation to close it, as losing this available credit will shorten your credit history. It also decreases your available credit, which negatively impacts your credit utilization ratio.\nNot sure how far back your credit goes?\nIf it's been more than a year since you've done so, get free copies of your credit reports from AnnualCreditReport.com. From there you can request copies from all three of the major credit reporting bureaus - Experian, Equifax, and TransUnion.\nMake this a yearly habit, reviewing your credit reports to ensure that all your responsible credit card management is being accurately reported, as it's these listings that determine your credit score. END

TITLE: Increased Credit Card Debt for College Students CONTENT: College Students Can Mis-Manage Credit Cards\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nAs we have touched on before here at Credit Info Center, credit card companies are more aggressive than ever when it comes to marketing cards to college students. This heavy-hitting attention to the extension of credit to college students would perhaps be less of a gross offense provided schools used this as an opportunity for financial education. On the contrary, college students as a whole remain remarkably illiterate when it comes to credit card use. They are mis-managing their credit cards by being ignorant of interest rates, late payment fees, and overbalance penalties.\nAccording to a survey conducted by the International Journal of Business and Science:\n* Fewer than 15 percent of college students know the interest rates on their credit cards.\n* More than 75 percent of college students are unaware of late payment fees on their credit cards.\n* Fewer than 30 percent know the penalty for being over their credit card balance.\n* Overall, fewer than 10 percent know their interest rates, late payment charges and overbalance penalties on their credit cards.\nHow Prevalent is Credit Card Use Among College Students\n-------------------------------------------------------\nFor the first time in history, student loan debt exceeds the nation's credit card debt. This is a double-whammy for college students graduating with tens of thousands of dollars in student loans AND what could easily amount to the same amount of debt to credit card companies. In fact, 70 percent of college students have credit cards. Thirty-four percent have the seemingly-manageable one credit card, but 36 percent of college students have two or more.\nWhat Are College Students Using Their Credit Cards For, and How Often\n---------------------------------------------------------------------\nThough college students say they do use their credit cards for books and supplies, the vast majority do not report using their cards for tuition or room-and-board. Nearly half of college students say they only use their credit cards for emergencies. It may be assumed that the other half of credit card-using students charge food, clothes, entertainment, and other living expenses. As for frequency of use, 36 percent of college students use their cards fewer than five times per month, while 13 percent say they use their cards \"frequently.\"\nHabits of College Students on Their Credit Card Payments\n--------------------------------------------------------\nOnly a little more than 9 percent of college students say they pay off the balance on their credit cards each month. This spells trouble, as the vast majority of students don't know their interest rates and, in turn, don't know how much debt they are accumulating by carrying a balance from month-to-month.\nDo Demographics Make a Difference When it Comes to College Student Credit Card Use?\n-----------------------------------------------------------------------------------\nThere does seem to be some correlation between credit card literacy and the age, employment, and marital status of students. Younger students use their credit cards more often than older students. And students who are employed and\/or married exhibit greater financial literacy than their unemployed, single counterparts. Gender and degree major seem to make no difference.\nBottom line, ignorance contributes to the mis-management of credit cards among college students. Clearly credit card companies and schools of higher learning aren't going out of their way to help students master the ins-and-outs of smart credit card use. This seemingly leaves it up to parents to take the initiative to share their knowledge and experience with their college-bound kids. END

TITLE: Increased Credit Card Debt for College Students CONTENT: | | | | \n: . END

TITLE: Changes to FICO Score - Fair Isaac's Credit Scoring Model CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nFICO, which began as Fair Isaac and Company, was founded by engineer Bill Fair and mathematician Earl Isaac in 1956 to help department stores and gas stations decide when to extend in-house credit cards to customers. They sold their first credit scoring system two years later and then in 1967 FICO became a publicly traded company. The company was renamed in 2003 to Fair Isaac Corporation and then in 2009, rebranded itself as FICO. But what really is a FICO Score and how has it evolved since 1956? Let's take a look.\nWhat is a FICO Score?\n---------------------\nSince the creation of the first credit scoring model, FICO has become the benchmark of credit scoring used and copied by hundreds of other companies trying to break into the credit scoring market. FICO itself does offer many different types of scores that are customized for different industries, such as mortgages, auto loans, insurance, but they all use basically the same information to come up with a three digit score. This score is a number assigned to a consumer that attempts to summarize whether that person is worthy of receiving credit. Mortgage lenders, credit card issuers, car dealers and other lending businesses rely on credit scores to decide whether to extend credit, and if so, how much to charge in the form of interest.\nThe information used to come up with a FICO score is as follows:\n* Consumers' history of paying their debts on time.\n* How much of their available credit have they used.\n* How many different types of credit are they using.\n* Do they have a history of unpaid debts.\nUsing all of this information, the mathematical algorithm spits out a number, between 300 and 850, which predicts whether or not a person will pay their debts in the future. The higher the score, the more likely they are to pay their debts and they are considered to be a \"low risk\" borrower. The lower the score, the more likely they are to default on their loans, pay their debts late, or file bankruptcy, and these people are considered to be a \"high risk\" borrower.\nChanges in FICO Over the Years\n------------------------------\nSince it's first release, there have been minor updates to the FICO score algorithm every two to three years just to keep up with the changing economic environment and consumer behaviors. It was not until early 2009 that FICO released FICO 8 which, according to FICO spokesman Jason Sprenger, \"allowed FICO scientists for the first time to break the blueprint of our original FICO scoring algorithm and create a segmentation that rendered significantly more predictive credit scores than was possible before.\"\nSo, what prompted this radical overhaul of the classic FICO scoring model? The financial crash of 2008 prompted many consumers to drastically reduce their credit card debt which in turn affected the overall average credit utilization ratios. Also, studies found that a lot of people had medical debts that were erroneous which caused late payments and collections to appear more frequently in credit files.\nFICO 8 — What Has Changed?\n--------------------------\nA demand by users for a better way of analyzing risk in the wake of rising mortgage defaults and consumer credit delinquencies was the catalyst for Fair Isaac Company to release FICO 8. Here are just some of the improvements:\n* A moderate level of credit inquiries will be less detrimental.\n* High balances on existing credit cards may hurt your score more than before.\n* Authorized user loopholes will not be allowed.\n* Actively utilizing existing credit accounts will increase in importance.\n* A combination of installment and revolving credit accounts will be optimal.\n* The new model divides consumers into 16 categories, not the 10 as in the previous version, thus helping lenders fine-tune credit decisions.\n* FICO 8 goes easier on people who have missed payments on small debts under $100, which are often erroneous medical debts.\n### Is FICO 8 Being Used by All Lenders?\nSince it's release in early 2009, the answer to that question is \"no.\" As one journalist put it; \"Big ships don't spin on a dime.\" Large banks and lenders have not embraced the new scoring model due to the enormous cost of implementing a new program into their lending practices. In the case of Freddie Mac and Fannie Mae, the largest user of FICO scores, they have bigger fish to fry in the wake of the real estate bubble bursting. They are just trying to stay afloat and have no budget or desire to implement the new scoring model at this time.\nFICO did issue a press release back in June of 2011 touting the fact Citibank had implemented the new scoring model. Having made such a big deal about this makes one scratch their head and wonder, \"is this the only bank to have made the switch?\"  What happened to Chase, Bank of America and Wells Fargo? According to a spokeswoman for Bank of America; \"We're in the process of implementing the new scoring model but I wouldn't have any more details to share.\" Wow — talk about vague!\n### Future of FICO 8\nIf FICO 8 can help millions of people with small delinquencies improve their credit and help lenders make better decisions, it is a shame it has not been more widely implemented as of yet. The mortgage industry is still reeling from the real estate market bust and a lot of lenders simply feel that if the scoring model is not broken, why fix it.\nEven though implementation of FICO 8 is going very slowly — we are now going on 8 years since the release — more and more lenders are starting to adapt it. But will it really make that big of a difference to consumers? That is still yet to be seen. Until the scoring model is used and accepted in the mortgage industry, it's impact will be pretty nonexistent.\nIn the meantime, consumers need to concentrate on cleaning up their credit, paying their bills on time, and getting out of debt. That way, no matter what scoring model is being used their scores will be higher. END

TITLE: Checkout Fees for Credit Cards May Affect You CONTENT: Checkout Fee for Credit Card Payments \n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 17, 2017_\nIn what on the surface looked like a victory for merchants, allowing them to pass onto customers the processing fee being charged by banks every time we swipe our Visa and MasterCard credit cards at checkout.\nThat said, the law did little to significantly help merchants. In fact, it hurt those who chose to use the surcharge, as it was optional. In other words, customers who know to expect a credit card checkout fee from ABC merchant may choose to do business with XYZ merchant instead. The checkout fee could impact you so it's important to know what to expect, and why.\nWhat is a Checkout Fee?\n-----------------------\nA checkout fee is a surcharge that merchants can now legally charge customers who choose to pay using a credit card.\nWhat Gives Merchants the Right to Charge a Checkout Fee?\n--------------------------------------------------------\nIn July 2012, Visa and MasterCard reached a $7.2 billion settlement in which merchants were allowed to offset the cost of credit card processing fees (the fee charged merchants every time we swipe at the register) with a surcharge, or \"checkout fee,\" essentially passing the cost onto their customers.\nWhen Did the Checkout Fee Go Into Effect?\n-----------------------------------------\nJanuary 27, 2013\nHow Much is the Checkout Fee?\n-----------------------------\nIt varies, with merchants free to charge between 1.5 to 4 percent of your transaction. However, the amount charged cannot exceed the amount the merchant pays for processing the credit card payment.\nAre Merchants Required to Charge a Checkout Fee?\n------------------------------------------------\nNo, charging the checkout fee is optional.\nWill Most Merchants be Charging the Checkout Fee For Credit Card Transactions?\n------------------------------------------------------------------------------\nProbably not. Though they all have the right to do so, charging a surcharge for credit card use is not attractive to customers, for obvious reasons. Stores that bill themselves as having the best deals in town will probably opt out of the checkout fee option, like Walmart, Target and other big discount stores, as well as grocery stores.\nWhich Merchants Are Most Likely to Charge the Checkout Fee?\n-----------------------------------------------------------\nThe smaller the business, the more likely they will choose to charge a checkout fee for payment by credit card. Small mom-and-pops have a hard enough time making ends meet. The checkout fee helps them offset the cost of processing fees charged to them by the credit card companies every time we swipe our cards at their registers. Service providers may also be among those most likely to take advantage of the surcharge, such as your hairdresser or your dry cleaners.\nAre All Cards Subject to the Checkout Fee?\n------------------------------------------\nNo, American Express customers cannot be charged a checkout fee. Debit cards from all issuers are also exempt. The only cards subject to the surcharge are credit cards issued by Visa and MasterCard.\nHow Will I Know if I am Being Charged the Checkout Fee?\n-------------------------------------------------------\nAll merchants who plan to charge the checkout fee are required to post it plainly at checkout, or in their online store. If you are not paying at a traditional \"checkout\" or online, then the merchant should be legally obligated to otherwise notify you of the surcharge.\nIs the Checkout Fee Nationwide?\n-------------------------------\nNo, there are states where no surcharge law protect consumers and prohibit merchants from charging the checkout fee to customers who use their credit cards. You need not worry about the surcharge in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas, and Utah. END

TITLE: No Credit Score - New Credit Scoring Model CONTENT: New Scoring Model Aimed at Those With No Credit Score\n-----------------------------------------------------\n###### Written by: Kristy Welsh\nGetting a loan, credit card, or even a cell phone is predicated on your credit score. It seems that your entire life revolves around that magical 3-digit score. But what if you don't have a credit score? According to a recent survey, over 60 million people do not have a credit score, which means these people can not take advantage of using and applying for lines of credit. Scoring companies see this trend and are feeling the need to adjust the way they evaluate these types of consumers. If you are person who does not have a credit score, read on to find out more about this new credit scoring model and if it will help you.\nIntroducing CreditVision Link\n-----------------------------\nCredit reporting agency giant, TransUnion, recently announced a new credit scoring model that is says will score 95 percent of the adult population with as little as a consumer's address and their checking account information. This new scoring model, called _CreditVision Link_, it the latest using what the industry calls \"alternative data\" information which is not factored into traditional scores, such as FICO. Using this type of data, CreditVision Link is able to give risk scores to 60 million people who do not have a credit score using the traditional scoring models.\nHow CreditVision Link Works\n---------------------------\nCreditVision Link analyzes a person's personal information and financial accounts. To be scored, you must have a verifiable address and one trade line. The trade line can be a checking account or something as simple as a magazine subscription. The following items are also evaluated to come up with your score:\n* Tax and deed records\n* Checking and debit accounts\n* PayDay loans\n* Furniture rental payments\n* Address changes\nTransUnion found that by looking at these alternative items, consumers who would have been categorized as sub-prime borrowers could now be classified as prime borrowers. Thus improving their access to credit and better interest rates.\nAs far as checking account behavior, CreditVision Link gives weight to someone who does not bounce checks and has not had an account closed by their financial institution. Changes in addresses is also evaluated. People who do not move frequently (more than once a year) are seen as better credit risks. These are both areas not looked at by FICO or other traditional scoring models used by lenders.\nWho is Using CreditVision Link \n-------------------------------\nAs with any new scoring model, the million dollar question is who is using this to evaluate credit worthiness? TransUnion would not disclose the names of creditors with which it tested the model but said its target is large-scale lenders that already have sophisticated systems in place. CreditVision Link would be used to supplement their processes with the aim of expanding their lending portfolio to those traditionally un-scoreable consumers.\nAs stated by TransUnion's senior vice president of alternative data services Mike Mondelli, \"CreditVision Link is intended to be a supplement to traditional scoring models, not a replacement.\" Consumers can request their CreditVision Link alternative data report, but the score itself isn’t available for purchase.\nThere are a lot of credit scores out there, and you never know which one your creditors might use to review you, so it helps to check your scores regularly to get an idea of where your credit stands. You can get your free credit reports once a year from AnnualCreditReport.com or you can check out our list of recommended credit report companies. If you are one of the millions who do not have a credit score, CreditVision Link can help you apply and get approved for credit.\nHaving said that, our advice is for you to start to build up your credit and establish a credit score. Our site is loaded with information on just how to do that with hundreds of informative articles. Might we also suggest visiting our discussion boards where you can get excellent advice for free. END

TITLE: CFPB Online Credit Card Complaint Database CONTENT: How to Find Credit Card Complaints On-Line\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nThe Consumer Financial Protection Bureau (CFPB) offers an on-line database where consumers can search for complaints against credit card companies. This new database can be searched via name of credit card company, type of complaint, or by a customer's zip code. Having their dirty laundry aired out for all to see does not make the banking institutions very happy and the banks are claiming this data can be misleading and only represents a small fraction of the credit card accounts currently issued.\nWhat Does This Database Reveal?\n-------------------------------\nEven though banks contend the information found in this database is not being verified for accuracy, the information does shows what type of complaint was filed, against who, and what was the outcome of the complaint. Did the bank resolve it in a timely manner - within 60 days - and was there any monetary relief awarded to the consumer.\nWhen the CFPB receives a complaint from a consumer, it verifies this information with the credit card company and with the person who filed the complaint. The agency also checks that is has jurisdiction over the institution in question. Once this has been all verified, it will then post this information to this online database.\nHave There Been Complaints Since the Online Database Went Live?\n---------------------------------------------------------------\nSince the CFPB began receiving complaints on July 21, 2011, it has received almost 17,000 credit card complaints, 19,000 mortgage complaints, 6,500 bank products and services complaints, and over 1,000 student loan complaints. The majority of the credit card complaints have to do with billing disputes. The second highest source of complaints come from consumers not being able to challenge inaccuracies on their billing statements.\nWhat Does This Database Mean for Consumers\n------------------------------------------\nNo longer will consumer complaints only be known to the individual banks and to those willing to pursue this information through the Freedom of Information Act. Instead, this data-rich resource will be available to everyone thus improving the \"transparency\" and \"efficiency\" of the credit card market to further empower the American consumer.\nThis database will not include personal information such as a consumer's name, credit card number, or mailing address. It will simply name the institution of which the complaint has been made, what was the complaint, and how it was resolved.\nWhat Happens When a Consumer Files a Complaint?\n-----------------------------------------------\nWhen a consumer files a complaint, Consumer Response intake specialists review each one for completeness, jurisdiction, and non-duplication. Complaints that meet these criteria are then forwarded to the appropriate company (bank or nonbank) for review and resolution. Companies are given 15 days to provide a substantive response to each consumer complaint, and are expected to resolve and close all but the most complicated complaints within 60 days.\nConsumer Response prioritizes for investigation certain complaints based on a handful of risk-based criteria including the failure of a company to respond in a timely manner and those in which the consumer disputes the company-provided resolution. When potential legal violations are detected, Consumer Response works closely with other parts of the Bureau including the offices of Supervision, Enforcement, and Fair Lending to ensure potential violations are dealt with appropriately.\nThroughout this process, consumers have the ability to log into the CFPB's website to check the status of their complaint (and, when appropriate, dispute the resolution provided by the financial institution).\nHow is This Database Working Out?\n---------------------------------\nThe Consumer Complaint Database has collected over 579,000 complaints since its inception, on a range of consumer financial products and services. Since they started accepting complaints in July 2011, they’ve helped consumers connect with financial companies to understand issues with their mortgages, fix errors on their credit reports, stop unlawful calls from debt collectors, and get direct responses about problems with their credit cards, bank accounts, private student loans, and more. They analyze the data to identify trends and problems in the marketplace, enforcing federal consumer financial laws and writing rules and regulations. They publish reports on complaints and share information with state and federal agencies.\nTell Them What You Think\n------------------------\nThe CFPB is encouraging consumers to give them feedback on what you think of this new database and would like comments and suggestions on making the functionality better. If you have a had a chance to look it over, you can fill out a comment form and offer your suggestions. END

TITLE: Is Credit Card Reform Helping Credit Card Holders? CONTENT: Credit Card Reform Act of 2009 - Is It Working?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nSince the enactment of the Credit Card Act of 2009 back in February of 2010, are credit card holders really better off? Studies show confusion still lingers and questions still abound regarding terms of the card deals, how cards are marketed, billed, and regulated in the United States. Gone are the surprise interest-rate hikes, shifting due dates for monthly payments and sky-high fees for minor infractions.\nCredit Card Industry Survey\n---------------------------\nDuring a conference in Washington, D.C., the Consumer Financial Protection Bureau says the law is working and they released the results of the first government analysis of the CARD Act's impact. According to Elizabeth Warren, the bureau's acting director at that time, \"One year after the CARD Act took effect, we think it is appropriate to ask whether it has had its intended effects and how the credit card marketplace has changed.\" The conference, called \"The CARD Act: One Year Later\", focused on what has changed since the law took effect, what those changes mean for consumers, credit card issuers and the market, and what still needs to be done to improve consumers' ability to compare credit card products and fully understand their terms.\nThe CFPB conducted voluntary surveys of the nine largest credit card issuers, representing 90 percent of the credit cards issued in the United States. The Office of the Comptroller of the Currency also conducted surveys of credit card pricing practices and the bureau polled consumers about their experiences since the new regulations took effect. Among the findings released in the fact sheet:\n* Surprise interest rate hikes on existing credit card balances have been significantly curtailed, from 15 to just 2 percent today.\n* Late fees have been substantially reduced.\n* Over-limit fees, once common in the industry, have virtually disappeared.\n* Consumers say their credit card costs are clearer but terms are still confusing.\nWhat Do the Banks Think About the Reform?\n-----------------------------------------\nBankers say the law is beneficial to consumers but those benefits come with a cost. The day before the bureau's credit card conference, Bank of America, the second-largest issuer of credit cards, made clear the act's cost. The bank issued a statement saying that its credit card division's bottom line was affected by the CARD Act regulations, and that it had to adjust its 2009 financial statements to reflect a $20.3 billion write-down due to \"deteriorating credit quality and the adverse impact from The CARD Act on Bank of America's credit card operations.\"\nHowever, Warren also noted that the year saw some card issuers focusing their efforts on skirting the new card law by finding loopholes or creating new services that weren't specifically banned by the law. \"As soon as the CARD Act became law, it seems that some industry lawyers were asked to find slightly different ways to accomplish that which the legislation was intended to outlaw. To its credit, the Federal Reserve Board responded with a rule-making proceeding designed to close the loopholes.\" Warren said that continually writing new rules to cover every potential industry practice was costly for consumers and the industry, especially small banks and credit unions.\nThe Costs of the CARD Act\n-------------------------\nSo, to get a true reading on the impact of this law, it was necessary to go back to late 2008 for a look at how things were before the CARD Act started to change things. To do this, CardRatings.com compared terms on roughly 500 credit card offers from late 2008 and late 2011, and found the following impacts that may be attributed to the CARD Act:\n* **Higher Interest Rates.** From the end of 2008 to 2011, the prime bank rate was unchanged but credit card rates rose by an average of 2.1 percent. Based on roughly $600 billion in outstanding U.S. debt, a 2.1 percent increase translates to an annual consumer cost of $16.8 billion.\n* **Heavier Burden on Customers with Poor Credit.** The CARD act was suppose to protect consumers with credit problems. But instead of lowering the interest rates on subprime cards, the market actually saw an increase of 3.4 percent from 2008 to 2011.\n* **Ballooning Balance Transfer Fees.** Balance transfer fees also have risen over the past five years from 2.1 to 3.3 percent - costing consumers an additional $120 on a $10,000 balance transfer.\nBenefits of the CARD Act\n------------------------\nWe don't want to focus entirely on the negative aspects of this new credit card reform act. There have been some benefits as well:\n* Fewer Late Fees\n* Fewer Over-the-Limit Fees\n* Lower Over-the-Limit Fees\nAt this point, it is impossible to tell how much the lower fees in some areas are counteracted by higher fees in others as a result of the CARD Act, but the 800-pound gorilla is the $16.8 billion added annual cost due to higher interest rates. But, one thing the CARD Act has done is shift the way the cost burden is distributed among cardholders. By protecting cardholders who are late with payments or have credit problems, the CARD Act seems to have caused cardholders to pay higher interest rates.\nThe consistent theme is that when regulators micromanage the banking business to benefit certain customers, the outcome seems to be higher costs for everyone. END

TITLE: Is Credit Card Reform Helping Credit Card Holders? CONTENT: ### Useful Links\n* FREE Credit Repair Letters\n* How to Settle Your Debts\n* Understanding Debt Validation\n* What's the Statute of Limitations on Debt\n* Order Your Credit Reports\n* FREE Bankruptcy Evaluation\n### Latest Blog Posts\n* Affirmative Defenses That Don’t Work\n* New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n* How Will Unemployment Affect My Credit? END

TITLE: Is Credit Card Reform Helping Credit Card Holders? CONTENT: | | | | \n: . END

TITLE: Increased Debit Cards Fees Paid by Merchants CONTENT: Debit Card Fees — New Tide in Merchant Fees\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nUsing a debit card to pay for groceries or gas has become a way of life for most Americans. A debit card, also known as a bank card or check card, provides the cardholder electronic access to his or her bank account and is an easy alternative to paying for things with cash. The use of debit cards is so widespread that you rarely ever see anyone writing a check at the check out counter. But this convenience does come at a price.\nStatistics on Debit Card Use\n----------------------------\nAccording to a recent study released by the Census Bureau, it is estimated that there were roughly 52 million debit card swipes in 2014 with an estimated 191 million card holders. Some other debit card statistics:\n* Nearly 80 percent of consumers under 30 years old use a debit card compared to 43 percent of consumers over 60 years of age.\n* In 2014, total purchases using a debit card was over $2 TRILLION.\n* Debit card usage grew 23 percent from 2012 to 2014.\nDebit Card Fees Charged to Merchants\n------------------------------------\nThough the average consumer is vaguely aware of this, merchants pay a fee when a consumer uses a debt or credit card. At one point in time, the average fee was 33 cents for a signature transaction and 26 cents for a PIN transaction. These fees were paid by the merchant to the bank or credit card company that issued that particular debit card. So of course, this fee is passed along to the consumer in the way of higher prices for goods and services.\nRecently, in response to a declining economy, the government made some changes designed to help the small business owner lessen their cost of doing business and give the owner more money to use to hire workers.\nChanges to Debit Card Swipe Fees\n--------------------------------\nIn response to the recession of 2008, President Obama signed into law the \"Dodd-Frank Wall Street Reform and Consumer Protection Act\" on July 12, 2010. Contained in this act is language which would put a cap on the fees banks and credit card companies can charge on debit card swipes. After much debate and stonewalling, the Senate finally voted in favor of the Federal Reserve caping the fees that stores must pay banks each time a customer swipes a debit card to 12 cents per swipe.\nWhat Does Caping the Fees Mean to Merchants?\n--------------------------------------------\nPutting a cap on swipe fees at 12 cents, means more money in the long run for merchants. Take for example an owner of a 7-11 store in Quincey, MA who now pays $7,000 to $10,000 annually in swipe fees. This amount will be cut down to $2,000 to $5,000 a year. That is a tremendous savings for a business owner which could equate to higher salaries, new employee hires, and cheaper prices.\nWhat Does Caping the Fees Mean to Banks?\n----------------------------------------\nSuffice it to say, the banking industry was pulling out all the stops prior to this Senate vote. Lobbyists were in full force working both sides of the isle trying to convince them to vote against this measure. Why? Because this fee cut stands to loose them billions of dollars annually! Currently, banks make about $16.9 BILLION a year in fees. Under this new law, banks stand to **LOSE** $12 BILLION a year - do you feel bad for them? \nPossible Response to the Fee Cuts\n---------------------------------\nSure, the merchants will save money by paying less in swipe fees, but now what are the banks going to do to make up for this loss in revenue? Don't think they are just going to say, \"Oh well, I guess we can do without that extra income.\" Fat chance of that happening! The banks are already skeeming on how they can recoup this loss and who they are going to hit up for it.\nAnd of course, it comes right back down to the consumer. Prior to the Senate vote, the banking industry was claiming they are going to have to make up for this loss in revenue by charging more for checking accounts, savings accounts, and in general, hiking up their already inflated banking fees. So basically, will the consumer actually win at all? They may pay less for that pack of gum, but then they will have to pay more to have a checking or savings account. END

TITLE: Using Insurance Credit Score for Underwriting and Rates CONTENT: Do You Know Your Insurance Credit Score?\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf there weren't already hundreds of credit scoring models, your insurance credit score is another alternative credit score being used to evaluate your credit history. Insurance credit scores are used by insurance companies to determine the risk of issuing you some sort of insurance policy. An insurance credit score is similar to a credit score, wherein it is based on the same credit report information, but it is just calculated differently and there are separate scores for auto and property insurance. This score is used to determine your rates and detect possible claims fraud.\nGeneric Insurance Credit Scores\n-------------------------------\nThere are two primary types of insurance scores, generic and custom. FICO and LexisNexis have built the most commonly used generic insurance scoring models available to consumers and insurance companies. The score is based on the Equifax credit report and there are two scores: _Attract Home Insurance Score_ and _Attract Auto Insurance Score_.\nTransUnion also developed a generic insurance score called the _TransUnion Insurance Risk Score_ which uses the TransUnion credit report. There are two versions available: _Home Score_ and _Auto Score_. These are available to both consumers and insurance companies to see.\nThere are also generic insurance scores not available to consumers but only to the insurance industry. These are _InScore_, which is an Experian version, _FICO Insurance Score_, and a _FICO Insurance Risk Score_.\nCustom Insurance Credit Scores\n------------------------------\nCustom insurance scores are developed by insurance companies by a third party using the insurance company's data and developed solely for their use. These scores are more predictive for the individual company since it is tailored for them. Most of the large insurance companies develop their own custom scores.\nInsurance Credit Scores — Are They Legal?\n-----------------------------------------\nMany states prohibit the use of your credit report by the insurance industry for setting rates or fees. The changes in this arena are constant so it is best if you check the statutes in your state to see if your state allows this or not. When FICO first rolled out their insurance score algorithm, everyone was on board. As the years have gone by, more and more lawsuits have been brought against insurers and more and more insurers dropped the use of this score to determine rates and whether or not they would issue someone a policy.\nWhere allowed by law, insurance companies can use your credit report to calculate your insurance score when you apply for insurance. They will check your credit every time you apply for say, life insurance, and they may check it again every time your policy is up for renewal. The people who look at your insurance score can be:\n* an insurance broker,\n* an insurance underwriter,\n* and you.\nMany states now restrict how your credit report is used, and therefore your insurance score, can be used in the underwriting and rate-making process. In addition, many states require insurers to notify you when they obtain your credit report.\nDo Insurance Scores Work?\n-------------------------\nAccording to a lot of the bean counters, your credit report data can predict whether or not you will file a claim on your auto or property insurance policy. They contend that if you are careless in the handling of your finances, you may be the same way with the way your drive your car, take care of your home, or take care of your health. Regardless of why it is predictive, it has been proven to be, in fact, predictive.\nThe use of insurance scores to determine rates and whether or not to issue you an insurance policy, has been an ongoing battle between consumer groups, politician and the insurance industry. The Federal Trade Commission (FTC) filed a report titled, \"Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance.\" The results of their study were that credit-based insurance scores were in fact effective predictors of risk in insurance policies, and were predictive of the number of claims a consumer would file. Bottom line, the FTC felt using insurance credit scores would assist the insurance companies in making decisions faster and cheaper thus passing this savings on to its customers.\nMost state legislatures feel credit should not be tied to insurance rates, fees, underwriting or issuing policies. Some states in fact restrict the using credit reports as the sole tool to assess risk and whether or not an insurer can deny someone an insurance policy.\nWe are sure this debate will go on for years to come. Your best bet is to make sure your credit report is in good shape and check your state's statutes to see if they allow insurance companies to pull your credit before issuing you an insurance policy. END

TITLE: Bad Credit Causes Higher Insurance Premiums CONTENT: Having Bad Credit Can Increase the Cost of Insurance \n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nHaving bad credit not only makes applying for a credit card difficult, it may also increase your insurance premiums. Having a low credit score shows lenders and insurance companies that you have a habit of defaulting on payments or you have bad spending habits, which puts them at risk. Because of this risk you may be penalized by having to pay higher than normal interest rates or you may be denied financing altogether. This is no different when obtaining insurance quotes. Automobile insurance, homeowners insurance, and life Insurance quotes are all affected by bad credit and low credit scores.\nAutomobile Insurance \n---------------------\nA bad credit score won't just increase the cost of your car loan, it will probably jack up your car insurance premiums as well. More than 90 percent of insurance companies consider credit history as one of the factors when setting car insurance rates. Almost all states let insurers do this except for California, Hawaii and Massachusetts, which ban the practice. Insurers say there is a connection between credit history and the filing of claims. People who pay their bills on time, file fewer and less costly claims than those with a lot of late payments or delinquencies. Insurance companies don't consider the same credit score that lenders do, they look at a score designed specifically for them — the Insurance Score.\nNationwide, the average difference in rates between good credit and fair was 17 percent. The difference between good credit and poor credit was 67 percent. The use of credit for setting auto insurance premiums is controversial. Some consumer advocates say it unfairly penalizes people with low incomes or those who have job losses and these are the people who need cheap auto insurance the most.\nHomeowners Insurance\n--------------------\nYou are probably already paying more for homeowners insurance if your home is near the ocean or in a fire-prone forest. But something else may be driving your insurance premiums even higher — your credit score. We know lower credit scores impact mortgage rates but what most homebuyers don't know is that a low credit score may also increase the cost of homeowners insurance.\nAs millions of Americans are still rebuilding their credit, younger potential home buyers are just building their credit for the first time. The widely use FICO credit score is used by about 85 percent of home insurers; three states, however — California, Massachusetts and Maryland prohibit insurers from using credit scores in their insurance calculations.\nAccording to a recent article, a spokeswoman for State Farm Insurance was quoted as saying, \"There is an undeniable correlation between credit information and insurance risk. It is a correlation in terms of the frequency a person could have a claim and the severity of their claim.\" She went on to say that State Farm does not look at the entire credit score, but just aspects of it to determine someone's rate. She could not provide information as to what scores correlate to specific increases or decreases in insurance rates.\nLife Insurance\n--------------\nWill a life insurance company charge higher premiums if you have bad credit? The answer we have found is: it depends.\nAfter doing some research, credit is less of an issue when it comes to life insurance than it is with other types of insurance coverage. And it certainly doesn’t come close to the impact that it has when you are applying for either a job or a loan.\nExactly how bad credit will affect you getting a life insurance policy, depends on the life insurance company that you are applying to. For most, bad credit will not be an important factor. Some companies will assess a slightly higher premium, for reasons similar to why an auto insurance company might.\nThe biggest thing these companies look at is what kind of work that you do because certain occupations are considered to be more hazardous than others. If in the course of investigating your employment they learn that you are either unemployed, or have a history of spotty employment, they may pull and review your credit report as a way of getting a clearer view of your overall financial picture. While your credit quality itself is unlikely to be reason for decline, or even for an increase in premium, it will be a corroborating factor in determining your overall insurability.\nThe bottom line is if you have bad credit, getting insurance is going to cost you more. When buying a car, not only will you pay a higher interest rate but your insurance premium will be higher as well. Same holds true for buying a house. Our best advice to you is to clean up your credit first, before you buy a car, house or life insurance. That way you know you will be getting the best deal possible and not paying more for your insurance premiums. END

TITLE: Future of Credit Card Industry CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nThe more you know about credit, the better you can use it to your advantage. While that certainly applies to the credit repair and credit rebuilding process, you can add that knowledge to the credit card industry. Here's what credit card issuers are planning relevant to credit card offers, targeted marketing, new products, and security enhancements. Besides following your purchases so they can use their marketing techniques on you, credit card companies are also trying to come up with ways to make your purchases more secure and reduce fraud. That comes at the heels of some major security breaches exploited by Target and Neiman Marcus where millions of credit card numbers were stolen. See what changes the credit card industry has in store for you and your card in the years to come.\nCredit Card Data Tracking\n-------------------------\nIt's no surprise banks have a load of information on their credit card customers. What is surprising is that they haven't already made the most of it. In the future, expect to receive targeted offers on products and services based on what credit card companies know about your interests via your spending habits.\nTargeting Mobile Devices\n------------------------\nWhat's better than knowing what you like to buy? Knowing where you are at any given time so as to offer your deals on products and services just a hop-skip-and-a-jump away. In the future, expect credit card companies to utilize location tracking to create real-time deals too good to pass up.\nSocial Media Marketing\n----------------------\nThough you may still see credit card offers in your mailbox now and then, overall, direct marketing campaigns are winding down as social media marketing takes off. If you're on Facebook, you're well aware of the ads uniquely targeted to you based on the things you \"like\" and post about on the site. Presumably, credit card offers will make the most of this and other social media marketing platforms.\nNew Products for the Unbanked and Underbanked\n---------------------------------------------\nWe warn readers all the time about the predatory lending practices of payday and title loan companies. Yet people succumb to them because they simply have no other means of acquiring credit. There are millions more who not only have no credit cards, but no checking or savings accounts either. Banks evidently feel their pain (i.e., see an untapped market ripe for profit). In the future, expect banks to offer products tailored to the needs of the unbanked and underbanked demographic.\nBudgeting Tools\n---------------\nWhen you think about the impact of using your credit card, you likely think of spending money. But, if you're a savvy credit card user, you also think of all the good your responsible credit card use is doing your credit score. Now how about adding another perk to the equation? In the future, expect credit card issuers to enhance their credit card services with tools that can help you budget better. After all, the smarter you are with your money, the easier it is to pay your credit card bills - good news for banks as the more customers they have in good standing using their cards every month, the fewer customers they have defaulting and going into collection and charge-off status.\nEMV Technology\n--------------\nEvery time you swipe your magnetic strip credit card, you run the risk of fraud. Though hidden from sight, the information on that magnetic strip can easily be seen by fraudulent credit card copying devices. This type of security risk was exposed over a busy 2013 Christmas holiday when Target and Neiman Marcus computers were hacked and millions of credit card numbers were stolen.\nAs a response to this security breach, credit cards are now being embedded with EMV chips that cannot be copied. This is already standard most of the world but has been slow-going in the U.S. Though Visa and MasterCard are pushing hard for adoption of the technology, ATM owners and vendors are resisting as the upgrade to EMV readers is an expensive one. Since October 2015, merchants in the U.S. have been required by law to have upgraded to EMV technology.\nOf course, the more things change, the more they stay the same. In the future, expect to continue to be vigilant in protecting your credit card information. END

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