Several Changes in Credit Card Laws Bring Relief to Credit Cardholders

The Credit Cardholder's Bill of Rights of 2009 makes some significant changes in the way your credit card issuer treats your account. Among other things, the law puts an end to double-cycle billing, gives you more time to pay, and imposes fairer payment allocation.

You may not have been aware that the double-billing cycle was costing you money each month. In most cases, it didn't amount to a lot of dollars, but spread over millions of cardholders, it was an income-booster for credit card issuers. Under this practice, finance charges were imposed on the average balance of both the current month and the previous month. So you paid interest on dollars you no longer owed. This could be significant if you'd made a large payment the previous month.

Under the new law, banks will not be allowed to charge interest on debt already paid.

Another provision, which goes into effect this August, will require card issuers to mail their statements 21 days before a payment is due. The current requirement to mail 14 days before the due date has caused many consumers to incur late payment fees. Cardholders could either mail the payment and hope for the best, or pay a fee to make a payment by phone or internet.

Many credit card issuers charge as much as $15 to take a payment over the phone or on line. (Some do offer free on-line payments.) Under the new law, banks will only be allowed to charge those fees if you are asking for an "expedited payment." Also, if you make a payment at a local bank branch, they will be required to post that payment the same day it was made.

Credit cardholders get a huge break due to the new payment allocation rules. Right now, when your account shows balances at different interest rates, your bank automatically applies all of your payments to the balance carrying the lowest interest rate. You may have charged a $200 purchase that gathers interest at 29.9%, but you can't pay it off because you used a $3,000 cash advance check that was offered to you at 4.9%. Before you can "get to" the $200 purchase, you have to pay off the entire cash advance.

No more - when the new laws go into effect, all amounts in excess of your minimum monthly payment will be applied to the balance with the highest rate of interest.

Author:Marte Cliff

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Credit Card Fee Restrictions Under the New Law

Fees make up a large part of a credit card issuer's revenue, but that source will be shrinking when the Credit Cardholder's Bill of Rights laws go into effect.

For instance, under the new law you can opt out of the privilege to go over your credit limit. Only if you elect to allow your creditor to approve overlimit transactions, will you be charged the overlimit fee.

Another change is that your credit card issuer will be limited to charging one overlimit fee per billing cycle. So if you make several transactions before realizing you've over spent, you can't be charged a separate fee for each transaction.

Credit card issuers will also be prevented from charging consumers a fee to pay their credit card debt via telephone or internet. At present, some card issuers charge as much as $15 to accept a payment over the phone. You do need to watch the fine print on this one, because they will be allowed to charge a fee for expedited payments. You may still need to pay a day or two prior to your due date.

Payments received on the due date, or on the next day if the card issuer doesn't accept payments on the due date, will no longer trigger a late fee. At present, paying on the correct day isn't always enough - you may also need to pay before a certain time of day.

If the cardholder pays at a local bank branch, the payments must be credited the same day.

Under the new law, consumers will also have more time to receive a bill and return the payment. Present law requires the issuer to mail a statement 14 days before payment is due - which often means it doesn't reach the consumer in time for a payment by return mail to post on time. The new laws requires 21 days.

The new law also sets limits on "fee-harvester" subprime cards. These cards typically have a credit limit of $250 to $500, and are issued to people who can't get a standard card, but feel they must have a card in case of emergency. Unfortunately, the fees can sometimes leave cardholders with a hefty bill, and hardly any credit limit to use in an emergency.

In one example, a card featured a $250 credit limit, but new cardholders were automatically hit with a $95 program fee, a $29 account set-up fee, a $48 annual fee and a $6 monthly participation fee. That's $178 in instant debt, and only $72 in actual credit. On top of that, because Federal laws preempt state laws, the card issuer has no limit on the interest rate it can charge on this balance.

Under the new law, during the first year after the card is issued, such fees may not exceed 25% of the cardholder's initial credit limit.

Author:Marte Cliff

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Your Credit Card Issuer May Consider You a "Deadbeat"

Credit card issuers don't make it easy for us to know the right things to do to keep our good reputation with them. In fact, trying to navigate through all the advice we get can make us feel like doing a Yale Jashan Bhangra Dance! If you haven't seen the Bhangra dance, it's a bit on the wild side.

Take, for instance, the fact that your credit card issuer may have you labeled as a "deadbeat." Why? Because you pay your bill in full, never go over limit, and never pay late fees. In fact, because your credit rating and your FICO scores are excellent!

Why do those actions turn you into a deadbeat? Because they aren't making enough money from you, that's why! They want you to carry a balance so they'll earn interest each month. And they don't mind at all if you pay a day or so late so they get to tack on a nice fee. Going over the limit is fine, too, because it also carries a fee.

Because you don't do those things, they may be lowering your credit limits, raising your interest rates, and canceling your unused cards. Those actions, of course, will lower your FICO scores.

You've probably heard that the "Credit Cardholders Bill of Rights" is going to put a stop to many of the consumer-unfriendly practices used by credit card issuers. It is. When the new laws go into effect in February 2010, many of those practices will be forbidden.

But since the card issuers stand to lose billions in profits as a result, they're looking to their most creditworthy customers to take up the slack. Experts are predicting that card issuers will now begin routinely charge annual fees even to their "best customers."

"Best customers," by the way, are those who carry a balance. Typically, they're consumers who charge a few thousand for a major purchase every few months, pay it down, and then start all over again.

Grace periods may also be phased out, so that if you're a "deadbeat" you'll begin paying interest from the day of your purchase. As a result, many will abandon credit card use in spite of the convenience and bookkeeping benefits.

If you'd rather keep your life in order - and make your life more akin to a Foundation Showdance than a wild and crazy Yale Jashan Bhangra - take control now.

If you do carry a balance, begin paying it down. Spend your rewards credits before they fade into the sunset, and try to maintain your credit scores by keeping all credit card accounts open. You may be able to do so by charging a small amount at least once per quarter. Remember that the more available and unused credit you have, the better your credit rating, so if you can get your credit limits increased, do so.

Author: Mike Clover
CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Credit Card Loss Not Damaging to Credit Scores

By now you know your credit score will suffer if you close a credit card account, but what about those times when your account must be closed because your card was lost or stolen - or because of an incident such as the Heartland Payment System's security breach?

Don't worry - this action won't affect your credit scores at all.

When an account is closed due to one of these causes, your credit card issuer will close your account and transfer all of your information to a new account, which is opened simultaneously. This includes your payment history, the date your account was opened, and your interest rate and credit limit.

The card issuer may report this to the credit bureaus as one closed account and one new account with identical information, or they may simply report a change in account numbers.

Either way, as long as your history remains with the new account, it won't affect your credit score. Remember the length of time you've had a credit card does affect your scores. The other reason why this action has no effect is that it doesn't trigger a hard inquiry.

A change that can affect your credit score is a user-generated upgrade to a currently held credit card. This generally results in the closing of one account and the opening of a completely new account. Since your history is then lost, this move may harm your scores.

With this in mind, it might be wise to research credit card offers and apply for a completely different card - while keeping the old card and retaining the history and the credit limit you have established.

Additionally, when you ask for an upgrade you are generally asking for a credit line increase, and this generates a hard inquiry into your credit report. As you know, the more hard inquiries are made, the lower your scores. The good news is, if you are granted the higher credit limit, the additional available unused credit will offset the damage done by the inquiry.

When the upgrade is credit card issuer generated, it is the result of their own soft inquiry, and won't affect your scores.

Before asking for a credit card upgrade or making application for a new card, check your own credit scores. Then research the cards and programs available to make sure that your current scores will qualify you for the card you want.

If they won't, then work at raising your scores before you make an application. That hard inquiry that's turned down will set you back in your efforts to raise the score.

Author:Marte Cliff

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Does an Unactivated Credit Card Show on Your Credit Report?

That depends upon the policies the card issuer has. American Express, for example, says they report new credit card accounts one billing cycle after the application was approved - regardless of whether the card was activated.

Your application for the card will always show up - and will remain for 2 years. However, it will only be factored into your credit score for one year.

Once a credit card account has been approved and reported to FICO, it will show on your credit report as an active account until it is closed. Your non-use of the card is only considered as a part of your overall debt to available credit ratio.

Credit card Adviser Leslie McFadden at Bankrate.com advises that canceling a card after the issuer reports it could negatively affect your credit score. If you cancel before it is reported, it will have no affect.

Thus, if you made application for one card but received another - and you don't want the card you were issued, you should cancel immediately. This is not unusual in today's credit climate. Credit card issuers hoping to attract card holders with high FICO scores advertise low rates and high credit lines, but often issue cards bearing high rates and low credit lines after reviewing an application.

While this will upset you - it shouldn't make you feel less worthy. Almost everyone is seeing their FICO scores decline due to the actions that card issuers are taking today.

Shrinking credit lines means card holders who once had a 30% debt to available credit ratio now have an 80 or 90% ratio. Closing unused accounts has the same effect. Card issuers are doing both, and it is affecting people who once had enviable FICO scores.

Should you receive a card in the mail that you know you didn't ask for, and that isn't merely a replacement of a card you carry that is expiring, you should contact the issuer immediately to cancel it.

You probably won't be able to get much information over the phone about who initiated the request - or when or where. So your next step should be to order a copy of your credit report. That unsolicited card could be a sign of identity theft, so look for any other suspicious activity, especially signs that you have a new address or have made application for other credit.

Author:Marte Cliff
CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news

Social Lending an Alternative to Credit Cards

For years, credit card issuers aggressively pursued new borrowers and urged old borrowers to charge more. Mailboxes across the country were filled with new offers, introductory rates, and rewards for getting those cards out of wallets and into use.

Each issuer tried to outdo the other with promises of low rates on balance transfers and ever higher credit limits. Then, the financial crisis reared its ugly head and those card issuers began to face larger and larger losses.

The past few months have seen major credit card issuers pull back on new credit cards, lower credit limits, raise interest rates, and close accounts – even for their most creditworthy borrowers.

Now a new breed of lender is offering to step in where credit card companies fear to tread. This new breed is called the Social Lender. This is peer-to-peer lending, where the lender often has a choice over who will use his or her money.

Lenders working through Kiva.org, for instance, might choose to lend $500 to a start up entrepreneur for the purchase of equipment. Since 2005, Kiva members have lent more than $58 million to more than 83,000 entrepreneurs. In years past, most were in developing countries, but now Kiva also lends in the U.S.

Pertuity Direct is the newest entrant in social lending. Investors place their funds in a mutual fund operated by National Retail bank. Borrowers seeking to use those funds apply through the website for a fixed-rate, fixed-payment loan – generally payable within 1 to 3 years. The minimum credit score required is 660 and interest rates are as low as 9.6%. Approval is almost instant, and money can be in the borrowers' hands within 1 or 2 days.

Some social lending sites will accept lenders who wish to invest a mere $20 – giving almost anyone the opportunity to invest.

Some social lending is directly modeled after sites such as Facebook and eBay. Prosper, for example, lists loan requests ranging from debt consolidation to moving expenses. Lenders can then choose which loans they'd like to fund, and bid on those loans at interest rates and terms they’re willing to accept.

Lending Club gets even closer to the social networking model - allowing its borrowers to find potential lenders based on their location, their “network” or their “friend” status.

Social lending now also extends to student loans, which were at first excluded because of the short pay-back term. Lenders do recommend that students first apply for federal loans, and use private lenders as a fall-back option.

Several companies are participating, but the main contenders in the student loan arena are GreenNote, Zopa, and Fynanz.

GreenNote relies on the same kind of social networking as Facebook – and loans are transacted between people who are "friends."

Zopa follows a CD model and relies heavily on partnerships with credit unions.

While Fynaz does set a bare minimum FICO score for borrowers, it relies more heavily on the “Fynanz Academic Credit Score,” which rates a student's GPA, his or her course of study and the educational institution’s profile.

Online Banking Report has predicted that social lending will reach approximately $130 million this year.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Credit Usage is on the Decline

Revolving credit – which is almost entirely credit card debt – dropped 7.8% during the month of December after already dropping 8.5% in November. According to reports from the Fed, this was the steepest percentage drop since January 1978.

Many experts are citing the drop in consumer spending as a sign of belt-tightening and a desire to pay off debt and begin saving in the face of employment worries and/or outright job loss. Wise consumers are protecting their credit scores and their futures by cutting out unnecessary spending.

And worries over future job loss are not unfounded. The nation's unemployment rate climbed to 7.6% in January when the U.S. lost almost 600,000 jobs. Total job losses since December 2007 are more than 3 million.

This has to play a role, but two other factors naturally led to a decrease in credit card debt.

First, gasoline prices dropped. Consumers who were charging $800 per month for fuel were able to cut those charges to only $400-$500 by December.

The other reason should surprise credit card issuers the least of all. When these companies slashed credit limits and raised interest rates for millions of card holders, they could not spend more, even as they wanted to.

During the Christmas shopping season, retailers reported shoppers dividing their purchases between 2 and 3 different credit cards in order to avoid going over limit on any one card. That clearly indicates a desire to spend rather than a desire to save.

Some, of course, became angry and refused to create more debt when faced with interest rates approaching 30%.

Non-revolving debt also declined in December. That includes auto loans and student loans, along with loans for mobile homes, boats and trailers.

Auto loans seemed to lead the decline as auto lenders followed credit card issuers in a move to pull back on making loans. Average car loan interest rates were 6.4% in October and had risen to 8.4% by December. At the same time, the average length of loans fell below 60 months for the first time in years.

Some experts are predicting a spike in credit card use by March or April, due to the most recent job losses. Consumers may use savings for the first few months and then will turn to credit cards for basic living expenses such as food, utilities, and rent. However, since credit card issuers have cut spending limits, this prediction may not come true.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Credit card companies offering forbearance programs

What began as a housing crisis has morphed into a full-scale credit crisis – affecting every segment of society. And with about 3 million people losing their jobs over the past 13 months or so, credit card companies are realizing that they need to add "flexibility" to their list of services.

Thus, many credit card companies are offering some type of "forbearance" to cash-strapped card holders.

What is "forbearance?"

It isn't forgiveness – it is a temporary reprieve from your obligations, and it comes in different shapes. One is a postponement of six months, a year, or even longer. During this time your interest will continue to acrue, but perhaps not at the steep rate that you might be looking at when you open your credit card statement today.

Another form of forbearance offers a lower minimum payment, a reduced interest rate, and/or elimination of late fees.

What the credit card companies will offer depends upon your individual situation.

While card issuers such as Chase, Bank of America, Citi, and Discover are proactively reaching out to consumers when they first begin to fall behind, credit counselors advise consumers to contact their card issuers before the problem becomes that advanced.

Many are willing to work with card holders to arrange solutions that will allow card holders to maintain their good credit standing while assuring the card issuer of eventual repayment.

During the last quarter of 2008, Citi reports accepting about 350,000 accounts into its forbearance plan, while Bank of America modified nearly 850,000 credit card loans in 2008.

While these programs are socially responsible behavior on the part of card issuers, they are done in self-interest.

Credit card loans are unsecured, so if aggressive collection action on the part of card issuers forces a consumer into bankruptcy, the card issuer is the ultimate loser. They won't get paid at all. The debt will become a chargeoff.

According to reports, credit card chargeoffs, which stood at 5.5% during the final quarter of 2007, reached 8% during the 4th quarter of 2009 and are expected to rise to almost 9% by late 2009.

9% doesn't sound like a lot until you consider that right now, about $4.8 trillion in credit lines are open in the U.S.

No wonder credit card issuers are reaching out to card holders – trying to keep them on track with payments, even if those payments are strung out over a longer period of time.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Credit Cards and Your Vacation Planning

Credit cards and debit cards are handy tools when you want to assure yourself of a room at your vacation destination, a best price on an airline ticket, or a car waiting for you when your flight touches down.

But before you whip out just any credit or debit card, be aware of what will happen next, and how it can affect both your cash flow and your credit scores.

When you book a room and give your credit or debit card number, most hotels will immediately check to see that you do have the credit or the funds. That's reasonable, isn't it? The next step may also be reasonable, but can be detrimental to you.

Because they want to be assured that they'll be paid if they hold your room and you turn out to be a "no show," they then place a "hold" on an amount equal to the expected charges for your stay. If you call and cancel within their specified time frame, they'll release the money, but meanwhile, it's as if you've already spent it.

Gas stations and rental car agencies use the same practice, and some car rental agencies check your actual credit report each time you rent a car – placing numerous credit score-damaging inquiries in your file.

So be careful. It makes sense to book a room early if you're traveling to a popular destination, or if you have an opportunity to get a reduced rate on your room or your airline tickets, but choose a little-used credit card – one that you don't use for day to day purchases. If possible, choose a card with a large credit line, so that your hotel reservation doesn't use up more than 30% of your available credit.

If you use your debit card, get the exact amount that they'll hold and write it into your check register as an amount already spent. Otherwise, you could be faced with returned checks, overdraft fees, and a bad stain on your credit report.

Reservation clerks will tell you not to worry – your card won't be charged unless you fail to show up. Then you'll have the option to use the card or pay by another means once you get there. And that's true.

But in the eyes of your banking institution, your credit card issuers, and the credit bureaus who determine your FICO scores, a "hold" is as good as a charge. It reduces your available checking account balance, or reduces your available credit while raising the percentage of credit usage to credit available.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Credit Card Changes Good, But Consumers Need More

Credit card issuers will have to adhere to some new rules by July 2010. That's a step in the right direction, but could be too late for many consumers. In addition, the new regulations don't address some of the issues that have angered credit card holders.

One of those issues is customer service. Cardholders are receiving notices in their statements, or in separate pieces of mail that are often mistaken for junk mail. These notices are hard to understand, so they're calling customer service for help.

But... often the company reps can't answer their questions. They don't understand the notices either. Some will give an answer, and then if the consumer calls back, someone else will give a different answer. This is no help for the cardholders.

Consumer advocates are saying "Train your people!" This is especially important when those consumers are getting letters telling them they're going to be paying more to pay off their debts.

Even more anger is generated by broken promises. Cardholders who have complied with the initial agreement they had with the card issuers are now getting notices that the agreement has changed. Their interest rates have been raised, they're getting new fees, and their credit limits have been lowered.

This might be understandable if the consumer had been late with payments or had gone over limit. But these notices are also going to people who have held up their end of the bargain. Card issuers are changing the terms of the agreements with no provocation, after consumers are already in debt to them.

When interest rates escalate from 11% up to 19% - or even higher – more consumers have trouble making the monthly payment and of course are taking longer to pay down their debt.

Other consumers report that they had responded to offers urging them to transfer balances from higher rate cards, and would receive a 4.9% interest rate for the life of the transferred balance. They've been paying more than the minimum monthly payment, on time, every month. Now, while their interest rate has not been raised, they're being slapped with a monthly service fee. Technically, it isn't an increase in interest. But in practice, it is.

Credit card issuers say they are taking these steps to manage their own risk, but they knew when they went into the business of loaning money with no collateral that there would be risk involved. That doesn't mean they should be able to change the rules after the game has begun.

Interestingly, these risk management moves may backfire. In addition to keeping people in debt longer, these credit card issuers are forcing some to default. Thus their worries about collecting the money owed are becoming reality.
According to the Federal Reserves' most recent report on consumer credit, Americans have $976 billion in credit card debt, and the card issuers have been making billions in interest, annual fees, late fees, and over limit fees for years.

That makes it pretty difficult for credit card issuers to gain any sympathy from consumers struggling to pay off their credit cards.

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

Credit Card or Debit Card?

There is currently 1 trillion in spending using debit cards. The question is should you use a credit card or a debit card for your purchases? This really depends on your current circumstances. The consumer union currently states that if a consumer uses there debit card 20 times or more a year they will spend $223 in bounced check fees. The individual that does not use debit cards pays an average of $40 per year. There are advantages and disadvantages to both types of cards.

If you are a person that holds a balance on your credit card it might make sense to use your debit card. If you are the type of person that has a credit card with no annual fees, and you don’t hold balance on your credit card then credit cards are the way to go. The reason for this is you can keep your money in a interest bearing account as opposed to using your debit card which takes the mosey directly from your interest bearing checking.

There are a lot more advantages to using a credit card especially if you pay off your balance every month. There are credit cards that will reward you with points for every dollar you spend. Your debit card does not provide this type of reward what so ever. Using your debit card like cash can get out of control and cause bounced checks and costly insufficient fund fees. Also debit cards do not report to the credit bureaus as good credit like credit cards.

Just remember that using a credit card should be used responsibly and is not for everyone. If you can’t control impulsive buys then a debit card might be ideal for you.


*some information was taken from Bankrate.com

CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

What credit card is right for you?

There are all types of credit card offers out there such as reward credit credits, secured credit cards, student credit cards, business credit cards and sub prime credit cards. Obviously depending on your credit report and credit scores will ultimately determine the rate and terms of your card. Credit cards are necessary during this day and age for many reasons. The first reason is credit building and also for emergencies purposes as well. Some card holders will use one credit card to pay all there bills on to get the air line miles or points towards other purchases.

Reward credit cards are a hot ticket currently. You can get points for every dollar spent towards other types of perks. Every credit card company is offering different rewards for charging on there cards. So depending on the credit card company, your rewards will vary, but at times it can be worth it as long as you pay of the charged balance every month. This type of credit card might be ideal for a individual that spends a lot of money on expense or flying regularly.

Business credit cards are a great way to build up your business credit. Some of the business credit cards reward your business for spending as well. Maybe you fly a lot as a result of your business; there are cards that pay you airline miles for every dollar spent. Some business credit cards will give discounts up to 25% on business expenses. Every business owner should have a business credit card.

Secured credit cards are ideal for individuals that are new to credit or are in the rebuilding stage of credit. Secured credit cards are the quickest way to establish credit for newbie’s to the credit arena. A secured credit card usually requires a deposit from you in the amount of $250 to $300 to secure the credit card. Once you have secured this card with your funds in about 30 to 60 days this credit card will report to all 3 credit bureaus. This starts the credit building stage promptly. With a good 12 month payment history you will start getting credit card offers in the mail. Once this starts you are well on your way to building a healthy credit report.

Student credit cards are ideal for anyone that is new to the credit building process while in college. This card is an un-secured credit card that does not require large deposits of your own money. Usually this card will extend low credit limit that will gradually climb with good payment history.

Remember to pay your credit cards on time and to keep your balance owed under 30% of credit limit. If you do this your credit scores will sky rocket.


CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and free credit repair advice.

My Credit Scores have dropped due to new credit cards-Why?

The venture to build a good credit score report is sometimes aggravating and exhausting. If you have never had credit or let all your credit go to collection, the first step on building your credit scores is building or rebuilding your credit report. Anyone that understands this process will tell you your first step is to get some secured credit cards. There are some matters you need to know that will drop your credit score though. Here is what you need to know.

Secured Credit Cards
This type of credit card is a great way to establish credit regardless of your situation. Reason behind the success of this card is because it reports to the credit bureaus as good revolving credit. This card does require a deposit of your own money into the banks account, typically around $300. The good news is with a little payment history you are on your way to save because you have higher credit scores now. It’s a small investment to save lots of money down the road.

Too much credit too quick
If you apply for too many credit cards to quick, your credit score will drop. The credit scoring models look at this as high risk. I would just apply for two credit cards only, that is all your really need.

Credit History
When your credit scores are calculated the length of credit history is a factor as well. If you just applied for credit cards your credit scores could drop, but they will eventually go up. There are all kinds of factors in the credit scoring process, and if its new credit it will take some time to see improvement in your credit scores. But remember this is the quickest way to increase your score though.


Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit Cards-Why you need them.

Maybe your credit score and credit report was affected by credit cards in the past. Credit cards can hurt lots of people if you don’t manage them properly. Contrary to popular belief credit cards are necessary for good credit scores and emergencies. In this article I am going to discuss why you need credit cards and how to manage them.

Building good credit
Credit cards are part of the credit scoring process. Fair Isaacs’s fico score model likes to see a good mix of credit reporting on your credit report. This mix of credit includes credit cards. Typically anyone that is educated on the credit score building process will recommend getting a couple of credit cards to establish good credit. So with this being said you need a couple of credit cards to get good credit.

Emergencies
Let’s assume it’s during the middle of August, and you are a home owner. You are in a state where it gets really hot, and this really applies to everyone with Global warming. All the sudden your A/C goes out. You get someone out to estimate the repair cost. They tell you it will cost $4000 to fix it. The last time you checked you only had $1000 in savings. Hmmmmm….. If you had a low interest rate credit card you could charge the rest of the cost, and pay it of over the next year. The list can go on with situations that may arrive and you find yourself not having the money to fix the problem at hand. So with this being said credit cards can be used in emergencies like what was mentioned.

Airline Miles
Maybe you are a frequent flier for business and would like to get those miles applied to your personal credit card. You can charge all business trips on your own credit card and those airline miles can get applied towards you own personal vacation. I personally know people that fly first class for free by applying this process.

Credit Card Management
Managing your spending habits is very important. This is critical to keeping your fico scores healthy. If you charge on a credit card for leisure purposes, you need to make sure you pay it off that month. If you find yourself racking up a bunch of credit card debt STOP and don’t charge anything else until you have paid off your current debt. You should not have more than 30% of the allowed credit limit charged up. If you find yourself with more than 30% of your allowed credit limit charged up, your credit scores will suffer a result.

Hotel and car rentals
If you are getting ready to take a trip and need to reserve a Hotel or a rental car good luck without a credit card. Having a credit card is just a part of life these days.


If you don’t have any credit cards apply for one today here.

Author:Mike Clover
CreditScoreQuick.com is your resource for free credit score reports, fico scores, loans, credit cards, insurance , identity theft protection and credit repair advice.

Credit Score affected by transferring credit card balances.

You probably never thought that transferring credit card balances from one credit card to another credit card would affect your credit score. It may sound like a good idea to transfer high credit card balances to lower interest rate credit cards banks. In some cases this is a good idea, but it really depends on some circumstances. When your credit score is determined, one of the factors in the credit scoring process is the amount of debt owed. This accounts for 30% of your credit score. I am going to discuss two scenarios, one that will not affect your credit score and one scenario that will.

Scenario One
Let’s assume you have a credit card with a balance of $6,000 on it. The interest rate on this card is killing you and you have found a better deal to pay off the card quicker. The new card has approved you for $7500 credit limit and 0% interest on balance transfers for 18 months. This sounds like a good idea. So you transfer the balance to the new card for the low interest rate.

Here is the problem:
When you owe more than 30% of the allowed credit limit on a credit card, this will drop your credit score. With this scenario you have almost used up all the credit they gave you. This is not wise at all. The balance you owe compared to the approved credit limit it way too high. You have 80% of the card limit already used up. This will affect your credit core

Scenario Two
Let’s assume you have a credit card with a balance of $6000 on it. Plus you just got approved for a credit card with a credit limit of $25,000. They are offering the same deal on transfers as above, but they gave you a higher credit limit. This is the ideal situation and will not affect your credit score. The reason is the balance owed compared to credit limit is around 24%. This is considered low risk to most credit scoring risk models.


This principal can be applied to all credit card balances. You should not have your credit card balances charged up more than 30% of the allowed credit limit. If you are not sure what your credit score is find out today and get your free credit score report.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

The Most Important Thing they Didn’t Teach in School…

As new graduates embark into the world of independent living, most are ill prepared to deal with their own finances. It’s a shame that “Money Handling” isn’t a required course in all High Schools and Colleges, because starting off on the right foot can lead to a much more pleasant life than starting off wrong.

When you have a good credit score, lenders see you as a low-risk person. As a result, they’ll offer you lower interest rates, lower minimum payments, less paperwork, and more borrowing options. Poor scores have the opposite effect.

In fact, with a bad credit score you could be denied jobs, car loans, mortgage loans, insurance, or even rental housing. If you can get insurance, with a poor credit score you’re apt to pay rates that run more than twice as high as they would be if your score was good. And if you can get loans, you’ll pay 4 or 5 times as much interest as you would with a good score.

Creating a good financial reputation (credit score) isn’t difficult, but it does require a little discipline. And it does take time, so start early. The longer your record of responsible money management, the easier your life will be.

This means saying “no” to most of the credit card offers that come your way, and working hard never to use over 50% of the credit available to you. It also means paying each of those bills by the due date, and paying a bit more than the minimum payment. Strive to keep your non-mortgage debt down to 15% of your income, even when it means delaying the purchase of a new toy or a classy addition to your wardrobe.

One good way to make sure you pay your bills on time every time is to create a chart that shows each bill and the date it’s due. One caution: don’t assume that the due dates will be the same each month. Read each bill when it comes in and adjust the payment date accordingly.

Budget your payments and adjust your discretionary spending accordingly – so that you’re never in a position to make a late payment. Even if that means skipping Saturday night out.

Next, begin to build your net worth. Check in to automatic savings, deducted from your paycheck before you even see it. Small amounts add up, and they will raise your credit score. In fact, having both a checking and a savings account will earn you a score 4 times higher in that category than having a checking account alone.

If automatic savings aren’t available, discipline yourself to make that deposit from each and every check.

Lastly, be sure to check your credit score often – so if there’s a mistake you can get it corrected quickly!

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How many credit cards do I really need Q & A

Q:
Hi Mike,
I have a dilemma; I am curious how many credit cards we actually need to keep our credit healthy. I have excellent credit currently, my credit scores are all above 720. I have read you need more than one card; I currently have 4 credit cards. I am having to pay fees on some of these cards and would like to stop those fees. I don’t even use those credit cards. What are your recommendations?

Thanks,
Roberta Johnson

A:
Hi Roberta,
Credit cards are one of those necessary evils. “DANG if you do and DANG if you don’t.” Sounds like you already have excellent credit and that is great to hear. You only need a couple of credit cards. If you are getting ready to make a purchase I would not close out the other credit cards that are charging you all the fees. You might call them and see if they will stop the fees. If you are not getting ready to make a purchase I would close them out, just remember you will see a drop in your credit score. Eventually your scores will go back up. If you can deal with the fees, then I would not close them out. Cloisng out credit card accounts is like getting rid of good credit. Since you have other credit cards, the drop in your credit score should be only temporary but your scores will drop. So its really depends on what you are trying to do currently.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How immigrants can build credit

If you are new to the United States because you just arrived from another country, welcome. In this article I wanted to discuss how you can establish credit as a new citizen of the United States. People from all over the world come to the US to pursue the American dream. Some come here to study and then go back to their country. What every your situation is, as long as you have a social security number I can help you establish credit scores. When arriving to America the first thing you need to do is get your credit established. Here are tips to get this going.

Rental & Utilities
I would hope by now you have a job, so you can show someone that you are paying some sort of rent. Rental is part of the credit building process. Credit Card companies and banks want to see that you are paying rent to someone. This also allows you to get your utilities in your name. Paying your light bill, electric bill, and phone bills are part of the credit building process. Make sure you pay all these bills on-time.

Work History
Make sure you have work history. Obviously if you are applying for some type of credit the creditor wants to see that you are working to pay back any debt owed.

Open a checking account
Having a checking account is a standard question on loan applications. This shows the creditor you might be responsible with you money.

Open a savings account
Having a savings account shows that you have the ability to save incase a emergency should arrive. Most creditors like to see this in place.

Apply for a secured credit card
There is no quicker way to establish credit scores than with a secured credit card. These types of cards require a deposit by you in designated account by the card issuer. Typically the balanced required by you is anywhere between $250 and $350. Once you have secured a credit card, this begins the credit building process on your credit report. Typically I recommend 2 cards to get the credit score building process underway.

Student Credit Cards
If you are here studying you should apply for a student credit card also. This card is much easier to get if you are in college. This card does not require a deposit, but is considered a sub-prime card with higher interest rates. This card is a great way to get your credit established as well.

After six months of paying on a couple credit cards with no late payments you will be scored on your credit report. You might also consider getting a small car loan as well. The credit scoring process likes to see a mix of credit reporting on your credit report. This process mentioned will get your credit underway fairly quickly. Remember to be responsible with your new credit and never be late on anything.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Understanding your spending habits can be rewarding

During this day and time credit cards can have two affects on your credit score reports. If you don’t have credit cards it can affect your credit score in a negative way. If you have credit cards and charge over 30% of the allowed credit limit this will affect your credit score in a negative way as well. Credit cards are part of the credit scoring process. You have to have them in order to have good scores. Part of the FICO score model looks at your mix of credit. Part of the mix factor is having credit cards revolving on your credit report. Credit cards are part of the credit building process. You have to have them, but need to be responsible with them. Here are some advantages of some credit cards.

0% offers
Some department stores will offer you 0% or low interest to buy there products. If you pay off the debt owed in during the allotted time to maintain that interest, this is like borrowing money for free.

Cash Back
This is a interesting offer with the credit card companies. Some card companies will give you back 1% on all purchases. So if you spend $100.00 they will give you back $1.00. Some credit card companies will give you discounts on items purchased. So the idea is for you to spend money, but if you manage your money correctly it can be rewarding for you.

These are some tips on how credit cards can be rewarding, just make sure you pay off the card so you don’t get high interest rate charges.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Why you need credit cards.

Did you think you could go through life without credit cards? How has it gone for you so far? I would be willing to bet you cannot rent a car, reserve a hotel, or buy anything on the internet. There are tons of other situations that with no credit card you cannot participate in. In order to have a good credit report you need credit cards. If you are at the gas store buying gas, you have to go inside the store and wait in line to pay without a credit card. The credit card just simple makes some situations more efficient.





Build Good Credit
Credit cards are a big part of your credit score. When the credit scores are calculated, credit cards are a part of the scoring process. In order to have good credit you must acquire at least a couple of credit cards. If for some reason you don’t have the credit to get un-secured credit cards, then you must apply for secured credit cards. Regardless of what you qualify for, you need to get at least a couple of cards to get things rolling.

Emergencies
If some medical emergency comes up and you don’t have the money to pay for it, you can use your credit card to cover the cost. If your car breaks down and you don’t have the money to pay for it, you can use your credit card to get your car fixed. Credit cards are great to cover those situations that sneak up on you when you don’t have to money to pay for.

Rewards
If you travel a bunch you can take advantage of travel rewards that some credit card companies offer. With these reward if you travel frequently you can rack up enough rewards to travel for free. You can also use these rewards to buy other products like vacation packages at a discount.

Life during this day and age without credit cards is like having no security. Sometimes situations come up that require borrowed money, and a credit card is a great way to cover circumstances beyond your control. Some credit cards offer 0% interest or low APR that makes it worth charging. At times you can practically borrow money for free on credit cards.
It is very important to remember to be very responsible with credit cards. If you charge on a credit card for leisure make sure you can pay it off that next bill. You can get in trouble with credit cards real quick. So make sure you are responsible with your card.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

The American Dream on Credit

Do you have everything you need? With all the credit extended to you over the years at low interest rates, how much did you acquire? Maybe the question is do you have everything you want? With the endless opportunity in this country with people coming from foreign soils are you really living the Dream? I personally don’t think anyone has really gone without in America since the “Great Depression.” With the flow on money in our country are we in trouble because we lost the truth about what life is really about? The gates of credit have been opened up like no other time in our history. You can look around you and see that we are in trouble because of the consumer debt. We have been living the dream but on someone else’s buck. Over the last 10 to 15 years our banking system has been giving credit cards and mortgage loans to anyone that had a pulse. Now that we are in trouble what will happen?

Recession
A recession is when our economy has 6 or more months of economic down turn. A recession usually is the result of consumers not being confident about keeping their job or the investments they currently hold. If consumer confidence is down then everyone stops spending. In the US economy our markets go through what is called expansion and contractions. With the current economy and the extent of consumer debt I think it would be safe to say we are in a recession. There currently is a concern in general about the health of our economy which in return motivates families to stop spending.

Depression
A depression is when a recession gets really bad. I don’t think this will happen, but a recession is apparent in our current economy. While some markets are cooling other markets are dong well. Banking obviously is not doing well due to all the bad loans that were underwritten. The one lesson we can learn is to learn from past mistakes and not to make them again.

Anytime there is uncertainty in the market everyone gets scared. Our recommendation is simple; don’t buy anything on credit you cannot payback that same month. With the credit crunch that is going on, you can rest assure that getting that credit extended to you in the future will be a lot tougher. You will be required to have higher credit scores. We know there are times that we have to use credit to take care of emergencies. The lesson to learn is that credit is not for vacations, new clothes, eating out, and unnecessary stuff. You should only spend on credit what you can afford to pay back quickly. We need to be content with what we have. If your idea of the American dream is to get deeper and deeper in debt, you are fooling yourself. That is not what America is about. Yes you need to buy homes with loans, but don’t buy STUFF on credit.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Denied for credit card Q & A

Q:
Hello I have been trying to establish credit after a divorce my credit has been ruined. I have tried applying for different credit cards. I have been denied for all of them due to my credit score report. What do you guys recommend I do? I need a couple credit cards to get some credit going. I currently don’t have any credit at all. Most of my good credit went south during a nasty divorce.

Lucy




A:

Hi Lucy,
We are sorry to hear about the divorce. This type of history is all too common after divorces. If you have applied for un-secured credit cards and been denied then you must start out with secured credit cards. Secured credit cards are where you give the bank usually between $200 and $300 in a bank of there choice to secure the credit card. Secured credit cards are the quickest way to establish credit. After good history you will start getting all kinds of credit card offers in the mail.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

How no Credit can hurt you

What is all the fuss about paying cash for everything? Isn’t that a good thing? If you pay cash for everything doesn’t that mean you don’t owe anybody? Quite contrary to popular belief this actually hurts you. Let’s assume you pay cash for everything and all the sudden need a loan, it will be hard to get a loan with no credit. You will have not any credit scores generated with the credit bureaus with no credit being extending to you. I have heard quite often that I pay cash for everything because credit cards scare me. But let’s face it, we are all adults and can do anything we put our mind to. In our current society banks now use a automated software created by My FICO that determines your credit score and risk. If you have never borrowed money or applied for credit this software has not generated any credit history or credit scores for you. This is exactly what the banks currently look for.

Applying for Credit
Let’s assume you decide to go and apply for credit, only to find you are getting denied because you don’t have any credit. There is a solution to this that is quite simple. You get a secured credit card. A secured credit card is cards where you deposit your own money usually up to $300 dollars into an account of the banks choice. Once this money is deposited about 30 days later the credit card company will report this history to the credit bureaus. This is the first step in establishing credit scores and credit history. I recommend getting two cards to have two lines of credit history reporting. Remember to pay everything on-time so you don’t have any late payments. This is very important. Also these secured credit cards usually charge fees to get started, during the beginning of this process you will have a balanced owed even though you have not charged anything. Make sure you pay these fees. The secured credit card we recommend is the Orchard Bank card. This card has low fees and is great for establishing good credit when you have no credit.

Now that you have put your cash only days behind you, you can join the rest of America in the world of credit. Your credit is so important these days that you can’t afford to live a cash only life. Employers, utility companies, and insurance companies and just about everyone is pulling credit to see if you are responsible or not. So there is a good chance you were paying higher fees because of your lack of credit. As you move on long with the credit building process make sure you pull your credit regularly. Pulling your own credit report does not affect your credit score. Pulling your credit report regularly is good credit management.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Closed credit card accounts Q & A

Q:
Hi Mike,
I have closed 2 credit cards that I have not used in years. I have 3 other credit cards that I use with lower interest rates and fees. That is the reason I closed them. I was reading through some of your articles and noticed you recommended not closing out credit cards. How much do you think this will affect my credit score? I currently have excellent credit and hope I did not mess up my credit score.

Marcus

A:
Hi Marcus,
Yes I am against closing out good credit reporting on your credit report. This does affect your credit scores, because you just got rid of good credit. Typically you will see around a 10 to 15 point drop in your credit scores. Since you have other credit cards this should be temporary. Just make sure you keep your credit card balances below 30% of credit limit. My FICO recommends a mix of credit as well. For instance credit cards, car loans, installment loans, etc…….Good luck to you.

Mike Clover

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Bankruptcy Q & A

Q:
Hello,
I have a question in regards to bankruptcy. I have just recently discharged my chapter 13 bankruptcy. I was curious how long it will be on my credit report. I have looked all over the web and found different answers to this. I also was curious what was recommended to re-establish some credit. I currently don’t have any credit reporting on my credit report. The bankruptcy said I should be able to re-establish credit right a way.

Thanks,
Julie

A:
Hi Julie,
Thanks for the question. Bankruptcy can be confusing at times with how long is stays on your credit report. Chapter 13 bankruptcy will be on your credit report for 7 years from file date. You will need to check your credit report because the bureaus usually don’t update this properly. After filing bankruptcy and it has been discharged, getting your credit rebuilt is your next step. The best way to do this is with secured credit cards. You can go to our credit card tab and apply for some credit cards there. We recommend Orchard Bank Card as your first choice. You should have at least 2 credit cards to get your credit scores boosted.

CreditScoreQuick.com

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

FHA implements Credit Score based MIP

With all the changes in the lending industry, you would think that no one can get a loan anymore. Conventional loans have gotten so tough most are going with FHA loans now. FHA has been the savior in a lot of crazy lending markets. With the current credit crunch and record foreclosures, FHA is now implementing risk based mortgage insurance premiums (MIP). This fee insures the loan with HUD. So just like anything else, if your credit score is low you will pay for it. In the past your credit score did not matter, but now it does. The way MIP worked in the past was everyone paid a 1.5% of the total loan amount in insurance. This upfront fee was financed in the note. The new mortgage insurance premium will range between (1.25% - 2.25%). So for borrowers with low credit scores you will now pay .75% more in premium. For borrowers with good credit they will save .25% in premium.

Examples:

Good Credit
• Sales Price: $100,000
• Down payment: $2,250
• Loan amount with MIP @ 1.25%: $98,971

Bad Credit
• Sales Price: $100,000
• Down payment: $2,250
• Loan amount with MIP @ 2.25%: $99,949



Depending on what your FICO score is, will determine how much you pay. You can see if your credit score is low, you will be financing more which will increase your payment as well. I believe this is just a tip of the ice berg with the changes in all sectors of lending. If you are getting ready to buy a home, you might consider pulling a recent copy of your credit report with scores to see where you stand. If you don’t want to pay more and feel that your have low credit scores, go ahead and take the plunge. Get your credit report and start working on any issues you may have. If you don’t fix your credit it will cost you unnecessary money long term. FHA is still the strongest loan in our current market, but with credit issues you will pay more for it. I have never seen such tightening up in the lending market like we currently are experiencing. I can’t say I don’t blame the banks, because everyone want there money back they have loaned out. I guess you would have to put yourself in their shoes, how would you feel if you loaned someone $100,000 and they did not pay it back to you?



Multiple FHA borrowers
With this new FHA change that was implemented on July 11, 2008 here is how this affects multiple borrowers. If two borrowers are involved on a FHA loan, the MIP will be based on the borrower with the lower credit score. So you could have one borrower with excellent credit, but have a borrower with low credit score that would cause a higher mortgage insurance premium for the entire loan.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Increase credit score Q & A

Q:
Hello,
I need some advice on increasing my credit score. I currently have a 640 credit score. My goal is to get my score around a 720 or above. I currently have a credit card with Bank of America, and a credit card with American Express. I also have a car note around 350 a month.
Credit Card Balances and limits

• Bank of America limit is $10,000
• Bank of America balance is $7,500
• American Express limit is $15,000
• American Express balance is $9,852

I just recently bought my car 6 months ago. I paid $17,000 for the car. What do you recommend I do to get my scores around 720 or above. I dont have any collections or slow pays.

Robyn Leather

A:
Hi Robyn,
Credit card debt is one of the quickest ways to lower your credit scores. Amounts owed on credit is 30% of your credit score. The rule of thumb is to keep your credit card balances well below 30% of your allowed credit limit. It looks like your Bank of America credit card is well above 30% of the allowed credit limit. I would pay this card down as quick as possible. You should not have more than $3000 on this card at any given time. This is one reason why your credit score is low. Your American Express card has the same issue going on. You should not charge more than $4500 on this card as well. Both your credit card balances are bringing down your credit score. If you were to get both these cards below 30% of the allowed credit limit your credit scores should increase to around 720 or so.

CreditScoreQuick.com

CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Card Q & A

Q:
Hello,
I had some questions in regards to credit cards. My wife and I had filed bankruptcy a while back. The bankruptcy was a Chapter 7. We got ourselves in trouble with credit card debt, but I am aware credit cards are necessary for good credit. How many credit cards should I apply for, and what type of credit card should I apply for with challenged credit. I pulled a credit report at your site, and our scores are in the low 600’s. Thanks for your help.
Tim

A:
Hi Tim,
This is a common question we get. Your overall credit score has many parts to it. Type of credit is 10% of your overall credit score. We always recommend a couple of credit cards to get the ball rolling. Most lenders like to see around 3 lines of credit reporting on your credit report for about 12 months or more. With good payment history your scores will go up. As far as what type of credit card, I would recommend trying to get a couple of our sub-prime cards. Below are some links to some good sub prime credit cards to get you in the right direction.

CreditScoreQuick.com









CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Secured Credit Card Q & A

Q:
Hi Mike,
Your website is great. I applied for the Orchard Bank secured credit card. I was wondering how long it might take to get in the mail. I also wanted to know how long it will take to report to my credit report. Your website has really helped me get in the right direction because my credit report is pretty pitiful. Thanks for the free credit repair resource. I am telling everyone about this wonderful site.
Gene

A:
Gene,
Thanks for the compliment; we are striving to provide the top resource on the web for free credit repair advice. Your secured credit card should arrive in the mail within 30 days. Your secured credit card will also start reporting within 60 days of approval. Good luck with your credit report repair through our site.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

I did not get Credit Scores with my Credit Report

Getting your credit report is a must these days. When you get your credit report make sure you get your credit scores. Annualcreditreport.com does not give you your credit scores for free; you have to pay for them. Also make sure you get all 3 of your credit scores. One credit score from each Bureau.

Q: Hello I found your site and saw that you had lots of different credit reports to offer.My husand and I went to annualcreidtreport.com and pulled a copy of each of our credit reports. To our surprise, we did not get our scores. I noticed that most sites charge for this. On your site you get a free trial, do you have to pay for scores, or am I missing something?

Gertie Fuger
Las Vegas, Arkansas

A: Hi Gertie, this is the $100 question. Under the Fair Credit Reporting Act(FCRA) in 2003 they required the three credit bureaus TransUnion, Experian, and Equifax to give you a copy of your credit report free once every 12 months. Unfortunately you don’t get your credit score for free. This is like grandmothers homemade chocolate cake missing part of its recipe. Since every creditor and there dog looks at your credit scores, you need to know where your credit scores stand. At our site you get a FREE trial for 7 days, and you can cancel during that free trial and not be charged anything. With this free trial you do get a credit score from each bureau.

CreditScoreQuick.com




About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Data Recovery

Avoid Credit Card Nightmares during Divorce

Here are some steps to divide credit card debt during a divorce so your credit report is not affected.

Step 1: If you don’t have any credit cards go ahead and apply for one now. You will need to transfer some of the balances on the accounts you may have jointly.


Step 2: Get all your credit cards in you purse or wallet, pull a recent copy of your credit score report to see what accounts are jointly held.

Step 3: Call the credit card companies to verify the current credit card balances, and write all of them down.



Step 4: Set up a meeting with your spouse if possible, and discuss how to handle credit card debt. If yiou have the cash it might be easier to pay off the credit card debt, and remove any joint names.

Step 5: Go ahead and set up a credit report monitoring service or make plans to pull your credit report about every two months with Experian, Equifax, and TransUnion to ensure that everything is being reported correctly. Also to ensure that you’re soon to be ex-spouse is not charging up credit cards, and opening up new accounts. Divorce can be ugly and identity theft can happened with ex family members.

Step 6: If you and your ex-spouse cannot come to terms on credit card debt, yiou might consider a financial planner. If all else fails get the attorney involved.

Step 7: If you are the one moving out of the house, notify the credit card companies immediately of your change of address, so you get your credit card statements.

Step 8: However you get matters negotiated, make sure you stay on top of matters, its very common for credit to go south during a divorce. You want to avoid that if at all possible.

Step 9: After you divorce make sure you continue credit monitoring and pulling your credit report about every two months. That way you are not blind sided with issues that could be the result of a ex-spouse.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Cards – How many should you have?

Credit cards are a must for good credit scores these days. But how many should you have? Also how many is too much? Some experts claim it is not how many you have, but how are you spending habits. Some experts say all you need is a couple of credit cards to keep your credit report and credit scores healthy.

Credit utilization is another key point about credit cards. If you have a bunch of credit cards, and you are using up your credit limit, it could hurt your credit score. The FICO score model looks at you utilization of your existing credit. Some experts say to keep your credit card balances below 50%. I believe most experts will tell you to keep your balances below 30%. I personally believe you should not keep a balance on your credit cards. I know that good credit management is only charging on your credit cards what you can pay off that month. If you are charging credit on stuff you cannot pay off that month, you are living beyond your financial means.

Department store credit cards are a credit card I would stay away from. These cards usually have higher interest rate than bank cards. The old sales pitch they give, if you get a credit card today, it will save you 10% on your purchase. If you rack up debt on those cards you did not save anything. The interest rates on department credit cards are usually around 20%. That is outrageous.





Remember you only need a couple of low interest rate credit cards. You should only use your credit card occasionally to keep it active, especially if you get reward miles for spending. As long as you pay off that card each month, before you know it, you are flying first class with your miles to Hawaii for free.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Build your credit with a student credit card

If you are in college, and like most college students you need credit to build a credit score. Since you can no longer piggy back mom and dad’s good credit, you have to find alternatives. Student credit cards are a great way to start establishing credit, and also a great way to pay for those items you don’t have the cash for, like books, emergencies, etc…. If you are a student in college, there are banks willing to extend credit to you.

Student Credit Cards
If you need get credit go ahead and get two student credit cards. It helps to have more than one line of credit on your credit report. Lenders like to see at least 3 lines of credit reporting on your credit report for 12 months. Also FICO score like to see a mix of credit. So after six months of good credit history with your new student credit cards, go ahead and apply for a car loan. Car loans are actually easier to get than some credit cards. Now getting a car loan is only if you need a car of course. But the whole point here is to have 3 trade lines with a mix of credit.

Secured Credit Cards
If for some reason you cannot get a student credit card, you can apply for a secured credit card. This is a card typically for people with bad credit or no credit. The card requires a deposit in a account of the banks choice. This deposit is usually between $200 and $300 dollars to secure a card. This is a alternative if not approved for a student card.

Sub-Prime Credit Cards
Sub-Prime credit cards are cards for people with low credit scores. The rates and terms are ugly, but is a way to establish good credit without the deposit. This type of credit is un-secured. So usually they will extend $200 to $300 line of credit to you. Once with a good history, they will increase your credit limit.

Being responsible with your new credit is very important, the last thing you want to do is establish credit and then ruin it because you were not responsible with your spending. Student credit cards are cards for emergencies, or items that are needed. They are not for the local bar, are partying. If you are responsible with your cards, getting loans will be a lot easier down the road. Remember your credit is your life.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Score lowered by Closing Credit Cards

Most educated consumers know about there FICO scores. That magical three digit number that lenders use to determine your credit risk. CreditScoreQuick has published here, an article about what determines your credit score. Many still wonder if closing credit cards or applying for a new credit card will affect their credit score.




Most consumers typically don’t know about the affects of doing what was mentioned, until it’s too late or by trial and error. In this article we want to make sure you know the affects of canceling good credit and opening too much credit too soon.

Canceling good credit cards
This is a mistake a lot of people make, and that is closing good credit card accounts. There is a misconception out there that when you close a credit card you loose your credit history with that card. This simply is not true. That history will be on your credit report for 7 years. Now there will not be any new credit history, and you also closed down a perfectly good line of credit which could lower your credit score. Fico likes to see a mix of credit, so if this was your only credit card, it more than likely hurt your scores as well.

Opening too much credit
Having too much credit does not hurt your credit score. Applying for a bunch of credit does hurt your fico scores. So for example, if you apply for a car, furniture loan, mortgage, and new credit cards all at once, you score will be lowered as a result. The fico score model sees too much credit too soon as a risk to the creditors. That is why your scores get dinged for it. Now if you are applying for a mortgage, the fico score model allows you to shop for a mortgage within a 30 day window, so fair Isaac’s scoring method allows you to shop your mortgage rate. This shopping within a 30 day window according to FICO counts as one inquiry.


So if you are getting ready to make a purchase and think you may have lowered your credit scores because of too many credit applications, go ahead and get a copy of your free credit score report to see where you stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit Score improved by using credit cards

The credit score is key to your financial health. With all the different avenues to get your score these days, there is no reason to not be educated about your credit report. I get lots of question about closing credit cards, and if that is a good option, especially if you are not using them. Here are some question from some of our readers about closing credit cards, and if it will affect your credit score.





Q: John Miller, asked:
I have 5 credit cards and only use one of the cards regularly. I keep the other 4 cards in my safe. I was wondering since I don’t use them should I go ahead and cancel those cards? One of the cards has a annual fee of $35.00 even though I don’t use it.

A: CreditScoreQuick.com
Hi John, you don’t ever want to cancel a credit card, that is like getting rid of good credit. What you should do is use each card about every 5 to 6 months. If you have good credit cards just setting in your safe more than 6 months without any use, the creditor might expire the card. So you want to make sure you use the cards and pay them off each month.

According to Fair Isaac, the creator of FICO scores, you should have a couple of credit cards. FICO scores are calculated by a mix of credit. So if you cancel a credit card, there goes two things, good credit that was reporting on your credit report along with a mix of credit as well.





Here is another question we had about credit cards and credit scores.

Q: Alex asked:
I have two credit cards, and would like to increase my credit score; I currently have a credit score of 675. I want to increase my score if possible; I am getting ready to buy a car, and would like the best rates on a car loan. One credit card has a balance of $6500 and another card with a balance of $3300. The first card limit is $15000 and the second is $10,000. What should I do to get my score increase as quick as possible?

A: CreditScoreQuick.com
FICO recommends that you keep your balances below 30% of the allowed credit limit. It looks like your credit card balance on the card with a $15000 dollar limit is high. This is more than likely dragging down your score. I would pay down that card, and it should increase your credit score.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Top ways to lower your credit score.

I think we focus so much on how to increase credit scores, we forget about what will lower your credit scores. In this article I will discuss what could lower your credit score and how to avoid it.

Late Payments
This type of activity on your credit report will destroy a good credit score. Typically when you are late on a obligation, you credit score will drop 100 to 150 points. Remember this only applies to obligations that report to the credit bureaus, not electric bills, car insurance, cable bill, or any utility bill. That does not mean stop paying them, because if you do that they will put the account in collection which ultimately will have the same results on your credit score. So don’t be late on anything.

Credit Cards Maxed out
If you have credit cards that have reached their credit limit, you score just dropped. According to FICO your credit card balances should stay well below 30% of allowed credit limit. You really should only charge on your credit card what you can pay off that month. IF you are not careful, you could find yourself needing debt consolidation because you cannot afford all your credit card debt. Make sure you keep your credit card balances low, and only use your credit cards for small purchases that you can pay off that month.

Co-Signing for someone
This is a huge problem, we all love to help out family and friends, but this is a big NO NO. Don’t ever co-sign for someone, because if they are late on a payment, guess who’s credit scores will suffer? That’s right; your credit score will suffer, because of their mistake. I see credit reports with this type of activity all the time, and it could also keep you from qualifying for a home, because that debt is really your responsibility even though you co-signed. So don’t make this costly mistake, if someone does not have the credit to buy, tell them to go to CreditScoreQuick.com to get advice on what to do.

Credit After a divorce
This is another huge problem, people getting divorces and even though the divorce decree clearly states the other spouse is responsible for the debt, it stills shows on your credit report. So if the other spouse runs into problems and is late on the payment it will affect your credit score report as well. Make sure when you file the divorce before its final the other party gets all obligations refinanced and out of your name or it could affect you in the loan run.

As always we recommend you get a recent copy of your free credit score report to make sure none of this is going on. Remember your credit is your life.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Best Credit Card to increase Credit Scores

Secured credit cards or unsecured credit cards are the two types of credit cards out there for consumers. There are different credit cards from all types of banks, and sometimes can be confusing on what card to choose. We work in conjunction with some companies that help restore credit, and the first step with these companies to get the credit building process started is to get some secured credit cards for their clients. In this article I am going to discuss a couple popular credit cards for increasing credit scores for people with no credit, and for those who have had bumps and bruises on their credit report. You might think credit cards are what got you in trouble the first time; well unfortunately they are necessary for credit health with today’s credit scoring models.



Continental Finance MasterCard®
Continental finance master card is a great card for individuals that have been turned down elsewhere. Here are some key points about this second chance credit card.
Get a second chance if you have less than perfect credit. If you have been turned down for credit recently because of your credit score, Continental Finance is here to help you with the second chance you’ve been waiting for. Apply today!
• Get Your Application Results in Seconds
• Monthly reporting to the Major Credit Bureaus
• Free Online Access
• Excellent Online Tools for Managing Your Finances
• Semi-Annual Credit Limit Increases
• No Minimum Monthly Income Requirements*
• Unsecured MasterCard Accepted at Millions of Locations Worldwide

Orchard Bank Card
Secured credit cards are sometimes the way to go, if you cannot get a unsecured credit card. Orchard secured credit cards is one of the most highly trusted banks for rebuilding your credit and for those that have no credit.
If you're looking for a card with built in benefits you can use on a daily basis and that provides you with the opportunity to establish better credit at the same time, you may be interested in the Orchard Bank Cards. Over the years, millions of people have used these Platinum, Gold, Classic and Secured cards to build their credit history. As a cardmember, you'll also enjoy acceptance at millions of locations worldwide, including website purchases and reservations, account information updated and at your fingertips 24/7, email and text messages to remind you or your upcoming payment due date with online enrollment. Apply Today !

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Establishing Credit Scores, how long it takes.

Establishing a credit score is closer than you think. Whether you are new to the country, or young trying to establish credit, I will discuss in this article exactly how long it takes. I will also discuss what it takes to establish credit scores. What has worked in the past no longer works with the new Credit Scoring process. The reason for this is it was changed this year with Fair Isaac whom is the originator of the FICO score model. This FICO score model is what 80% of the largest banks currently use to determine your creditworthiness. Here is the first step in establishing a healthy credit score.

Secured Credit Cards
In the past your parents could have put you on their credit card account as a authorized user. Once they did this the credit card would start reporting to all 3 credit bureaus on your behalf. This would immediately start the credit score building process for you. According to Fair Isaac this is no longer the case. Due to fraudulent activity in the credit repairing industry they stop the positive credit building with this process in their FICO score model. So with this being said, you have to take other measures when you don’t have any credit. This measure is secured credit cards. A secured credit card is where you secure the line of credit with a bank, usually a cost to you around $200 to $300 dollars. This money is put into an account with the secured credit card bank. Once you put money into the account designated by the card company, you instantly start the credit score building process. There is not a quicker way to build credit in today’s credit world, unless you are college student. Then you can apply for a student credit card. These cards are usually easy to get for individuals that are currently in college.

Credit Scoring Time Frame
The time frame to establish credit scores with the 3 credit bureaus is usually around 6 months. Once you have secured a couple of secured credit cards, you can expect to get a credit score as long as you are not late on monthly payments in 6 months. It is very important to make sure you are never late on any obligations that reports to all 3 credit bureaus. If you are late, you can expect a 100 to 150 point drop in your credit scores. So you definitely don’t want to have any late payments period.




Car loans
Auto loans are a great way to establish credit as well. Maybe once you have got a secured credit card or two going, I would recommend getting a car loan as well. This will give you a mix of credit for long term credit score growth. Getting a car loan is not as easy as getting a secured credit card, but you should be able to get a car loan after you have established some secured credit with some payment history.

With credit tightening up all over the board, the best advice I can give is to make sure you pay everything on-time and don’t over extend yourself. This is a common problem, and it can sneak up on you very quickly. Be responsible and live your life well.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How credit card debt can affect you?

Credit card debt is a increasing problem in the United States. The credit card companies over the last 10 years have been extending credit to everyone. Yes credit cards are necessary for credit reasons, but it is very easy to over extend yourself real quick. In order to have good credit scores the FICO score model likes to see a mix of credit which includes credit cards, but if it notices you overextending yourself your credit score will drop. So the idea is to be responsible with your credit cards. A good rule of thumb is to charge only what you can pay off that month. If you have found yourself in a world of credit card debt here are some tips on what you can do.

Credit Card Debt options
• Pay only minimum payments on all credit cards with the lowest interest rates
• Pay as much as possible on the one card with the highest interest rate. If you can pay $200.00 a month on it, pay that amount. You will pay off your debt quicker if you just pay down on one card as opposed to applying the $200.00 equally among all credit card debt. This is a common mistake.
• Look into debt consolidation programs
• Look into a chapter 13 as a last resort

What credit cards to look out for
Credit cards can be rewarding if you mange them properly. For instance you can charge on some cards and get rewards to buy other merchandise. America Express has these features, and so does discover card. Some of these cards offer low introductory rates for a period of time. All of this is contingent on your credit score and credit history. Some credit card companies offer airline miles, this is a neat perk if you travel a lot. There are lots of reasons to have a couple of credit cards, and there are lots of reasons not to as well. The point is to make sure you are responsible with the credit that has been extended to you. With this responsibility there are added benefits of charging and paying off your credit card debt every month.

What credit card debt could affect in your life
• Your ability to save more
• Your credit score
• Ability to retire early
• Ability to take vacations
• Ability to save for your kids college





Credit cards are a necessary but make sure you manage them properly or they could take over your life. If you don’t have any credit cards go ahead and apply today for a credit card that will reward you for your spending habits. Remember your Credit is your life.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Proposed Credit Card and Banking Regulations

It looks like the government will be getting serious about credit card regulations. The Federal Reserve Board proposed rules to prohibit unfair practices regarding credit cards and overdraft services that would among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.

Regulation AA (Unfair Acts or Practices)
The proposal would amend Regulation AA to prohibit unfair or deceptive acts or practices by banks in connection with credit card accounts and overdraft services for deposit accounts.




Credit Cards

• More Time To make Payments. The proposal would stop banks from treating a payment as late unless the consumer has been provided with reasonable amount of time to make that payment. There would be a new safe net for banks that send periodic statements at least 21 days prior to the payment due date.

• Allocation of Payments. When you have a credit card with different balances (for example, purchases, and cash advances), typically the annual percentage rate (APR) is higher on the cash advance. When you make a payment on a scenario like this the bank will apply your payment to the lower of the two. With the new regulation the payment will be split equally amongst the two balances. In addition, to enable consumers to receive the full benefit of discounted promotional rates (for example, on balance transfers), during the promotional period payments in excess of the minimum would have to be applied first to the balances on which the rate is not discounted.

• Two-Cycle Billing. The proposal would stop banks from imposing finance charges based on balances on days in billing cycles preceding the most recent billing cycle. Credit card issuers will not be allowed to use previous billing cycles to calculate interest on your current bill. Current double cycle billing uses the average balance from the previous two months to calculate interest charges, even if you paid part of the previous balance.

• Rate increases to existing balances. Credit Card companies will not be able to increase you APR on existing balances, unless you had a promotional offer and/or was late on a payment

• Less bait and switch credit card offers. The proposal would require banks making firm offers of credit advertising multiple APRs or credit limits to disclose exactly what the qualifications would be for those terms.

• Finance of Security Deposits and Fees. The proposal would address concerns regarding subprime credit cards by prohibiting banks from financing security deposits and fees for credit availability (such as account-opening fees or membership fees) if charges assessed during the first twelve months would exceed 50 percent of the initial credit limit. The proposal would also require financed security deposits and fees exceeding 25 percent of the initial credit limit to be spread over the first year.

• Credit Card Holds The proposal would prohibit banks from imposing a fee when the credit limit is exceeded solely because a hold was placed on available credit. This can occur where the final dollar amount of a transaction was not known in advance (for example, when a consumer checks into a hotel, a hold is placed for the expected cost of the stay).

Overdraft Services

• Debit Holds This proposal would stop banks from charging a fee when an overdraft takes place to due to a hold placed on available funds in an account.

• Right to opt out The proposal would stop banks from imposing a fee for paying overdraft unless the bank gave the consumer an opportunity to opt out of the payment of overdrafts and the consumer has not done so. This would apply to all transaction types. This would also be applied to overdrafts resulting from ATM and point of sale transactions.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

How to establish Credit Scores.

Establishing credit scores or more attainable than you think. If you are new to the credit scene I am sure you have heard how important it is to establish high credit scores for better rates and terms on loans. Heck even employers are pulling your credit to determine how responsible you are based on your credit history. In this article I will give step by step instructions on how to establish credit quickly.

Secured Credit Cards
Secured credit cards are one of the quickest ways to get a credit score. A secured credit card is a card where you deposit money into a account that the bank designates for you. Once the money is deposited into the account at that point they issue a credit card that will report to all 3 credit bureaus. The deposit that is required is typically around $250.00 dollars of your own money. With good payment history you will start getting all kinds of credit card offers. You want to make sure you are never late on a payment; if you are your credit score will drop around 150 points. After a late payment has taken place you just defeated this entire process. Also make sure you keep the balanced owed less than 30% of your credit limit. Typically if you charge up your card below 30% of balanced owed your credit score will increase. You also want to make sure you have at least 2 secured credit cards. Orchard Bank Card is a good secured credit card with low fees.

Checking Account
Make sure you are main stream and you deposit your money into a checking account somewhere. When getting a loan all banks want to see what you are doing with your money. It would not hurt to have a savings account at the same bank as well. When you attempt to get a mortgage, one of the needs items a loan officer will ask for is a history of your checking account and any savings you might have. Checking accounts are a sign that you are taking responsibility of your money.

Rental History
Make sure you are renting a house or apartment. This is a great way to establish credit. Lenders look at this as well. They want to make sure you can pay rent on-time as well. It looks better to be renting as opposed to just living with someone rent free. Most lenders like to see at least 24 months residence history with 12 months rental verified.

Utilities
Your utilities need to be in your name. Make sure you don’t put them in someone else’s name.

Student Credit Cards
If you are a student, part time or full time, student credit cards a great way to get credit established. You don’t even have to be at a major university, it can be your local community college.

Auto Loans
Auto loans are a great way to establish credit scores. Usually auto loans are easier to get than most loans. This type of loan will report to all 3 credit bureaus as well.


Everything that was mentioned in this article is what it takes to get credit scores established so you begin your journey with credit. Remember to make sure you are never late on anything. Good luck.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Student and College Credit Card advantages

Student and College credit cards are a great way to establish good credit while you are in school. When you are away from home starting your college days you might encounter some expenses that need to be charged. With a student credit card, which by the way credit card companies are anxious to offer with good rates you can easily be on your way to establishing a great credit score. Credit Card companies know that you are less likely not to pay you bill since you are in college. Typically college students have the drive and understanding that your credit report and credit scores are very important. They also know you are more responsible especially since you are taking the big step of continuing your education. Since credit cards are a necessary in showing your ability to pay back a obligations, on the flip side you want to be very careful and responsible when charging on them. You don’t want to get over your head with unnecessary charges. When you charge on a college credit card, you don’t what to charge more than you could pay off that month.

What to avoid with Student and College Credit Cards.
1. Keep your credit card charges below 30% of credit limit
2. Don’t be late on your credit card payments
3. Don’t get cash in advance, the fees are unnecessary.
4. Don’t charge more than you can pay off that month.
5. Keep your college credit card in a safe place while in dorm
6. Don’t let you friends charge on it.


Advantages of Student and College Credit Cards.
1. Build good credit.
2. Increase your credit scores.
3. With good payment history you will be able to get other loans.
4. You have emergency money.
5. You will get other low interest credit card offers.
6. Be able to get good rates and terms on other loans


Remember when you get your student credit card; make sure you are responsible, because when you get done with your degree, most employers check your credit report to see how responsible you are. If you have a good credit history plus a degree, you are more likely to get that job, as opposed to the individual that has the degree but credit is bad. You should have at least 3 lines of credit reporting on your credit report. Examples would be a couple of credit cards and maybe a car loan. The credit bureaus like to see a mix of credit when determining your credit risk. Your credit has never been more important that it is now. Get your student credit card today, and be well on your way to establishing a good credit history. It would not hurt to get a recent copy of your free credit score report as well to see where your credit currently stands.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, student credit cards , and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Increase your Credit Score Quick

Increasing your credit score is not that hard believe it or not. I am going to teach you how to increase your score depending on your situation. As a lender I have helped tons of people increase there credit scores so I could get them a loan. I have learned all kinds of tricks of my trade since I am involved with people’s credit through out my career.


Pay Down Debt
Folks this is the quickest way to increase your credit score. If you have credit card debt, and more than 30% of credit limit is charged your scores will drop. I guarantee you if you follow the example provided your score will rocket.
Example:
Credit Card Limit: $10,000
Balance: $5,000

Pay balance down to $1000.00 and your credit score will increase around 50 points. The reason for this, is according to Fair Isaacs FICO® system the ­­­­------- Extent of Indebtedness is (30%) of your credit score. That is a major part of your score. So if you have credit cards that are above 30% of credit limit, pay down the cards with the highest balance. You will see good results within 30 days.

Late Payments
I have discussed the effects of late payments in other articles I have wrote. But I don’t think I can ever talk too much about the effect of this mistake. You can kiss 100 to 150 points away for late payments whether its 30 days late or 60 days. Also it’s very common for creditors to report late payments when there actually was no late payment at all. This mistake on a creditor’s part is very costly. I would pull a current copy of your free credit score report to see what inaccuracies are on it. Once you have determined you are the victim of this type of mistake, call the creditor get a letter to remove late payment from the Bureaus. This process will increase your credit score 30 to 40 points, depending on how many late payments are removed. The one creditor that reports late payments as a mistake is Sallie Mae. For some reason when student loans are put in deferment with these guys, they report the payments late. This is just an example of how to increase your credit score by removing late payments.

Increase credit card limit
This is a neat trick, I have actually done this. Let’s say you have 3 credit cards, one card is above the 30% of credit limit. The other two cards are close. What you can do is request a limit increase on the card that is above the 30% credit limit. The credit card company will actually ask you for how much, your response should be for the max you will allow. Since extent of indebtedness accounts for 30% of your credit score you can see how this will increase your score.

Conclusion
These tricks of the trade if followed correctly will help you over all credit health. Obviously the first step is to get a current copy of your free credit score report to see where you stand. Once you have determined what makes sense for you, make it happen. Your credit is your life.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness

Secured Credit Card Advantages

Secured Credit Cards have many advantages for someone who does not have any credit, or someone with challenged credit. It is hard to do a lot of things without credit cards. In this article I will discuss why you need credit, and if you don’t have credit or your credit is challenged, how secured credit cards will benefit you.

Establish good credit
One of the hardest challenges is to get a creditor to extend credit to someone that has no credit. There was a trick used for years, and that trick was having a family member ad you to there credit card as an authorized user. Recently the FICO® score model was changed because of the fraudulent use of selling authorized user accounts by credit repair companies. This motivated Fair Isaac to change there FICO® score model. So if you are added to a credit account as an authorized user, this can hurt your credit score. This loophole has been closed. The best way to get started in the credit building process or the credit rebuilding process is too get a secure credit card. Secure credit cards require a deposit into a designated account by the credit card company. This is the quickset way to start establishing good credit.


How much credit do you need?
Once you start building your credit, most creditors like to see at least 3 lines of credit reporting on your credit report for 12 months. The standard is getting 3 secured credit cards or at least two will suffice. Once the lines of credit have been reporting to all 3 credit bureaus for 12 months your credit score will start to appear or get better depending on your circumstances. Remember secure credit cards are just a way to get the ball rolling. After you have been paying on your credit cards with no late payments other credit card companies will start offering you credit cards with small credit limits. Typically they will extend around $1000 line of credit to you. With good history they will increase that limit over time. Your credit card balance should never be charged over 30% of allowed credit limit. Fair Isaac talks about this in their score model. Be careful with credit cards, they can consume you if you are not careful. You should never charge more on a credit card than you can pay off that month.


Payment History
If you have one late payment on your credit card, you just defeated the entire purpose of this article and the credit building process. One late payment will slaughter your credit scores. Typically your credit score will drop 100 to 150 points. So if you had a 720 credit score, you now have a 570 score. A 570 credit score will get you denied for all types of credit. So make sure your payment history is in good health. Never be late on anything. Make sure you get a copy of your free credit score report to see where you currently stand.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

First Time Home Buyer - Tips & Faqs

If you are a first time home buyer, you more than likely don’t know what the process is. Most first time home buyers rely on a real estate agent to guide them a long. Here is the advice and tips that will make your home buying experience a good one.

First Step:
1. Find out what you qualify for. This is the most important part of the home buying process whether you are a first time home buyer, or someone upgrading to a bigger home. We know that getting the approval process done first is not as fun as looking at homes. But you could be wasting your time and everyone involved by not getting your finances in place first. I would recommend getting a current copy of your credit report with scores before calling a lender. Make sure you know your credit situation, so you are an educated home buyer.

Second Step:
2. Find a seasoned realtor that knows what they are doing. There are too many realtors in the real estate business that don’t have a clue when trying to find you a home. I would get a recommendation from you lender. They typically know who will get the job done for you. You don’t have to buy a home with a realtor that works for some big name brokerage. There are plenty of good realtors that work for small companies as well. Do some research?

Third Step:
3. Once you have secured financing with a reputable lender and have found a seasoned realtor, then you are ready to start the looking process. If a realtor takes you out and only wants to show you 4 to 5 homes and that is it, this is a sign that all they are interested in is a commission check. This is the biggest purchase of your life, it usually takes all day to look at homes and then make a decision. In some instances there may only be 4 to 5 homes to look because that is all that is available that meets your criteria. I am sure you get the idea though.

Fourth Step:
4. Close on your new home. Hopefully you have made the right decisions and got reputable and honest real estate professionals to make it happen for you.
Conclusion: Make sure you can buy first, and what type of loan you qualify for. This is essential so you will not be disappointed. You should also have selected seasoned and professional real estate service providers. Remember you are relying on real estate professionals to help you make the biggest purchase of your life.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

What's My Credit Score?

If you’re applying for a loan or credit card, your credit score could have an impact on your interest rate and loan term. So what is your credit score and what does it mean? What does it say about you? Credit scoring is how creditors or lenders assess their risk when lending money to you. They look at your score and it indicates to them how financially responsible you have been in the past.

Your credit worthiness is calculated by credit scoring agencies and bureaus. You should get a copy of your credit score at least once a year and make sure that there are no mistakes or omissions in it. You can get this information for very little money and sometimes for free. Your actual score will be between 300 and 900. Higher scores are much better and can get you great interest rates, longer pay-off periods or terms, lower fees and less paperwork in the application process. Low scoring applicants are usually rejected all together or they are offered high interest rates, high minimum payments and more fees. Sometimes low scoring applicants are accepted based on their employment history or other factors, but generally aren’t as trustworthy as their higher scoring counterparts.

Is your score a good score? 650 or higher is a very good score and will generally earn you the very best terms when applying for loans. If there are a few minor problems with your credit history, such as a couple of late payments in the last few years, then you can score between 620 and 650, which is still a good score. You may run into a few problems with this score, but generally it is still pretty good. You’ll probably end up with slightly higher interest rates than people with excellent credit. Scoring under 620 puts you into a risky category. You may still be approved for a loan, but it will be at the highest interest rates and you may be considered a big risk to lenders.

Things that affect your credit score include your borrowed money payment history, late payments and missed payments. Late and missed payments on a credit card or loan are very big considerations when calculating your credit score. You should try to never make a late payment because it blemishes your record for years. Another thing considered when figuring your credit score is your debt to income ratio. If your level of debt is very high relative to your income, or if the cards you have are close to their spending limits, then your score will probably go down.

If your credit history is very long and you’ve had revolving credit for years, then your score may drop. Trouble paying things off completely makes you look like you are in over your head, or you’re just not trying to pay off your debts. Inquiries on your credit are another thing that is looked at. If you’re constantly applying for credit cards and loans, regardless of your acceptance or use of the instrument, then you look like someone who can’t afford the things that you’re trying desperately to get. Do your research before choosing a loan or credit card to apply for. Multiple inquiries on your credit can hurt you in the long run. Your credit score ultimately depends on you.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.