Are You Hurting Your Child's Credit? Get the Report

I have been getting a lot of questions lately regarding what to do if you suspect your minor child’s identity is being used to obtain credit. With the credit tightening and job losses we’ve experienced over the last three years, many people have become desperate when trying to turn on utilities or rent somewhere to live and have resorted to using a child’s name and Social Security number to start accounts. This is completely illegal and may even result in a jail sentence for the offender. If you suspect that your minor child’s information has been used fraudulently, contact law enforcement to report the illegal use of their credit.  Then follow up with the credit reporting agencies and request a...

Posted on May 30, 2011

Top Ten Ways to Save Your Credit!

1. Put down the card! Unless you really will pay that credit card purchase off before the next statement, don’t use it! 2. Send in the payment. Pay all of your bills on time and if you cannot, contact the creditor to make arrangements. Avoid having debts sent to collections. 3. SAVE for big purchases rather than using credit. If you know your washing machine is on its last legs, start saving! $100 a month for a few months and you can buy a great (machine, stove, lawnmower, drill, etc.) item without using credit and you’ll pay no interest! 4. A variation on #3, rather than open new credit to purchase a big item, use existing your existing credit lines. Numerous open lines...

Posted on Mar 14, 2011

Top Ten Ways to Mess Up Your Credit

Pay your credit card bills, at least, 30 days late. Don’t bother keeping balances low – make sure your credit cards are maxed out! What is credit for, if not to use it! More late payments! Pay car, home, or student loan payments, at least, 30 days late. Rather than save up for things you want, grab it now by opening up new lines of credit! (Spring is just around the corner and you could use a new wardrobe/barbecue/vacation!). Who needs to pay traffic tickets, medical bills, or even utility bills? Forget about them and they’ll end up with a collection agency – a definite black mark on your credit report. Never check your credit report. Doing so will only alert you to problems on...

Posted on Feb 27, 2011

Free Credit Scores Available Now! How Can You Get Yours?

Some great legislation has gone into effect as of January 1, 2011. For the first time in history consumers will have access to their free credit scores if they receive an interest rate on a loan (or credit card) that is above the best rate offered to other consumers. The regulation, a somewhat belated result of the Fair and Accurate Credit Transactions Act of 2003, orders credit card companies and other lenders to provide this information through a so-called “risk-based pricing notice” plus a credit report or with disclosure of the consumer’s credit score (Creditcards.com, 2011). So, if you apply for a credit card with an interest rate of 10%, but are approved for the card at a 10.25% interest rate (anything...

Posted on Jan 05, 2011

Why is it Important to Check Your Credit Report?

Today, our credit reports are used to make many decisions about our financial future. This includes auto insurance rates, employment opportunities, ability to rent a home or apartment and, of course, whether we can obtain a home, car or credit card loan.  It is critical to protect this very important asset by checking it, at least, annually. Below are some other reasons to check your report and some common things to look for when reviewing it. Make sure that only accurate information is on the report. It is very common for credit reports to contain errors. You don’t want an error to prevent you from getting the best rate on a car loan, home loan, or credit card do you? So you...

Posted on Nov 10, 2010

Positive Steps You Can Take for Improving or Establishing Credit

Every year, people who have no credit or have negative credit pay hefty fees and interest to do things some of us take for granted. We all know that if you want to borrow money for a car loan, home loan or to obtain a credit card you need to have good credit. What some people do not realize is that your credit also impacts your ability to rent a home or apartment, the amount of deposit required to establish cell phone and utility services and whether or not you will qualify for certain employment opportunities. Today, having a good credit report and score is a necessity. Below are some methods for establishing or reestablishing positive credit, so that when it...

Posted on May 07, 2010

Personal Money Management Quiz

April is Financial Literacy month so this newsletter is dedicated to helping you assess your current money management habits. Good money management skills are very important in life. They can help you prepare for emergency situations, plan for retirement, and avoid paying too much for everyday needs such as auto insurance, home loans, and even utilities. Complete the personal money management quiz below and then turn the paper over to calculate your score. For questions 1 - 11 select (A) Always, (S) Sometimes, or (N) Never. For questions 12 - 15 select (T) True or (F) False. 1 I use a budget to help manage my finances. A S N 2 I pay my essential bills (rent or mortgage, utilities, etc.) on time. A S N 3 I save 10% of my income on...

Posted on Mar 29, 2010

Correcting Your Credit Report

It is possible for your credit report to have mistakes. These might range from a trivial item such as a misspelling in the personal information section, or something more serious such as a claim that an account was not settled. Report your dispute to the credit reporting agency (CRA) in writing. List what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. See...

Posted on Apr 14, 2009

Get it Off My Credit Report

Q: All my outstanding debt is paid off! Can you help me get it off of my credit report? A: All items, positive and negative, stay on your credit report for 7 years. The good news is that these debts should now be showing as “paid” on your report. This should have a positive effect on your credit score. It may take some time for the creditor to change the status on your credit report as not all creditors report to the credit bureaus each month. When paying off debt, be sure to keep proof of the payment. This can be especially important if you are applying for additional credit before the new status is reflected on your report. By doing so,...

Posted on Sep 03, 2008

Ingredients of the Credit Score

Your credit score does a lot more than help you get a better interest rate – in today’s credit world it is becoming increasingly more important to be keep a good credit rating for basic things like employment, renting, and even insurance! The main ingredients to the credit score include the Payment History, Amounts Owed, the Length of Credit History, New Credit and the Types of Credit Used. This pie chart shows the percentage of each category that is attributed to the overall credit score. The Payment History is the most significant part of the credit score and accounts for 35% of the total score. The Payment History consists of: Payment information on accounts like credit cards, store cards, installment loans, finance company accounts,...

Posted on Apr 30, 2008