How Freezing Your Credit Report Protects You From Identity Thieves

According to the March 5th, 2013 release by the Federal Trade Commission (FTC), identity theft was the #1 consumer complaint in 2012.  In addition, the FTC’s February report states that nearly one in four Americans have an error on their credit reports that is significant enough to prevent them from obtaining a loan or certain types of employment. The best method for combating identity theft is to check your credit report at least, once a year. It is free through www.annualcreditreport.com and you can view all three reports, every twelve months. Another option for safeguarding your identity is to place a credit freeze on your credit reports. A credit freeze prevents the credit bureaus (Equifax, Experian and TransUnion) from releasing...

Posted on Mar 17, 2013

National Foundation for Credit Counseling offers Guide to Disputing

National Foundation for Credit Counseling offers Guide to Disputing Credit Report Inaccuracies Consumers should take the lead in examining their credit report   Washington, DC – The accuracy of credit reports has been in the news lately, causing consumers to wonder how error-free their own report is.  Since credit reports are the backbone of the all-important credit score, it is indeed important to fully understand what a credit report is, what consumer protections are in place, and what actions can be taken if errors are found.   “Consumers can be their own best advocate to ensure the accuracy of their credit file, but education is key,” said Gail Cunningham, spokesperson for the NFCC.  “If an error is identified, it is the consumer’s responsibility to take...

Posted on Feb 19, 2013

Consumer Financial Protection Bureau Now Taking Complaints on Credit Reporting

  For the First Time Consumers Will Get Federal Assistance on Complaints WASHINGTON, D.C.,  10/22/2012 From the CFPB Today the Consumer Financial Protection Bureau (CFPB) began accepting consumer complaints about credit reporting, giving consumers individual-level complaint assistance for the first time at the federal level. “Credit reporting companies exert great influence over the lives of consumers. They help determine eligibility for loans, housing, and sometimes jobs,” said CFPB Director Richard Cordray. “Consumers need an avenue of recourse when they feel they have been wronged.” Consumer reporting agencies, which include what are popularly called credit bureaus or credit reporting companies, are private businesses that track a consumer’s credit history and other consumer transactions. The credit reports they generate – and the three-digit credit scores that are based...

Posted on Oct 22, 2012

Credit Repair and the Truth About Bad Credit; American Financial Solutions Provides Tips on the Reality of Managing Negative Credit

If someone has negative credit or a few blemishes, they may be tempted to use a credit repair business to help eliminate damaging information from a credit report. However, it is a risky gamble for a consumer to take. American Financial Solutions Director Becky House offers tips and advice on using a credit repair business to clean up bad credit. Seattle, WA  April 20, 2012 Having good credit has become as much of an asset in today’s society as owning gold and property were 100 years ago. With good credit people pay less in interest on major purchases, may pay less for insurance and do not have to worry about potential credit checks by employers. Credit repair businesses offer consumers a way to...

Posted on Apr 20, 2012

A Quick Guide for Consumers on Credit, Debit, and Prepaid Cards from the FDIC

From the FDIC Below is a great guide developed by the FDIC. Use this guide to understand the difference in protections you have when using different types of credit, debit and prepaid cards.     Credit Cards Debit Cards Prepaid Cards What it is A credit card is a loan. A debit card is linked to your bank account and is issued by your bank. There are a variety of prepaid cards, including "general purpose reloadable" (GPR) cards which carry a brand of a card network (such as Visa or MasterCard) and can be used where that brand is accepted. Payroll cards and gift cards are two other types of prepaid cards. How it Works When you borrow funds using a credit card, you must pay the money back. You may...

Posted on Mar 07, 2012

How Long Can a Debt be Collected?

One of the most frustrating questions I receive from people is about how long a debt will follow them. There are so many numbers out there about time limits on credit and negative information in our credit report, so what is the real answer? There are a few. First let’s look at how long negative debt information can stay on a credit report. If it is a judgment or bankruptcy it may remain on your credit report for 10 years from the date the case was filed. Other items like credit card debt, collection accounts, repossessions, etc. can only be on the report for seven years after the account became delinquent. It does not matter if the account is sold to...

Posted on Aug 24, 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

Credit Card Holder Bill of Rights

The House passed H.R. 5244, otherwise known as the Credit Card Holder’s Bill of Rights on September 23, 2008. H.R. 5244 is an amendment to the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan. Here is a list of some pieces included in the bill: Protects cardholders against arbitrary interest rate increases Prevents cardholders who pay on time from being unfairly penalized Protects cardholders from due date gimmicks Shields cardholders from misleading terms Empowers cardholders to set limits on their credit Requires card companies to fairly credit and allocate payments Prohibits card companies from imposing excessive fees on cardholders Prevents card companies from giving sub-prime credit cards to people who can’t afford them Requires Congress...

Posted on Sep 30, 2008