Credit Repair. Increase Your Credit Score!

Though only five years old, Mint.com has quickly established itself as a highly recognized personal finance management web-service. For the uninitiated, Mint.com has been listed by Time Magazine as a top-50 website for the last three consecutive years and is the winner of the Webby Award for Excellence on the Internet for Best Financial Service in 2009, 2010, and 2011, beating out financial news giants CNNMoney, NY Times Dealbook, Nerdwallet and Yahoo! Finance.

Mint.com allows its users to aggregate their banking accounts, investments, insurance policies, IRAs and mortgages into its management system which automatically provides up-to-date categorization, support and tools for budgeting analysis and bill reminder services. Their services are essential for those wanting to take control of their financial lives and improve their credit scores. Best of all, Mint.com is completely free.

The site was conceived by Aaron Patzer in 2006 after quitting his day job as a software architect to develop a method for analyzing numerous financial documents with high accuracy. After gaining the interest of First Round Capital, Mint.com received the seed capital to further develop their concept. Patzer’s ideas ambitions became so popular that grabbed the attention of Intuit, a financial software company and maker of Quicken, which extended an offer to purchase Mint.com for $170 million in late 2009.

CreditRepair.org was granted an opportunity to gain some insight into the company from Aaron Forth, Inuit’s Vice President and General Manager of Personal Finance Group. Read more…

Following precedent set by the recent “Bank Transfer Day” movement, consumers who are fed up with their credit cards are encouraged to participate in “Balance Transfer Day” on Dec. 11.

Spearheaded by Music for Change: Financial Literacy Initiative — an organization that has previously preached financial awareness via musical performances —has decided to take a more proactive approach to influencing people to reconsider who they are willing to give their assets to.

Prospective participants are encouraged to transfer their high interest credit card balances to new cards with a zero percent introductory interest rate, saving them substantial amounts of money.

“The goal is to bring newborn light onto the unethical practices and regulations that the credit card industry performs on a daily basis. 29.99% on late payments is brutal in this economy,” Ellina Graypel, a spokesperson for Music for Change told Attiyya Anthony of Credit-Land.com. Read more…

During the process of credit repair, you may encounter a call (or several) from a debt collector trying to collect on a debt you may not be familiar with or you are not ready to deal with the present time. A powerful and effective tool for dealing with such a scenario is to request a debt validation letter. Making this request is within your right and also protects you from a potentially fraudulent scenario.

What is a Debt Validation?

Debt validation is a legal process which is part of the Fair Debt Collection Practices Act. Debt validation is a request made by a consumer to the creditor asking for proof that the collection agent making content has been assigned to collect the debt. It also helps to establish the total amount you owe as per the original creditor. Read more…

Technology created to prevent credit card fraud from ruining a consumer’s credit is coming to JP Morgan Chase & Co to help protect card holders.

The bank, headquartered in New York is producing their new British Airways Visa card with a computer chip inside that contains account information. These computer chip cards are meant to provide more security and protection from hackers than the normal magnetized strips.

The credit card technology is becoming a standard in the overseas market and it is part of the industry standards referred to as EMV. While other countries have been utilizing the technology, American credit cards are starting to take notice. There are some considerations, however, that should be made concerning the technology. US merchants must make necessary upgrades to their credit card processing systems in order for the cards to be functional. The costs of those upgrades have made many Read more…

A bad credit score can hold you back from a lot of things – buying a car, owning a home, getting good insurance rates, and even from getting a job. Most of the time, your credit score isn’t the only factor that’s considered when you put in an application. Don’t be an all around bad candidate just because your credit is bad. Look great – on paper – even if you have a bad credit score.

Don’t keep making credit mistakes.

The older the negative information on your credit report, the better you look. So, from now on, make sure you pay all your bills on time. Remember that creditors report 30 day late payments, so if you missed your due date by a couple of days, make your payment before the next statement arrives. You’ll still face a late fee, but you’ll avoid having the late payment being entered on your credit report.

Pay off some debt.

You’re a better candidate for credit cards and loans when you have less outstanding debt. When you do have credit card balances, it looks better when those balances are below 30% of the credit limit. So, if you can’t afford to pay off all your balances, at least pay down the balances that are close to the credit limit.

Keep your applications to a minimum.

Even an applicant with a great credit score looks risky when they start applying for several Read more…

According to a survey conducted by TransUnion, the consumer credit reporting bureau, an estimated 56% of American consumers have not conducted a personal credit check during 2011.

Credit scores are the core of a consumer’s financial stability and since less than half of American’s with a credit history are not following through with financial expert advice – to check credit reports at least annually, if not every 6 months. Those working to improve their credit score should be checking scores more frequently.

It this day and age, consumers are doing their financial stability an injustice by staying in the dark about their credit score. Consumers will need to spend more money for basic services and products they use in their daily life if their credit score continues to stay low. More industries are looking at credit scores before providing services like utilities, rental properties, cell phones, and even employment opportunities. Low scores will guarantee more upfront security deposits and higher interest rates on personal loans and mortgages.

Financial experts have also pointed out that nearly 80% of consumer credit reports contain some kind of inaccurate information or mistake. For this reason, consumers are encouraged to regularly review credit reports and file Read more…

When you are considering applying for a new credit card that offers balance transfer capabilities, it is important to consider the effect the balance transfer card will have on your finances in general – specifically your credit score.

In most cases, people will apply for a balance transfer credit card with the intention of relieving other credit card debts. For some, this may mean there is already a danger of having a low credit score due to slow payments or a lack of payment when they can’t keep up with their financial obligations. With a low credit score, there can be long-term financial problems and a balance transfer credit card can make the situation even worse.

Here are some additional considerations to make before applying for a new balance transfer credit card:

The Inquiry Will Hurt

When you apply for any credit card or line of financing, the lender will check into your history to determine if you are creditworthy. When you submit an application, the inquiry being made will impact your credit score. It may not make a big dent but if your credit score is already low, it could Read more…

The Federal Trade Commission has sued a Texas company for charging fees to customers before services were rendered.

The lawsuit filed by the Federal Trade Commission alleges that the Texas company, RMCN Credit Services, has been unlawfully charging prospective clients credit repair service fees before any work is performed. The FTC filed the lawsuit as part as their renewed effort to cut down on credit repair companies and their associated scams.

The FTC has been working to ensure that consumers who are undergoing financial problems are not being victimized by so-called credit repair service companies. The agency found that RMCN Credit Services were charging consumers a retainer fee that went as high as $2,000 for some clients. The retainer fee went towards fees to cover with credit repair help.

The RMCN retainer fee was a direct violation of federal laws that do not allow credit repair agencies to collect any kind of fee without first performing specified credit repair services. The FTC found the Texas company to be charging the retainer fee to clients upfront before work was completed on behalf of the client. Read more…

Bank of America issued a stark prediction last Friday, asserting that the nation’s credit rating could see another downgrade before the new year.

BofA Merrill stated they do not expect substantial progress from the congressional super committee charged with finding large reductions in government spending.

This comes after Standard and Poor’s downgraded the U.S. from a AAA to AA+ in early August, a move that drew rebuke from politicians and pundits alike and removed much credibility of any touted economic recovery since the recession began in 2008.

Moody’s, another major credit rating company, said back in August that the U.S. could see a downgrade from their institution before 2013 if it observes “(1) any weakening of fiscal discipline between now and then or (2) a significant deterioration in the economic outlook resulting in adverse fiscal implications that are not offset.”

The bi-partisan congressional super committee was formed as a means explore reductions in federal spending, but has been having a hard time agreeing on cuts. One huge drain on federal capital is our on-going foreign wars and large defense contracting programs, which total more than 700 billion annually.

President Barack Obama stated last week that combat troops in Iraq would all by pulled out by the end of December, which will surely bring a huge reduction in Department of Defense spending and could bolster the economy.

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For those who are pursuing a military career,  a poor credit score can be the downfall of a much anticipated promotion or the ability to obtain security clearances necessary for the job. While consumers in general need a good credit score to ensure they don’t pay extra for utility services, car insurance premiums, and loan interest rates, bad credit can seriously affect the lives of those in the military.

Pioneer Services has stepped in to help military families who are struggling under the burdens of bad credit and big debts. The company has created a kit with a downloadable PDF information sheet which provides the data a consumer needs to improve credit and reduce debts. The kits also contains podcasts and other interactive information to increase financial literacy among military families.

Military families are often hit hard by the burden of debt and bad credit due to low-end pay rates, frequent re-location, and basic consumer credit mistakes others often make. However, because of the risk to one’s career within the military, Read more…

While 60% of respondents to a Visa Inc survey were technically wrong when they said employment is used to calculate credit scores, they weren’t that off base. Employment status can have an impact on your credit score, even though it’s not directly included in your score.

Consider the things that do affect your credit score: how you pay your bills, the amount of debt you have, the length of time you’ve had credit, the types of accounts you have, and the number of times you’ve applied for credit. Your employment history directly impacts several of those factors.

Your job affects how you pay your bills.

Whether you have a job – and how much that job pays – impacts your ability to pay your bills on time. If you’re unemployed or your job doesn’t have a great salary, that can keep you from paying your bills on time. Payment history is 35% of your credit score and missing payments has a detrimental affect on your credit score. On the other hand, consistent employment and a good salary enable you to pay your bills on time every month and possibly in full.

Having a job lets you keep your debt levels low.

If you’re currently unemployed, that employment status can affect the amount of Read more…

For consumers that have been working to repair credit and get finances back into a stable place will still find that applying for a new credit card will likely involve getting a high annual percentage rate despite improved credit.

Creditcards.com’s October 7^th survey showed that most new credit card offers come with record high APRs, averaging around 14.97%. This is the highest APR seen since tracking began in 2007.

Credit repair efforts are more important than ever since most lenders and credit card companies are looking for excellent or better consumer scores. Those that maintain decent to good credit scores may still find it difficult to get the best interest rates on personal loans, credit cards, and mortgages. Credit repair allows consumers to up their consumer credit scores in a reasonable period of time if the work is done to correct past credit mistakes.

These credit repair efforts for consumers involves paying all creditor Read more…

Congratulations citizens of Wausau, Wisconsin! You’ve been recognized as having the nation’s highest average credit score. Conversely, citizens of Harlingen, Texas are encouraged to step it up after finding they have the lowest average at 686, the only city to dip below an average of 700.

The second annual State of Credit list was provided by Experian, one of three major credit bureaus which analyzed 143 cities across the nation.

Four of the top five cities with the highest average credit score are located in the Midwest, which include Minneapolis, Minnesota; Madison, Wisconsin and Cedar Rapids, Iowa and the lone California city of San Francisco rounds out in 5^th.

High credit scores are associated with higher employment rates and lower amounts of debt, whereas lower credit score reinforce the exact opposite. Harlingen, for example, has an unemployment rate of 13 percent.

Though economic outlooks are rather bleak right now, the national average credit score has risen one point since last year, perhaps indicating Americans moving toward financial responsibility.

In any case, working to raise your credit score, whether it is in need of credit repair, or already a shining star is a very strong indicator of financial success in the future.

Source USA Today

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There are many consumers who have less-than-perfect credit scores these days thanks to the many economic problems facing Americans. However, experts are appealing to those that have been able to maintain their good credit profile not to share their good financial status with others in need.

Since credit scores are used by nearly every industry today, financial experts warn consumers about taking on financial obligations for others because you have a better credit score. This includes becoming a co-signor on a mortgage, car loan, or even a rental application. When you act as a co-signor on someone else’s financial transactions, you are putting yourself in the position of not only having to repay the obligation but also ruining your own good credit standing should the other person default.

More often people who have good credit are asked by loved ones to help them financially. While it is certainly up to you to decide to lend someone cash, it is never wise to lend them your credit status. Those who have maintained low credit scores likely Read more…

A new kind of credit card is set to draw consumer interest soon. The US Fifth Third Bank has announced its plan to introduce a new kind of credit card on the market for the first time. The card, dubbed the Duo Card, will combine both debit and credit card accounts on one plastic card. Consumers using the card will have the option to use the card by accessing their bank account directly or their line of credit. This will eliminate the need to carry multiple cards in a wallet and still have access to your money.

The Duo Card will also feature popular credit card programs such as rewards programs where customers can cash in points earned on purchases to repay loans received from the bank’s line of credit. Additionally, like a traditional credit card, interest rates will vary based on consumer credit scores. Currently the annual percentage rates are Read more…