In my opinion, not much.

Writing in the Washington Post, Michelle Singletary argues that all consumers should have annual access to both their credit report and their credit scores. She feels that Senator Mark Udall (D-Colo.), who proposed the Fair Access to Credit Scores Act of 2010, did not go far enough in his request.

Under his proposal, those who have been denied credit based on their credit scores will have free access to their report and their scores – without even asking. This will create a financial burden on the creditors who turned them down. In addition, it is another “something for nothing” program that our entitlement-minded society is fast becoming addicted to.

We have to wonder who should be responsible for paying the cost of compiling those credit scores, and for sending them to the consumers, if the consumers are to have them for free. Should Equifax, Experian, and TransUnion bear the costs, or should they become yet another burden on the taxpayer?

Some might argue that the scores only cost $8 each. But according to a recent survey by the National Foundation for Credit Counseling, about 1/3 of the U.S. population asks for their free credit report each year. That’s over 100 million people.

I think each consumer should pay their own $8 – whether they’ve been turned down for credit or not. But I also believe that looking at your credit report only once per year is not sound financial management.

Not in an age when even those who supply credit reports admit that 70% of all reports contain errors. Not in an age when identity theft has become big business.

A consumer could access his or her report in January and feel that everything was on track – their scores were high and they were doing fine. By February that could all change, due to a data entry error or due to a thief using their credit information. By the time they apply for a loan in September, they could have scores that are in the basement.

That’s why I believe in services such as Identity Guard. It’s true that while the first report, with scores, is free, consumers do have to pay a monthly fee for monthly reports and monitoring. But that monitoring could save them from months of grief.

Monitoring alerts the consumer to any change in their credit report – such as the addition of a credit line or a change of address. These are both events that if not true, signal an incidence of identity theft. And if you’ve ever gone through reclaiming and repairing your credit after an identity thief has been using it, you know that the sooner the use is halted and repairs are begun, the better.

It’s also true that the score you receive is not the official FICO score. But it is very close, so a consumer can tell if he or she needs to make some changes in credit usage.

Author:Marte

CreditScoreQuick.com

Under the CARD Act of 2009, credit card issuers are prevented from advertising credit cards to students, and even 18 year-old students cannot get credit cards unless they have either an income or a co-signer.

But two prepaid credit cards are now available to youths aged 13 and up.

Parents are finding these cards to be both a convenience and a safety measure. For kids who lose things (like cash), they provide the security of being able to call and have the card number cancelled. For kids who are traveling away from home they provide peace of mind – because they can have quick access to emergency funds via a transfer from a parent’s account.

Parents who are trying to teach sound money management are using these pre-paid cards to distribute allowances, and urging their teens to make budgets, and track their own spending habits via on-line statements.

The two cards are the Facecard Prepaid MasterCard® and the UPSIDE VISA® debt free prepaid card.

The Facecard Prepaid MasterCard® carries a $3 monthly fee – unless you load $100 per month of new funds or spend $100 using the card.

As an incentive to spend (is this good?), the Facecard offers “Prewards” – which are digital incentives similar to coupons that are automatically added to the Facecard when a user clicks on “accept” after receiving an e-mail notice. These are incentives that card users can cash at restaurants and stores during a pre-set time frame. They could be anything from a “buy one get one free” offer for tacos to a discount on a music CD.

The Teen Facecard cannot be used to purchase alcohol, tobacco, adult entertainment, firearms, or ammunition.

But the Facecard isn’t just for teens. This card offers both direct deposit from paychecks and automated bill pay – so consumers who have trouble remembering to pay bills on time can avoid late charges on their monthly bills.

The UPSIDE VISA® debt free prepaid card offers three different plans, the first of which is free.

The basic plan allows for a maximum balance of $1,000 and comes with no activation fee, no monthly fee, and no fee for loading from a parents checking account.  It doesn’t allow ATM withdrawals.

The Upside Access plan carries a monthly fee of $2.95, and allows ATM withdrawals and a maximum balance of $2,000.

Upside Edge allows a balance of $5,000 and an annual fee of $29.95 which will be waived if cumulative loads reach $2,900. It also provides free direct deposit from the child’s employer and online check writing for students aged 18 to 25.

The UPSIDE VISA® card is only available for consumers aged 13 to 25.

All three of these plans give parents real-time Internet access to their child’s transactions, so both parents and their children always know the current balances on the card, as well as where and how money is being spent.

Author: Marte

CreditScoreQuick.com your resource for credit cards, credit reports and credit news.

Q:

How do I locate the business reporting past due accounts? Can Experian provide me their address and telephone numbers?

Michele Davis

A:

Hi Michele,

the address of the creditor will be on your credit report that you pulled. Typically depending on the type of credit report you pulled; all creditor and collection companys numbers are after the last page of activity. If you find there are no number or address for the creditor, I would call information to get that late payment fixed. Late payments will ruin your credit score.

Mike Clover

CreditScoreQuick.com

First, realize that in most cases, you can do everything they can do. So you need to be aware of what can and cannot be done.

No credit repair company can remove legitimate negative information from your credit file. Those who promise to do so are breaking the law. If a company tells you they have a “proven method” to remove all negatives from your file, run the other way. At best they’ll take your money and at worst they’ll get you into legal hot water.

What they can do is get errors corrected and see that items that should be removed are removed.

For instance, all negative financial information has a time limit, but not all companies honor that limit.

A consumer reporting company can report unpaid accounts for 7 years and bankruptcy information for ten years. If you have these items still showing in your credit file after their time limits have passed, the credit repair company can help you get them removed.

A credit repair company can also help you file Dispute Letters to remove information that is in error. This could be a simple data entry mistake that put someone else’s information in your credit file, or failure to remove unpaid debt that was charged off in a bankruptcy proceeding.

You can do all this yourself, but if you feel unsure and want help, do use caution in choosing a credit repair company.

The Credit Repair Organizations Act requires companies to give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract with them. And they must give you a contract.

They are not allowed to charge you any fees until they have completed the services promised in the contract, and they are not allowed to perform any services until three days after you have signed the contract. This gives you a “cooling-off” period in which to change your mind if you’ve acted impulsively in contacting them.

Your contract must set forth a detailed description of what the company will do for you, along with the total cost and the payment terms. They must also tell you how long the services will take and set forth any guarantees in writing.

Caution: Do not sign any agreements with a company that fails to give you their company name, business address, and phone number. The Internet is crawling with scam artists, so beware.

If you have been victimized…

If you’ve already fallen prey to a bogus credit repair company, do report it. Contact your local consumer affairs office or your State Attorney General. They may be able to help you, and they may be able to protect other consumers from the same kind of fraud.

CreditScoreQuick.com

What’s the difference between Credit Counseling and Credit Repair?

Credit repair is a two-part procedure. The first step involves removing non-legitimate negative information from your credit file. The second involves your own behavior.

Removing information that doesn’t belong on your credit report can give an immediate boost to your credit scores, and if there is no legitimate negative information then you need only to change some habits to raise your scores significantly.

Credit Counseling comes into play when your bills and your spending habits have gotten out of control and you need some help to rein them in.

A credit counselor will help you create a workable budget and hold you accountable for sticking to it. They’ll also assist you in working out repayment plans with your creditors. Many offer free workshops and educational materials to help you learn how to control your spending and get out of debt.  With their help, you can slowly repair your credit through making consistent on-time payments and learning to live within your income.

Credit Counselors, like Credit Repair Companies, can be good or bad. So before you act, do some research.  Don’t assume that because a company is “non-profit” that it will be free, or even legitimate. Some charge high fees or hide their fees by requiring contributions to their cause, and some are even more dangerous.

As with all things, consumers need to beware. Some legitimate organizations will help you by collecting a set amount from you each month and distributing it to your creditors under the repayment plans they’ve helped you establish. But since not all credit counseling companies are legitimate, so before you agree to such an arrangement, do your research.

If you choose the wrong one, you could find your credit becoming worse instead of better. Promises to pay on time on your behalf are not met – and in some cases, payments are not made for months at a time, if at all.

Contact your financial institution or a local consumer protection agency for a list of legitimate Credit Counselors. And be aware that if you are considering bankruptcy, you’ll be required to get credit counseling within 6 months of filing – and that counseling must be from a government-approved organization. You can find the list of approved organizations at www.usdoj.gov/ust.

When you’re concerned about credit, the first step is knowing where you stand today. Get a copy of your free credit report and scores online and read the report. Correct any errors, then go on to the next step – getting out of debt.

Author: Mike Clover

CreditScoreQuick.com your resource for credit cards and online credit reports with scores.

Is there anything we aren’t entitled to these days – especially if we have a low income? Month by month, Congress is adding to the list of services that citizens can have for free.

Right now FICO scores are the target. Senator Mark Udall (D-Colorado) wants them provided to certain individual free of charge.

Never mind that credit score requirements are highly proprietary and expensive to determine. Never mind that the credit scoring companies must employ trained personnel to compile the scores. Apparently, companies like Experian, TransUnion, and Equifax have joined the ranks of those “big bad companies” who make too much money and should thus perform their services for free.

Senator Udall introduced the FACS Act, or Fair Access to Credit Scores Act, as an amendment to the far-reaching Wall Street Accountability legislation now in Congress. It has passed the Senate and is awaiting final approval.

He states that any time a person is turned down for credit, he or she is entitled to know the credit score that was used to determine the denial. At present, thanks to the Fair Credit Reporting Act, individuals who are turned down can request a copy of the credit report used in that determination, but not the scores.

Under the FACS Act, consumers will not even have to make the request. The credit report and the score will be sent to them automatically. In many, if not most cases, the score will be the FICO score, since it is the one most often used by banks and other lenders.

Does this place an unnecessary expense on the creditor? Of course it does. But apparently, that’s OK, because the creditor probably makes “too much money” anyway.

In arguing for his amendment, Senator Udall aks, “Would a doctor say that someone’s blood pressure reading is their information and not their patient’s?”

And of course they would not. But… the patient (or an insurance company or welfare agency) has paid the doctor to take that blood pressure reading, determine its significance, and convey the information to the patient.

Consumers who apply for mortgage loans are generally given their credit scores by their mortgage lenders. These consumers have paid in advance for their credit report. If their scores are low, their mortgage lender offers advice on raising the scores so they can qualify for a home loan. This is similar to the doctor who advises patients on ways to improve their blood pressure ratings.

When making application for credit cards and other kinds of loans, consumers generally do not pay. I believe that makes them ineligible to receive the scores, but under the FACS Act, it will become a “privilege.”

Author: Marte

CreditScorequick.com  your resource for the Credit FACTS…..

When interest’s rates are low like they are currently, you need to be cautious of ads for mortgage refinance via the mail, TV, and maybe the phone. You probably are asking yourself, when is the best time to refinance my current rate and terms? Please don’t fall prey to the sales calls and ads. If you are not careful, the only person that might benefit from the refinance is the bank. Remember that banks are in business to make money and I think most forget that.

Top reasons to refinance your current mortgage

-          You will be staying in your home for at least 15 years. A refinance typically takes about 7 years just to recover the 3^rd party fees applied to your principal note. So if you are in your current home short term don’t refinance your home.

-          Interest rate reduced a minimum of 2% from current rate. If you cannot reduce your current rate 2%, it’s really not worth refinancing your current mortgage because of costs that will be rolled into your loan.

-          You have an escrow shortage and you don’t have the money to cover the shortage. Lots of homeowners get into trouble with not escrowing their taxes and insurance. If you find yourself in this predicament, it is not a bad idea to refinance your home and set up your escrows with the bank.

-          You are getting a divorce. If your spouse is awarded a home in a divorce make sure they refinance that home into there name only. A divorce decree does not protect your credit score, a refinance does. So make sure you refinance your home out of your name if you are not paying the mortgage as a result of a divorce.

-          You’re ARM (Adjustable Rate Mortgage) is set to expire. Again if you are going to be in your home long term and your rate is about to go up due to a ARM loan, you will more than likely need to refinance your home. Typically I would recommend refinancing your mortgage to a fixed rate.

When refinancing your home, make sure you determine if refinancing your home makes financial sense. Don’t fall prey to a refinance sales call or advertisement. Don’t make the mistake of only benefiting the mortgage companies’ pocketbook. I personally will not refinance someone’s home if I can find benefit in it for the homeowner. Unfortunately most mortgage lenders are not honest; they are only interested in a quick buck.

Author: Mike Clover

CreditScoreQuick.com

Credit scores are sensitive – reacting to everything you do and don’t do. Here are 4 ways to respect your credit scores’ sensitivities and stay in their good graces.

Do ask for a credit limit increase – but don’t use it! Some financial advisers tell consumers to ask for a reduction in order to limit their own spending. But it’s far better to set and respect your own limits. Keep your credit limits as high as possible and your use as low as possible.

A large gap between available credit and use will raise your credit scores. A 70% cushion is good and more is even better.

Note that this limit should be imposed on each and every card you carry, which brings us to a mistake that many consumers make in their efforts to save money: Consolidating accounts.

Don’t consolidate accounts if it means you’ll “max out” a card.

You can be sorely tempted to move all your high-interest balances to a card offering a low promotional rate. After all, the less interest you pay, the more you can apply to the balances, but think twice.

As long as your consolidated balances stay below 30% of the credit limit on your low interest card, you’re safe. But when you “max out” one card your scores will drop – even if you have zero balances on 3 or 4 others.

Do pay attention to old credit cards.

The older your credit history the better, so hang on to the cards you’ve had the longest, and use them every few months to keep them active in your credit file. If you let them gather dust they’ll stop carrying much weight toward your credit scores and you’ll also run the risk that the card issuer will cancel them for non-use.

This will reduce your overall available credit, lowering your scores.

So take out the old card every 2 or 3 months, use it for a purchase you were going to make anyway, and then pay the bill when it arrives.

Don’t ask for more if you have plenty.

If you already have enough credit cards, don’t ask for more. Resist those in-store promotions offering you a percentage off today’s purchases when you apply for a card and just use the ones you already have.

On the other hand, if you’re in the credit-building stage, go ahead and get a new credit card or a store line-of-credit every few months. Having 3 or more credit accounts that you always pay on time shows creditors that you can manage money.

Author: Marte

CreditScoreQuick.com

When your credit scores have plummeted due to bankruptcies, liens, and non-payment of debts, the big promises made by bogus credit repair companies can be very tempting. But all they really are is a way to separate you with whatever dollars you have in your pocket.

Remember, when a promise sounds too good to be true, it isn’t true. So when you get an email or a postal mail promising to solve all your credit problems and remove all the negative information from your credit file, you’re looking at a scam attempt.

The truth is, the only information that can be removed is information that’s incorrect – and you can do that yourself at no cost.

How to recognize a credit repair scam:

• They ask for money up front.
• They promise to get rid of all negative information
• They don’t tell you your rights or let you know what steps you can take for free.
• The advise you to cut off contact with your creditors.
• They tell you not to contact the credit reporting agencies.
• They advise you to dispute every negative entry on your credit report, even if it’s true.
• They suggest that you create a new identity.

Under the Credit Repair Organizations Act, credit repair companies are barred from collecting money from you until and unless they complete the promised services. And, if you follow their advice about creating a new identity, you may be committing fraud – which is much more serious than poor credit!

Under the law you are entitled to an annual free copy of your credit report from each of the nationwide consumer reporting agencies: Equifax, Experian, and TransUnion. In addition, you’re entitled to a free report if you ask for it within 60 days of being denied an application for credit, insurance, or employment based on your credit rating.

Reading your credit report regularly is a wise financial practice, because over 70% of all credit files do contain errors.

To dispute an error, simply write to the complaint department of the reporting agency. Identify the incorrect item, tell why it is incorrect, include supporting documentation (such as a statement showing that the bill is paid or court documents showing you no longer obligated to pay) and ask that the error be corrected.

When you file a dispute, the reporting agency has 30 days in which to investigate and get back to you. Part of their investigation will be to gather proof from the information provider. If the information is found to be incorrect, the reporting agency will change your credit file and send you a new copy of your credit report.
In addition, you can ask to have a corrected copy sent to anyone who has accessed your file in the past 6 months. You can also ask that a corrected copy be sent to anyone who reviewed your credit file for employment purposes during the past 2 years.

Author: Mike Clover

CreditScoreQuick.com

Experts agree that as many as 70% of all credit reports have errors. In addition, identity theft is rampant, so reading your own credit report often and checking for errors is vital to maintaining good credit scores.

Some errors, however, aren’t worth correcting, because they have no effect on your credit scores. Those include:

• Misspellings of your name
• Listing of an old address or an incorrect address
• An old employer listed as current
• Incorrect reporting of who closed an account – you or the bank

As long as those items aren’t tied to a new account that is clearly not yours, you don’t need to make the effort to correct them.

An address where you have never lived or an employer you’ve never worked for, on the other hand, could be a sign of identity theft, so should be investigated.

Errors that can affect your credit scores and thus should be corrected immediately include:

• Accounts listed as unpaid that were included in a bankruptcy
• Current accounts that clearly are not yours
• Negative items older than 7 years – or 10 years in the case of a bankruptcy
• Closed accounts listed as anything other than “paid as agreed” if you’ve paid on time and in full
• Credit limits reported as lower than the limit listed on your credit card statement
• Late payments, charge-offs, or collections that aren’t yours.

This last one could also be a sign of identity theft, so look into the source of the report immediately.

One caution – while it should always be beneficial to get your credit report clear of any negative information, removal of old items can actually lower your score.

The FICO credit scoring method groups consumers together in a very strange way. When your credit history is spotty you’ll be included in one of several groups, and when it’s clean you’ll be included in another group. You can be at the bottom of a group or at the top – based on all the components that go into determining a credit score. And your standing within that group will affect your credit scores.

Thus, removal of an old negative could move you from the top of one group to the bottom of another – and your scores will drop accordingly.

Remember, however, that you can’t attain the highest scores available as long as you remain in one of the “lower” groups. So even if you have a temporary setback, it’s still worthwhile to work on creating a clean credit file.

CreditScoreQuick.com