Free Credit Report Part II

April 24th, 2008

Free Credit Report – Part II

Author: nan
My FICO score is less than perfect – what can I do?

In my first lesson, “Free Credit Report – Why You Need One!”, we discussed why your FICO (Fair, Isaac; named for the company that created it) score is so important to your credit rating. This number indicates to your lender how trustworthy you are to re-pay your loan and directly translates into how much interest you will be charged on your next loan. FICO scores can vary from 300 to 850. It’s very credit savvy for you to pay the $10 fee to any of the 3 major credit bureaus and receive your FICO score.

After you have received your free credit report,, go over it very carefully and check for any inaccuracies.

• Verify your full name, address and Social Security Number

• Review your list of reported credit cards. Look for any credit cards listed that you have never applied for and any cards that you no longer use

• Verify your car loan outstanding balance

• Verify your mortgage loan outstanding balance

• View your payment history to see if any of your creditors have inaccurately reported any late or missing payments

If you find any errors, this is the time to take action! Phone, email or write to the 3 credit bureaus mentioned in my first lesson (link listed above). After you have reported the problem, the credit bureau will open an investigation and contact your credit card company, bank or other lender. This agency will then check its records to verify the accuracy of your claim. In 30 days you will be told the outcome of your claim. This item will then either be corrected on your credit report or will stay the same if your claim is not upheld. If your claim is not upheld, you can still write a letter to the credit bureau telling your side of the story and ask to have this added to your credit report. After 2 weeks, go back and review your credit report to make sure that the changes have actually been made.

If a new credit card shows up on your credit report that you have never applied for, you may be the victim of identity theft. Contact the fraud department at one of the three credit bureaus immediately! Request a fraud alert to be placed on your credit cards. Doing this makes sure that you will be notified if anyone tries to apply for a new credit card in your name, change your address or make other changes to your current credit cards.

OK, what else can I do to improve my FICO score and clean up my credit report?

First, realize that improving your score and credit rating isn’t going to happen overnight. Bankruptcies will stay on your credit record for 10 years. Other judgments, such as liens, will stay on your record for 7 years. There’s no getting around either of those problems. But there is something important that you can do while you’re waiting for a bankruptcy or lien or be removed from your record. The number one, most important thing you can do is pay your bills on time. You may be thinking, “That’s it? No magic?” It may be hard to believe, but paying your bills on time can significantly raise your FICO score in only 3 or 4 years to qualify for a much improved interest rate on any loan you apply for. You can’t go back and make up for missed payments in the past, but you can make sure that it doesn’t happen again! More good news – your recent ‘good’ credit history carries more weight than your distant ‘blemished’ past.

Paying down your debt balance always helps to improve your score but be smart about how you pay off your credit debt. Prepaying on your installment car loan probably won’t help you much, but making headway on paying off your expensive credit card debt will help significantly. It’s a red flag to credit bureaus if your credit card debt load is approaching your maximum limit. One trick to stay far, far away from your credit card maximum limit, is to ask your credit card company to raise your limit. This trick only works if you don’t use this extra lee way to make additional purchases!

Two final simple, yet amazing tips to help improve your score.

1. If you have credit cards that you no longer use – cancel them!

2. Avoid applying for any additional credit cards. Every time you apply for a new credit card, your lender will make an ‘inquiry’ into your credit history. Too many inquiries will negatively impact your credit report. The fewer, the older credit cards you have, the better!

Article Source : http://www.articledashboard.com

Beth Gabriel is a successful Webmaster and publisher of PrePaid-Legal-Help-4U.com. She provides more Identity Theft information and tips on improving your Credit Report that you can read on her website from the comfort of your home at 2:00 am!

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Credit Card Debt Management

How To Choose The Best Balance Transfer Credit Car

April 23rd, 2008

How To Choose The Best Balance Transfer Credit Card

Author: Robert Alan
Credit cards are often the cause of financial troubles for many people today. They are often so easy to get - but they can also be so hard to control. However, by taking advantage of some special balance transfer credit cards, help can be found that could bring some ease to financially tight situations. This article will focus on how to choose the best balance transfer credit card, making sure that the card you pick is the right one for you.

What Is A Balance Transfer Credit Card?

This particular kind of credit card allows you to take an existing credit card balance, which is at a standard rate of interest - possibly as high as 29%, and put it on another card. The new card makes the transfer appealing to you by offering either a low monthly interest on the transfer, or even no interest on the balance - for the life of that transfer amount. Making this kind of a credit card balance transfer not only makes good financial sense, but it is also easy to do.

What Are The Special Gimmicks Of The Card?

Obviously, a credit card issuer is not in the business of giving an opportunity like this away without any potential strings attached. Here are a few things that you might want to read the fine print in the offer and look for.

• Transfer Charges

Some credit card companies seem to want to play with the fact that not everybody reads the fine print. So, for the unwary, there could be a fee for making the balance transfers, or, it is possible that other advantages made in the offer could offset the transfer charges. You will have to look it over and compare it with other card offers. Ideally, if you accept a card with transfer charges, try to get one that puts a cap on the amount - for example, around $60 to $75.

• Yearly Charges

The transfer may be free, and the interest, but there could be an annual fee for the use of the card. This means whether or not there is any balance on the card - you will still pay the fee for as long as the card is active. Many cards will carry no annual fee.

• New Purchases

Here is another thing that you need to look for. A balance transfer credit card may offer you 0% interest on the amount transferred, but the amount of interest on new purchases could be very high.

• Introductory Rate

Every card has an offer to get you to get their card. One common feature is the promise of a low rate for new purchases. Be careful about focusing only on the promise of 0% interest on credit card balance transfers. Check out the length of time for the introductory interest rate, too. Compare that also with other card offers.

What Are You Going To Use The Card For?

Another consideration about which card to choose should be based upon why you need such a card. If you have a lot of credit card debt, then the purpose should be only to put on the card your current credit card balance transfers. This means that you should try to get a card with 0% interest on the balance transfer amount, and that you will not use it to make new purchases. Also, seek to pay as much as you can as quickly as you can.

When choosing your balance transfer credit card, the ball game is in your hands. It can either help you - or hurt you, if you get a card too hastily. Do a little research, compare cards, and then proceed with comfort - knowing that you got the best one for your needs.