With our economy in the state it’s currently in many people are falling into debt and many bottom of the barrel debt collectors are coming out of the wood work harassing good people. In addition with the amount of errors reporting on peoples credit reports many consumers are being falsely accused of owing debts they really don’t owe.  Some of the worst debt collectors will illegally threaten consumers with wage garnishment, arrest,  lawsuits, and generally unprofessionally harassing innocent consumers. Some will call you many times at your home, job, call family members and neighbors to get a hold of you(This is intended to embarrass you to the extent that you pay the debt in order to make them go away) Many people pay debts they don’t really owe in fear of the collectors pursuing their (most often empty) threats. Generally the worst kind of debt collectors purchase old debts that are far beyond the statue of limitations for pennies on the dollar and aggressively pursue Americans to pay the debt so that they can make a profit. Usually these debt collectors don’t have any supporting documentation that you even owe the debt! They rely on their sleazy tactics to get you to pay debts you either don’t owe or are past the laws statute of limitations.

Know your rights! Get Familiar with The Fair Debt Collection Practices Act!

There are many laws currently in affect to protect consumers against debt collectors, but unfortunately many people aren’t aware of them. For instance if you send a “cease & desist” letter to a credit collector asking them not to call you anymore and direct any future correspondence through mail, they are required by law to stop otherwise the consumer is entitled to a $1000 from the collector each time thereafter they receive a phone call from the collector. It’s important to send letters through certified mail so you have proof the collection agency received your letter. The website budhibbs.com is an excellent resource for victims of debt collector harassment. Their site has many resources to help innocent consumers deal with debt collectors and even allows you to share your stories with other victims of collection agencies. In addition on this site you can view and add to a list of collection agencies that are guilty of illegally harassing people. It’s basically one of the few resources on the web that allows consumers to have their voices heard and expose these scams artists!   
Some Things To Remember:

- Never trust anything a debt collector promises until you receive it in writing!
- Never give a debt collector your checking account # it’s dangerous and you risk having your bank account emptied.
- Always ask a debt collector for written verification of your debt, before agreeing to anything.

In conclusion I would like to stress that not all collection agencies and debt collectors are bad, most are professional and abide by the law, however the small group of bad agencies & collectors unfortunately are giving a bad name to the whole industry. It’s Important to check your credit reports frequently to determine if errors such as false accounts are appearing on your credit report. This is an important step to avoid dealing with this recent epidemic. Contact Credit Law Group to get help disputing any misleading, inaccurate, or unverifiable information on your credit report.

What is a reloadable credit card?

A reloadable credit card is a prepaid card consumers can use just like any other credit based card with a Visa® or MasterCard® logo. The great thing about them is there is no risk of getting yourself into financial trouble by getting into debt because you can only spend how much you loaded onto the card. These are popular with many teens and people who have trouble managing their spending. Some cards offer a credit builder option where the company reports your use to credit bureaus improving your credit score. They offer very little fees compared to some sub-prime credit cards (Usually around $10) and are a great alternative to carrying cash or even having a bank account. Many companies are now offering various services on their cards such as direct deposit of your paycheck, online bill pay, and allow you to reload your card at thousands of major retailers such as 711®’s and grocery stores.

With  Lenders becoming more strict about approving consumers for credit cards many people are turning to reloadable credit cards to build their credit score. This is a great option for anyone who finds it difficult to responsibly use credit cards, yet want to have most of the benefits credit cards offer. You can use them anywhere traditional credit cards are accepted and provide consumers with a safer alternative to carrying cash or even a debit card. They are great for parents who can provide their children with money while their away at college or just for allowance.  The best service to benefit people who have bad credit is various companies credit builder service, for a monthly fee (usually about $6) the company will report your monthly payment to the major credit bureaus which looks excellent on your credit report. It actually will look much better than most people realize because to creditors they see that you have a spotless payment history  on a credit card even though in reality your only paying less than $10 a month.

As you can see Reloadable credit cards or prepaid cards are great alternatives to credit cards or secured credit cards with high annual fees and interest rates. They are great for people looking to build their credit or just have a card for the convenience of shopping online or other things. It’s important to remember that in today’s society you pretty much need a some type of card. To rent a car or book a hotel room most often than not a credit card is required. So for consumers that cannot get or simply don’t want a line of credit, reloadable cards are a great alternative.

When attempting to repair your credit combining the efforts of adding positive tradelines to your credit report and deleting negative tradelines is very effective in boosting your credit score. This will eventually save most consumers thousands of dollars in high interest fees over the years. If your serious about improving your credit score Contact Credit law Group at (800) 508-0041 our competent legal representation can help protect your rights and remove inaccurate, outdated, unverifiable, incorrect and other erroneous items from your credit report.

A charge off is when a consumer is very late on a payment (usually 120 days or more) that the credit company claims the debt as a loss. Usually these accounts come from credit card accounts, medical bills, utility bills, loans, or any type of account that is not paid on time. Many consumers believe that they no longer have to pay a debt once it is charged off, however this is not true. Even if the lenders receive their payments after the charge-off appears on your credit it can stay on your report and affect your credit.. Your account may be closed and the lender may opt to use their own collection agency or sell your debt to a third party company that will attempt to collect from you.

How does a charge off affect my credit and credit score?

A charge-off will stay on your credit report for seven years and does not look favorable for you by any means. To a typical lender, if you have one or more charge offs on your credit report there is a good chance they consider you to be an unacceptable risk and not approve you for any type of credit. They do not want to see this because it shows that you never paid the debt, and you may do the same thing with the money you borrow from them.

How can I avoid a charge off in the future?

This is why it is so important to check your credit report to gain knowledge about what is contained in the report. Stats show that 79% of Americans have negative information listed on their credit reports.. Even if you do have an accurately reported charge off on your credit report, if you pay it off or start to pay off the monthly balance you can sometimes work out a deal with the creditors so they will change the status on the report or list an explanation that will look better for you. The smartest thing to do is to pay your balance before it goes to a late payment.

How can I improve my credit and credit score after a charge off?

If you have one charge off, or multiple charge offs on your credit report, it is your legal right to dispute the information if it is being reported inaccurately. If the account goes into collections but you have paid the balance, then you should dispute this with the credit reporting bureaus. Credit Law Group is here to help; we make it simple and easy to dispute any misleading, inaccurate, or unverifiable information on your credit report. Our low cost services are easy to use, and you can log in online and view your process right from home.

In a world where credit is everything and the information contained in your credit report is carefully analyzed, many people are seeking ways to repair their credit. In this current era credit repair companies are getting a lot of negative feedback and are being labeled as scams. It is defiantly true that some credit repair companies do seek to scam consumers but isn’t this true with any industry? No matter what the service is there will be people looking to take advantage of consumers to make a quick buck. It is important when making the decision to hire any service to do research on them. A very good website to do this is the better business bureau (www.bbb.org). Here consumers can see how long a business has been around for and various complaints made against them.

Some Key things that will help determine if a company is looking to scam you:

- Companies that guarantee to remove negative information from your credit report and increase your credit score- Nobody can gaurantee you they can remove accurate negative tradelines from your credit report.

- Companies that ask you to create an employee ID # for a new credit identity- This is called File Segregation and is illegal and the innocent consumer can be held responsiblie for committing a felony.

- Companies that charge you fees prior to providing any services- By law a credit repair company cannot charge consumers until they have performed the service

- Companies that do not advise you of your legal rights under the Fair Credit Reporting Act-A company should advise you that anyone can dispute tradelines on thier credit report themselves.

The strongest argument against credit repair companies is that they charge you for something you can do yourself. Yes this is true but once again this is true for many other types of services. For instance many people pay to have their lawn mowed or have their house cleaned. Can they do this themselves? Of course! We pay for the convenience and in most cases since these companies provide these services regularly and have built experience, they usually  perform the service more effective and efficient than the average person could.

Having an established law firm represent you  can achieve you results with better success rates than many other companies. The advantage of sending dispute letters to the credit bureaus with a law firms letterhead is the bureaus tend to take your request more seriously when they receive correspondence from an attorney, This will generally give consumers a faster response time. This is something consumers cannot do themselves unless of course they are in fact an attorney. This is basically why enlisting the services of a law firm proves to be much more beneficial to consumers than doing it themselves or hiring a credit repair company that’s not run by attorneys. There are many reputable credit repair companies out there with good intentions, however only a handful can actually get consumers the same results as a law firm.

If you are serious about improving your credit score and deleting incorrect or unverifiable items on your credit report contact Credit Law Group today for a free consultation! (800)-508-0041. We provide cost effective legal representation and can help protect your rights and remove inaccurate, outdated, unverifiable, incorrect and other erroneous items from your credit report. Here is link to our company’s Better Business Bureau record: https://www.bbb.org/online/consumer/cks.aspx?ID=1080131152330410

Many Consumers starting to educate themselves on the in and outs of credit reports and scores. In these rather turbulent times for the economy lenders are tightened up there standards of lending money. You now need a higher credit score to be approved for credit and an excellent score to receive prime interest rates. This new trend has affected all aspects of the lending industry including: Mortgages, Loans (student, personal, business, etc.), credit cards, and housing.

Since more people have foreclosed on mortgages than ever before lenders are suffering great losses and to seek some type of relief are (for the most part) only lending to qualified buyers with a good credit rating. They no longer are as willing to take chances are borrowers who are in the “sub prime” category. Foreclosure will seriously damage your credit and sadly more and more homeowners are having their homes foreclosed. Another item on your credit report that can be extremely damaging is bankruptcy. Bankruptcy is one of the worst tradelines on a credit report and should be the last option for any consumer! In addition more consumers are defaulting on loans and credit cards, because after of all this the creditors are taking a noticeable financial hit. As a result they are no longer accepting credit applications as generous as in the past. This is why it’s so vital to obtain a copy of your credit report to see what negative tradelines are being listed and used against you. There is a good chance that incorrect information may be listed on your credit report that can significantly lower your credit score. This will increase your interest rates if your even approved at all! Once you have obtained your credit report the next plan of action would be to determine a strategy for paying down your debt and removing negative or unverifiable tradelines. Credit law group can help If you are serious about disputing inaccurate, unverifiable, or misleading information on your credit report, contact CreditLawGroup today at 1-800-508-7762.We provide low cost legal representation in disputing inaccuracies on your credit report as well as excellent customer service.

- Unsigned cards are not valid and Merchants Can and will refuse them

  As soon as your card comes in the mail you should sign the back with your name. Writing see I.D. will not work. Merchants have the right to refuse to allow you to make the purchase with your card if your signature is not on it.

- The maximum liability for unauthorized use of a credit card is $50 according to federal law

- Merchants cannot require you to present ID, unless your card is unsigned

  By contract merchants cannot ask you for ID and you don’t have to present it to them.

- Merchants cannot require a minimum transaction amount

  Those signs consumers are seeing more and more often setting a minimum purchase for credit cards is not allowed by the credit card issuer. Any business that does this can be reported to the credit card companies. Although it is not illegal by law it breaches the credit card contract between the merchant and the credit card company

- Merchants cannot charge a surcharge for using a credit card; however, they can offer a "cash discount"

  Merchants are not allowed to charge you a higher price if you pay with a credit card. Ways they get around is by giving “discounts” to customers who pay in cash.

- Merchants are not allowed to make you give up your right to a chargeback

- Merchants are not allowed to place a hold for the estimated tip of bill.

- If merchants suspect you of fraud they are supposed to call with a "code 10"

  If a merchant suspects a consumer is using someone else’s credit card they are supposed to delay the transaction and call the credit company with a code 10 to verify if the credit card is stolen and other information.

- If merchants break these rules you can report them to the credit card company

  When merchants break rules according to their contracts consumers have the right to report them. This is why it is important to get familiar with the different rules so a merchant does not take advantage of you.

- 71% of young adults do not pay off the full balance every month1

- Low & middle income families have an average of $8,650 in credit card debt2.

1Consumers Union

2“The plastic safety net: The reality behind debt in America.”

Credit Lenders are looking for reliable borrowers that will pay their bills on time and in full on a regular basis.  They determine this by what is listed on your credit report, a record that is kept over a long period of time based on financial accounts in your name.   Many people do not know their standards, but now I am going to tell you exactly what they are looking for.

The standards for obtaining credit can differ from lender to lender. Some are based on income, and some are based solely on credit record alone.  Certain lenders require a perfect credit record and a high credit score, but some are more lenient and will allow a few late payments here and there on your record.  The best way to be sure you will receive a loan or any other type of credit in the future is to always pay bills on time.

There are many different ways to be approved for credit whether it is by walk-in, committee, computer analysis, or credit scoring.  This can also be determined by your income, which shows if you have the money to pay back the money you are borrowing.

The easiest way to be approved is by walk-in because you give them your information and sign a contract and receive the loan. It is based solely on trust that you will repay the loan, but it is old-fashioned and hardly used anymore.  Next, a committee can approve your loan which is somewhat harder to be approved, because they review your credentials and decide whether or not they want to give you the loan or not.  It is more professional and still easier to receive credit than some other ways used because they do not have all of your information. 

The two newest ways used to approve loans are computer analysis and credit scoring.  Computer analysis is when they input all of your information and use that complex program to evaluate if you are a good candidate or not.  The next way, credit scoring is the absolute hardest way to receive credit, unless you have a perfect credit history.  What they do is pull your complete credit history from credit reporting bureaus – companies who are paid to report everything about you.  Some of the information may not even be completely accurate!  This information is generated into a point value score that tells lenders what kind of borrower you are, and they can then choose to give you the loan or not.  As you can see, it is a very complex process and the best way to receive credit is to regularly monitor your credit and make sure that it is always in a positive place.  This will save you time and money on interest rates as well as many other debt problems in the future!

Free Credit Report Websites VS Annualcreditreport.com
Equifax®. Experian®. Transunion®.

 In today’s world you are constantly bombarded with ads promising things, such as free this or free that, but you must remember that barely anything in life is free. Such things include free credit scores or free credit analysis. Do not fall for false advertising. There are many companies out there that will promise you free credit monitoring or free credit scores and you think “Great! Sign me up now!” However, this isn’t the case. For example, while watching a TV commercial, an ad for “free credit scores” came on. As I listened, they explained that they offered a completely free credit rating, whenever you requested as well as free credit monitoring.

 The next morning, as I did my research, I went to the website and began the sign up process. As I got to the last step, they asked me for my credit card information. Strange, since they advertised everything was FREE. Located in the banner to the right of the sign up information they asked for a dollar which was completely “refunded” later (they didn’t say when) and was used as a “set up fee”. Next, I noticed the fine print, which read that the dollar WAS refunded, but after seven days you would be charged a monthly fee between $19.95 to $39.99,  but you can cancel within seven days to not be charged.

 The point of this article is that no matter what you sign up for, read the fine print and do your research. I decided to look up this company with the BBB (Better Business Bureau) and in their report they include a paragraph that explains that the ONLY company federally authorized to offer a free credit report was Annualcreditreport.com which gives you all three credit reports for FREE once a year. It’s federal law that you are permitted to receive a copy of your credit report once a year completely free of charge. However, freetriplescore.com is not the place to receive this offer.

 Annualcreditreport.com was created by the three main credit reporting companies: Equifax, Experian and Transunion. It provides consumers to obtain a free credit report once every twelve months from each reporting company in accordance with the Fair and Accurate Credit Transactions Act (FACT Act). This service is not only very convenient, it’s fast… you can obtain each credit report securely on the internet, by telephone or by mail. Each of the companies has always encouraged customers to view their credit reports on a regular basis.

Your credit score is an indication of how likely you are to default on a loan. Lenders use this number to base their decisions on approval and interest rates. The higher your score, the lower the risk you are to a potential lender. In turn you are provided better rates. Lenders do not decide approval rates based solely on your score. There are many strategies different lenders use to evaluate you as a borrower. This comes down to the information on your credit report, and how they interpret this information negatively or positively.

Your credit score can also affect monthly payments for insurance, car loans, mortgage loans and ultimately the final price you pay on interest. Based on your credit score, lenders decide whether or not to approve you for loans and what interest rate you’re approved for. The difference between a few percentage points on an interest rate can mean thousands of additional dollars you must pay for different loans. For example, the difference between a 6% and 8% interest rate on a $25,000 car loan over 60 months can cost you an additional $1500 in interest alone!

Many people do not know this, but correcting their credit report is very important.  Not only can it save them money, but it can also raise their credit score. Removing one inaccurate credit item on your credit report has the possibility of increasing your credit score by 100 points.

Trade lines remain on your credit report for many years. Accounts where you filled your obligation and paid as agreed stay on your credit report for 10 years.  Accounts where you failed to pay as agreed can stay on your credit report for 7 years.

How your credit score is calculated:

Payment history = 35% of your score.

It is based on mainly 3 items:

1. The severity of your delinquency.

2. The amount of late payments.

3. How recent the delinquency is.

The amount you owe = 30%.

How large your debt is.

The ratio of the balance to your credit limits.

Length of credit history = 15%.

New credit = 10%.

Based on how much new debt you are acquiring.

Types of credit you have = 10%

Based on the different combinations of credit you have. (Credit cards, mortgage, department store, utilities, etc.)

Ways you can improve your credit score:

- Pay your bills on time.

- Pay down your debt instead of just moving it around.

- Don’t open new credit card accounts.

- If you have missed payments, pay the balance off and stay current with them. This will also eventually improve your credit score.

Although bad credit isn’t contagious married couples will sooner or later feel the affects of a spouses less then perfect credit score. The problem with this is that if one person has a good credit score and the other has a low score, all credit based financial decisions will lie on the person with higher credit score. Many couples are choosing to put all credit based applications on the person with the highest credit score simply because they will be approved with better interest rates. This has proved to be a strain on relationships after your spouse becomes tired off having all of the financial responsibilities in their name. In addition the loan amounts given can be lower if you solely apply for credit since they are only considering your income.

Some ways couples choose to deal with this issue is by jointly applying for credit. This often leads to higher interest rates the couple has to pay or not being approved at all. However at the same time this may help build the spouses credit score, given they pay their bills on time. The best resolution to this problem would be to repair your spouses credit. This is sure to be the most worthwhile solution to this common problem. Once your spouses credit score is corrected it would work out much better in jointly applying for credit. For example Mortgages would be more assessable because both your incomes would be considered for the loan and would allow the couple to receive a larger loan.

Many couples overlook the quality of their partners credit before getting married, but they soon they realize how much this will impact the couple in future purchases. Its important for couples to compare each others credit reports and repair them if necessary prior to committing to large purchases. This will ensure optimum Interest rates. Saving the couple a lot of money in the process.

Rising gas prices and credit debt are two of the most popular news stories in America.  Wouldn’t it be nice to save some money rather than constantly spend it?  Well you can, but there are things in your life that may need some changing and adjusting in order to do so.  The more money you save the more fun you can have right?

                                                                                                                      
1.)    Pay your credit card automatically on the due date.  Look into enrolling into an online bill pay system. You will never pay interest this way, and save more money.  If for some reason you are charged a fee, you must call the bank and have them remove it because some people will just pay the fee without asking questions – this is where they make a lot of their money.

2.)    Only use your credit card when you are prepared to pay cash for something, otherwise it will end in debt if not paid.  This costs you even more money because of the added damage that results from the lowered credit score.

3.)    If there is a surcharge on your credit card purchase, just pay cash.  The charges add up over time and can easily be avoided.

4.)    Cash in on frequent flyer miles you earn from your credit cards. You earned them, they are free, and they save you money!

5.)    If you can walk or bike somewhere, you should. Not only is it good for your health but gas is way too expensive.

6.)    Bring lunch to work and eat leftovers whenever possible.  Instead of buying a coffee from Dunkin Donuts or Starbucks, buy a personalized mug and bring your own to work everyday.  Eating out is expensive and should be done sparingly to save money.

7.)    Use an online movie rental service (such as Blockbuster or Netflix) rather than going to the movies.  Not only does this save money on gas, ticket prices, and concession items, but you get more quality time with loved ones.  At the movie theater it is public, whereas at home you can socialize and actually spend time together.  It’s a win-win situation.

8.)    Pay more than the minimum on your credit cards, auto loans, mortgages, or any other bill.  This will avoid high interest rates that will devour your money and end up costing you up to twice as much as the original amount!

9.)    Always use coupons and memberships to grocery stores, they may seem not to help but they can end up saving you hundreds of dollars per grocery bill, do not overlook them.

10.)  Establish long-term and short term savings goals, and break them down into goals that can be achieved in order to stay motivated. Also, establish general long-term and short-term goals for your life, and always remember to follow them!

Choosing The Right Reloadable Credit Card

For those of us in today’s society who are unable to get a valid bank account or credit card, for whatever reason it may be, do I have the solution

for you.  The answer to your credit problems, well, at least the beginning answer, is a reloadable credit card. 

There are many choices out there today.  You will find cards that are hidden fee friendly and unless you read the fine print, the company who is

issuing the card will make out in the long run, kind of like some of those financial institutes that love to hit you with fees but we will not mention

any names to keep this clean.

Anyway, the best choice that I have found after doing my research is apply for any reloadable credit card that offers Credit Builder.  What is credit

builder you ask?  Well, just as simple as it is to say it, it is that easy to explain it.  Credit Builder is a tool that not all reloadable credit

cards offer.  This wonderful tool is used to help rebuild your credit while you are using their services.  Thanks to a national credit reporting

agency called PRBC-Payment Reporting Builds Credit, when you start to make payments on a regular basis with your new reloadable credit card, the

company that you chosen and that offers the credit builder, will begin to report to the three main credit bureaus (Equifax, Experian and Trans Union).

This is a great tool for those who are trying to regain their credit independence.

So, before you run out there and start loading up any prepaid credit card you see, make sure you do your homework and get the card that will benefit

you and your credit positively.  It will be worth it in the end.

Your credit score affects many different things that are a part of everyday life such as applying for a credit card, refinancing your house, applying for loans in college, and even your mortgage. Each of the 3 bureaus, Equifax, Experian, and Transunion have their own individual scoring methods. Most mortgage lenders determine your credit risk by using the FICO score. A FICO score is a third party credit scoring system used by lenders to predict the risk they would take by issuing a loan. FICO scores range from 300-850, making the median FICO score in the 700s, but if you want to get the best rates you want a score of at least 760. The highest FICO score possible is 850, but not many people have scores higher than 800. The higher your FICO score, the more money you can save each year. People who have a FICO score of 760 and above qualify for lower interest rate on their fixed-rate mortgages. However, people with lower FICO scores are paying a lot more in interest. Your score also affects the rate you pay for private mortgage insurance, the amount of documentation your lender requires when you apply for a loan, the amount of your down payment , the type of loan you receive and how big or small that loan is going to be. The lower your score, the less money you are able to borrow from the bank. Being late on bills or maxing out credit cards are just a few ways to mess up and lower your FICO score. Low credit scores are an indication of being high risk to the creditors and financial lending institutions.

Your FICO score is calculated based on your payment history, outstanding balances on credit cards, length of credit history, any new credit you have, types of credit you have used, and your credit report. When calculating your credit score each area of your credit is weighed and used differently, and that is vital to getting a high FICO score. Make sure to be on time when paying your bills and managing your existing credit because even a few late payments can negatively affect your score. 

Foreclosure and your credit score are two major topics in today’s news.  Let’s just say it’s not good news.  Not being able to pay the mortgage on your home is a serious issue and can affect the rest of your life.  Many people think that their mortgage is worth more than their house, but it is bad advice and can ruin their credit for the rest of their life. The best way to handle your mortgage is to work with your bank and figure the situation out correctly.

Your credit score is one of the most important records that you could have and having a foreclosure listed on it can damage you by not allowing you purchase a home, car, furniture or any other types of credit card purchases.  Your chances of being granted a loan will be greatly diminished, as your credit history will not indicate reliability on paying the loan back.  So, in actuality, the importance of paying your mortgage is very important as it shows not only your reliability as a lender, but greatly increases your credit score.

Also, not paying your credit card, car, cell phone, loans, or any other bill will also lower your credit score. The best way to keep your credit score at an excellent level is to pay bills on time and always keep track of your credit score!  If you have a bad credit score and there are negative or misleading things that you may want to have removed from your credit report, the best thing to do is to have cost effective legal representation.  You can get more information at www.creditlawgroup.com, or call 1-800-508-0041 to speak with one of our paralegals today.

 Ways to Maintain an Ideal Card Balance

In American today many people struggle with credit card debt and are paying it off for years. Here are some ways to avoid the headache of stress and debt by maintaining an ideal card balance.

1.     Become an Educated Consumer

Important things to know when getting a credit card is knowing your credit limit, avoid maxing out your card, and understand how to maintain an ideal credit card balance.

2.     Managing the Balance

Many people have a hard time maintaining a proper card balance. One of the best ways to prevent credit card debt from getting out of control is to establish a manageable budget before using the card. Also, make sure to track your spending, it will help when the credit card bill comes as well. Stick to the budget that you have established for yourself, therefore you will not go over the limit.

3.     Manage Your Expenses

As soon as you use your card to buy a service or product the success of credit card management begins. When managing your expenses make sure your statements are accurate and always thoroughly review your monthly bill when it arrives. If there is anything that is wrong on the bill be sure to report it to your credit card company immediately.

4.      Pay Your Dues

Never skip monthly payments. If you are able to afford the total minimum balance due, then you should pay that immediately upon receiving your statement. If possible, make another small payment on your card before the due date on the bill. Making small payments should not affect your cash flow too negatively. Try to avoid paying the monthly minimum payment all the time, if possible pay the full amount due more often.

5.     Monitor Your Credit Limit

The “Available Credit” on your statement is the amount of credit you have left. This is computed by reducing your total credit limit by the outstanding balance still on the card. Do not exceed the credit limit on the card and never max out your card. Going beyond your credit limit and maxing out your card can and will have severe effects on your credit rating. Be sure to keep at least 20% of your account’s “Available Credit” as a cushion for emergencies. Ideally you should try not to utilize more then 35-40% of your available credit limit at any time.

6.     Know Your Payment Obligations

Always pay attention to the payment due dates stipulated in your statements. It is best to settle your payments at least a week before they are actually due because you could be charged a since you could be charged a late fee payment. Know your obligations such as an address change and due dates. If your address changes and you don’t receive your statements it is still your responsibility to settle your debt.

7.     Budget Your Monthly Bills

At least 10% of your monthly income should cover your credit card bills, lines of credit, and/or personal loans. You should never be paying more then what you are making; if you are you need to re-evaluate your monthly expenses. If you choose to do so, start a spreadsheet with all your purchases and expenses.

Credit cards can be a great convenience if you use them properly. Taking the steps necessary to maintain ideal credit card balances will make you life a whole lot easier and will make you have better credit.

BE AWARE!
Don’t be fooled when it comes to fraudulent emails and phone calls.
Many people aren’t aware of the credit scams that online users create to take peoples identity and use it to run up credit card debt as well as other harmful debts. However, it’s out there and it’s very real. Phishing is a type of scam that is created to take peoples identity online. Forms of identity taken include (but not limited to): Drivers license numbers, Social Security numbers as well as credit card numbers and bank account information.

A new form of phishing has begun. Recently, there has been a scam that sends out fraudulent emails and telephone calls that are apparently from the NCUA. The emails ask the client to confirm or approve their financial information in the system such as account numbers and credit card information. The email could also include a survey, that if the customer fills out, they will receive a check in the amount of eighty dollars.

All people need to know that the NCUA does not ask credit union members for personal information through email. Other companies that also do no ask for personal information through email include AOL; an internet supplier. The only place you should enter information is in a secure website which will have a stamp on the page that guarantees the website is secure.

If you feel that you are a victim of this scam or any other scams like it make sure you contact your credit card companies immediately and change you pin numbers or any other information that could have been stolen. NUCA is asking all of those affected by this email to forward it to: phishing@nuca.gov.

There are many ways that you can control your debt and not find yourself in a credit situation that is unruly.  The average household has at least $9,000 in credit card debt and the average interest rate is very high.  Some debt is good to have while other debt is just the opposite.   However, you can get a handle on your spending by just doing a few simple things.

The first thing that you can do is decide whether the debt is bad or good.  You may want to borrow money for your house or a student loan. These are examples of good debt, and can help you as long as you pay what you owe.  On the other hand, credit cards can be very dangerous when it comes to debt.  Do not use credit cards for things on the go such as food or a vacation.  Charging for these things will just add up into a large sum that is difficult to pay off, leaving you with a bad credit score.  Put aside cash to pay for these things or make sure you have enough in your checking account to pay off the bill on time.

Control your spending!  Keep track of all your purchases, avoid buying things you don’t need and save the leftover money for bills that accumulate in the future.  You never know when something unexpected may come up which would also benefit that saved cash.

Always pay your highest debt first, as this is the one that will cause you the most trouble.  Interest rates from high debts can end up costing more than the original balance.