What type of information do credit bureaus collect and sell?
Credit bureaus collect and sell four basic types of information. Identification and employment information Your name, birth date, Social Security number, employer, and spouses name are routinely noted. The CRA also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information. Payment history Your accounts with different creditors are listed, showing how much credit has been extended and whether f paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted. Inquiries CRAs must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years. Public record information. Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.
Do I have a right to know whats in my report?
Yes, if you ask for it. The CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information. The CRA also must give you a list of everyone who has requested your report within the past year?two years for employment related requests.
How will you know if someone has stolen your identity?
should you throw them all away immediately? Not necessarily. Should you gleefully accept all those great offers and the individual perks and free gifts that come along with the cards? No. Instead, you should carefully consider each card and what it offers you long term. This way the card (or cards) you do sign on with will work for you, rather than become a burden to you financially.
Pay by Phone
If you are in doubt whether your payment will arrive on time, you may call your credit card issuer and make a payment by phone. It may cost you anywhere from $5 to $30, but you will avoid paying a much more costly late fee. To make a payment by phone, all you need to provide is your bank?s account and routing numbers, printed on the bottom of your check and a check number you wish to use. Remember, however, that you will not be able to use a check, whose number you had used for credit card payment.
Be wary of credit card application
A credit card works differently. With a credit card, someone has given you a fixed line of credit. Say, $1000. Anytime you use your credit card, the amount is deducted from your credit line. Then each month you will get a bill. You can either pay all that you owe or only pay a required minimum of the balance due. What you don?t pay will stay on your account and collect interest each month until it is paid off. This might sound like a great thing: buy now, pay later. However, the interest can quickly multiply and cost you much more than you ever spent to start with.
My Credit Score is 602 which I guess is not very good. Is their a card that I might get with a lower interest rate?
The higher your credit score, the better credit card offers you will be eligible for and receive. This includes the credit cards with the lowest interest rates. In other words, the interest rate you receive is directly related to your credit score. The credit score scale ranges from 300 to 850. Most people have scores between 600 and 800. A score of 720 or higher gets you the most favorable interest rates. According to Myfico.com, someone with a credit score of 720 to 850 will have an Annual Percentage Rate (APR) on their mortgage of 5.649 percent, while someone with a credit score of 675 to 699 will have an APR of 6.311 percent. This small difference can cost you much more than you think. Fortunately, there are many ways to raise your credit score. First, check your credit report at least once a year and correct any incorrect information you find on your credit report as quickly as possible. Second, have as few open credit card accounts as possible. For accounts you do have open, keep the balances as low as possible. And of course, make all of your payments on time. By following these guidelines, your credit score should rise each month and make you eligible for lower interest rate credit cards.
Precautions for Overseas Trip
Before you go overseas, make a list of your credit cards and the international phone numbers to call in case they are lost or stolen. U.S. toll-free numbers cannot be reached directly from overseas, so make sure you have a number that can be reached from abroad. At the end of this brochure is a place for you to write down the phone numbers of your credit card issuers. Leave one copy of the list you make with a trusted friend or relative and keep the other copy with you, in a safe place separate from your cards. That way youll be able to quickly contact your credit card companies for replacement cards if you lose yours. If your cards have credit limits, check how much credit you have available and pay down balances or request higher credit limits if you need more.
Move the Due Date
Ever been short on cash right when your credit card bill is due? Still waiting for your payroll check? No problem. Call you credit card issuer and negotiate a new due date. Most likely, your request will be honored. A new due date will allow you to better manage your cash flows, so that you have enough cash (in bank, or on hand) to pay your bills.
Don?t be Late, Pay the Minimum
Late fees, these days, may take a toll on your financial health. It would be especially unfortunate to pay a late fee if your total credit card bill is less than the amount of late fee. To avoid this situation, consider paying a minimum due on your bill if you do not have enough cash on hand to pay off the whole bill on time.
Why Does APR fluctuate?
some credit card plans allow the card issuer to change the annual percentage rate on your account when interest rates or other economic Indicators (called indexes) change. Because the rate change is linked to the performance of the index, which may rise or fall, these plans are commonly called "variable rate" plans. Rate changes raise or lower the amount of the finance charge you pay on your account. If the credit card you are considering has a variable rate feature, the card issuer must tell you that the rate may vary and how the rate is determined, including which index is used and what additional amount (the "margin") is added to the index to determine your new rate. You also must be told how much and how often your rate may change.
