Better Credit Guru

Tips to Prevent Credit Card and Identity Theft

2012-03-06T08:37:00.001-08:00

by: Debbie Dragon

70 plus million people this year will have their identity compromised. Credit card and identity theft is actually one of the fastest growing crimes in our country. Every month people open their credit card bills and bank statements to find fraudulent activity. There are a number of things you can do to protect yourself. By following the tips in this article, you can hopefully protect yourself from becoming a statistic.

Always keep track of your credit card and bank cards. Know where they are at all times. Only carry cards with you that you use often. Leave other cards in a safe place at home.

Always get a receipt and immediately double check it. Verify that the receipt is correct and nothing has been added to it. Only give out your credit card information to reputable companies. Never give your credit card information to someone over the phone unless you were the one to make the call and you are absolutely certain the company you are dealing with is legitimate. Beware of phone call scams where people will try to get you to give them your credit card number over the phone for some type of verification.

As soon as you receive your bank and credit card statements each month open them and carefully look them over. If there is any suspicious activity call the company immediately to report the fraudulent charges. Almost all credit card companies have 24 hour phone lines so that you can report card emergencies any time day or night.

Shred your bank statements and credit card statements; never just toss them in the trash. Do the same thing with your credit card receipts.

Never share your personal information at on-line social networks, like Facebook for example. Identity thieves look for information they can use like your address, place of birth, etc.

If you receive credit card applications in the mail that you are not going to use, shred them immediately. Identity thieves can take the applications, and with the right information may be able to apply for and get a card in your name without you knowing it.

Never write down your pin number and keep it anywhere near you credit or debit card. Some people will write their pin number right on the card or keep it on a piece of paper in their wallet. This is obviously a big no no.

As soon as you get a new card sign it. If it is replacing an existing card, shred the old one immediately.

Don’t ever let anyone borrow your credit cards, even someone you really trust. You never know what could happen.

Be careful when using atm machines. Make sure you are using a legitimate machine and be careful of lurkers that could be trying to get your information. Make sure you are aware of your surrounding and use your body to cover as you type in your pin number and are accessing your bank information.

If you are planning to move, be sure to notify your credit card company, preferably before you move.

Unless you use them, call and ask your credit card company to not send you blank checks in the mail. These can easily be stolen by identity thieves.

If you do suspect that you are a victim of credit card or identity theft, know your rights. US law protects consumers, and once you have reported to your credit card company of loss or theft of your card, you are not responsible for any unauthorized charges. Under federal law you are only liable up to $50.00 for each card. Most credit card companies work with their customers who have had compromised accounts and will not even charge them the $50.00 the law allows them to.

Everything About 0% Intro Rate Credit Cards

2012-02-08T06:55:00.001-08:00

By: Michael Colucci

Tired of reading review after review about 0% APR intro rate credit cards? Having no luck when it comes to finding an all-in-one-review about 0% APR intro rate credit cards? Confused with what you've read so far about 0% APR intro rate credit cards because everything seems to be contradictory? Well, look no more because this article is indeed what you're looking for.

In here, you'll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards - in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.

It's True - Yes, 0% APR intro rate credit cards do exist and if we have our way about it, you'll be one of the lucky people to qualify for a 0% APR intro rate credit cards.

The Application Process - Applying for any credit card, whether it's for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so don't expect overnight success, especially since you're angling for 0% APR intro rates.

The application process for a 0% APR intro rate credit card starts with submitting the necessary documents - this is SOP for all credit card applications - that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.

The Qualifications for 0% APR intro rate credit cards - Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.

If you're not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if you've a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.

Author Bio
Michael Colucci is a technical writer for Low Interest Credit Cards - A site that offers credit cards with an intro rate of 0% for 12-15 months.

Costly Credit Card Mistakes to Avoid

2012-02-03T19:05:00.001-08:00

by: Debbie Dragon

For many people, using credit cards is a way of life. Most people today instead of carrying around cash carry around plastic. It certainly is easier and more convenient. While many people use their credit cards wisely, others are not so careful. If you do not pay close attention you could find yourself buried in unwanted credit card debt and unwanted credit fees. This can cause unwanted stress. Here are some tips to help you avoid credit card pitfalls.

First, make sure you know your due date. With the new credit card regulations this will be easy as your credit card bill must now be due the same day each month. Most credit card companies offer an email reminder that is sent to you just a few days before your due date. If you are known for missing payments this is a good thing to sign up for. Writing the due date on your calendar is another helpful way to remind yourself not to miss your payment.

Another option with many credit card companies offer is to set up automatic payments from your checking account each month. As a word of caution, if you choose this option make sure that you have the money in your account the day it will be taken out. Repercussions of missing your due date are severe. You will rack up late payment fees and interest charges. This in turn can affect your credit report and score. If you always pay your bill on time and miss once, call your card holder immediately. Sometimes they will reverse the fee and interest charges one time for you.

The second credit card mistake to avoid is not paying your balance in full each and every month. This seems to be the biggest pitfall that credit card holder make each month. When you don’t pay you bill in full each month you get charged interest finance charges. You then have to start digging yourself out of the black hole of what is known as credit card debt.

Simple common sense can help you avoid this costly credit card mistake. Don’t charge more than what you can truly pay off each month. While it is so easy to say I will pay for it later, you must avoid this at all costs if you want to use your credit card wisely. Only charge what you need and what you have budgeted for. Setting up a simple monthly expense budget can be very helpful in avoiding this credit card mistake.

A third credit card mistake to avoid is ignoring your credit card debt. So many people each month pull out their plastic without a thought in the world and spend uncontrollably. Before they know it they have thousands of dollars in credit card debt and instead of taking control they spend more and avoid the problem.

If you have racked up credit card debt, the sooner you take control the sooner you can wipe it out and live a less stressful life. Following the above tips will get you a start on not racking up more debt. Coupled with that you will need to develop a plan to start paying off what you have charged. A monthly budget is a great first step. Giving up luxuries for awhile and instead paying down your debt each month is a great way to start.

Many find that in order to get control that they need to give up using their plastic all together, at least until they have paid off what they owe. Still others are so buried, they find it easiest to seek professional help. If you are in credit card debt, no matter what method you choose to get out, it will be worth it.

How often does my credit score change?

2012-01-17T18:23:00.001-08:00

Every time your credit report changes, so does your score. Therefore, it is updated as often as new information is always added to your credit report.

Should I use a co-signer?

2012-01-17T18:03:00.000-08:00

A co-signer is recommended if you have no or poor credit history. However, you want to make sure your co-signer has good credit. Using a co-signer with good credit will increase your chances of being approved for the credit card or loan you need. Be aware that they share the liability of the loan with you. If you are in good standing with your loan, both you and your co-signer will see positive marks on your credit report. If your in bad standing with your loan, it will look bad not only for you, but for the co-signer as well.

Increase Your Credit Score In 45 Days

2012-01-10T17:18:00.001-08:00

Interesting little read I found while roaming the web. Credit for the following content goes to Edward Jamison

HOW TO RAISE YOUR CREDIT SCORE 100 POINTS IN 45 DAYS

Edward Jamison, Esq.

Sound too good to be true? Not as much as you’d think. Try out these five simple steps to improving your own credit score…you could see dramatic results!

1. PAY YOUR PAST DUE ACCOUNTS.

Yes, this sounds obvious, but understand that credit scoring software severely penalizes you for having accounts with a past due balance. Making sure all of your accounts are current, and paying the amount that shows as being past due on the credit report can increase your credit score by a significant amount.

2. TRY TO “GET RID” OF YOUR LATE PAYMENTS.

Contact all creditors that have reported late payments on your credit and request a good faith adjustment that actually removes the record of late payments reported on your account. Be persistent, if they refuse to remove the late payments at first, remind them that you have been a good customer that would deeply appreciate their help. Call several times if you need to and ask for supervisors…persistence and politeness pay off in this scenario.

3. REQUEST TO HAVE YOUR CREDIT LIMITS INCREASED.

Contrary to popular belief, having low credit limits on a credit card can actually hurt your credit score. Having low available credit limits affects your “actual debt to available credit ratio”. For example, if you owe a total card debt of $10,000 and your total credit available is $20,000, you are only using 50% of your total credit available. But if you have card debt of $10,000 and your total credit available is $15,000, you change your ratio to 66% of your available credit being used. The lower the percentage of debt to available credit the better, as it shows you are able to handle having credit available without running it up to the max.

4. BECOME AN “AUTHORIZED USER”.

If you have a short and limited credit history, you can ask someone to add you to their credit card account as a joint account holder or an authorized user. When added, the primary account holder’s credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit on that card and (2) has had good payment history on the card for seven years or longer…and the longer the history, the better. Being an authorized user is potentially detrimental to your credit score if the person giving you the card either maxes out the credit or pays late, since this would report on your credit report too.

5. DO NOT CLOSE YOUR OLD CREDIT CARDS, KEEP THEM ACTIVE.

15% of your credit score is determined by the age of the credit file. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit…as well as increase your “debt to available credit ratio” as discussed in point 3. Use the old card at least once every six months to avoid the account rating to change to “Inactive”. Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac’s credit scoring software, so you will not get the benefit of the positive payment history and low balance that card may have had in the past.

Edward Jamison is the founder of Jamison Law Group, P.C., and is an attorney who specializes in consumer credit and identity theft and numerous software products tailored to the mortgage industry. Jamison is a nationally recognized expert on credit scoring.

Credit Score Ranges

2012-01-08T17:01:00.000-08:00

Sorry for the lack of updates due to the holidays and New Year everyone. Let's start the year off with Credit Score ranges.

Between 700 and 850 – Very good or excellent credit score.
Between 680 and 699 – Good credit score.
Between 620 and 679 – Average or OK score.
Between 580 and 619 – Low credit score.
Between 500 and 579 – Poor credit score.
Between 300 and 499 – Bad credit score.

Black Card Faceoff: Visa Black Card vs AMEX Centurion Card

2011-12-26T22:37:00.000-08:00

Another good video I found, comparing the American Express Centurion Card and Visa's own Black Card, check it out!

American Express "Black Card"

2011-12-21T12:45:00.001-08:00

Interesting video I came across on YouTube with some information about the Centurion Card by American Express, also known as The Black Card.

Can't get approved for a credit card?

2011-12-21T12:41:00.000-08:00

You are in the position of being new to credit, with no history, or have had credit, and for whatever reason have made mistakes in the past that landed you with extremely bad credit. Now, you have applied at many banks, for all types of credit cards in the hopes of being approved. You are denied each application. What can you do now? Secured Credit Cards are among the easiest to obtain. Secured cards are credit cards in which you make a security deposit as collateral. Therefore, your credit limit is the amount you deposit. Deposit $200, get a $200 limit. After a period of time (usually 1 year) you may start getting credit card offers for unsecured credit cards. In that case, you can apply for the new unsecured cards, and if approved, you can close the secured credit card and receive your deposit back!

Checking your credit report

2011-12-14T15:27:00.000-08:00

By law, you are allowed a free credit report, at least once a year. Checking your credit ensures that there are no mistakes on the part of your banks. After all, we all are humans and we all make mistakes. If you see a blemish wrongfully on your report, dispute it, chances are if they are wrong they will willingly correct it for you. To view your credit report, visit AnnualCreditReport.com

Factors that affect your credit score!

2011-12-14T15:23:00.000-08:00

Here are key factors that credit bureaus use to determine your credit score:
35% - Payment History, one of the most important factors. If you miss payments or are late, this will greatly impact your credit negatively.
30% - Debt Ratio, how much credit do you owe, compared to what your limit is? It is good to stay under 30% of your available limit.
15% - Credit history, the longer you have credit, the better, as long as you are responsible.
10% - New Credit
10% - Types of credit, as in credit cards, loans, etc