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Studies have shown that people generally maintain a business relationship with their first card issuer for 15 years, which is why creditors want to get customers when they are young. The relationship lasts so long because the young consumer doesn’t know how to find better deals.
Many people are suggesting that credit card companies are aggressively trying to get students hooked on credit by luring them with T-shirts and other freebies when they apply for cards. This guide is designed to give you the facts you need to be a wise consumer and the tools to use credit to your
Read more…Credit Cards: What You Need To Know
Every day, companies promise consumers who have poor credit histories that, for a fee, they’ll clean up their credit report so they can get a car loan, a home mortgage, insurance or even a job. The truth is, these companies can’t deliver an improved credit report using the tactics they promote.It’s illegal: No one canremove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in up-front fees, you’re left with the same credit report—and a lot less money.
Indeed, attorneys for the Federal Trade Commission, the nation’s consumer protectionagency, say they’ve never seen
Read more…Protect Yourself From Credit Repair Scams
Source: FTC.gov
Before You File for Personal Bankruptcy: Information About Credit Counseling and Debtor EducationProduced in cooperation with the Department of Justice’s U.S. Trustee Program
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on
Read more…Before You File for Personal Bankruptcy:
If you are consistently paying your bills late, credit counseling services may be able to help you negotiate lower interests and payment plans with your creditors. A credit counselor determines your eligibility for a debt consolidation program or debt management plan. The main advantage is that you only need to make one payment per month to a credit counseling service, which then sends the payment to your creditors. You save by paying lower interest rates and avoiding late payments charges. It is also easier to manage a single debt as all your debt repayments are consolidated into a single monthly
Read more…When To Use A Credit Counseling Service
Can You Improve Your Credit Score? – Follow These Credit Tips to Increase Your Credit Rating
Having a strong credit score has never been more important than right now. The current economic situation has made the money available to borrow for things like mortgages or new credit cards very difficult if your credit score is less than perfect. Unfortunately many consumers are unaware of the fact that a weak credit rating on their credit report not only affects your ability to borrow money but it also effects many other aspects of your life.
A great example of what other areas your
Read more…Improving Your Credit Report | Increasing Your Credit Rating
When you’re sorting out how to pay back your debts, you’ll need to identify the priority debts. This will mean you can use your available money to settle the most important debts first.
Priority debtsThe most important debts aren’t necessarily the biggest ones. Priority debts are ones where serious action can be taken against you if you don’t pay what you owe.Some examples of priority debts, and the consequences of not dealing with them, are listed below.
MortgagesIf you don’t keep up with mortgage payments, the mortgage lender can take legal action to take possession of your house and sell it, for
Read more…Which debts to pay off first (United Kingdom)
To get a good credit card, you need a good credit history. Here’s how to build or rebuild yours.
It has never been quite that simple for borrowers with credit problems or without a credit history to get a good credit card deal. And with lending criteria getting tighter, it looks set to get even more difficult.Nowadays, the most competitive credit cards are usually reserved for people with excellent credit ratings. If your credit score doesn’t measure up, don’t be surprised if you get turned down if you apply for a top credit card.But that doesn’t mean you can’t get credit
Read more…How to biuld, or, rebuild your credit history (United Kingdom)
In the late 1980s and early 1990s, the number of credit and debt counseling agencies in America increased significantly. An antitrust lawsuit was filed against the NFCC, arguing that the presence of creditors on the NFCC’s Board of Directors constituted monopolistic practices. As a result of this litigation, creditors agreed to fund non-NFCC member agencies as well.
These sharp increases of credit counseling activity also created other, more serious issues in the industry. By the early 1990s, abuses by certain credit counseling organizations were so significant, it led to criticism of the entire industry.
A credit counseling agency typically receives most of
Read more…Criticism of credit counseling (United States)
After joining a DMP, the creditors will close the customer’s accounts and restrict the accounts to future charges. The most common benefit of a DMP as advertised by most agencies is the consolidation of multiple monthly payments into one monthly payment, which is usually less than the sum of the individual payments previously paid by the customer. This is because credit cards banks will usually accept a lower monthly payment from a customer in a DMP than if the customer were paying the account on their own. Some DMPs advertise that payments can be cut by 50%, although a reduction
Read more…Common features of Debt Management Programs
Regardless of your particular need, selecting the right credit counselor is vital. Unfortunately, some organizations, including some that label themselves “nonprofit credit counseling agencies,” may be more interested in their own bottom line than in helping their clients. A 2005 report by a U.S. Senate investigating committee observed: “Some new entrants to the industry, however, have developed a completely different business model – a ‘for-profit model’ designed so that their non-profit credit counseling agencies generate massive revenues for for-profit affiliates.”
By contrast, the report lauded the National Foundation for Credit Counseling (NFCC) for its commitment to ethical credit counseling that
Read more…Guidelines for Selecting the Right Credit Counselor
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