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 advantage.

A credit card is not an invitation to spend money you don’t have, and you must beware of falling into a credit card trap. Say you run up $500 on a credit card that charges 15% interest and requires a 2 percent minimum payment (never more than $20) each month. If you never charge another item, but only make minimum payments, it will take 6 years and seven months to repay your debt. When all is said and done you will have paid nearly $300 in interest on the $500 purchase.

Credit card issuers will also penalize you if you pay late or go over your credit limit. Always pay on time, even if it is just the minimum. Late fees have skyrocketed and it’s not uncommon to find up to a $30 charge applied for a payment that’s only a day late and issuers may also jack up your interest rate without notifying you.

These days, credit extends beyond just the amount of money you owe. Many employers and colleges may review your credit reports to judge your character. A history of late payments, over-the-limit charges, or too much debt may not paint a pretty picture. We hope that this guide will help you avoid credit disasters and give you a better understanding of the credit process.

Thus in a way the website www.FreeCreditReport.com is misleading its customers.Although it writes its disclaimer on the home page but still visitors are prone to miss reading the disclaimer because of the tactical webdesign itself.Even in the television freecreditreport.com commercial it mentions the word free repeatedly and the actual discaimer which corresponds to the paid membership part is shown at a very lightening speed,quite impossible for the viewer to read it properly.

Anyways ,after knowing the truth about freecreditreport.com should you actually trust it? Well in my opinion I must say that you can trust this website,because after all it also gives a free credit report just like annualcreditreport.com but the only difference is that it enrolls you in its triple AdvantageSM monitoring without any option! And you cannot get multiple credit reports for free at annualcreditreport.com.So atleast in this respect both these websites are almost the same.

The ultimate solution is just very simple! There are two options for you.either you go to annualcreditreport.com to get an absolutely free credit report once a year with no strings attatched.Or alternatively you could go to www.freecreditreport.com,get your credit report done and then after one week cancel your membership to the Triple Advantage if you dont like it.This way you wont be charged anything!Its very simple,isnt it?What if I require more than one credit reports?Then definitely nothing is free for you.You will have to pay for getting recent credit reports.There are many companies which will help you in getting your credit report done.Just pay them a few bucks and have a professional report drawn up for your advantage.You could find these companies in many television ads,newspaper classifieds or some awesome ones even in Google Ads!Just spend a little time researching on these websites and then generate out your report.

Before deciding whether or not to lend money, many organisations take your report, plus additional information included on your application form, and generate a credit score. This score predicts the risk involved in granting you credit.

Calculating your score

Computer programs score your application by looking at how past customers with similar profiles to yours repaid their credit commitments. Every lender uses a slightly different formula that represents its own and industry experience and these may be adjusted according to the type of credit you are applying for. So every credit application could generate a different credit score.

Your credit score will also change over time, as the information in your credit report and on your credit application form changes, too.

Your credit score is designed to predict how likely you are to repay a loan and to make your repayments on time. Over the years, automated scoring has proved to be more accurate and consistent than subjective human judgement. It also allows lenders to make decisions more quickly.

If you are turned down, you can ask the lender why. For example, a reason could be that the amount owed on your active accounts is too high; too many accounts have been opened in the last 12 months; you do not earn sufficient income. Although lenders are wary of revealing exactly how their scoring systems work – this would make them easy prey for fraudsters – they should be able to tell you the main reason your application was refused.

National credit score

Your National Credit Score is based on your Experian credit report and is an excellent guide to how lenders may assess the information held on your report.

Your score will be a number between 0 and 1,000. Generally, the higher your score, the easier you will find it to get loans and credit. But don’t forget, lenders will also assess other information, such as the details you provide on your application form, when deciding whether to grant credit.

Indeed, attorneys for the Federal Trade Commission, the nation’s consumer protection
agency, say they’ve never seen a legitimate credit repair operation. The fact is, there’s no quick fix for bad credit. The only legitimate credit repair starts with you—and it takes time and a conscious effort to pay your debts.

Recognizing A Credit Repair Scam

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

• The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed their promised services.
• The company doesn’t tell you your rights and what you can do for yourself for free.
• The company recommends that you do not contact any of the three major national credit reporting companies directly.
• The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
• The company suggests that you try to invent a “new” credit identity—and then, a new credit report—by applying for an Employer Identification Number to use instead of your Social Security number.
• The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
To learn how to improve your credit and find legitimate resources for low- or no-cost help, see Credit Repair: How To Help Yourself at ftc.gov/credit.
To file a complaint or to get free information on consumer issues,
visit ftc.gov or call toll-free, (877)FTC HELP (1-877-382-4357); TTY: (866) 653-4261.

Before You File for Personal Bankruptcy:
Information About Credit Counseling and Debtor Education
Produced 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 the U.S. Trustee Program’s lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.

Counseling and Education Requirements

As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file.
In general, you must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy – but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.

Pre-bankruptcy Counseling

A pre-bankruptcy counseling session with an approved credit counseling organization should include an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. A typical counseling session should last about 60 to 90 minutes, and can take place in person, on the phone, or online. The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to pay a fee for credit counseling, you should request a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling, which will generally be about $50, depending on where you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees with you before starting the counseling session.

Once you have completed the required counseling, you must get a certificate as proof. Check the U.S. Trustee’s website to be sure that you receive the certificate from a counseling organization that is approved in the judicial district where you are filing bankruptcy. Credit counseling organizations may not charge an extra fee for the certificate.

Post-Filing Debtor Education

A debtor education course by an approved provider should include information on developing a budget, managing money, using credit wisely, and other resources. Like pre-filing counseling, debtor education may be provided in person, on the phone, or online. The debtor education session might last longer than the pre-filing counseling – about two hours – and the typical fee is between $50 and $100. As with pre-filing counseling, if you are unable to pay the session fee, you should seek a fee waiver from the debtor education provider. Check the list of approved debtor education providers at www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm or at the bankruptcy clerk’s office in your district.

Once you have completed the required debtor education course, you should receive a certificate as proof. This certificate is separate from the certificate you received after completing your pre-filing credit counseling. Check the U.S. Trustee’s website to be sure that you receive the certificate from a debtor education provider that is approved in the judicial district where you filed bankruptcy. Unless they have disclosed a charge to you before the counseling session begins, debtor education providers may not charge an extra fee for the certificate.

Important Questions to Ask When Choosing a Credit Counselor

It’s wise to do some research when choosing a credit counseling organization. If you are in search of credit counseling to fulfill the bankruptcy law requirements, make sure you receive services only from approved providers for your judicial district. Check the list at www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm or at the bankruptcy clerk’s office for the district where you will file. Once you have the list of approved organizations in your judicial district, call several to gather information before you make your choice. Some key questions to ask are:

• What services do you offer?
• Will you help me develop a plan for avoiding problems in the future?
• What are your fees?
• What if I can’t afford to pay your fees?
• What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?
• What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?
• How are your employees paid? Are they paid more if I sign up for certain

services, if I pay a fee, or if I make a contribution to your organization?

For More Information and Assistance

The U.S. Trustee Program promotes integrity and efficiency in the nation’s bankruptcy system by enforcing bankruptcy laws, providing oversight of private trustees, and maintaining operational excellence. The Program has 21 regions and 95 field offices, and oversees the administration of bankruptcy in all states except Alabama and North Carolina. For more information, visit www.usdoj.gov/ust.

If you have concerns about approved credit counseling agencies or debtor education course providers, such as the failure to provide adequate service, please contact the U.S. Trustee Program by email at USTCCDEComplaintHelp@usdoj.gov, or in writing at Executive Office for U.S. Trustees, Credit Counseling and Debtor Education Unit, 20 Massachusetts Avenue, N.W., Suite 8000, Washington, D.C., 20530. Provide as much detail as you can, including the name of the credit counseling organization or debtor education course provider, the date of contact, and whom you spoke with.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Here are some questions and answers about your rights under the Act.

What types of debts are covered?

The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.

Can a debt collector contact me any time or any place?

No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.

How can I stop a debt collector from contacting me?

If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:

Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.

Can a debt collector contact anyone else about my debt?

If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.

What does the debt collector have to tell me about the debt?

Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.

Can a debt collector keep contacting me if I don’t think I owe any money?

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.

What practices are off limits for debt collectors?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

• use threats of violence or harm;
• publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
• use obscene or profane language; or
• repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

• falsely claim that they are attorneys or government representatives;
• falsely claim that you have committed a crime;
• falsely represent that they operate or work for a credit reporting company;
• misrepresent the amount you owe;
• indicate that papers they send you are legal forms if they aren’t; or
• indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

• you will be arrested if you don’t pay your debt;
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
• legal action will be taken against you, if doing so would be illegal or if they
• don’t intend to take the action.

Debt collectors may not:

• give false credit information about you to anyone, including a credit reporting company;
• send you anything that looks like an official document from a court or government agency if it isn’t; or
• use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

• try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
• deposit a post-dated check early;
• take or threaten to take your property unless it can be done legally; or
• contact you by postcard.

Can I control which debts my payments apply to?

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don’t think you owe.

Can a debt collector garnish my bank account or my wages?

If you don’t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.

Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don’t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.

Can federal benefits be garnished?

Many federal benefits are exempt from garnishment, including:

• Social Security Benefits
• Supplemental Security Income (SSI) Benefits
• Veterans’ Benefits
• Civil Service and Federal Retirement and Disability Benefits
• Service Members’ Pay
• Military Annuities and Survivors’ Benefits
• Student Assistance
• Railroad Retirement Benefits
• Merchant Seamen Wages
• Longshoremen’s and Harbor Workers’ Death and Disability Benefits
• Foreign Service Retirement and Disability Benefits
• Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
• Federal Emergency Management Agency Federal Disaster Assistance

But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.

Do I have any recourse if I think a debt collector has violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.

What should I do if a debt collector sues me?

If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.

Where do I report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.

Personal Bankruptcy is a legal action that empowers you to extend some or all of your personal debts.

The most recent bankruptcy policy was established in 1978, and was recently amended in the spring of 2005. The end of the bill is to supply relief and structure to those of us who have gotten ourselves so far into debt that we can’t feasibly make our payments.

Personal bankruptcy is calculated to be a last-ditch financial solution. It puts a legal barrier between you and your creditors. The United States Constitution assures its residents the right to debt relief through bankruptcy, providing a new beginning and (with careful budgeting and sensible spending, a second opportunity at financial success.

Personal bankruptcy is an choice that empowers a person to discharge their debts and typically runs at least nine months. To obtain a discharge at the end of nine months, several requirements must be completed.

Personal bankruptcy typically is seen as the debt management choice of last resort because the consequences are long-lasting and far reaching.

Personal bankruptcy typically does not eliminate child support, alimony, fines, taxes, and student loan obligations. Also, unless you have an admissible plan to catch up on your debt under Chapter 13, bankruptcy typically cannot allow you to retain your property when your creditor has an unpaid mortgage or lien against it.

There are many useful books available on the subject to help you decide whether filing for bankruptcy is the right option for you and (if it is) which kind of bankruptcy corresponds to your personal situation. Written by knowledgeable authorities on bankruptcy law, these simple guides will walk you through the bankruptcy action and demonstrate how to reinstate your credit afterwards.

Credit assistance programs may also be able to help you. You’ve likely seen ads on television or in your yellow pages for debt or credit counseling.

For more information, visit our personal bankruptcy website and feel free to browse our articles section.

All debts must be settled; it is easier to work together to finish this, but then again, that’s the reason two people aren’t getting along with each other, communication. Another scenario would be that one spouse dies and the other is left to try to carry on. In both scenarios, the final answer is that debt settlement must be achieved. Debt settlement may mean having ones attorney re-negotiate prices and payments for those items that one doesn’t want to part with. Lenders in most cases will work with the customer’s attorney.

Debt settlement means having a new plan of how to pay things off or what will be defaulted on. These items include cars, the house, appliances, mostly every credit purchase that is not yet paid off.

Debt Settlement and the Future

When its time to accomplish debt settlement, it’s not the time to think about things. This should occur weeks or months before the actual deciding time is at hand. Don’t make decisions based off emotions one is feeling. Talk to an attorney and make decisions when one is stable and can think clearly without hashing things over again. Decisions need to be made correctly because after everything is done, there is no one to blame.

Make sure one can make the payments agreed on and don’t do things just to get back at another. It may hurt the other person, but it will also hurt the one who is deciding on debt settlement. This is the beginning of the rest of ones life; the future is what one makes it. Think about debt settlement and the future. Make plans and stick with them. This will help one ease into a new life filled with promise and adventure. It will be as one makes it to be. The decision to succeed is in the hands of the customer.

Credit counseling services’ fees are usually paid by creditors to whom debt payments are distributed. This raises doubts on the objectivity of credit counseling services. Many believed that they are used by creditors to collect debts.

There are so many credit counseling services, so it is imperative to research them carefully before signing up for one. There are message boards and websites where you can ask people for their opinions and feedback on credit counseling services. A money based message board can be a good place to learn about people’s experiences. You can check with a credit counseling service’s local Better Business Bureau to see if there had been any complaint against it and with its local courthouse to see if it had been sued. Reviews of various credit counseling services and their debt consolidation programs can be found by searching on the internet. Beware of bogus credit counseling services that ask for high upfront fees and promise that you can pay off your debts for less than what you actually owe. Avoid credit counseling services with no accreditation.

Credit counseling is definitely not for you if you are able to pay your bills on time. Don’t be fooled by credit counseling services that offer to negotiate lower interest rates for you. They may only end up hurting your credit score.

When do you need a credit counseling service? You may consider seeking the help of a credit counselor if you are constantly paying your bills late, chased by your creditors, unable to make minimum payments on your credit cards or fail to negotiate repayment plans with your creditors.

If you are heavily in debt, credit counseling services may not be able to help you negotiate payment plans. In this case, you may need to get a bank loan and consolidate existing debts by yourself. Your last option is to file for bankruptcy.