The Truth About Online Credit Reports

So many people are worried about identity theft and the status of their credit report these days. But with so many companies claiming to offer you a free report, it is no wonder consumers are confused and overwhelmed about how to get the information they need. The truth is many companies are not entirely interested in giving you a free credit report, as they are in making money off of you with their other products and services. How does a consumer know where to turn for the information they need?

The Federal Trade Commission is Your Friend

The Federal Trade Commission, a Federal agency set up to protect consumers, is the only place online that offers a truly free credit report through Experian, Equifax, and TransUnion. You can receive reports on your credit every 12 months with no strings attached. Consumers often times are not even aware that they are entitled to review reports on their credit at least once a year, much less get it from a government agency.

Pitfalls to Getting Your Credit Report

Other companies will entice you to their website by stating you will receive a free credit report. Once at the website, you will often times find that you have to buy other products or services before your report will be issued to you. That's great, if you are interested in the other products and services, but most times consumers just want to see their credit records only.

You may see ads on television or the Internet, or hear ads on the radio from companies offering free credit reports. Be alert to the fact that when you visit the website you might be obligated to buy additional products or services before receiving a report on your credit status. The FTC receives many complaints from consumers who have fallen into this credit report trap. In fact, they encourage you to report any spam websites that you come across.

How to Get Your Free Credit Report

The FTC advises consumers that you cannot get your free credit report directly through Equifax, TransUnion, and Experian. You must contact these companies directly through the FTC website. Simply type in "annual credit report" and look for the official website in your search engine. There are many websites that will have a similar name to this one, so be sure you are on the correct website by typing your search carefully. The site will guide you through the appropriate steps to receive a free report on your credit status.

Consumers typically type in search phrases such as "free credit score," "free credit history," and other similar phrases only to land in a website that wants to sell you something you don't need. Avoid using these searches in the future to avoid spam websites.

You can get your annual report on your credit status for free. You can keep a watchful eye on your credit history in these days of high identity theft rates. You just have to know where to go to get the information you need.

Gene Pimentel is the author of "Identity Theft Trap" and other informative
personal finance publications, freely available at his resource site
JustCreditReports.com and
IdentityTheftTrap.com

Home Is Where The Money Is

In today's world, practically everyone is interested in having more money. Unfortunately, for too many folks it's become necessary just to make ends meet. Locating "extra" money is not as hard as it might seem, as long as you're looking in the right places.

When most people are looking for extra money, they try to figure out how to get more. Most people will work overtime, get a part time job, check out various money making ventures and even buy lottery tickets.

However, the best place to start is by looking at how you spend the money you already have. Many people can take anywhere from 10% to as much as 30% off of their spending by cutting frivolous purchases. The way to begin is by creating, then actually using, a budget.

When asking around, I've found very few people who create and use a written budget. In reality, there is little-to-no chance of being in control of your spending without using a budget.

The best way to start a budget is to begin with your regular monthly expenses. These would include such items as rent or mortgage, car loans, credit card payments and all other bills you pay regularly each month. Then you would account for your spending on such items as food, gas, prescriptions, etc. From there, you would add in other items such as car insurance, newspaper and magazine subscriptions and anything else that you pay quarterly, semi-annually, or annually and then calculate the monthly cost for those things.

Next, you need to account for all the other spending you do each month. So, for one month write down how every penny is spent. Now, this really is not as hard as you might think. Simply carry a small notebook and pen at all times and write down each purchase you make no matter how small or insignificant it may seem. It is in tracking this kind of spending where you'll find most of your potential savings.

Look over your spending in these areas and ask yourself it you really need or use all these things your hard earned money is going to. Do you really read that magazine or does it just sit on your coffee table until the next addition arrives? Do you use readily available coupons on the things you're already buying? If you carry a balance on your credit cards, are you make your payment as soon as the bill comes in or do you wait until it's close to the "due date"? That alone is one area where people fail reap huge savings.

If you're honest with yourself, you'll quickly discover the waste in your spending habits.

Finally, do you pay yourself first? "Do I what?!?" You're read that right. You should be paying yourself first every payday. It's the smartest way to build your savings. You can even start small with the extra saving you find in your budget. In a few short months you'll get used to not spending that extra money and you'll likely find in fairly easy to increase that savings amount.

If you have a computer you can easily set up a spreadsheet keep track of all these expenses, even if you don't, a hand written budget will work just as effectively. If you stick to it that is.

Get control of your spending and you'll find the "extra" cash you've been looking for.

Tom Schaffer is an escapee from the corporate world and is pursuing a life of affiliate marketing at http://www.jerseyshoremarketing.com. A great way to get your finances under control is this: http://www.jerseyshoremarketing.com/redirect77.html

Three Common Credit Problems And How To Fix Them

Bad credit doesn't necessarily mean you can't get credit; you just can't get credit at a reasonable cost. The interest rates you are charged are sky high because you had some financial difficulties in the past. In this article we will give you three methods for repairing your credit. The method that is best for you will depend on the severity of your financial problems.

Problem: Incorrect information on your credit report.
Method #1: Contact the credit bureaus.

Let's say you've requested a copy of your credit report from the three credit bureaus, and you find that there is a negative entry or two from your past lenders. It could be the negative information is just, plain wrong. The lender reported you still had an outstanding balance, when in fact, you have proof you have paid off the loan. This is an easy problem to fix. Well-written letters to the credit bureaus, with proof of your claim, should correct the problem.

Problem: Multiple overdraft fees.
Method #2: Pick your bank carefully.

As if it's not painful enough to be hit by multiple overdraft fees for your checking account, if your bank reports them to the credit bureau your credit score suffers too. Unfortunately, it's all too easy to withdraw more money from an ATM than you have in your checking account. Most banks encourage it by including "bounce protection" in their terms and conditions. After all, the bank gets another $20 to $35 overdraft fee each time.

You could stop and check your balance at the ATM before making the withdrawal, but when you're in a hurry that often doesn't happen. A fail-safe method is to just pick a bank that doesn't automatically include bounce protection with all their accounts. That way, if you're low on funds, the ATM won't dispense, and you'll avoid yet another overdraft fee.

Problem: Low ceiling on your line of credit
Method #3: Sub-prime merchandise cards.

Maybe you're having trouble getting credit because of some past financial difficulties. You want to build up your line of credit, but new lenders are keeping their distance from you.

An easy way to increase your line of credit without getting into a financial bind is to get a sub-prime merchandise card. This is nothing more than a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). You're required to put down a deposit on whatever you purchase, and the remaining balance is financed on the card.

The advantage of the sub-prime merchandise card is that this new credit line will be reported to the major credit bureaus, and your credit report will reflect this good news. For example, if you get a $5,000 card and you finance a $500 purchase, your high credit limit will be increased by $5,000 almost overnight. And the small outstanding balance on the sub-prime merchandise card will also positively impact your credit report by showing potential lenders that you are credit worthy once again.

Pick the method that is best suited for your bad credit problem, and enjoy the financial advantages that an improved credit report will bring.

To learn the inside secrets to fixing your credit fast, visit the author's website at: http://credit-secrets-bible-online.com

Secrets To Fast Credit Repair

When you have bad credit or a low credit score, the faster you can fix the problem, the faster you'll have more money in your pocket. The interest rates you pay on loans will start falling, and you might even find the premiums you pay on life, health, and auto insurance will drop. So, what's the fastest way to repair your credit problems? There isn't a single solution, but many small steps you can take. Here are a few:

Secret #1: The piggyback method. If you are a married woman with some or no credit, and your husband has excellent credit, read on. You can leverage his credit with the piggyback method. It lets you build credit in your own name, and at a much faster pace than if you had to build it all by yourself. Have your husband add you as an "authorized user" or "secondary account holder" to his account. In most cases, his entire account history gets posted to your credit report. The piggyback method is easy, effective, and extremely fast.

Secret #2: Remove (some) negative items from your credit report. Let's say you request copies of your credit reports, and discover five bad accounts you can get removed. Don't remove them all immediately, because then you'll end up with no credit history. The secret is to replace them with good accounts first.

The fastest way to add a good account to your credit report is through sub-prime merchandise cards. These are nothing more than a card attached to a line of credit that allows you to buy merchandise from a specific vendor (usually the company that sold you the card). You're required to put down a deposit on whatever you purchase, and the remaining balance is financed on the card. The advantage of the sub-prime merchandise card is that this new credit line will be reported to the major credit bureaus, and your credit report will reflect this good news fast.

Secret #3: Do not pay off your credit cards in full each month. If you do, you'll actually end up with less credit. Think about it. Lenders make their money by charging you interest. If you pay off your balance each month, they don't earn any interest. Pay down your balances, but don't pay them off. This is a fast way to demonstrate to potential new lenders that you are credit-worthy.

Secret #4: Automated dispute letters. The credit bureaus and debt collection companies all require written correspondence from you before they will act on any complaint you may have. If you've tried to write effective dispute letters from scratch, you know how time consuming it can be. Technology comes to your aid! You can now get entire CD's filled with hard-hitting credit repair letters that you can customize for your credit repair battle. Now, creating highly effective letters is as fast as pressing a few keys. You simply enter your name, the creditors name, and other relevant information. Then hit print. It just doesn't get any faster than that.

These are a just a few secrets for fixing your credit problems fast. The sooner you get started, the sooner your credit score improves, and your financial picture gets brighter.

To learn the inside secrets to fixing your credit fast, visit the author's website at: http://credit-secrets-bible-online.com

How To Improve Your FICO Score

Your credit score is based on information about you from companies that gave you credit in the past. They report on your payment history to the credit reporting bureaus, who then develop a numerical credit score. It's often called a FICO score after the Fair Isaac Corporation.

Your FICO scores determines how high an interest rate you'll pay on your loans, credit card balances, and home mortgage. The higher the FICO score, the lower the loan rate. FICO scores range from 300 to a perfect 850. Anything under 700 is in need of improvement. In this article you'll learn some common sense tips for improving your FICO score.

Pay your bills on time.

It's amazing how many people understand this simple concept, yet they still suffer from a few "late-pays" every year. The solution may be as simple as establishing a prominent location for filing your bills to be paid. That way you'll never "discover" an unpaid bill hiding under your car seat or in the pile of magazines.

Here's an insider tip: The older the late-pay, the less damaging it is to your FICO score. So target your new late-pays by calling the creditor, telling them you are making an immediate payment, and you'll be surprised how many will drop the late-pay fee as a matter of good business. Any late payments you make will lower your score, but establishing a good track record of making payments on time will raise your score.

Get a copy of your credit report.

You are due a free copy of your credit report every 12 months from each of the three major consumer credit reporting companies. The three companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report. To order, visit annualcreditreport.com, call 1-877-322-8228, or complete a request form and mail it to:

Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, but if you order the reports one at a time every four months you'll have a picture of your credit over the course of the year.

The whole purpose of getting your credit reports is to look for any inaccurate information in your credit reports and then work with the credit bureaus to remove that data.

Keep low balances on credit cards, but don't pay them off.

Credit card companies want you to run a balance on your account; after all they make their money on your interest payments. So, don't pay off the entire balance each month. Leave a relatively low balance to demonstrate to new potential lenders that you can handle credit in a responsible way. Your FICO score will thank you for it.

Increase your line of credit, but don't open credit cards you don't need.

Your line of credit is the sum of all the credit limits on your accounts. A high credit limit helps raise your FICO score. If you have a good track record with a credit card company, you can call them, and ask for a higher credit limit. But don't open a lot of new credit cards just to raise your credit limit. New accounts will lower your "average account age", which will actually lower your FICO score.

These are just a few of the common ways to raise your FICO score. There's no better time than right now to get started, since the process is not instantaneous. It takes time to earn a better credit score, but the rewards in lower interest rates make the process well worth it.

To learn the inside secrets to fixing your credit fast, visit the author's website at: http://credit-secrets-bible-online.com

Identity Theft - With 9,000,000 Victims Each Year, Are You Next?

Credit Identity Theft has topped the list of consumer fraud complaints submitted to the FTC for several years in a row. 9 million Americans report having their identities stolen each year. Are you the next victim?

The crime of credit identity theft takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone or utility account in your name. Most consumers do not discover the theft until they review a credit report or a credit card statement and notice charges they didn't make—or even worse, receive a call from a collection agency.

While some identity theft victims can resolve their problems quickly, unlucky others are forced to spend months repairing damage to their good name and credit record. Some victims may lose out on job opportunities, or are denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.

Much of the identity thief's criminal activity occurs online or over the phone in a very short time period. Therefore, police and other law enforcement agencies are not always successful in finding and stopping identity thieves. Consumers that don't learn how to protect themselves are tempting fate and could learn an expensive lesson.

Identity theft can happen in a number of ways. Skilled identity thieves use an arsenal of methods to get ahold of your information. They may use unsolicited mail, such as pre-approved credit card applications to open fraudulent accounts.

If your wallet or identity cards are stolen, criminals may use your name, address, and ID to open new accounts in your name. You may also get email or telephone calls offering you special offers or products. Once you provide your credit card information, your card may be charged without your consent.

While shopping at stores, unscrupulous employees may use scanning devices or hidden cameras to your get card, bank, and PIN number information from you without your knowledge.

Tips for protecting your personal information from identity thieves:

1) Buy a paper shredder (many cost less that $25.00). Always shred bank statements, utility bills, pre-approved credit card applications, and other sensitive documents before throwing in the trash. Identity thieves regularly "dumpster dive" in search of these documents.

2) Be wary of "phishing" scams. Some criminals pretend to be financial institutions and will send out fake e-mail messages in an attempt to get you to reveal your account information.

3) Never provide personal information like a social security number over the phone. Don't give out any of your financial or personal information over the phone unless you have initiated the phone call and you are dealing with a trusted institution or business. Be wary of unsolicited phone calls where you are asked to provide personal information.

4) Do not use easy to guess passwords or PIN numbers. Never use your birthday, spouse's birthday or phone number for a password. Don't use the exact same password for every account.

If you are a victim of identity theft, take the following four steps immediately to protect your credit history. You should also keep a record of your conversations and copies of all correspondence.

1) File a police report. This document is essential to supporting your fraud claim and disputing any unauthorized charges.

2) Contact the toll-free fraud number of any of the three credit reporting bureaus below to place a fraud alert on your credit report. You only need to contact one of the three companies to place an alert as the company you call is required to notify other two. Follow up in writing, and include copies of supporting documents.

Equifax: 1-800-525-6285
Experian: 1-888-EXPERIAN
TransUnion: 1-800-680-7289

3) Close any accounts that you believe have been tampered with or opened fraudulently. Don't rely on a phone call. Always notify credit card companies and banks in writing. Send letters by certified mail, return receipt requested, so you can document what was received and when. Each company has its own procedures for disputing fraudulent charges. Ask to be sent the appropriate documents when you report the fraud and close the account.

When you open new accounts, use new PIN numbers and passwords. Again, avoid using passwords that are easy to guess.

4) File a complaint with the Federal Trade Commission. You can file a complaint on the FTC website (http://www.ftc.gov) or call the FTC's Identity Theft Hotline at 1-877-ID-THEFT.

By filing your complaint with the FTC, you may provide important information that can help law enforcement officials track down identity thieves and stop them. Additionally, a copy of your FTC complaint in addition to your police report are strong documentation that support your fraud claims with creditors.

Credit identity theft is one of the fastest growing crimes in the world. No one is 100% safe from becoming a victim. However, by safeguarding your personal information and taking quick action in response to any problem you can protect your credit history and peace of mind.

Jaime Hershman is a Certified Credit Consultant and the founder of Aurora Consulting, Credit Solutions. Visit http://risingcreditscores.com for more articles on identity theft and information on how to build good credit, raise your credit scores, and stay debt free.