Consolidate, before it's too late - Credit Card Debt Consolidation

Consolidate, before it's too late - credit card debt consolidation.

When Diners Club released the first credit card in 1950, credit cards revolutionized the purchasing experience.

Credit card issuers gave consumers limited credit that, at times, even surpassed their own personal savings. Credit allowed them to buy the items they could not usually afford with a cash purchase. Credit also provided the convenience of not needing to carry wads of cash.

Today, on average, American households possess 4 major credit cards, such as American Express, Visa, or MasterCard, or a total of 13 payment cards including debt cards and store cards aside from credit cards. There are, about 1.3 billion credit cards in circulation in the United States.

However, if you think that credit cards have made the lives of modern American consumers easier, think again.

Current statistics show that the average credit card debt for each household per month is $4,800. These high balances lead to 1.3 million credit card holders declaring bankruptcy in 2003.

If you think you are unaffected by this, think again. At retirement, most Americans can only expect to receive about 37% percent of their annual retirement income because of debt payment, leaving them to depend on the government, family and charity.

That’s scary! Before you find yourself in the same situation, it might be time to evaluate your credit card and other debt.

One way of resolving credit card and other debt that you might consider is debt consolidation.
So what is debt consolidation?

Deep in debt? Maybe we can help. Get a free debt quote with LifeLine Debt Solutions and see what we can save you.

In a nutshell, debt consolidation is taking all your credit card debt balances, and often other debt, and consolidating them into one monthly payment. Then, you don’t have to worry about managing each payment individually. It may also provide you some additional benefits:

1. Reduce interest payments
2. Waive late and other fees
3. Low, stable monthly payments
4. Debt repayment in a shorter time
5. Credit score improvement
6. Save money in the long run
   

You will also need to know that there are actually two major types of debt consolidation.
First is through a Credit Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then disperse this to the creditors on behalf of the consumer until they are debt-free.

The other type is through a home equity loan or other secured loan. With this, you exchange unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).

While debt consolidation isn’t a magic balm that will drive all your credit card debt problems away immediately, it will make paying all your debt easier and might save you money in the long run.

tag: credit card debt consolidation

Home Loans for People with Bad Credit

Bad Credit Home Loans

A "bad credit home loan" is a loan that one can get despite having a bad credit rating. Many lenders offer a bad credit home loan knowing fully that their loan is secure, since it is taken on mortgage of your home.

A bad credit home loan is an instrument of opportunity for those who have bad credit rating and would like drop out of their debt and start on the road to good credit building. By availing of a bad credit home loan you can lower your monthly payments by consolidating all your debts and also enjoy a lower interest rate on the current debt. The consolidation and paying off your current debts by availing of a bad credit home loan is a major step towards credit repair. Moreover, if you can keep up the payments on your second home loan for about six months to a year, you will see a remarkable change in your credit score.

Most popular options available on bad credit home loans are cash out mortgage refinance and home equity loans. Both options allow you to cash in on the equity already paid into your home mortgage and use it to get yourself out of debt. It’s best to deal with a mortgage company online to avoid bank associate’s talk around and skepticism. Its also easier to compare various offers form different lenders to make sure you are not being cheated. Please keep in mind the following while filling up forms for online mortgage:

a. Make sure you read the articles on online mortgage at the bad credit home loan lender’s websites. By this you can educate yourself on various types of financing and be informed and up to date on fees and current lending rates
b. While applying for online quotes, do not opt for a generic estimate which is based on you monthly income and bills, fill out detailed information whereupon you can get a real accurate quote.
c. Try and get to the total bad credit home loan cost i.e. including the closing fees, application fees, any other charges, interest charged, amortization and loan fees etc.
d. After applying, do not forget to keep all records received from the lender and follow up with weekly phone calls to make sure things are moving on time.
e. After completion of bad credit home loan, plan to refinance in about three years, by which you should be back in good credit, if you have kept up regular repayments. This will help in reducing your short time debt and maximize your future credit rating.

Use your bad credit home loan to the maximum advantage to get your credit rating back in line. This will help you plan a secure future for you and your family.

Tag: home loan mortgage bad credit

12 Tips for Preventing Credit Card Fraud

12 Tips for Preventing Credit Card Fraud



Most of us enjoy the convenience of paying for goods and services with a credit card or debit card. Unfortunately, some people become victims of credit card fraud, one of the fastest growing crimes in the United States. You may not may know of fraudulent activity on your credit card account until you see unauthorized transactions on your statement.

Here are 12 simple steps to mitigate the possibility of fraud on your credit card account:

1. Keep both your personal identity and credit card information secure. Never email your credit card details to anyone. Email is not a secure method of transmitting data and can often be intercepted by criminals.
2. When you receive a new credit card always sign it immediately; alternatively, write "Check ID" in the signature area so that sales clerks will check for proper identification.
3. When you receive a replacement credit card always destroy the old card immediately. Cut or shred the old card into many small pieces.
4. Make sure you destroy old receipts that have your card details printed on them. The most effective method is to use a shredder. Some shredders will now shred plastic cards and computer CD's or DVD's, too.
5. Open and check your credit card statement as soon as you receive it. Read it carefully to make sure you know what all the payments printed on the statement were for, and that you authorized them.
6. If you see any transactions on your credit card statement that you do not recognize, immediately contact your bank or credit card company for more details, and to possibly report fraudulent activity.
7. If you misplace your credit card for any reason, immediately telephone the card issuing company and tell them. They will block the card to prevent any unauthorized use, and issue a new card to you.
8. Never tell anyone, for any reason, your Personal Identification Number (PIN), which allows cash withdrawals using your credit card.
9. Make sure your Personal Identification Number (PIN) is not easy for someone to guess. Avoid using numbers that are easy to guess, for example do not use your date of birth or address. Also, try to use a different Personal Identification Number for each individual credit card or debit/ATM card.
10. Do not use an ATM if you suspect, for any reason, that it has been tampered with. Report your suspicion immediately to the bank that operates the ATM.
11. When you use your credit card in a retail store or restaurant try to keep a watch on your card while the payment is processed. Make sure that it is your card that is handed back to you.
12. When using your credit card to make online purchases, always ensure the web page where you enter your credit card details is secure. A secure web page has a URL that begins https:// and an image of a locked padlock in the bottom right hand corner of the browser window. If in doubt, try to make the purchase in person.

Following these simple precautions will reduce the possibility of you becoming a victim of identity theft or credit card fraud. Check with your bank or credit card company, they may have further information on minimizing the risk of credit card fraud, so it is worth contacting them.

tag: prevent credit card fraud identity theft prevention

Three Tips to Improve Your FICO Score

Three Tips to Improve Your FICO Score

It used to be that "people", not computers, made decisions about your credit worthiness. You knew your banker personally and your handshake was all the collateral you needed. Those days are long gone, and now a single number generated by a computer - your FICO score - determines whether you are a credit risk or worthy of credit.

While there are several credit models, the most commonly used is called the FICO score, based on a computer model created by Fair, Isaac Company.

Your credit score is often used to determine your interest rate and how much credit a lender will give you. Taking care of your credit score, and keeping your credit history clean will save you money.

Keeping a good FICO score, or improving it, is not difficult, but it may take time. Here are some strategies to maintain and improve your score, based on three credit situations.

1. Obtain a Credit Report

For various reasons, you may have no credit history. Maybe you're young and just starting out, or maybe you always pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score will most likely be very low.

In this case, an easy way to raise your score is to acquire a loan, and pay it off on time. In general, when calculating your credit score installment loans are weighted more heavily than credit cards. So, you can improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another way to build a better credit record is to take $1000 and open a 6 month CD account at a financial institution. Once you have done so, get an installment loan for $1000, using that CD as collateral. Pay attention now, here's the trick. Take the $1000 funds from the installment loan, and open another 6 month CD account at a different banking institution, and then take another loan for the $1000 at the second institution. Do this one more time.

Now you have three installment loans. Every month pay the minimum payment for the next 6 months. In the sixth month, cash out all of your CDs and pay all three of the loans off. You now have a credit history, but you did not go into long term debt to get it.

2. Maintain Your Good Credit Rating

Great job! You paid your bills on time, and you do not have high credit card debt. Here are some tips to maintain your FICO score as high as possible.

1. Don't close your old credit accounts. One component when calculating your credit score the amount of credit available verses amount of credit used. Closing old credit accounts can lower this part of your score.
2. Paying off your credit card balances every month is good money management, but you may be able to improve in this area. Here's the scenario: you have a credit card with a limit of $2000. Every month, you charge arounnd $1800 to that card. And, each month you pay it off in full. But here's what happens - your credit card company reports your credit information monthly to the national credit bureaus. If they report on your balance before you pay it off, it looks as if you carry a high balance on your credit card every month. Your FICO score may improve dramatically if you pay off your credit card at a different time of the month.

3. Repair Your Poor Credit History

If you have bad credit, there are things you can do to improve your score. Some of the strategies take time, and you may want to talk to a credit counselor to be sure that you not only improve your credit history, but also eliminate what caused that poor credit history in the first place.

The most heavily weighted element of your score is based on your payment history. The first thing to do to start repairing your credit history is to pay your bills on time each and every month. If you have a mortgage, it is the most important, followed by installment loans, and finally credit cards.

The next most important part of your score is based on how you use credit. The fastest way to improve this is to pay down your credit cards - never use more than one-third of your available credit on any one card.

Finally, look for any errors on your credit report. Order a copy of your credit report from all three of the national credit agencies, and look carefully at all the entries. The agencies are: experian.com, equifax.com, and transunion.com.

If you find any errors, start the process to dispute them. Also, call your creditors - often they will remove negative information.

Your FICO score is a very important part of your financial health, and using these strategies may help improve your FICO score. Before making any drastic changes to your finances, consult with a financial advisor.

Protect Yourself From Identity Theft

Protect Yourself From Identity Theft


Identity Theft is a real and growing problem in the US. But, what is identity theft exactly? Basically, identity theft is when someone uses your social security number, your bank credit card number, your driver's license number or any other form of identity without your knowledge or permission. Usually their intent is to obtain credit or funds in your name.




Many people have fallen victim to identity theft through many different means. Some of these ways are easily preventable due to their common sense obvious nature. Other ways identities are stolen are more dubious and discreet.

So, the question becomes, how can you protect yourself from someone stealing your identity?

To protect yourself from identity theft, the first thing you should do when considering how to divulge information about your identity to someone you do not know or may not trust is to use your common sense. Never make one-sided assumptions or take things for granted where your identity is concerned.

Credit card company statements and bank statements you receive in the mail contain your account information including your account number. Any of these items need to be shredded with an inexpensive shredder you can buy at any office supply store. Do not throw credit card statements, old credit cards or bank statements, etc. in the trash as that presents an easy way for someone going through the trash to steal your account information and use it as if they were you.

Another thing you can do to protect yourself against credit card fraud and unauthorized credit card usage is to sign the back of your card as "Check ID". If a store clerk asks to see your card, he or she will check the signature on the back and compare it with some other form of ID you have. This safeguard will not work where a purchase can be automatically completed (like at a gas pump).

When you are buying items at a store or withdrawing money from a bank or ATM machine using your ATM debit card always protect the visibility of your PIN number as you punch it in.

Do not carry your social security card with your number on it in your wallet. Keep your social security card or anything with your social security number on it in a safe place where no one has access to it but you. If you must dispose of anything that has your social security number on it, do not forget to shred it.

When online, do not open files sent to you by strangers or even files that are from someone you know but were not expecting to receive any from them. Do not click on hyperlinks or download programs from people you do not know either. Opening a computer file from an unknown source could expose your system to a computer virus, a Trojan or spyware. These types of programs could be ones that could log your keystroke information containing your credit card numbers, passwords or other sensitive information as you type it in.

If you use Ebay or Paypal, read the company website policies concerning how they handle communication to you about your account information. Never trust an email you may receive out of nowhere from Ebay or Paypal asking you to "update your account information" as this is more than likely a ploy to steal that information and use it illegally.

Use a firewall program and a router while you are online if you have high speed internet that leaves your computer connected to the internet 24/7. The router and the firewall program both make it much more difficult for a hacker to see your computer's actual IP address which means that you have a better chance of safely sending and receiving sensitive information over the internet. Windows XP operating system SP2 has a built in firewall which you should make sure is enabled in your settings.

When you shop online, always use a secure browser and shop from a web site that offers secure transactions when shopping online. Most browsers in use today have this protection feature including the popular Internet Explorer and Mozilla Firefox browsers. Secure website shopping carts you visit will show up as "https://thestoresdomain.com/" in the web browser address bar.

Practice keeping your computer clean from spyware or Trojan programs that log keystroke information by using virus protection software and spyware monitoring and removal software. These programs should be updated regularly, and updates for you're operating system and other software programs should be installed regularly to protect against the compromise of your computer files and password information. Ideally, virus protection software should be set to update itself frequently. The Windows XP operating system will update itself automatically if you enable this feature, which you should.

The consequences of identity theft once thieves have your information can be quite severe and range from going on a spending spree to taking out auto loans in your name. For these reasons and others, it is a good idea to monitor your credit report periodically. A credit report can be obtained from Trans Union Corp. New laws have made it easy for you to get at least one free credit report that you can use to see if accounts have been opened in your name.


tags: identity theft protection

How to Deal with Bad Credit Reports

How to Deal with Bad Credit Reports

Today your credit score is everything. Lenders and bankers approve or disapprove loans, mortgages, and credit cards based on your credit worthiness. It is also something that will determine your credibility to employers, landlords, and insurance companies.

Repair Your Credit

With a good credit rating you will be able to apply and be approved for loans and/or credit cards easily. Ultimately, isn't that the goal? You will also have a better chance of getting certain jobs, and living where you choose.

Having bad credit reduces your opportunity for many of these things. If you are able to get approved for a loan or for a credit card, you'll most likely have a much higher than average interest rate. You will be considered a “high risk” customer because creditors are not certain if you will be able to pay your bills on time. If you want to apply for an apartment rental the landlords may take a look at your credit report to determine if you will be able to pay your rent and utilities.

These are just a few of the many reasons why having a good credit score is very important in today's world. However, what can you do if you happen to already have bad credit? If you have a bad credit score, it is imperative to fix the problem as soon as you can. Here are some ways clean up your credit report
.

First, stop your bad credit before it gets worse. So how do you do this? Pay your old overdue debts as soon as possible. This will not immediately improve your actual credit score, but it will put you on the right track to repairing your credit history.

Second, raise your credit score by opening a new savings or checking account. You should also apply for a secured credit card. Although will have a higher interest rate, it is also a good way to control your credit card spending and it will also raise or repair you bad credit score as long as you pay the monthly credit card bills on time you will be able to see a significant rise in your credit history report.

If you follow these steps, and pay your bills on time every month, you will eventually start to see a good credit rating. Remember that it does take time to raise your credit rating. Be patient and diligent to see a positve change.

Once again, remember to pay your loans and credit cards on time in order to get a good credit rating. By doing so over time you will end up with a good credit score and history.

Tags: legal bad credit repair report score

Why You Need a Copy of Your Credit Report!

Why You Need a Copy of Your Credit Report!

Many people are not aware of how important their credit history is, and that they are entitled to one free credit report each year from each of the credit reporting agencies.

Your credit report is an important document which may affect you more than you think. It is perfectly possible to see a copy of your credit report, and it's free. But why would you want to read your credit report, and how do you find it?

In the US there are 3 national credit bureaus which keep information on you and your credit. This information includes a whole range of details on many of the financial transactions that you make through your life.

You may not be aware of it but much of your financial data is kept by credit agencies, and can seriously affect your life. Opening a bank account, considering letting a bill slide a little until it's overdue, going for a loan, buying a house? Any one of these transactions and many many more are all recorded on your credit report. Information is kept on where you live, how you manage most of your finances, much of your criminal history if you have one, your history of loan repayments and much more.

And this information is not just kept there for the sake of it. This information is used to assess your credit worthiness so that when you go for a new loan, for example, the organization through which you are applying can access this information to help it decide whether or not it ought to grant you the loan.

You are in fact, rated for your credit worthiness using this information collected on you, and a credit worthiness score is applied to you. This score is part of the information that an organization may wish to find out if they are judging your credit worthiness.

Something as simple as missing a few bill payments because you were on vacation can quite seriously affect such things as your ability to obtain credit in the future.

So as you can see the information kept in your credit report is important information and can affect your life in ways you may not be aware of.

For this reason it is important to know what information is kept on your credit report. It is not unheard of, for example, for there to be inaccurate entries on your report and if you are unaware of this and therefore cannot correct it this inaccurate information may well cause you all sorts of unexpected problems.

So, how do you get a copy of your credit report? Luckily you are entitled by law to get a free copy of your report each year. You will need to provide your name and address as well as your social security number and date of birth to identify yourself, as well as possible former addresses if you have moved recently.

To get your free credit report from each of the three national credit bureaus go to AnnualCreditReport.com and proceed as directed.

So remember, you are entitled to a free copy of your credit report free each year. Make use of your entitlement, check your report and see if there is anything there which could be causing you a problem. If there is then you can start finding out what to do about it.

Another important reason to check your credit report is to look for errors, omissions, and signs of identity theft. Don't leave your credit to chance. Manage your credit not only by paying your bills on time, but by monitoring your credit history diligently.

Tags: credit report

What the Credit Crisis Means for Borrowers

What the Credit Crisis Means for Borrowers

The current credit crisis is making it increasingly difficult to obtain credit if your credit score is below 700. While there are ways to improve your credit score, it does take some time.

A few of the best ways to improve your credit are to: 1. pay your bills on time every month; 2. don't use more than 30 percent of your available credit; 3. don't make credit applications that you don't really need; and 4. check your credit report for errors and dispute them immediately if you find any . Just remember, it will take many months to improve your credit score - you must be patient.

What if you don't have months to wait on that new home or car? Talk to a reputable credit repair agency for help. Often, they can help to take negative and erroneous items off your credit history to improve your score in a relatively short period of time.

Lexington Law Firm is one such agency that help you repair your credit - even if you have a bankruptcy on your history they can usually help.

Don't wait - if you have been denied credit or know that you have poor credit - let Lexington Law Firm help you today.


Tag: What the Credit Crisis Means for Borrowers

OnlineCreditProfessor.com

OnlineCreditProfessor.com
Pay Day Loan Cash Advances
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This entry was posted on 7/18/2007 9:56 AM and is filed under Payday Loans,Debt,Cash Advances.

Pay Day Loan Cash Advances

Only in extenuating circumstances is the need for a cash advance appropriate. For example: a hospital bill for an emergency, your car breaking down, or any other situation that might need immediate attention. Payday loans will allow you to stay out of debt in such circumstances; otherwise, if they are used on a normal basis they can actually be the route of debt.

Moreover, a cash advance can be quite helpful if you borrow responsibly; otherwise the debt that is accrued can cause more harm than good. A great amount of debt can severely mar your credit; and borrowing without substantial cause can further add to any previous debt. That’s why it’s best to limit borrowing, and to budget your finances accordingly. Smart balancing of your money will often times make an emergency situation (where a cash advance is a necessity) easier to manage.

The moral of the story is to borrow at your own risk. Always do your homework before borrowing from any company; make sure they are a reliable and reputable source. Remember, payday loans can be life savors in emergency situations, or a cause of financial trouble when used without warrant. Constant dependency on loans and cash advances will only add to debt and make it harder to get out of debt in the long run, so borrow wisely!
Tag: Pay Day Loan Cash Advances

Maintaining a Good Credit Score

Maintaining a Good Credit Score

Maintaining a good credit score must be taken seriously if one desires to have a healthy financial situation. Because many things in life often require loans to obtain, such as a car or a home, it is important to maintain good credit in order to have these things. As families grow, so do our needs and wants.

Too often we realize that our car or home is not big enough to meet our needs. When we need to borrow money for large purchases such as these, it is in our best interest to have maintained a good credit history so that banks and other lenders will loan us the money that we need. When the lenders see that we are responsible with our money, they will loan us money to improve our lives.

However, we must be responsible when we borrow. Make payments on time, each and every month, in order to maintain a good credit score. Don't request more credit than you need. Check your credit report often to ensure that there are no mistakes or negative items listed, and that no one else is using your identity.

Be responsible with your borrowing, and when needs or emergencies arise, obtaining the funds that you need will be easier.

Tags: Maintaining a Good Credit Score

Stolen identity, legal nightmare - 07/05/2007 - MiamiHerald.com

Stolen identity, legal nightmare - 07/05/2007 - MiamiHerald.com

Stolen identity, legal nightmare
A Hollywood woman finds that victims of identity theft can be treated like criminals themselves.
BY ERIKA BOLSTAD
MARSHA HALPER/MIAMI HERALD STAFF
Jennifer Mehu, a law-abiding school teacher, has struggled to undo the damage to her finances and reputation after impostors committed crimes using her stolen identity.
On the Web How to deter, detect and defend against identity theft
Jennifer Mehu was enjoying a quiet Friday night in front of her television when a team of Broward Sheriff's Office deputies pounded on her door.
''There was a knock on the door -- one of those hard, scary knocks,'' said Mehu, 32, of Hollywood. 'My daughter said, `Mommy, there's police at the door.' She was afraid -- she's 10 years old.''
Mehu asked the deputies why they were there: 'I said, `Someone has stolen my identity. Is this related to that?' ''
Their response: Find someone to sit with your daughter and accompany us to our substation -- either willingly or face arrest.
BSO confirms the basic outlines of Mehu's account, but makes no apologies. The agency said its deputies were just doing their job, investigating a crime reported by a business.
''That's part of the tragic side of identity theft. We have no way of knowing whether it's being committed by the actual person,'' said spokesman Elliot Cohen. ``Until someone starts asking the questions, there's no way of knowing.''

LifeLock Identity Theft Prevention service is the only of its kind to offer a $1 million guarantee.

STOP IDENTITY THIEVES NOW!

Until recently, Mehu's only brush with the law was an Arizona traffic ticket. But on June 8 around 9:45 p.m., the kindergarten teacher found out what many victims of identity theft already know: Often, they're the ones treated like criminals.
More than 15 million Americans experienced some sort of identity theft last year, said Jay Foley, executive director of the Identity Theft Resource Center, a California-based nonprofit that helps people who have had their identities stolen.
''It is the most common crime,'' Foley said. ``We get lots of cases where a person is being pursued by law enforcement for things they have no knowledge of. It's not only unfair, it's offensive.''
Victims of ID theft generally don't end up dealing with police for their own suspected crimes, Foley said. But in Mehu's case, crimes were committed in her name, and she had no choice, since investigators found her. Mehu had to prove that she was not the criminal.
''In her case, it was criminal identity theft,'' Foley said. ``This automatically puts you on the wrong side the law.''
Law enforcement is obligated to investigate the crimes -- and the person in whose name they were committed, Foley said.
Once the I.D. theft victim is cleared of criminal wrongdoing, it is their responsibility to work on clearing their name.

LifeLock Identity Theft Prevention - Save 10%

UNDOING THE DAMAGE
The victims are forced to spend countless hours straightening out the financial mess left by the people who stole their identity, Foley said, and they have to endure the humiliation of being suspected of criminal activity.
''Identity theft is the 21st century bank robbery,'' said BSO spokesman Cohen. ``You never have to see them, you never have to come into contact with them. It's an epidemic.''
Mehu's problems started last August, when her handbag was stolen from her car at Walker Elementary School in Fort Lauderdale. She kept her purse in her car because it had been stolen once before from her classroom filing cabinet.
She filed a police report, but it was soon apparent that her ID was being used all over Broward. When she tried to get a new driver's license, she found that someone had been to the agency, which issued a license in Mehu's name -- with the impostor's picture.
The problems began piling up.
Someone received a speeding ticket in her name.
Soon it became clear that people were opening checking accounts in Mehu's name, and writing bad checks.
''I started getting notices that I owe this bank, that bank,'' Mehu said. ``They open checking accounts and they write all these humongous bills with my name and address. SunTrust, Wachovia, Bank Atlantic . . . and banks I've never heard of.''
The worst was yet to come.
In the episode that led to her interrogation by BSO detectives, Mehu was suspected of trying to pass bad checks at a Tamarac Publix.
A woman who had tried to cash a check aroused the suspicions of alert Publix employees, who confiscated her ID. The woman left without the ID, and Publix called BSO, which investigated and issued a warrant for Mehu's arrest.
Mehu had seen police interrogations on TV shows. But she had no idea how frightening the real thing would be.
The night they came to question her, a male detective watched as she got dressed. Once Mehu's sister arrived to care for her daughter, Aysis, Mehu was instructed to follow the cops in her own car.
They sandwiched her vehicle between two patrol cars on the drive from Hollywood to Tamarac.
Mehu was so frightened that she dialed 911, to make sure the deputies were legitimate. While she was on the phone with dispatchers, the deputies escorting her called her and told her to stop calling 911, because they were law enforcement officers.
At the station, they showed her different identifications they had confiscated with her name on them.
''It was so scary,'' Mehu said. ``It was just the most horrifying, terrifying experience. It was a little box of a room, with a table and a chair, and a clock. It was padded. There were chains on the floor.''
Eventually, it became clear to detectives that she wasn't the person they were looking for, Mehu said. After about 40 minutes, they let her go, telling her the matter was closed.
But Mehu hasn't forgotten it.
''I don't know what to do to get this out of my head,'' she said.
It's difficult to determine how much the crime cost her, Mehu said. Its main toll has been psychological, although she has spent hours contacting credit bureaus and the check-clearing bureaus.
BURDEN ON THE VICTIM
She has had to put a special flag on her driver's license, so that if she's ever stopped by police, they must ask her for two forms of identification.
She makes sure her Florida I.D., voter registration card and insurance card are quickly accessible. She has applied for a passport. She has signed up for a credit monitoring service for $10 a month. She no longer carries a purse.
''It's sad. I love purses. Now, I just carry a wallet that I can keep in my pocket,'' Mehu said.
Her credit is such a mess that she is afraid to apply for a credit card.
And it has been embarrassing.
Mehu learned through the Fort Lauderdale detective investigating the theft of her handbag that one of the people posing as her was a man dressed as a woman.
Mehu was mortified.
She worries that whatever criminal mischief the I.D. thieves are up to will come back to haunt her on the job, where a clean criminal background is a career requirement.
''I'm scared this might damage my career as a teacher,'' Mehu said. ``I'm at a loss, but everywhere I turn, people say, identity theft is very difficult to solve. It seems like the people who are victims, everything comes back to them.''

Tags: Stolen identity, legal nightmare, identity theft prevention

5 tips to improve your credit score: Financial News - Yahoo! Finance

5 tips to improve your credit score: Financial News - Yahoo! Finance: "Bankrate.com
5 tips to improve your credit score
Tuesday June 26, 6:00 am ET
Cheryl Allebrand

If you've pulled your credit score and are disappointed by what you see, here are some simple things you can start doing now to improve your score. Credit counselor Bruce McClary of Richmond, Va., suggests these five ways to boost your credit score.

1. Get it right
2. Pay your bills on time
3. Step away from the edge
4. Commit for the long haul
5. Look before you leap

1. Get it right
Accuracy is the first thing to address and the fastest way to boost your score. Find and fix any mistakes that could be pulling your score down. Your credit score is based on the information contained in your credit reports. "For someone who has never seen a credit report or hasn't checked in several years, I recommend getting all three and looking at all of them, because each contains different information," says McClary. For those who check regularly, use the free credit reports to monitor your accounts. Stagger your requests for the free reports so you see one every four months. "With ID theft running rampant, it seems like you need to check more often these days," McClary says. "Maybe once a year isn't enough anymore."

2. Pay your bills on time
Paying on time helps build a healthy payment history. And, as the largest factor in determining your credit score (at 35 percent), it's the best way to rebuild damaged credit. Even if you've had credit problems in the past, depending on how many creditors were involved and how far past due your accounts were, a good 12-month payment history can usually produce noticeable results. "If you fell off for a few months, a year could get you back on track," says McClary.
Expect information about past-due payments to stay on your report for up to seven years. Your score can still improve during that time as long as you make steady, on-time payments. Seven years after the date of last activity the mark may drop off, but may not disappear completely because it can still be sent to collections. The avenues of collecting the money are not cut off, and the calendar resets on the date of activity when reassigned.

3. Step away from the edge
If you think you're doing everything right, take a look at the amount of your outstanding debt and your debt-to-credit ratio. Reducing your credit card balances will score you points and is especially important if you are flirting with the limit on any of your cards.
You never want to be maxed out, and ideally you'll be using only about 40 percent of your limit on any one card. Spreading debt between cards is better for your credit score than keeping it all in one place.

Next, focus on the amount of outstanding debt (30 percent of your score). Together, outstanding debt and payment history account for 65 percent of your score. Pay off your debt rather than moving it around. "A lot of people like to play the balance transfer shell game. Closing out an account and transferring that over means that you're increasing your debt ratio. You're reducing the overall amount of available credit and driving up the balance on the other," says McClary. Ultimately if the credit limit is equal or higher on the new card, it would be a wash over time, but in the short term, this is not smart.

4. Commit for the long haul
Fifteen percent of your score is determined by the length of time you've held a credit relationship. Don't close any accounts if you plan to shop for a mortgage or other loan for which you'll need a good score. Opening new cards and closing old accounts negatively impact your credit score in the short run, so avoid making these moves shortly before applying for a large loan. Deciding when to close an account is a tough question, says McClary. "It depends on the overall mix of credit and how many accounts you close. I would stagger it out. Put as much time between those events as possible, because it will affect financing terms," he says.

While you'll want to have a couple of cards to develop a credit history, adding more credit card debt can be a dangerous thing, McClary cautions. "Limit the amount you get to two and keep balances low and pay them off quickly. It's not necessary to have more than a couple of credit cards, and be careful using them because life circumstances can change." Of equal importance is establishing a savings account to fall back upon.

5. Look before you leap
When you apply for a loan or a credit card, lenders check your credit. These inquiries can put a temporary dent in your credit score. Start your loan search by shopping and comparing rates rather than applying for a loan first and deciding later. If you can do all your shopping within the same month, all the better. Mortgage and auto loans are counted as one inquiry if they fall within a 45-day period in the FICO scoring model.

Inquiries have the least impact as far as overall weight. Inquiries, types of credit and the number of loans you have play into the remaining amount of your score.

"I'm always amazed at how people tend to concern themselves with someone making an inquiry when they should be focusing on their payment history," McClary says. "I think if you want to stop solicitations, opt out. But if the motivation for opting out is to have an impact on your credit score, then it's not efficient." Save a few trees, opt out.

Tip: To opt out of unsolicited offers, visit OptOutPrescreen.com or call (888) 567-8688. "

Tags: 5 tips to improve your credit score

Private Loans Won't Help Credit History - Kiplinger.com

Private Loans Won't Help Credit History - Kiplinger.com: "Private Loans Won't Help Credit History
By Kimberly Lankford
June 28, 2007

Can I establish a credit history in my name if I borrow from a private source, such as a family member? My husband and I are young and are buying a house, and we're borrowing the money from my uncle. If we set up the loan with a regular payment schedule, can we get the loan onto our credit record to show that we've been making payments on time?

Unfortunately that loan won't show up on your credit record. The credit bureaus only report information when they have a contractual relationship with the lender. These lenders and other companies typically have to do enough business with the credit bureau (both reporting and accessing credit information on borrowers) to make the cost of working with the bureau worthwhile.

And the credit bureaus also check out the reporting companies before working with them because they're subject to a lot of legal requirements for how the data is reported, updated and verified. 'Experian does an extensive evaluation of the business to ensure that it is a legitimate company, is well-established in the business, has a physical location, is financially sound, and has gone through a data audit to ensure it has the knowledge and technology to accurately report and verify data according to all legal and policy"

Establishing credit takes time and some patience, but in the end it is worthwhile. If you have no credit history, consider a secured credit card to start. Use it a little each month, but never carry more than 30 percent of your credit limit. Pay it on time, each and every month. Soon you will be able to acquire other cards that are not secured; however, do not request more credit than you absolutely need. In this way you can build a solid credit history and a high credit score.

If you have bad credit, and a poor credit score, consider using a credit repair agency such as Lexington Law. They can help you repair your credit, and in many cases even if you have had a bankruptcy.

The Fair Credit Reporting Act (FCRA) allows a consumer to dispute the information on his credit report on the basis of "completeness and accuracy." When a consumer files a written challenge or dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete.

In some cases, the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If the credit bureau has not received verification from the creditor , within 30 days, the credit bureau must promptly delete the credit listing. Learn More.

Don't live with no credit, or worse, with bad credit. Do something about it the right way.

Tags: Private Loans Won't Help Credit History

Personal Loans for Bad Credit

Personal loans for bad credit

There are times when it is just not easy to keep up with financial obligations. Keeping your credit report in good order and clean requires making your payments on time every month. However, sometimes due to illness, lack of work, or other problems the money is not available.

Now there is help. You can get a personal loan even if you have bad credit or no credit. These services make it fast and easy to get the cash you need to bridge the gap. There is no faxing, and the cash is usually delivered to your bank account by the very next day.

Don't get behind on your bills when there is help for you. If you are building credit, one of the most important variables that the credit reporting agencies grade you on is whether or not you pay your bills on time.

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Need some extra cash now? You can get $1500 today! Bad credit or No credit is Ok! They can lend to you!

Tags: Personal Loans for Bad Credit

How_Credit_Reports_are_Calculated

How_Credit_Reports_are_Calculated

A credit score, also known as a FICO score, is a three digit number that lenders use to estimate risk. Generally, borrowers with higher credit scores are less likely to default on a loan than those with lower FICO scores.

How are credit reports and scores calculated?

Credit scores are produced by using certain data from your credit report which is weighted to create your personal score. Since the three major credit reporting agencies don't use the same scoring systems, don't be surprised if your credit scores from each one are slightly different. A FICO score is generated using software created by Fair Isaac Corporation -- FICO.

While we don't know all of the criteria used to calculate scores, we do know that the following items of a credit history are most important, and are weighted as shown:

• 35% - Your Payment History
Number of accounts paid as agreed
Negative public records or collections
Delinquent accounts:
total number of past due items
how long you've been past due
how long it's been since you had a past due payment
• 30% - Amounts You Owe
How much you owe on accounts and the types of accounts with balances
How much of your revolving credit lines you've used--looking for indications you are over-extended
Amounts you owe on installment loan accounts vs. their original balances--to make sure you are you paying them down consistently
Number of zero balance accounts

• 15% - Length of Your Credit History
Total length of time tracked by your credit report
Length of time since accounts were opened
Time that's passed since the last activity
The longer your (good) history, the better your scores
• 10% - Types of Credit Used
Total number of accounts and types of accounts (installment, revolving, mortgage, etc.)
A mixture of account types usually generates better scores than reports with only numerous revolving accounts (credit cards)
• 10% - New Credit
Number of accounts you've recently opened and the proportion of new accounts to total accounts
Number of recent credit inquiries
The time that's passed since recent inquiries or newly-opened accounts
If you've re-established a positive credit history after encountering payment problems

What's a Good Credit Score?
Credit scores range between 340 to 850. The higher your credit score, the lower the risk a lender believes you will be. As your score increases, the interest rate you are offered generally declines.

Borrowers with credit scores more than 700 are typically offered more financing options and better interest rates, which can save thousands of dollars over the life of a loan.

Credit scores among the US population in 2003:

• Up to 499: 1%
• 500 - 549: 5%
• 550 - 599: 7%
• 600 - 649: 11%
• 650 - 699: 16%
• 700 - 749: 20%
• 750 - 799: 29%
• Over 800: 11%

Don't despair if your credit score is low - over time you can increase your score. It takes some work, but it is worth it in the long run. For more information about how to increase your credit score go to Three Tips to Increase Your Bad Credit Score.

Tags: How_Credit_Reports_are_Calculated

Veteran Identity Theft Breach

Veteran Identity Theft Breach

One year ago this week it was reported that the personal information of 26.5 million veterans was stolen from the home of a Department of Veterans Affairs employee.

“This security breach is the largest reported loss of personal information so far this year,” said LifeLock CEO Todd Davis. “The information that was taken can be a gold mine for identity thieves, and a major headache for veterans who become victims."

Veterans, Protect Yourself Immediately! Click here!

LifeLock does the prevention work by maintaining active fraud alerts with the three major credit bureaus as well as ChexSystems. The LifeLock Identity Prevention system makes personal information useless to everyone but the rightful owner. Anytime someone attempts to open credit, change an address or make changes to bank accounts, LifeLock ensures that the right person is making the request.

Also unique to other ID thef protection products on the market, LifeLock removes a member’s name from solicitation lists and junk mail, eliminating a primary target of ID thieves – the pre-approved credit offer. Best of all, LifeLock is backed by a $1 million guarantee to completely fix any problems if a client was ever compromised.

LifeLock Identity Theft Prevention - Save 10%

“We have a lot of veterans who are currently LifeLock customers,” Davis said. “They can rest assured that no matter who has their personal information, they’ll be protected. Now we want other veterans to know they can be safe, too."

Based in Chandler, Arizona, LifeLock is the nation’s first and only preventative answer to identity theft that completely guarantees its service. The company was the first to offer special programs for children under 16 and victims of Hurricane Katrina and Rita.

Tags: Veteran Identity Theft Breach

Credit_Reports_Without_Credit_Card_Required

Credit_Reports_Without_Credit_Card_Required

You don't have to have a credit card to obtain a copy of your credit report. You may obtain a free credit report from each of the three major credit reporting agencies, Equifax, Transunion, and Experion, one time each year at http://www.annualcreditreport.com.

Did you know that most credit reports contain errors? It has been reported that between 70-90% of all credit reports contain at least one error! It is important to check your credit reports regularly to be certain that they do not list erroneous information about you. If you find errors, dispute them immediately. Just follow the instructions as to how to make a dispute that each of the credit bureaus will give you with your credit report.

If you find that you have bad credit, take the time to do what it takes to fix it. Other posts in this blog spell out in detail what you must do. If you are in a hurry, or if your credit is so bad that you really need legal help, contact a reputable credit repair service such as Lexington Law. They can legally remove negative items from your credit report!

Let a Law Firm Remove your Negative Items from your Credit Report!

Tag: Credit_Reports_Without_Credit_Card_Required

Bankruptcy? Home Loan Credit Repair, Restoration, Legal Services

Bankruptcy? Home Loan Credit Repair, Restoration, Legal Services

Bad credit can be fixed or deleted - even if you have suffered bankruptcy there are options for you.

If you would like to qualify for a mortgage, car loan, or credit card, but have a bankruptcy on your credit history, you may be turned down or end up paying a much higher rate of interest than other consumers.

Lexington Law is a legal bad credit report repair and restoration service that can help you fix your bad credit, with good success deleting even bankruptcies permanently from credit reports!

How is credit repair possible?

Because of the Fair Credit Reporting Act (FCRA), consumers may challenge the information on their credit reports on the basis of "completeness and accuracy." If an individual files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. There are some circumstances when the credit bureau is required to go beyond a simple verification of the creditor's own computer record. If the credit bureau does not receive verification from the creditor within 30 days, then the credit bureau must promptly and permanently delete the credit listing.

Learn more

Bankruptcy no problem. Home loans are possible with credit repair restoration. Legal services such as Lexington Law can help you fix your bad credit, and establish a healthy credit history.

Tags: bankruptcy home loan credit repair restoration

Special Offer - Identity Theft and Credit Repair Software from Amazon

Learn how you can take a bite out of the largest growing crime in America today...IDENTITY THEFT! Plus, learn how easy it is to repair your own credit, how to consolidate your credit debt and how to do your own bankruptcy. Includes 200 legally binding forms plus course materials.

Don't miss out on this special offer from Amazon.com. The regular price on this software is $19.95, but you can order it now for $5.83.

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Tags: identity theft prevention credit repair software

Ten Mistakes to Avoid When Trying to Improve Credit Scores

Ten Mistakes to Avoid When Trying to Improve Credit Scores

Don't damage your credit score further by rushing to do things that may intuitively make sense when trying to fix bad credit, but will actually negatively impact your credit score more. Let’s first look at what makes up one’s credit score, as developed by Fair Isaac:

The exact formulas for calculating credit scores are a closely guarded secret; however, Fair Isaac has reported the following components and the approximate weighted contribution of each as key factors:
35% - payment of credit accounts on time in the past (only includes payments later than 30 days past due)
30% - the amount of debt, expressed as the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% - length of credit history
10% - types of credit used (installment, revolving, consumer finance)
10% - recent search for credit and/or amount of credit obtained recently

Mistake #1: Cancelling old credit cards. Remember, fifteen percent (15%) of your credit score comes from the age of your credit history. Therefore, cancelling your oldest credit card can often be a mistake. In addition, if you have balances on other credit cards, cancelling an old credit card that you don't use can impact your debt ratio, which makes up 30% of your score. If you don’t have other sources of credit that are older than seven years, do not cancel your oldest credit card.
Mistake #2: Paying “most” of your credit cards on time. 35% of your score depends on whether your payments were made on time (only payments that are more than thirty days late affect your score.) If you must be late on any card, make up that payment before it’s thirty days late. Don’t make the mistake to keep up with all but one or two of your cards and let those go later and later; instead, juggle the cards a bit if you have to, but make sure you are not too late on any one card.
Mistake #3: Requesting more credit than you need. 10% of your credit score comes from the types of credit used, so if you have a lot of open sources of revolving credit (i.e., credit cards), you may be seen as a credit risk because you have the potential of racking up a lot of debt very quickly. Don’t open store credit cards just to get a discount or other perk, and if you have any recently opened store cards, cancel them as soon as they’re paid off.
Mistake #4: Maxing out your cards. 30% of your score is developed from the ratio of your credit card debt to your credit limits. So, if all of your cards are maxed to their limit, your credit score will suffer even if you’re keeping up with the payments. Don't continue to charge and buy more and more on credit. Instead, focus on paying down the cards by making extra payments.
Mistake #5: Avoid taking loans and debts.When it comes to your credit report, no debt is effectively bad debt. If you’re a credit card avoider, you should consider getting one and making an occasional purchase with it - paying the balance on time. Some people use one credit card such as a card affiliated with their favorite gas station chain.They use it just for gas purchases, often racking up discounts on it, paying it off in full each month. This will help them maintain a solid credit score in case they need a loan in the future.
Mistake #6: Requesting a credit limit reduction. Many consumers believe that they have been granted too much credit and that they’re better off reducing their credit limits. The only significant effect a limit reduction has on your credit score is a negative effect on your debt ratio. Don't request a credit limit reduction unless it has a huge psychological value for you; otherwise, it will hurt your credit score.
Mistake #7: Using the first credit counseling service you hear about or find online. Very often, the ones that advertise the most are the ones that do the worst job. Use the FTC’s advice when searching for a reputable credit counseling service in your area. Call several of them and ask the questions from the FTC page to find ones that seem legitimate, then check with the Better Business Bureau before moving signing with one.
Mistake #8: Declaring bankruptcy. Too many people declare bankruptcy because they believe it’s the only way out. Before taking such a drastic measure, seek counseling first with one of the legitimate sources mentioned above. Bankruptcy can destroy your credit score for a very long time. Very often there are better solutions available to you, such as negotiating with creditors.
Mistake #9: Credit card arbitrage. Playing this game can seriously damage your credit score if you’re not an expert. Stay away ufrom this practice unless you’re financially stable and know exactly what you’re doing; if you make a mis-step, your credit score could easily be destroyed, and for a long time.
Mistake #10: Never checking your credit report. Most people who behave well with their credit just assume that their credit is fine, but sometimes errors can show up on your report. Visit annualcreditreport.com to get the free report that the United States government guarantees you from the three major agencies.

Tags: improve credit scores,

Lenders act to limit US foreclosures - Yahoo! News

Here is an article that is extremely imporant for anyone who is having trouble paying their mortgage. There is some help out there. Try to make your e mortgage payments on time, so that your credit score does not suffer. Talk to your lender to let them know you are having difficulties to see what type of assistance they may be able to offer.

Lenders act to limit US foreclosures - Yahoo! News
Lenders act to limit US foreclosures
By Mark Trumbull, Staff writer of The Christian Science Monitor Thu Apr 26, 4:00 AM ET
"The home-loan industry, facing the worst housing downturn since the early 1990s, is ramping up efforts to help strapped borrowers stay in their homes.
The goal is to restrain a gathering wave of foreclosures that carries big costs for both lenders and borrowers.
This rescue effort isn't expected to save every at-risk homeowner. But it promises to reduce monthly payments for many who have fallen behind on mortgages. In the process, it could help to stabilize a struggling real estate market.
So far the housing slump, precipitated in part by overzealous borrowing and subprime lending, continues its downward slope. In discouraging news for homeowners and homesellers nationally, a report Tuesday showed "the deceleration and declines in home prices are showing no signs of turnaround." Citing February data, Standard & Poor's Case-Shiller index of housing prices in 10 cities posted a 1.5 percent drop from February 2006 – an annual decline not seen in 15 years.
That news follows hard on a revised 2007 price forecast by the National Association of Realtors. NAR said this month it no longer expects the median price of an existing home to rise this year, predicting instead a 0.7 percent decline. The slower recovery, it said, is a result of "tighter lending criteria and fallout from the subprime loan debacle."
Some lenders offer to refinanceImpelled by financial and political pressures to try to curtail foreclosures, lenders are taking action on several fronts:
• Fannie Mae, America's leading mortgage lender, says it plans to help as many as 1.5 million "subprime" borrowers – people with low credit ratings – refinance out of high-interest loans.
• Freddie Mac, which like Fannie Mae is a government-backed corporation, is creating new products to make homes more affordable to buyers with poor credit. Freddie Mac doesn't make loans directly but pledges to buy as much as $20 billion worth of these mortgages from participating lenders.
• Washington Mutual, another giant lender, says it will refinance $2 billion in subprime loans, helping borrowers avoid foreclosure. The new loans will come with below-market interest rates.
• Some finance companies are partnering with nonprofit organizations that act as advocates for at-risk borrowers.
• In addition to efforts by specific companies, the Mortgage Bankers Association announced a foreclosure-prevention campaign in partnership with the nonprofit group NeighborWorks America. They will link homeowners to a free counseling hotline (888-995-HOPE) provided by the Homeownership Preservation Foundation, boost the capacity for homeownership counseling within NeighborWorks, and conduct a national ad campaign for homeowners in financial distress.
All of this represents significant relief, but the magnitude of the problem is large and growing.
"We're struggling to provide help" to troubled borrowers, says Robert Pulster, who heads a Boston nonprofit group called Ensuring Stability through Action in our Community. "We're seeing double the problem that we were seeing last year."
The lenders themselves are careful not to overstate what the new projects can achieve. "While these efforts will help cushion the expected rise in foreclosures, we need to be clear that these offerings are not a panacea," said Richard Syron, chief executive of Freddie Mac, as he unveiled the new products at a congressional hearing April 17.
Even when the economy and the housing market are strong, some borrowers run into financial difficulty because of events such as job loss, divorce, or illness.
Over the past year, two other factors have driven the rise in past-due loans and foreclosure filings.
One is known as "payment shock," when adjustable-rate loans reset sharply upward. Lenders in recent years failed to consider whether the borrowers will be able to afford their loans once initial "teaser" rates adjust, critics charge.
The other is simply that a decade-long housing boom stalled out. Some who bought homes near the market peak – often with no down payment – owe more than the house is now worth. So selling it offers no sure escape route from foreclosure.
But foreclosure is costly for lenders, chewing up tens of thousands of dollars in missing loan payments, home-sale expenses, and property maintenance. If foreclosures are concentrated in a community and drag down home values, that's bad for lenders' business prospects.
Politicians have been prodding lenders to help at-risk homeowners. In congressional hearings, Democrats have bashed the mortgage industry for helping to create the problem. Nonprofit organizations have added to the pressure.
Rita Askew, safe at homeRita Askew of Evanston, Ill., is one borrower who remains in her red-brick townhouse thanks to help from her lender and community groups.
Her husband, the family breadwinner, had to leave his school-maintenance job for several months last year because of an accident. "I probably would have been selling my house," Mrs. Askew says, if the National Training and Information Center (NTIC) hadn't stepped up for her.
NTIC helped win a loan-modification accord that cut the monthly payment from $1,668 to $1,117. The interest rate dropped from 10.6 percent to 6.0 percent.
Several major lenders, including Ocwen Financial Corp., CitiFinancial, and Select Portfolio Servicing Inc., have agreed to partner with NTIC to negotiate "workout" deals when possible for troubled loans.
But for people who face difficulty paying their mortgages, the choices can narrow quickly if the loans go unpaid for a month or more.
Borrowers can seek a traditional refinance deal with any lender. They can seek temporary forbearance or a loan modification deal. Some can successfully sue the lender, showing that the original loan process violated state or federal laws. Or they can try to sell the home, perhaps talking the lender into accepting proceeds that fall short of the loan balance due.
Housing advocates say to beware of "rescue" scams, outfits that charge big fees and then fail to help people stay in their homes."

Tags: Lenders act to limit US foreclosures, credit score

What are Ways ID Theft Can Occur?

What are Ways ID Theft Can Occur?

First what is Identity Theft?
Identity theft is a very bad event that causes a lot of harm to a consumer’s credit. Think of how you would feel to know that someone else has used your credit and has left all the responsibilities and problems for you. Once the fraudulently opened accounts start appearing on your credit report, it will lower your credit score for sure because the ID thief is not likely to behave well with your credit.

What are Ways ID Theft Can Occur?

ID thieves have so many ways to scam people - and it is an easy crime to get away with. It is important for consumers to know how thieves can get access to personal information, and use it.

• By stealing or hacking the database of a business.
• By stealing your wallet.
• By stealing your snail mail or email containing your personal information, or submit a change of address form and bypass your mails to their door. (shred your junk mail and other correspondence)
• They can get your personal information from trash.
• They can steal your information through fake mails, phone calls and from duplicate sites purposefully build to scam people.
• They can pull your credit report by camouflaging as employer, creditor or land-lord.

LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.

So what happens when ID Theft occurs?
Using your personal information, crooks can ruin your credit in a very short time. They can –

• Open credit card account in your name.
• Take out bank loan to buy a car.
• Open a bank account with your information and write a number of bad checks.
• They may apply for a phone service in your name, obviously the bill will be charged to you.
• They can quickly do all of the above!

How can I avoid the scam?
There are some things that you can do to help you avoid identity theft. Here are a few:

• Do not carry extra credit cards with you that you do not need.
• Never disclose your SSN to a person who you do not know or send it out over an unsecured media.
• Keep a watch on your credit report regularly and make it a habit.
• Periodically check your bank statement.
• Close the credit cards that you are not interested to use any more.
• Do not have your SSN printed on your check leafs.
• You can stop pre-screened credit offers or ask credit reporting agencies to block your date of birth and SSN on your credit report.
• Do not respond to any email that states unrealistic message for you, like your bank account has been closed or craps like that. If necessary, type the website address of the concerned institution by your own, do not follow the link embedded in the emails.
• You can subscribe to an identity theft prevention service, such as LifeLock, that will take care of all of this for you.

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Tags: What are Ways ID Theft Can Occur

Credit Repair and Buying a Home

Credit Repair and Buying a Home

If you are considering buying a home - stop! Before you do anything else, get a copy of your credit report. You can obtain a free copy once each year from AnnualCreditReport.com.

Why get your credit report? Well the fact is that most credit reports contain erroneous information which, in some cases, may affect your credit score negatively. It is very important to check your credit report very carefully, and if you find errors, dispute them immediately with all three of the national credit bureaus. It can take 30 days or more to get erroneous items deleted from your credit history.

Your credit score is used to determine the rate of interest that you will pay for the mortgage. Erroneous or negative items listed on your credit report could bring that score down considerably, costing you thousands of dollars over the course of the mortgage. You can improve your credit score; however, it can take some time, so start early.

Credit repair and buying a home are definitely tied. Even if you think you have very good credit, be certain. Check your credit report because may people have been victims of identity theft, affecting their credit horribly, and they don't even know it.

So, before you start looking for a new home - get your credit report in shape.

Tags: Credit Repair and Buying a Home

Personal Information Contained In Credit Report

Personal Information Contained In Credit Report

If you have never looked at your credit report, you may be wondering what type of information it contains. First of all, we do advise that you order a copy of your credit report from each of the three major reporting bureaus at least once each year. You are entitled to one free report each year, and may access your reports for free online at AnnualCreditReport.com.

You may be surprised at the amount of sensitive personal information that it contains. In addition to your name, address, and past residence addressess, you'll also find your date of birth, social security number, and employer. In addition, information about every credit account and whether or not you pay on time, any collection activity, or legal judgements will also appear on your report.

Understand your credit report and all of the listings there to be certain that you have not been a victim of identity theft. Check your report very carefully for erroneous items or any indication of fraud. Any errors should be disputed and reported immediately to the credit bureaus so that your credit is not negatively impacted.

Personal information contained in credit report should also be safeguarded. Be careful to whom you give access to your credit information. Identity theft prevention protection is available, and highly recommended.

Tags: Personal Information Contained In Credit Report

Info on Credit Repair Websites

Info on Credit Repair Websites

You'll find lots of information floating around the Internet about credit repair, credit restoration, and increasing your credit score. Some of the information is good, and some could get you into trouble.

First of all, it is not legal to establish a new credit identity. This credit repair scheme called “file segregation” promises a chance to hide unfavorable credit information by establishing a new credit identity. This may sound great to you, especially if you’re afraid that you won’t get any credit due to a bankruptcy or other negative credit report listings.

The problem: “File segregation” is illegal. If you use it, you could face fines or even a prison sentence. If you come across any Web site or agency that offers you this alternative, keep looking.

Although there are many such websites out there that will claim to help you by changing your identity or with other schemes that are not legal, there are just as many good ones.

Info on credit repair websites is available from the Federal Trade Commission Web site. Take a look on OnlineCreditProfessor.com for an example of a very good and informative site about credit repair and other personal finance topics. Suzanne Busby, the Online Credit Professor, also offers an excellent and informative Blog that is sure to help you, as well.

Tags: Info on Credit Repair Websites

ID Theft Protection Policy

ID Theft Protection Policy

According to the Federal Trade Commission (FTC), identity theft is the fastest growing crime in the United States. It affects nearly 20,000 per day! And while it is an easy crime for identity theives to get away with, and the penalties are not necessarily severe, it can hurt the victim in many ways.

Many people are victims of identity theft and don't even know it yet! Check your credit report regularly and carefully for any sign of identity theft or fraud. (It's a good idea anyway to check your credit report for any errors that may affect your credit.) ID theft hurts! As a victim your credit is destroyed, you may have trouble getting a job, and credit and insurance will cost you much more - if you can qualify.

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It has been estimated that identity theft victims spend as much as 600 hours over many years, on average, to clean up the mess caused by identity theives. Don't be a victim - be proactive in protecting yourself against identity theft.
Shred all junk mail, and any other correspondence that contains any personal information - even if it is only your name and address. That's all a thief needs to start stealing your identity.

Get an ID theft protection policy such as LifeLock. It is the only ID theft protection of its kind to offer a $1 million guarantee. LifeLock has been touted on many news programs (CNN, MSNBC) and by journalists (The Wall Street Journal, Chicago Tribune, and others) recently as being one of the best methods you can use to protect your personal information from theft.

LifeLock Identity Theft Prevention - Save 10%

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identity theft prevention

Identity Theft Statistics

Identity Theft Statistics
Did you know that nearly 20,000 people each day become victims of identity theft? Are you one of them? Identity theft is the fastest growing crime in the United States.

Most identity theft victims are not aware that their personal information has been stolen until they try to get a loan, insurance or job, and find out that they have a bad credit report. Even worse is to get a call from a collection agency trying to collect on a debt that you know nothing about, or being arrested due to mistaken identity!

Your credit history can be ruined very quickly by identity theives. You can be denied credit, a job, or face higher rates for insurance due to bad credit that you did not cause. It is essential that you protect your personal information to the best of your ability to avoid this crime.

Here are 5 things you can do to prevent identity theft:

1. Shred all junk mail, and any other correspondence that contains your name, address, account numbers, or other personal information. (Often identity theives need only your name and address to start stealing your identity.)
2. Do not give your personal information to anyone that calls you looking for information
3. Avoid applying for loans or credit cards and such over the Internet
4. Check your credit report frequently for signs of fraud or identity theft
5. Subscribe to a proactive identity theft protection services such as LifeLock. They are the only service of this type to offer a $1 million guarantee against ID theft.

Everyday we hear about another way that identity thefts are hurting consumers. You can avoid this crime with a small amount of effort on your part.

P.S. You only have 5 days left to file your federal income taxes.....

Tags: identity theft statistics, avoid identity theft protect your credit report,

Do-it-Yourself Credit Repair

Do-it-Yourself Credit Repair

Do-it-Yourself credit repair to improveyour credit score takes a conscious effort on your end. There are several factors that affect your credit score; improving the score requires you to take care of the most important of those factors so that you can manage your credit better, and improve your score. Follow some simple steps to improve your score and your credit history.

Improve your payment history:

• Avoid making late payments on your bills.
• Pay off all your past-due bills as soon as possible.
• Request an alternative plan with low monthly payments from your creditor if you need help.
• Negotiate with your creditors to remove charge-offs from your report and re-open those accounts.
• Request that your creditors erase late payment entries after you re-start paying on time.

Reduce your outstanding debts:

• Pay off high interest debts first.
• Keep your balances low and try to keep your revolving debt to 50% of your available credit.
• Don't close old and unused accounts quickly in order to lower your available credit. It will raise your debt-to-credit limit which has a negative impact on your score.
• Try to close accounts gradually over several months.
• Verify that the accounts closed are reported as "closed by consumer".

Improve Your Credit History:

• You should not open several new accounts within a short period of time.
• Adding too many accounts in a short interval implies that you are not able to manage your credit properly.

Manage new credit efficiently:

• Restrict yourself to a medium credit limit and not a higher one as your creditor suggests.
• Do not open too many new accounts if you have gone through credit problems in the past.
• Plan your budget taking into account your finances and credit.
• Avoid several credit inquiries within a short period; otherwise it would mean that you are about to open multiple new accounts and this will affect your score.

Use a proper mix of credit:

• It is better not to have too many installment loans as they can reduce your score. This is because the payments remain unchanged until you pay off the balances.
• You can have a combination of credit cards and installment loans or loans with fixed payments as they help in improving your score. But you need to handle your credit cards efficiently.You can also contact a credit counseling agency for tips on managing your debts. These agencies are different from the credit repair companies and they can guide you on how to improve your financial situation.

Once you have worked through the various factors influencing the credit score, try to maintain a stable credit report with the latest details. Check your credit report periodically for errors and problems. A few simple steps will help you in this regard.

• Request your creditors to send your account details and payment history to the credit reprting agencies.
• Create a savings account at your bank. Your creditors will be convinced that you have started to save and maintain extra funds to pay down your debts.

Besides practicing good payment habits and updating your credit report, you should look at removing any errors from your report. This will also help you to get a better score. When you request your credit report, the credit bureau will give you detailed instructions on how to file a dispute. Do so right away if you find errors.

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When Good Credit Marries Bad Credit [Fool.com] April 09, 2007

When Good Credit Marries Bad Credit [Fool.com] April 09, 2007
Don't wind up in divorce court! Here is some very good advice for couples who have very different ideas about how to handle money and credit.
When Good Credit Marries Bad Credit
By Mary Dalrymple
April 9, 2007
"If the law of love says opposites attract, then it's no wonder that sometimes Miss Good Credit finds herself falling head-over-heels for the bad boy, Mr. Poor Credit. There are a few things this unlikely pair should know before they walk down the aisle.
Marriage and financesWhen two people marry, they decide to share everything, but the wedding license doesn't force a merger between two credit reports. Married couples keep their separate credit files. Wedding vows do not automatically ruin anyone's good credit. Unfortunately for Mr. Poor Credit, they don't automatically improve anyone's creditworthiness, either.
That can change if our couple decides to share financial accounts. After all, marriage means not just love and companionship, but also mortgages and joint checking accounts. The bad behavior of one spouse can start to affect the other if they rush to merge their financial lives without first cleaning up any past credit transgressions or mending the problems that led them to a checkered credit history in the first place.
Married couples, separate financesAlthough it may sound heartless, maintaining some financial distance for a while might help a couple in the long run.
Let's say Mr. Top Credit and the newly Mrs. Bottom Credit visit their mortgage lender. Because they've both taken to heart the Foolish advice to talk money before marriage, they have already had a long chat over a candlelight dinner about Mrs. Bottom Credit's poor financial past.
When they start shopping for a loan to purchase their first home, they have a few choices. Mr. Top Credit could purchase the home only in his good name, but he will probably qualify for a smaller loan than the couple would together. Often, the smaller loan won't be enough to purchase the home they want. They could apply jointly for a loan, but Mrs. Bottom Credit's poor record could cause them to run into limitations and get less attractive mortgage terms, a potentially costly proposition.
Another option is to put off their home purchase and spend some time rebuilding Mrs. Bottom's credit rating. This can take a while and will require our newlyweds to be diligent and patient. In the end, they would be rewarded with cleaner credit, better loan terms, and maybe even fewer fights over money.
Fixing bad credit
The spouse with poor credit history can start cleaning up his or her act by ordering free copies of each credit report held by the three large credit brokers. That will quickly reveal the problems that need to be tackled, as well as any incorrect information that might be unnecessarily dragging a credit score down. Dispute any incorrect information with the credit bureau, and follow up to make sure it gets fixed.
Our bad creditor will then need to start mending the errors of his or her ways. That means determining how much is owed and to whom, catching up on payments, and demonstrating responsibility to lenders. Maintaining separate financial lives for a while might be a good idea if Mrs. Good Credit has some doubts as to whether her bad-boy husband has really mended his ways. Past credit problems can be the result of a job or health emergency that threw someone's financial life into turmoil. On the other hand, they can be a sign of irresponsibility. Mrs. Good Credit may want to hold off on merging her financial life with her new husband until she sees him acting responsibly.
If that's the case, Mrs. Good Credit might want to postpone creating any joint accounts or adding her husband to her credit cards. Any late payments or other misdeeds occurring on joint accounts will show up on both spouses' credit reports. She will also be just as liable for any debts incurred on those accounts, even if her husband's the spendthrift. "