Credit Manager News -Source by CreditExpert

[Admin]

Source provided by CreditExpert


Telephone Credit Scams Play on Consumers' Fears
Identity theft is on the rise. In one particular brand of credit fraud, telephone scam artists employ various unscrupulous means to extract your personal information so they can use it to drain current accounts, open new accounts and obtain credit -- all in your name. The variety and inventiveness of the ploys these criminals use to rob you of your well-earned credit rating, money and peace of mind are continuously growing. So how do you protect yourself from these credit frauds and hold onto what is rightfully yours? Be aware of the latest scams that are out there and ensure that, if you are approached, you'll recognize the signs and avoid getting burned.

Currently, for instance, identity crooks are employing countless telephone scams to trick and defraud unsuspecting victims into giving up crucial details about their personal identities. One manifestation of this fraud involves telephone identity thieves, in the guise of credit grantors on official business, calling people and asking them to verify address, credit account number or other personal information. You should never give out this information to someone you do not know.

These criminals are extremely inventive and opportunistic. They are adept at creating elaborate ruses aimed at convincing consumers to part with their private credit data. For example, when Y2K fears were at a fevered pitch, many identity thieves took advantage of the public's apprehension about potential Y2K-related side effects. Capitalizing on the Y2K scare, fraud perpetrators would call people, identify themselves as bank or financial institution employees, and request personal information -- for the supposed purpose of updating records in order to make the organization's systems Y2K-compliant. Instead, identity thieves used the information to perpetrate fraud.

Identity thieves can be very convincing. Utilizing common knowledge about current events and trends, these criminals devise schemes and scams that can easily fool consumers into divulging their personal information. Be on the lookout for these scams and take steps to protect yourself. Never, for instance, divulge personal information -- such as bank or credit card account numbers, your Social Security number, addresses or family names -- over the phone or the Internet, unless you have contacted the business yourself and are sure of its legitimacy. No matter how plausible or official a caller might seem or what reason they might offer for their request, if he or she initiated the call and is asking for personal information over the phone, protect yourself by keeping your private credit information private.

Regularly check your credit report for accuracy.

[Admin]

Know the Difference Between Credit Counseling and Debt Repayment
In understanding how credit counseling may affect your credit status, it is important to know the differences between credit counseling and actual debt repayment programs.

There are definite differences between credit counseling and debt repayment plans in regard to long-term effects. With credit counseling, there is no signed commitment, none of your accounts are affected by the agency itself, and you retain total control of how your debts are paid and when. In addition, credit counseling in no way affects your credit rating and does not show up on your credit report. But because there is no signed commitment, the agency must leave the repayment of your debt in your hands, which may leave you exactly where you started-overwhelmed with the burden of going it alone.

With a debt repayment plan, your credit status may be affected by the plan itself. Creditors may report that an account is in a debt repayment plan, that some payments (if any) have been missed, or that there are write-offs or other concessions that have been made to help reduce your debt to a workable amount. Under the Fair Credit Reporting Act, this accurate information about your accounts can stay on your credit report for up to seven years. In addition, your creditors will continue to report information about accounts that are handled through a debt repayment plan. However, if you can avoid filing bankruptcy, a debt repayment plan may be worth the trouble. Remember, write-offs and late payment notations may stay on your credit report for seven years-a bankruptcy can stay on for up to ten and is a matter of public record as well. This means that in addition to having individual account notations, you will also have the notation of the bankruptcy listed separately on your credit report.

[MandyMindy]

It feels great to be debt-free. I also maintain three credit card and not a shopaholic.

[Tarak Chunsa]

Doesn't hurt your credit score if you have three or more credit card accounts? I only use one Visa credit card and my balance is not looking healthy.

[Admin]

Originally Posted by Tarak Chunsa

Doesn't hurt your credit score if you have three or more credit card accounts? I only use one Visa credit card and my balance is not looking healthy.

I wouldn't think of opening another credit account after three.
But I heard someone say that the more credit cards, it shows how responsible the person can be to manage all accounts.

Speaking of credit cards, who has a serious debt (over $1,000) in their credits?

[Trader]

Originally Posted by MandyMindy

It feels great to be debt-free. I also maintain three credit card and not a shopaholic.

I don't understand how some people manage to get debts over $10,000 in their early twenties. Believe me, there are many.

[ak]

I have 2 VISA's but I don't use them often either.

Does your credit increase more if you pay in full everytime??

[Admin]

Not necessarily.
Credit point increases as time pass by. Credit building takes literally years and during these years, it is very important to pay bills on time.

Let say, each credit Visa you have holds a $1000 limit credit, total of $2,000 credit available for you.
You should not use more than 70% (not sure if it is 70%) of all your credit. Meaning, if you have over $1,400 in credit debts, it can decrease your credit scores.

[ak]

I did not know that. Another thing I dont understand: My friend is 18 years old (sr. hs) and is $1400 in debt from shopping. uhhhhhhh....what is wrong with people? Is common sense on the edge of being extinct?

[Admin]

Maybe he expected her/his parents to cover the credit charges, in which her/his parent ignored.

Or he/she has to relieve the stress by shopping.

[vipz]

I currently only own a single CC. I wonder if it makes sense or is even recommended for me to open another credit line or two?

[Admin]

Maintaining two credit accounts can be a good choice to build credit scores.

It shows creditors and loan companies that you can manage two or three credit accounts responsibly. The best bet is to hold unto your existing credit card and never close the account. The length of your credit account history is critical to your credit report.

[ak]

I just have two just in case one is declined for any strange reason. Plus my first one has a credit line of only $750...(Never maxed out anyway).

What are your APR's?

WaMu Visa: 21.99% (one hell of a deal eh?)
Paypal Visa: 0% for 1 year / 12.99% after

[vipz]

Alright then, I'll see if I can grab another CC. Any good recommendations as to which card to apply for?

[Admin]

Carry a Visa and an American Express (Blue for Student if you want basic).
APR for college students can get low as 9.99% (excluding introductory APR) and high as 19.99%. (21.99% is rather high )

ak, did WaMu offer you that APR or is it because of several late payment record?

[vipz]

I remember hearing that Costco membership includes a pretty good Amex Gold card with a lot of benefits... Imma look into it once I've some free time and report back.

[Admin]

You should checkup on that. I believe there is an annual fee for the AMEX Gold Card (that's why you can get Blue with no annual fee). The gold card also has a cashback program, which can be beneficial if you use your credit cards frequently (never recommended).

[vipz]

Damn my Calculus HW...

[JPWRana]

i dont have credit cards

i pay everything at full in cash ... if i can't afford it, i dont buy it!! that's my motto

[Admin]

I heard some people buy everything in cash, including their home and cars . More power to you.

But for the rest of us, it is wise to build credit to get loans for home mortgage and car loans. The more credit buildups, the less APR we can receive.