Suggested Strategy for Monitoring Credit Reports

We’ve discussed previously the http://www.annualcreditreport.com website. This is the one legitimately-free website which provides a free peek at your credit record from all of the major credit bureaus. But when most people learn of this site, they take the wrong approach.

Under federal regulations, each of the three bureaus is required to give you one free report each year. Therefore, when most people find out about this site, their first inclination is to have each of the services send them a report. A better idea is to request a report from one of them. Then wait three or four months and get a report from the second, and wait another three or four months, and get a report from the fourth.

Although not always the case, usually the three bureaus will have the same information on you. So by staggering the reports a few months apart, at no cost at all, you’re able to monitor your credit record throughout the year. This way, it makes it more likely that you’ll catch a mistake earlier. There might still be the occasional mistake that slips through because only one bureau reports on it. But this at least improves your odds.

FreeCreditReport.com Lyrics Make No Sense

You know the words–Sing along!
“Well I married my dream girl,
I married my dream girl
but she didn’t tell me her credit was bad.
So now instead of living in a pleasant suburb,
we’re living in the basement
at her mom and dad’s.
No we can’t get a loan for a respectable home,
just because my girl defaulted
on some old credit card.
If we’d gone to free credit report dot com
I’d be a happy bachelor with a dog and a yard.”

A few problems with this ad. First, this is the same guy who, in other commercials, says he can’t get a decent job or car because of his own poor credit. So what’s with blaming it on the girl? Furthermore, the message of this song is plain: He’d be a bachelor if he’d checked his girl’s credit. Is he suggesting pre-marital credit checks?

A catchy jingle, but it covers up the real lesson: Keep your nose in your own credit history and out of your friend’s!

Coming Soon: Design-a-Credit-Card

Credit cards I’ve seen that I liked: Marvel Comics MasterCard, NASCAR Visa Card, Star Trek MasterCards, and in fact, cards for just about any hobby or fan obsession you can imagine. Since people love having a card that reflects their own passions, why not just cut to the chase and let consumers design their own credit card?

Believe it or not, that’s coming soon. Capital One is the bank giving the idea a try. Any Capital One card holder now can visit the company website and upload their own images. It could be photos of family, a favorite pet, friends, or any other favorite photo, and have it printed on their credit card, at no additional cost.

This concept is so in-tune with the current “user generated content” atmosphere in the world that the only surprise is that more banks aren’t allowing this. And let’s face it, this will generate pride among consumers about holding YOUR BANK’S card, more than anything else.

Avoiding Credit Repair Scams

Contrary to what some people think, there are legitimate companies out there with the goal of helping you repair your credit deficiencies, and yes there are also a number of credit-repair scams. So how do you tell the difference? A few tips should suffice.

First, a legitimate credit counseling service is normally non-profit. It will also not guarantee to correct all credit problems and raise your credit score.

Instead, what they do is offer advice on managing your money, paying your bills on time, and decreasing your debt service. And they might offer legitimate strategies for raising your credit score over time (such as staying current on payments and monitoring your credit report to check for inaccuracies).

A scam will make incredible promises to get rid of all negative report entries. All for a handsome fee, of course. Don’t fall for it. Nothing these services promise is anything you can’t do for yourself. And if you’re ever lost for how to do it, the nonprofit services will serve fine, without the scam fees.

Before Applying for That Payday Loan…

This is not going to be one of those blog posts that tells you all the reasons you should not get a payday loan. By now, I’m sure you know the negatives associated with them and have decided you still want to pursue it. If so, just take the following advice:

1) Learn to tell a good rate from a bad one. Payday loans always come attached to higher interest rates. But this doesn’t mean they’re all the same. Some are still lower than others. If this is the first payday loan for which you’ve applied, you can almost certainly find a first-timer’s discount–as long as you’re not quick to accept the first offer you find. Do your best to avoid a 30% or higher interest rate. Instead, keep an eye out for something around 15%.

2) Know your limits. If you know your salary, then you should know how much to borrow. After all, the idea is to give you quick cash to last until the next time you’re paid. This also means that immediately on your next payday, you should arrange to pay off this loan quickly.

Avoiding Debt Consolidation

Debt consolidation can be a good option for those who find themselves overwhelmed with too much debt. It’s not the only way, though. Here are a few other ways of getting some quick money for your debts.

1. You could consider getting a home equity loan. This will give him a way of borrowing more money against their home’s equity. In many ways, it’s easy money, but remember that this loan might easily take 15 or more years to pay it off. However, in many cases, you can deduct the interest rate from your taxes.

2. You can also refinance your vehicle to get some quick cash for paying off debts. This, too, however, can cause you pay off sums of money over a longer course of time.

3. And third, you could get rid of all of your debts through bankruptcy. This is never a preferred choice, and should always be saved for the last possible action, when nothing else will help, since it will damage your credit report for years to come.

Benefits of the American Express Blue Card

If you’re searching for a credit card with an outstanding rewards program, it’s hard to beat the American Express Blue Card. This card will allow you to earn a point for each dollar spent. There’s no limit to how many points you can earn, and they do not expire.

There are 21 airline partners under the rewards program. This allows you to transfer two pints for one air mile. There are also 15 hotel partners that let you trade points for “frequent guest points” or even receive hotel certificates.

And finally, there are many shopping, cruise and entertainment rewards. For instance, you can buy at http://www.shopamex.com, which is a shopping comparison site specifically for AMEX cardholders. You may also receive a hundred dollar credit on your statement when you spend $3,000 on certain vacations using your Amex card, as long as the vacation participates with Amex Travel Services.

There are many more goodies in the rewards program, but you get the picture.