Truly FREE Credit Reports and Credit Card Reform
With 2010 fast approaching I think we all asked Santa for one thing; A STRONGER ECONOMY and IMPROVED FINANCES. "Credit Crisis" became one of the most used phrases of the past year and it couldn't be truer because EVERYONE has been touched by the economic tsunami.
Your FICO Score is key in a financial institution's decision making process but it's not the only part of the process. Many people think their FICO Score with their credit report and they are NOT the same. A few years back the government decided that the 3 credit reporting agencies had to offer consumers 1 free credit report a year from each agency; EQUIFAX, TRANS UNION and EXPERIAN. I agree with the advice on website that says pull 1 credit report every 4 months (my preference is EQUIFAX, TRANS UNION & EXPERIAN in that order). The governments TOTALLY free no credit card or cancellation before being charged web address is: https://www.annualcreditreport.com. Save this link and pass it along to your friends and family. That commercial with the 3 guys singing is cute but Uncle Sam is not happy about the confusion over free credit reports and sound alike websites.
The good news, the President and his administration have passed credit card reform legislation, some of which is already in effect. The bad news, the credit card companies are scrambling to get a jump on the reforms final phase thats scheduled for August 2010. It used to be those with high credit scores were immune to questionable (SHADY) practices of the banks and financial institutions that issued credit cards, but not anymore. Now EVERYONE needs to read their statements and those change in terms notices that come in the mail. Now people with 700 to 800 and higher credit scores are seeing their limits lowered, cut in half or cards closed all together. Many companies are now lowering limits as the card holder pays the account down (also known as chasing the balance). This means the unlucky card holder can see their credit or FICO Score take a severe hit even if they have always paid on time or never exceeded their limit. If you're tempted to close a credit card that has seen a jump in rate or decrease in limit you may want to think twice, the longer you've had it the more impact it has on your FICO score. Since the crash of 2008 Suze Orman has retooled her long standing advice on managing credit cards. If you have been smacked by your credit card issuer and your credit is still strong Credit Unions (most not all) are a great alternative to the mega banks credit card programs.
Hopefully in 2010 we will see more Americas working full-time and able to take control of their finances. And by take control I mean relying less on credit, buying what we can afford and saving more.
*All of the information in the entry is meant as a guide and not professional advice. Consult a personal financial adviser or your banker for direction tailored to your individual situation.
Your FICO Score is key in a financial institution's decision making process but it's not the only part of the process. Many people think their FICO Score with their credit report and they are NOT the same. A few years back the government decided that the 3 credit reporting agencies had to offer consumers 1 free credit report a year from each agency; EQUIFAX, TRANS UNION and EXPERIAN. I agree with the advice on website that says pull 1 credit report every 4 months (my preference is EQUIFAX, TRANS UNION & EXPERIAN in that order). The governments TOTALLY free no credit card or cancellation before being charged web address is: https://www.annualcreditreport.com. Save this link and pass it along to your friends and family. That commercial with the 3 guys singing is cute but Uncle Sam is not happy about the confusion over free credit reports and sound alike websites.
The good news, the President and his administration have passed credit card reform legislation, some of which is already in effect. The bad news, the credit card companies are scrambling to get a jump on the reforms final phase thats scheduled for August 2010. It used to be those with high credit scores were immune to questionable (SHADY) practices of the banks and financial institutions that issued credit cards, but not anymore. Now EVERYONE needs to read their statements and those change in terms notices that come in the mail. Now people with 700 to 800 and higher credit scores are seeing their limits lowered, cut in half or cards closed all together. Many companies are now lowering limits as the card holder pays the account down (also known as chasing the balance). This means the unlucky card holder can see their credit or FICO Score take a severe hit even if they have always paid on time or never exceeded their limit. If you're tempted to close a credit card that has seen a jump in rate or decrease in limit you may want to think twice, the longer you've had it the more impact it has on your FICO score. Since the crash of 2008 Suze Orman has retooled her long standing advice on managing credit cards. If you have been smacked by your credit card issuer and your credit is still strong Credit Unions (most not all) are a great alternative to the mega banks credit card programs.
Hopefully in 2010 we will see more Americas working full-time and able to take control of their finances. And by take control I mean relying less on credit, buying what we can afford and saving more.
*All of the information in the entry is meant as a guide and not professional advice. Consult a personal financial adviser or your banker for direction tailored to your individual situation.
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