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Use Cash Back Cards Wisely to Protect Credit Scores
Unwise use of cash-back credit cards can destroy your credit scores, so be careful.
The temptation is there - when you get a new card that offers to give you twice the reward if you hurry up and use that card in the first couple of months, you might want to get out there and spend money. After all, there are things you need for your home that you'll probably buy over the next few months, so why not do it now - while you can get 4% cash-back?
The obvious reason is that no matter when you use...
How Credit Card Balances Affect Credit Scores
Getting confused about how to use your credit cards for the best effect on your credit scores?
You know you need credit card accounts - you've been cautioned not to close any accounts, especially your oldest accounts.
You've heard that you shouldn't carry a balance of more than 30% of your available credit in a given month. You know that if you do charge more, you should go on line and make a payment before your monthly credit card statement is generated.
But, do you need some kind of...
Heading out on Vacation Pack your Credit Card Information
Heading out on Vacation? Pack your Credit Card Information Credit cards are the safest and most convenient way to pay for expenses while on vacation, but they can and do get stolen, and thieves often pick heavily populated vacation spots to grab their opportunities. Protect yourself this vacation season by taking some smart precautions before you leave home.
First, pare down your wallet - if you usually carry a whole fist full of credit cards, change your habit. After checking each card so...
Credit Score 101 Do s and Dont s
A credit score is an indicator of how likely you are to default on a loan or credit card. Your credit score is determined by a combination of the following:
1. Payment History. Do you pay your bills on time? Are there recent late payments? How many times were you late? 2. Amounts owed. Are your cards maxed out? Do you have a ton of debt? 3. Length of credit history. How long have you been using credit? Have you established good credit history? 4. New Credit. Are you opening new...
Credit Card Issuers Have Their Own Definition of a Dead Beat and They Might Mean You
Have you never paid your credit card bill late? Have you never gone over your credit limit? Do you pay the entire statement balance each month? Do you use your rewards card - and collect the rewards? Are your credit rating and your FICO scores rated excellent?
Then you, my friend, may be a deadbeat.
That doesn't sound like my definition of a deadbeat, and I'll bet it doesn't fit yours either. But the credit card issuers have a different way of looking at things.
They think you're a deadbeat...
Changes in Credit Card Laws Will Benefit Consumers
You know that credit card issuers have been reacting strongly to the credit crisis. They've been raising interest rates, lowering credit limits, and closing accounts. Some of them are even offering bribes to customers to get them to pay off outstanding balances and close accounts.
These activities may affect more and more consumers as we get closer to February 2010, when the Credit Cardholders Bill of Rights goes into effect. This new law will severely limit some of the practices that have...
Should You Request a Lower Credit Card Interest Rate
? Not unless you can't meet the minimum payment with your current interest rate.
Prior to the credit crisis, consumers were advised to request lower rates as a reward for their good credit history, but with the turmoil going on in the credit card industry right now, asking could backfire.
Any time you ask for a change in terms - be it a rate reduction or a credit line increase - the credit card issuer will pull your credit report. They will also ask for additional information such as your...
Forget Piggybacking Get a Secured Credit Card Instead
Ever notice how many good things can be ruined by a greedy few? Piggybacking to raise your credit score is one of them.
Before unethical credit repair companies started brokering the rental of authorized user slots on credit cards, piggybacking was a good way to help your children, siblings, or even friends establish a good credit rating.
All you had to do was add them as an authorized user, and your good credit rating would, at least in part, transfer to them. That is, assuming you always...
Hidden Credit Scores that Affect Your Life
Before you ever receive that solicitation letter from a credit card company urging you to request their card, they've been checking you out.
Naturally, they check your standard credit scores. They do want new customers who are most likely to pay their bills each month. But they don't stop there. Sometimes even people who are currently paying their bills turn to bankruptcy as a way to stop.
Thus, they'll check your bankruptcy scores. Equifax offers a score called the bankruptcy navigator...
Identity Theft Could Steal Your Credit Rating
If you aren't checking your credit report regularly, you could be wracking up bills and late payments that will plunge your credit scores to the bottom of the barrel.
Identity thieves have two primary methods of using your identity that will quickly destroy your financial reputation: Using your existing credit cards and Opening new credit accounts.
You've read that you shouldn't close unused credit card accounts because the more available and unused credit you have, the better your credit...
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