Credit Or Debit: The Differences

In the past when you wanted to make a purchase, all you had to do was write a check or perhaps use a credit card that was backed by a bank or some other lending institution. Using credit cards to make regular purchases can result in a lot of overspending and then you will have a huge debt to pay down. Interest is charged every month on the balance of your credit card purchases and then it is combined to make the total balance owed. A debit card takes the money directly out of your bank account and there is no interest charged on this transaction. The debit card is a great help to you in keeping track of what you have spent. [Read more]

Some Consequences Of Poor Credit Card Use

More people than ever before are regularly using credit cards. Most actually have more than one card that they use to make daily purchases. Society is overwhelmingly consumer-driven. This has necessitated at least some type of credit card use to make certain purchases or to buy from online outlets. What makes this trend troubling is that with increased credit card use there is consequent epidemic of debt. This is largely due to the widespread ignorance among many cardholders of proper use and management of cards. [Read more]

Getting a Free Credit Report

There are some pretty funny commercials on television for free credit reports. You’ll also run across offers for free credit reports in newspapers and magazines as well as online. People will see these and think they sound pretty good, and decide to go for their free credit report from one of these places. They don’t stop to think that someone had to pay for that glossy print ad in the magazine, take out that full page ad in the newspaper, or have that cute commercial produced. Why would someone do this? To make money! They call it advertising, and it is! However, sometimes there is a little more involved. [Read more]

Credit Score Ratings

People are more familiar with the term “credit score ratings” than they once were because of the various commercials that mention it, but they are not really secure in the knowledge of exactly what these credit score ratings are, or just how having a high or a low rating can affect them.

Credit score ratings come from the three credit reporting agencies, Experian, Equifax, and Trans Union, the same agencies where you get your credit report. These agencies have a special type of software that takes the information from your credit report and compiles a score from it. This is called a FICO score. [Read more]

FICO 08

With the changes in the market place and the shifting attitude of consumers towards plastic over cash, Fair Isaac has deemed it necessary to make a few changes. Fair Isaac or FICO is responsible for doling out consumer credit scores when can pretty much make or break a consumer searching for a mortgage, a loan, and even employment.

FICO’s new model is set to debut in a few months but many consumers and lenders are getting ready for the change now. FICO will keep the scale in which the credit scores appear the same. Which means consumers can still expect to see a number ranging from 350 to 800 which the higher the number reflecting the better score. [Read more]

Is It Time For Credit Counseling?

There comes a time when we all need to swallow our pride and seek help. While such an action might not be that big of deal, say you need help moving a large couch; others are a little more serious. Credit problems are one of those issues that require help which can be of great embarrassment but of great aid as well.

You may think that recognizing a credit problem is easy and that you are not yet at that point. With some financial wizardry you are able to pay the bills, though some are late, avoid foreclosure, admittedly by the skin of your teeth, and afford groceries all while paying off one credit card with another credit card. This is by no means a situation that is under control. Take a time and look at your financial situation honestly. Are you sure you do not have a credit problem? [Read more]

Federal Credit Bureau?

So many people have the mistaken idea that the major credit bureaus in the United States are under the total control of the Federal government. This belief is so widespread that many people think that there is a Federal credit bureau! The companies that send Americans a free credit report once a year are not owned by the government. They get no kind of government funding. The only thing that the government does is make laws that state some things that the Federal credit bureaus can and can not do. [Read more]

Credit Reporting Agencies – The Basics

There are three credit reporting agencies that have the authority to gather information about your credit history, and to share this information with other businesses that have a legitimate reason for wanting to see it.

These three agencies are –

• Equifax
• Experian
• Trans Union

[Read more]

Credit Repair Basics - Some Useful Tips

Everyone knows that you need a good credit score if they want to get ahead in life now days. It hasn’t always been this way. At one time, the only places that were really interested in your credit score were the credit card companies, banks, and loan companies. Now, utility companies, employers and landlords want to get in on the act. All this means that a good credit score is even more vital than it was years go. [Read more]

Divorce And Credit

A divorce is an ugly thing to go through and causes severe emotional distress. Along with the emotional impact caused by the dissolution of marriage comes a significant financial burden placed on both spouses. Now is the time to think about your finances even if you heart might be saying something different. You need to prepare to live your life outside of marriage and a large part of that are the financial responsibilities you accrued while married. If not handled carefully then divorce can very easily ruin your credit which is a devastating blow to any financial prosperity you had hoped to achieve. [Read more]

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