There have been thousands of articles written about what you should and 
shouldn’t do when it comes to your credit score. Most of them are pretty obvious–there are, however, a lot of weird ways you can hurt your score without you even realizing it. more
Archive for the 'Credit' Category
13
May
12
Ways to Hurt Your Credit Score
24
May
11
How to Wreck Your Credit Score
Being 30 days late on a house payment — even if it is an accident — can knock 100 points off a pristine 780 credit score….
The details provide a warning for anyone whose home is way underwater and is tempted to simply walk away, or considering a “short sale.” …..
…….director of FICO mortgage markets, compiled the data partly to counter incorrect information, such as recommendations that people stop paying their mortgages so they can negotiate with a lender, she says.
FICO says a foreclosure or short sale where the size of the unpaid balance is reported are equally devastating to a good or excellent credit score, reducing it by as much as 150 points, to the high 500s or low 600s. A rarer “deed in lieu of foreclosure” — in which the borrower voluntarily transfers ownership of the home to the lender — may have less impact on an excellent score.
Recovering your original score takes about seven years. That also is how long the information stays on your credit report, where insurers and potential employers can see it.
We’ve all heard the standard tips about preventing identity theft and credit card fraud. But what would a real identity thief tell you if he had the chance? Dan DeFelippi, who was convicted of credit card fraud and ID theft in 2004, says simply this: You can’t be too careful.
Here are five ways to give you and your credit score a happy new year.
and a related article:
Stolen: True Tales of Identity Theft
Learn how these victims worked to restore their good names and credit.
Identity theft happens when you least expect it — and it’s often committed by the people you least suspect. The thief could be someone you trusted implicitly, such as your ex-girlfriend, or someone who has no qualms about living the high life on your tab.
More than 11 million U.S. adults became ID theft victims in 2009, according to a survey by Javelin Strategy & Research. Victims are fighting back, though, by filing police reports and helping to get these criminals arrested, according to the survey.
A credit score is one of the most important numbers in a person’s life. It determines the cost of major purchases like cars and homes. It is a deciding factor for landlords in picking renters and some employers use credit scores to find dependable workers. Unfortunately for borrowers, a favorable credit score is not easy to obtain.
23
Nov
10
ATM Fraud Gets Even More Brazen
Fraud involving debit cards and personal-identification numbers is on the rise as criminals go where the cash is—even targeting banks’ own automated teller machines.
Techniques such as “skimming,” in which criminals capture card information and personal-identification numbers, have existed for years, often on a small scale. Though the dollar losses still are relatively modest, organized gangs now are pulling off more-sophisticated attacks.
……
to avoid the traps or lessen the impact if your information is stolen:
• The simplest protection is to cover up your hand when you enter your PIN so that a camera can’t record what you are typing.
• Use an indoor ATM.
• Use your PIN sparingly at retailers.
Now let’s assume the credit card company says his minimum payments are $76.50/month and Joe only pays the minimums each month. How long will it take for him to clear his debt?
The answer is over 300 months, or 25 years. The kicker is that he will end up paying almost $20,000 in interest costs, on a credit balance of $5,100. That’s a 3.6 times what his original balance was, and Joe will be 25 years older before he’s finally rid of his $5,100 credit card debt.
Suddenly, $76.50 seems like a lot of money to be paying each month, considering he’ll be carrying it for the next 25 years. The final cost of his debt would be over $23,500.
Credit card analysts say consumers can expect to see more of these offers as delinquency rates — already down 26% 
from a year ago, according to the most recent data from the Federal Reserve, continue to fall, and card issuers try to boost profits by targeting prime borrowers. ( webmaster note: as always, its not what interest you pay, its how much you earn with the credit you use … )
Do one of these things and Wham! you hurt yourself; we tell you how badly
As with any loan, applying for a credit card involves preparation, especially if your credit history is less than sparkling. But a few activities — some of them not obvious — can hurt your chances of getting approved for that new plastic.
Most credit card penalties will be limited to $25, and fees for customers who don’t use their cards will be eliminated under rules released Tuesday by the Federal Reserve.
The Fed also ordered a review of all credit card interest rate hikes imposed since January 2009, including most of the
record increases that came in the wake of a nationwide cutback on credit.
The rules, which implement a final set of changes that Congress passed in May 2009, take effect Aug. 22. more
