Almost 50 million people subscribed to some form of identity-theft protection in 2010, according to Consumer Reports Money Adviser. Those services, which cost about $120 to $300 a year, promise to protect your ID by monitoring your credit reports 24/7, scouring black-market chat rooms for your personal information, removing your name from marketing lists and filing fraud alerts.
In the past, Consumer Reports Money Adviser found that these protection plans provide questionable value. The editors recently dug into the latest products sold by more than two dozen banks, credit-reporting bureaus and independent companies. Heres what they found:
>> Marketers use fear as a sales tool. Some ID protectors scare up business with inflated claims about crime. But identity fraud is down because financial institutions are doing a better job of preventing it. And consumers have become more eagle-eyed about their own accounts without the need for a paid subscription service.
Your own local car credit finance facilities specify in helping everyday people to acquire an automobile finance.
NEW YORK — Credit Karma, a free credit education website, this week added credit monitoring to the list of services it offers to its registered users.
The deal: CreditKarma.com has offered free credit scores for a few years, and has now added free credit monitoring.
The service tracks credit reports provided by credit reporting agency TransUnion. That means if TransUnion gets a request for information regarding a new credit application or adds a negative item such as a late payment to a credit report, Credit Karma will send an email letting the individual know, said founder Kenneth Lin.
The service is available to the sites 4 million existing users, in addition to new users as they sign up. Everyone must opt-in by providing details such as their Social Security number and birth date to enable the service to track credit history. Lin said the site does not share personal information. It uses several well-known security measures to protect users data.
The benefit: Everyone is entitled to one free credit report per year from TransUnion, along with one from both of its two major competitors, Equifax and Experian, each year through www.annual creditreport.com .
What Credit Karma is offering is a service that many banks and others typically charge around $12.95 a month, marketed as identity theft protection — a program that provides a heads up when there is activity related to your report.
Although Credit Karmas service does not include information from the other two agencies, which many ID theft monitors do, it still provides a good way to keep tabs on whats happening with your credit. It can give you a heads up if your identity is stolen or if someone is applying for cards or accounts in your name.
The downside: Credit Karma provides credit scores produced by TransUnion and VantageScore, but does not offer FICO scores, which are the most widely used among lenders. The scores it provides can give you a good idea of where your credit rating stands, but may not match up with the scores your bank uses if you apply for a loan or credit card.
The fine print: Credit Karma earns its revenue through advertising that appears on the site. Lin said the ads may be targeted to users based on the information they provide.
For instance, users with very high credit scores may see ads for cash-back credit cards that are marketed to consumers with strong credit histories.
Nations Car Credit will supply swift, simplistic car credit to obtain a used vehicle loan.
The underwriting agency said that Compass LawShield ID Theft Gold had been designed to provide unlimited credit reports and email warnings showing any significant activity on a credit history.
In addition, the product provides that should a customer fall victim to ID theft, the cover would provide a qualified LawShield legal representative to control the case.
According to research by Compass, ID fraud cases have increased by 244% in the last four years with pound;1.9bn lost to ID fraud in 2010.
Andrew Briant, managing director of Compass Underwriting, commented: Sadly, the vast majority of people dont take the risk of ID fraud seriously. A staggering one in three can expect to be a subject of identity theft in their lifetimes.
Its not surprising when you consider how easy many of us make it for the fraudsters – for instance 29% of us use the same pin number for all their bank cards 27% keep a record of their PIN numbers in a mobile phone, PC, wallet or purse.
He noted that the product offered cover for up to pound;25,000 in legal fees for ID fraud along with pound;5,000 for number plate cloning and concluded: Most importantly, claimants will have direct access to a dedicated LawShield legal advisor throughout the process to defend proceedings brought against them and to work with Experian in restoring their credit ratings.
Nations Car Credit gives swift, pain-free car credit for getting a pre-owned automotive financial loan.
Lenders have a new tool for examining your financial affairs.
A company called CoreLogic has introduced Score, a credit file which accesses information never before used on credit reports.
CoreLogic gathers information, such as late rental payments that have gone to collection, applications for payday loans, property tax liens and late neighborhood association dues. Even payments to the electric company are included.
Select the best car loan loan providers and car dealers nationally with the help of Nations Car Credit.
Credit Score Zealots Pursue Fool’s Errand to Get Over 800 January 17, 2012, 9:55 AM EST
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By Alexis Leondis
(Updates with comment from Credit Karma CEO about credit scores in first paragraph under ‘Credit Monitoring’ subheadline.)
Jan. 13 (Bloomberg) — Jeff Rose, a 33-year-old financial planner, is trying to improve his credit score even though it’s 780, which is 69 points above the median score.
Rose, who lives in Carbondale, Illinois, said he opened up a second credit card last year to establish another line of credit and help boost his score. He said he doesn’t know exactly what actions will help or hurt his score, so wants to get it above 800 to ensure he gets the best rate if he refinances his mortgage.
Three years after the credit crisis when lenders abruptly closed accounts and cut limits, consumers, including those who have excellent scores, have become more focused on getting the number above 800. Those efforts may be futile because once consumers have FICO credit scores of 760, a higher one doesn’t mean they’ll get better interest rates on mortgages and credit cards or more elite card offers, said Greg McBride, senior financial analyst at Bankrate.com, a unit of Bankrate Inc.
“There’s very little incremental benefit to getting a score above that,” said McBride, who’s based in North Palm Beach, Florida. Once consumers are above 760, “it’s a lot more difficult to move the score up in any noticeable way, and little reward.”
Mayank Maheshwari, 26, a business analyst who lives in Jersey City, New Jersey, said his FICO score is 780 and he’s still trying to get it higher. He has a student loan that he hasn’t paid off in full, although he can afford to, because he thinks maintaining monthly payments on time will help increase his score.
FICO Scores
The most common scores are based on models established by Minneapolis-based FICO, formerly known as Fair Isaac Corp., which are used to gauge a consumer’s financial health. The numbers, which range from 300 to 850, affect the ability to get mortgages and credit cards, as well as the rates borrowers pay for them. The score is used by 90 of the 100 largest U.S. financial institutions, according to FICO’s website. There are other scores used by lenders, such as VantageScore, which has a 501 to 990 range for measuring credit risk.
About 18 percent of 200 million consumers in the U.S. with credit scores, or 36 million Americans, had credit scores of 800 or higher in 2011, according to estimates from FICO. More than 75 million had scores of at least 750 while the median credit score last year was about 711, FICO said.
‘Bragging Rights’
The percentage of consumers with scores of 750 or more has fluctuated only slightly during the past five years, said Barry Paperno, consumer affairs manager for myFICO.com. That’s because consumers with high credit scores tended to maintain their good behaviors during the credit crisis, such as paying down debt and cutting expenses, Paperno said.
The score that’s considered the cutoff to qualify for the best rates, however, has changed. Before the recession, it was generally 720 instead of at least 750, said Ben Woolsey, director of marketing and consumer research at CreditCards.com, a website for cardholders based in Austin, Texas.
FICO credit scores rank borrowers according to the likelihood of default and there’s almost no difference in the probability of default when a consumer has a 780 or an 820, said Ken Lin, chief executive officer and founder of San Francisco- based Credit Karma. That means lenders won’t price a consumer differently and extend different rates, since the risk is virtually the same, Lin said.
“If you’re at 780 plus, it’s all bragging rights from there,” Lin said.
Credit Decisions
The average rate for a 30-year fixed mortgage was 3.89 percent in the week ended Jan. 12, according to Freddie Mac. The average interest rate charged on credit-card balances was 12.8 percent in November, according to Federal Reserve figures released Jan. 9.
A FICO score of 760 or higher on a $300,000 30-year fixed mortgage may qualify a borrower for a 3.62 rate or $1,368 monthly payment, compared with a 3.85 percent rate and monthly payment of $1,406 for those with scores from 700 to 759, according to myFICO.com. Having a credit score of at least 720 means a consumer may get a 3.89 rate on a 36-month auto loan of $25,000 and pay $737 a month, compared with 5.31 percent and a payment of $753 for those with scores from 690 to 719.
The decision to offer a mortgage and the size and rate on that loan is based on many factors about a borrower’s financial history, Tom Kelly, a spokesman for JPMorgan Chase & Co., the largest U.S. bank by assets, said in an e-mail. JPMorgan’s risk management approach is proprietary, and criteria that go into the decisions on credit cards may be based on income and credit history with other Chase products, said Paul Hartwick, a spokesman for the New York-based bank, also in an e-mail.
Elite Offers
While the type of mortgage product and region may impact rates, generally FICO scores above 720 receive the lowest rates, Terry Francisco, a spokesman for Bank of America Corp. in Charlotte, North Carolina, said in an e-mail. A FICO score is one of several considerations the bank uses in determining credit-card rates, Betty Riess, a spokeswoman for Bank of America, which is the second-biggest U.S. lender, said in an e- mail.
Elite card offers are more likely to be based on income and assets than solely on high credit scores, Bankrate’s McBride said. When making credit decisions, American Express Co. looks at a cardmember’s credit profile, which includes total debt level, reported income, credit bureau score, credit report and payment history, Melanie Backs, a spokeswoman for the New York- based firm, the biggest credit-card issuer by purchases, said in an e-mail.
Hiccups Happen
Revolving debt, which includes credit cards, climbed in November by $5.6 billion, the biggest advance since March 2008, according to Federal Reserve data.
“There are a lot of companies out there competing for credit,” said Linda Sherry, director of national priorities for Consumer Action in Washington. “Once you’re there, your dance card is going to be full,” she said, referring to a score of about 770.
The benefit for consumers who have good scores and are still trying to raise them is that they’ll have more of a cushion in case they do something that negatively affects their scores, said Woolsey of CreditCards.com. Borrowers should also keep in mind that each lender may vary on what they use as a cutoff for qualifying for the best rates, although anything above 750 generally should be sufficient, he said.
“Some hiccups could happen and I get whacked and I’m a 720, so you shouldn’t be too comfortable because you never know what might happen,” said Rose, the CEO and founder of Alliance Wealth Management.
Timely Payments
Consumers with scores from 750 to 800 who want higher numbers should continue what they’re doing, just for a longer period of time, said FICO’s Paperno. That means continuing to pay bills on time, keeping a low amount of debt relative to available credit and not opening accounts unless needed, he said.
Making a payment 30 or more days after the due date could cut a score by as much as 110 points while applying for a new card may result in a five point drop, said Liz Weston, author of “Your Credit Score.”
Borrowers should avoid using more than 30 percent of their available credit, even if they pay their balances in full, because the balance owed may be reported to the credit bureaus before the payment is due, according to McBride.
Credit Monitoring
Credit scores are usually a lagging economic indicator, since delayed payments on mortgages and subsequent foreclosures may take time to show up on reports, said Lin of Credit Karma. The average score will rise this year as a result of the economy recovering, Lin said.
Some things consumers do to try to improve their scores, such as paying for a credit score monitoring service, aren’t worth it, said Ed Mierzwinski, consumer program director at the U.S. Public Interest Research Group in Washington. Monitoring doesn’t prevent errors or identity theft and consumers may not understand the cost of the service, Mierzwinski said.
Instead, borrowers may want to just stagger looking at each one of the free credit reports they’re entitled to annually from the three major credit bureaus every four months, he said.
“Credit is there to save you money,” said Lin, referring to how a high credit score can help consumers qualify for lower interest rates. “You shouldn’t be using money to build credit.”
–With assistance from Meera Louis in Washington. Editors: Rick Levinson, Dan Hertzberg.
To contact the reporter on this story: Alexis Leondis in New York aleondis@bloomberg.net
To contact the editor responsible for this story: Rick Levinson at rlevinson2@bloomberg.net.
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Nations Car Credit even incorporates a bankruptcy car loan method together with uncomplicated acceptance.
NEW YORK (AP) — Don’t choose a prepaid card just because it’s from Suze Orman.
The personal finance guru this week introduced a prepaid card that she’s touting as a “smarter way to stay debt free.” Orman says that her Approved card costs just $3 a month “if you use it how I tell you to.”
But as with most prepaid cards, the amount cardholders ultimately fork over will vary significantly depending on their spending habits. Other features of the card are worth a closer look as well.
In general, prepaid cards are used as a stand-in for debit cards by individuals who don’t have checking accounts. The cards are advertised as a way to control spending or dodge steep bank fees. But the fees on prepaid cards can rack up quickly as well.
Orman isn’t the first celebrity to stake a claim in the rapidly growing prepaid market. Hip-hop mogul Russell Simmons offers the Rush Card, which consumer advocates have criticized for its $10 monthly fee, among a host of other fees. Simmons also recently introduced a prepaid card in partnership with Yankee shortstop Alex Rodriguez.
The celebrity card that generated the sharpest criticism to date was the Kardashian Kard, which the reality TV sisters quickly cut ties with after its high fees were slammed by consumer groups. The card cost $59.95 just to buy and use for six months, or $99.95 for 12 months. That didn’t include any money loaded onto the card.
Orman’s monthly fee is clearly a better deal than the Kardashian card. Yet it’s not necessarily “the smart choice for you!” as she states on the card’s website.
Here’s a closer look at the terms:
FEES
The upfront cost of the Approved card is $3, which is line with some of the cheapest prepaid cards on the market. But after the first month, the card charges a $3 monthly fee.
By contrast, the American Express prepaid card doesn’t carry a monthly fee. Other prepaid cards, including the one by industry heavyweight Green Dot, give users ways to avoid the monthly fee, either by setting up direct deposit or making a certain number of transactions each month.
The ATM fees are another matter. The Approved card partners with the Allpoint ATM network, which has 35,000 machines nationwide in drug stores such as CVS, Walgreens and other retail locations. But customers using an Allpoint machine are still charged $2 per withdrawal, unless they set up direct deposit or a recurring bank transfer of $20 or more. Each transfer or deposit waives ATM fees for 30 days.
If cardholders use an out-of-network ATM, they’re charged $2 per withdrawal plus the ATM operator’s fee. In most cases, that would add up to $4 or $5 per withdrawal.
Then there are the more ancillary fees to consider. For example, cardholders can speak with a customer service representative once a month. But after that, each call costs $2. It’s free to pay bills electronically. Those who need to pay rent or another bill by paper check have to pay $1 per payment. A full list of fees can be found at http://theapprovedcard.com/fees .
Keep in mind that it also costs $3.50 to reload cash onto the card at a retail location. It’s free to add money through direct deposit or a bank transfer.
FREE PERKS
Even if you incur several fees, you may feel that card’s free perks make up for the costs.
For example, one of the unique features of the Approved card is that it gives users unlimited access to their TransUnion credit reports and scores for one year. But it’s worth noting that the score cardholders receive is a VantageScore, and not the widely used FICO scores.
Free reports and scores are also available from other sources, without having to buy a prepaid card, says John Ulzheimer, president of consumer education for SmartCredit.com.
The credit monitoring website CreditKarma.com, for example, offers users free unlimited reports and VantageScores from TransUnion. Users don’t have to enter any credit card information either. The site makes money through the credit card ads users are shown when they log on.
If you don’t feel you need ongoing access to your credit report, don’t forget that everyone is entitled to a free credit report from each of the three national credit bureaus once a year at www.AnnualCreditReport.com .
CREDIT IMPACT
Those who’ve read about the Approved card may be confused about its impact on their credit profile.
Orman says that the Approved card is the first prepaid card to share information with TransUnion. But for now, the cards do not have any impact on credit reports.
TransUnion is simply analyzing the anonymous transaction data to see whether it can eventually help supplement the thin credit profiles of those who have limited access to credit. But there’s no guarantee of how the experiment will play out, and historically, debit transactions haven’t been considered predictive of a consumer’s creditworthiness.
And there are skeptics over whether prepaid cards will ever be included in credit reports.
“It would be completely inappropriate,” Ulzheimer said. “It’s like putting a checking account or brokerage account on your credit report. It has nothing to do with credit. It’s a stored value card.”
Finally, a common marketing tactic in the prepaid industry is to tout that a credit check isn’t required; Orman’s card riffs off this idea with the “Approved” moniker. But the reason a credit check isn’t required for prepaid cards is that no credit is being extended; the cards only come loaded with however much money individuals fork over.
That’s why a quick “approval” is guaranteed.
Candice Choi can be reached on www.twitter.com/candicechoi .
Getting out of debt is one of the more popular New Years resolutions. And frankly, rebuilding credit should be at the top of the list in 2012.
Too many credit scores took fairly big hits during the recession, as people paid bills late or not at all.
Its been rough, said Todd Albery, CEO of Detroit-based Quizzle, a credit information website www.quizzle.com thats part of the Quicken Loans family. He noted that during the past two years, Quizzle has seen credit scores dip by 20-30 points for many consumers.
Quizzle, which provides free credit reports and free credit scores every six months, says the national average score is 657 based on its system.
Ideally, consumers get better interest rates at 700 or higher. The 600 range or lower is a danger zone to qualify for loans at all.
Many people have no idea what it takes to rebuild a credit score and get on a better financial footing.
One thing is certain: Some old ways to get out of debt no longer apply.
In the past, people who got into a financial pinch often could tap into the nest egg at home and take out a home equity line of credit to pay down high-rate credit card bills by using a lower-rate mortgage.
It was just one more lever to pull if people were having problems, Albery said.
But with home values dropping, many can no longer borrow against the house.
What do you do? Here are a dozen other ways to deal with credit in 2012.
» Get credit score, then reduce your debt: When you try to lose weight, one of the first things you need to do is hop on the scale and get a real number.
Painful as it is, you must get the real score when youre tackling your debt, too.
So were starting our dozen ideas for 2012 by suggesting that its time to know what you owe.
» No. 1: Get a free credit report to see a listing of credit card debt, loans and liens.
Receive a free report every 12 months from Equifax, Experian and TransUnion at www.annualcreditreport.com .
You also can call (877) 322-8228.
You have to pay for a credit score via www.annualcreditreport.com.
But you can get a free score not a FICO score but another type of score that is worthwhile at a Detroit-based outfit called Quizzle, which is part of the Quicken Loans family. See www.quizzle.com.
Another spot for free scores: CreditKarma.com. Again, you dont get a FICO score. But this can work, too.
» No. 3: Give up the notion that if you pay your bills each month you will have a good credit score.
It is important to make at least the minimum payments on your credit cards each month and on time.
But John Ulzheimer, president of consumer education at SmartCredit.com in Atlanta, notes that paying on time only amounts to 35 percent of a credit score. Other factors apply and 30 percent of your score is based on how much you owe.
» No. 4: Pay down your credit card debt.
Ulzheimer said one strategy could be to tackle debt on department store or specialty store cards, which tend to have credit card rates that exceed 20 percent.
» No. 5: Yes, throw extra money at credit card debt first.
Always prioritize your plastic over your metal or your brick, Ulzheimer said. Your mortgage rate is far less than most credit card rates; your car loan rate is often lower than credit card rates.
» No. 6: Watch how much you borrow on individual cards.
If youre trying to get out of debt, use cash.
You will find that you will pay more attention to your total sale if you are using cash, said Andrew K. Johnson, a spokesman for GreenPath Debt Solutions in Farmington Hills.
For a stronger credit score, use a small percentage of the available credit on a card.
Its not a lot to borrow $300 on a credit card. But you dont want to borrow $300 on a credit card that has a limit of $400 especially if you dont have other credit.
This is true even if you pay off the balance each month.
» No. 7: Do not start the year by just closing credit cards.
Todd Albery, CEO of Quizzle, said consumers could unknowingly hurt their scores by closing a card that has a large credit line or closing a card held for years.
Say you owe $10,000 on three cards that together have a $30,000 line of credit. Youre using 33 percent of the total available credit not bad. But ideally, Albery said, youd want to use less than 30 percent of your available credit line.
What if you close one of those cards? You would owe $10,000 with a $20,000 line of credit. Bingo: Youre at a 50 percent utilization rate and your score drops.
» No. 8: Be extra, extra careful about offers you get in the mail that promise ways to be debt-free in two or three years.
Gerri Detweiler, a personal finance expert for Credit.com, said one concern is whether credit card companies will sue you. That could happen if a debt-settlement company waits too long to pay off large credit card balances on major cards.
One consumer noted that a firm she talked to wanted to try to settle smaller debts first, but after talking to other experts she realized that she would be vulnerable to legal action if a bigger issuer was left hanging on the hook.
Some companies claim that theyre part of a reform effort instigated by the US government. No such thing, Detweiler said.
» No. 9: See if you can settle debt with collection agencies. But do not agree to pay more than you are able.
Go to www.ftc.gov for a video that explains consumer rights relating to debt collection.
» No. 10: Be aware of your debt-to-income ratio.
How much of your monthly gross income must be used to pay debt each month? That number should be less than 36 percent to have the best chance for qualifying for a mortgage, Albery said.
» No. 11: Be cautious about a 0 percent balance transfer offer.
The strategy can work for consumers who pay attention to how much debt they have and when introductory offers end.
But will you pay down debt aggressively while the rate is 0 percent? Or will you just have more debt when a much-higher rate kicks in in six months or 11 months?
You could pay $5 or 3 percent of the amount of each transfer, whichever is greater, too.
FICO notes that you dont want to just move around credit and consolidate on one card.
In fact, owing the same amount but having fewer open accounts may lower your score, according to MyFico.com.
» No. 12: Go a week without spending money. See what you can live without for seven days.
If you see you can easily save $50 in one week, why not set that as a goal and use that money to pay off existing debt? Or better yet, set aside some of that money for emergency savings and use some to pay off debt?
Nations Car Credit will offer express, pain-free car credit for that pre-owned automobile financial loan.
NEW YORK (AP) – Dont choose a prepaid card just because its from Suze Orman.
The personal finance guru this week introduced a prepaid card that shes touting as a smarter way to stay debt free. Orman says that her Approved card costs just $3 a month if you use it how I tell you to.
But as with most prepaid cards, the amount cardholders ultimately fork over will vary significantly depending on their spending habits. Other features of the card are worth a closer look as well.
In general, prepaid cards are used as a stand-in for debit cards by individuals who dont have checking accounts. The cards are advertised as a way to control spending or dodge steep bank fees. But the fees on prepaid cards can rack up quickly as well.
Orman isnt the first celebrity to stake a claim in the rapidly growing prepaid market. Hip-hop mogul Russell Simmons offers the Rush Card, which consumer advocates have criticized for its $10 monthly fee, among a host of other fees. Simmons also recently introduced a prepaid card in partnership with Yankee shortstop Alex Rodriguez.
The celebrity card that generated the sharpest criticism to date was the Kardashian Kard, which the reality TV sisters quickly cut ties with after its high fees were slammed by consumer groups. The card cost $59.95 just to buy and use for six months, or $99.95 for 12 months. That didnt include any money loaded onto the card.
Ormans monthly fee is clearly a better deal than the Kardashian card. Yet its not necessarily the smart choice for you! as she states on the cards website.
Heres a closer look at the terms:
FEES
The upfront cost of the Approved card is $3, which is line with some of the cheapest prepaid cards on the market. But after the first month, the card charges a $3 monthly fee.
By contrast, the American Express prepaid card doesnt carry a monthly fee. Other prepaid cards, including the one by industry heavyweight Green Dot, give users ways to avoid the monthly fee, either by setting up direct deposit or making a certain number of transactions each month.
The ATM fees are another matter. The Approved card partners with the Allpoint ATM network, which has 35,000 machines nationwide in drug stores such as CVS, Walgreens and other retail locations. But customers using an Allpoint machine are still charged $2 per withdrawal, unless they set up direct deposit or a recurring bank transfer of $20 or more. Each transfer or deposit waives ATM fees for 30 days.
If cardholders use an out-of-network ATM, theyre charged $2 per withdrawal plus the ATM operators fee. In most cases, that would add up to $4 or $5 per withdrawal.
Then there are the more ancillary fees to consider. For example, cardholders can speak with a customer service representative once a month. But after that, each call costs $2. Its free to pay bills electronically. Those who need to pay rent or another bill by paper check have to pay $1 per payment. A full list of fees can be found at http://theapprovedcard.com/fees .
Keep in mind that it also costs $3.50 to reload cash onto the card at a retail location. Its free to add money through direct deposit or a bank transfer.
FREE PERKS
Even if you incur several fees, you may feel that cards free perks make up for the costs. For example, one of the unique features of the Approved card is that it gives users unlimited access to their TransUnion credit reports and scores for one year. But its worth noting that the score cardholders receive is a VantageScore, and not the widely used FICO scores.
Free reports and scores are also available from other sources, without having to buy a prepaid card, says John Ulzheimer, president of consumer education for SmartCredit.com.
The credit monitoring website CreditKarma.com, for example, offers users free unlimited reports and VantageScores from TransUnion. Users dont have to enter any credit card information either. The site makes money through the credit card ads users are shown when they log on.
If you dont feel you need ongoing access to your credit report, dont forget that everyone is entitled to a free credit report from each of the three national credit bureaus once a year at www.AnnualCreditReport.com .
CREDIT IMPACT
Those whove read about the Approved card may be confused about its impact on their credit profile.
Orman says that the Approved card is the first prepaid card to share information with TransUnion. But for now, the cards do not have any impact on credit reports.
TransUnion is simply analyzing the anonymous transaction data to see whether it can eventually help supplement the thin credit profiles of those who have limited access to credit. But theres no guarantee of how the experiment will play out, and historically, debit transactions havent been considered predictive of a consumers creditworthiness.
And there are skeptics over whether prepaid cards will ever be included in credit reports.
It would be completely inappropriate, Ulzheimer said. Its like putting a checking
Local car credit financial loan companies focus on supporting some individuals to get a vehicle loan.
If you think your credit score doesnt matter too much because youre not planning on getting a mortgage anytime soon, think again. Credit scores affect many aspects of our lives — more than you may think. Thats why its important to keep your score as high as possible.
Paying bills on time and staying well below your credit limits are sure-fire ways to build and maintain good credit. But there are some lesser-known strategies to boost your score as well.
Fix clerical errors: Check your credit reports and correct errors. For example, it can make a big difference to your score if your credit limit for a card is understated. Imagine that you owe $5,000 and your limit is $15,000. That means you owe 33% of your limit. If your limit is incorrectly listed as $8,000, though, it will look like youve borrowed 63% of your limit.
Get credit where its due: When you fix errors or take actions that should boost your score, make sure that all three main credit-reporting agencies know about it. By law, you can get a free copy of your credit report from each of them once a year — do so, in order to spot errors and find other score-boosting opportunities.
Ask nicely for a favor: One gambit few people think of is simply asking for what you want. In order to help you pay down your debt more quickly, you might ask your lender to lower your interest rate. If the lender refuses, see if you can find a lower-rate card to transfer that debt to. If youve got one or two glaring late payments on your credit record, you might ask your lender if they could be erased, in a goodwill deletion. Lenders are likely to be especially responsive to their best customers. And if youre dealing with a collection agency over some debt, see whether theyll delete it from your record if you pay it off. That can be well worth it.
Nations Car Credit is known for a bad credit car loan process that may meet almost any auto financing specifications you could have.
TRICARE is quashing reports that someone is trying to scam members following a big data breach, Next Gov reports.
The militarys health care program says a letter from SAIC about the breach is legit. The letter offers free credit reports and monitoring. But, NextGov reports some people thought it wasnt real, after some websites, including an Air Force Facebook page, called it a scam.
The data breach happened when someone stole computer tapes with details on 4.9 million people.
This story is part of Federal News Radios daily Cybersecurity Update. For more cybersecurity news, click here.
Nations Car Credit in fact incorporates a bankruptcy car loan system together with straight forward acceptance.
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January 27, 2012 4:01 am | 
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