Credit Reports

Freeze your credit? It's one way to cut out the con artist

Martha C. White Sep 3rd 2010 @ 4:30PM EST Filed Under: Credit, Consumer Ally, Credit Reports, Credit Cards

Many Americans these days are understandably worried about the prospect of identity theft in which a scammer opens up a credit card or other loan in the victim's name, runs up all kinds of charges and then disappears. The victim is left with the huge headache of trying to clear his or her good name with lenders and credit bureaus alike. This scary prospect may have you considering a credit freeze, but there are some important considerations to keep in mind before you take this step.

When your credit is frozen, you can't take out a loan, apply for a credit card, refinance your house or open a new financial account of any kind. Plus, you may have trouble landing a job if a prospective employer checks your credit history, which many do. The advantage is that nobody else can do any of these things, either; a thief can't say she's really you and open a credit card behind your back.

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5 ways to convince the bank you deserve a (better) home loan

Tara-Nicholle Nelson Aug 26th 2010 @ 9:52AM EST Filed Under: Debt, Family Money, Real Estate, Credit Reports, Mortgages

Banks are experiencing Post-Traumatic Stress Disorder from the foreclosure crisis -- big time. They are painfully aware that loose lending kicked off the nasty economic domino effect that ended in millions of foreclosures, and billions of dollars in lost real estate wealth as a result.

We're all aware that, as a result of this mortgage PTSD, banks have raised the bar on what it takes to get a home loan. They know the riskiest borrowers are the ones whose income and assets were undocumented, and those who had no skin in the game because they hadn't put down a down payment. These are the folks who were the most likely to lose or walk away from their homes when the values plummeted.

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FTC losing patience with deceptive 'free credit report' offers

Jorgen Wouters Aug 18th 2010 @ 1:15PM EST Filed Under: Family Money, Consumer Ally, Credit Reports, In the News

The Federal Trade Commission (FTC) has been tightening the screws on the consumer credit reporting business in recent months, with moves designed to clarify consumer rights and punish websites that mislead consumers about so-called free credit reports.

The FTC announced this week proposed revisions to the notices consumer reporting agencies provide to consumers under the Fair Credit Reporting Act (FCRA). The proposed changes are designed to simplify the Summary of Rights notice, which informs consumers about their FCRA rights, such as how to obtain a free credit report and dispute inaccurate information in those reports.

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Are identity theft protection services a waste of money?

Mitch Lipka Jul 27th 2010 @ 5:30PM EST Filed Under: Fraud, Identity Theft, Consumer Ally, Credit Reports

With the constant headlines about data breaches and nightmarish stories about identity theft, it's easy for consumers to fall for the pitches made by identity theft protection and credit monitoring services.

But is there a value in paying the monthly fees for these services? For most folks, the short answer is no. Most of these companies offer services that consumers can do on their own for free or at a significantly lower cost. So consumers end up paying a premium -- typically $100 a year or more -- for the convenience of having someone else take care of things for them, even when they don't need them.

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Oregon bans job applicant credit checks

Martha C. White Jul 7th 2010 @ 6:00PM EST Filed Under: Career, Credit Reports

In most places, it's perfectly legal for a prospective employer to pull your credit report and decline to hire you if they don't like what they see. The trouble is, credit reports are often rife with errors (if you recall, we told you how to fix those credit report errors), some of which can drag down your score.

What's more, in today's economy, many unemployed Americans have been struggling just to keep their heads above water, and their credit reports reflect that. Potentially being barred from landing a new job because of a poor credit score brought on by losing a previous job seems like adding insult to injury.

Now, though, the state of Oregon has seen this catch-22 for what it is. The state passed a ban, which went into effect July 1, prohibiting employers from using credit checks as part of their screening process. Oregon is only the third state to ban this practice (Hawaii and Washington were first), but Angela Martin, economic fairness director at grassroots advocacy group Our Oregon, says seven other states are exploring the possibility (although bans aren't expected to pass in all those states).

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Good credit score secrets

Martha C. White Jul 7th 2010 @ 9:00AM EST Filed Under: Credit Reports, Credit Cards

Even though it's more important than ever to be familiar with your credit score and what affects that crucial number, experts say a lot of Americans don't know nearly as much as they should about what they do that can impact their score. WalletPop got on the phone with John Ulzheimer, president of consumer education at Credit.com to find out more. We also caught up with Barry Paperno, consumer operations manager for FICO, via email to ask him to spill some credit score secrets.

For instance, many people think that if they pay their bills on time, their credit score must be good. Right? Wrong, say our experts. Even if you always pay on time, if your cards are close to being maxed out, your score isn't going to be as high as it could be, since borrowing up to the hilt looks like a risk factor to the credit bureaus. Surprised? Read on to find out five more credit secrets that can help you get the credit score you deserve.

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An easy primer on understanding and raising your credit scores

Lynnette Khalfani-Cox Jun 30th 2010 @ 6:15PM EST Filed Under: Credit, Credit Reports

Having super-high credit scores can make your financial life a breeze - helping you earn a VIP pass to the best interest rates and terms on credit cards, mortgages and loans of all kinds. A stellar credit rating can also help you land a job or a promotion, save money on insurance, and get approved for that apartment or condo you want to rent. Despite all these benefits, however, most people understand precious little about credit scores, how they work, and what can be done to improve them.

To help you get up to speed fast, here's a quick primer on credit scores, based on eight common credit questions:

1. What exactly Is a FICO credit score? FICO scores get their name from Fair Isaac Corporation, the Minneapolis-based company that creates FICO scores. All FICO scores range from a low of 300 points to a high of 850 points. While there are various types of credit scores in the marketplace, FICO scores are the most popular, with more than 90% of top banks in America using FICO credit scores when checking a consumer's credit history.

Your credit score serves two purposes. First, it summarizes how well you've handled past credit obligations by giving you a three-digit credit score, which is the equivalent of a financial grade. Additionally, your credit score tells prospective lenders how likely you are to repay (or default on) credit or a loan in the future. The higher your credit score, the more statistically likely you are to repay your bills on time. The lower your score, the more likely you are to pay late or default on a debt.

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Women need better credit awareness, research shows

Martha C. White Jun 28th 2010 @ 12:00PM EST Filed Under: Credit, Debt, Credit Reports, Personal Loans, Retirement Advice

A new study released on June 24 highlighted some troubling facts about the financial awareness and stability of today's American women. The research, conducted by Harris Interactive for the Lending Club, found that only 65% of women knew their credit score vs. 74% of men. What's more, only 72% knew the interest rates on their credit cards, compared to 84% of men.

"Even with reform in Washington, it's not enough," says Jennifer Openshaw, chief consumer adviser to Lending Club. "People need to take ownership of their money. Traditionally, men have handled the larger finances so women haven't gained that experience," Openshaw told Walletpop in a phone interview. As a result, Openshaw says, they're now vulnerable in the event of death or divorce.

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Why critics are wrong about credit monitoring services

Lynnette Khalfani-Cox Jun 14th 2010 @ 3:30PM EST Filed Under: Saving Money, Credit Reports

Most financial experts agree that routinely checking your credit reports is a smart idea. If you ask those same experts about credit monitoring services, however, you'll likely get a lot of eye-rolling and negative comments.

Critics have three primary complaints about credit monitoring. They say it's unnecessary, costly, and ineffective at preventing identity theft. Let's evaluate each of these claims and see why, in this case, the experts have got it all wrong.

Credit monitoring is a fee-based service offered to consumers by credit reporting agencies (such as Equifax, Experian and TransUnion), credit scoring firms and other companies. When you sign up for a credit monitoring service, one or all of your credit reports are constantly tracked and you are alerted to a variety of changes in your credit file, such as a credit card balance increase, an "inquiry" when you apply for new credit, or negative information like a late payment reported by one of your creditors.

But what about those who contend that credit monitoring is "unnecessary" because you can get three free credit reports via www.annualcreditreport.com, and you can stagger those reports over time throughout the course of a year? Unfortunately, this is terribly misguided advice.

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