We live in a complex world. By the time you have finished reading this page, you will see just how complex it is, but you will know what steps to take to protect yourself.
Be sure to look for the BONUS at the end from an attorney.
Be sure to check out my link at the left called Credit-Card Solutions, too.
Be sure to copy/paste the following link into your browser and read up on bogus consolidation offers (in a nutshell: Don't do it!):
http://getoutofdebt.org/4108/bank-of-america-offers-clean-sweep-debt-consolidation-loan-up-to-50000-lets-look-at-the-facts-and-see-who-is-really-cleaning-up/comment-page-2#comment-24874
Personally, I have a lot of GOOD things to say about credit-card companies. I could not have accomplished all my business expansion/diversification goals without their extremely low-interest money which I got back "in the day" when it was still available.
HOWEVER, did you know that paying your bills on time (or ten days early like I do) accounts for only 35% of your credit score?
The whole credit-rating system is rigged to DISQUALIFY you from getting credit. The banks would rather keep the money they got from all of us. To that end, there are the credit-reporting agencies. They wield the power over your credit score, and these are a few ways that have been reported to me that they can lower that score.
Your credit score can get lowered for having
too much credit available, or too little credit available;
too much credit in use, or too little credit in use;
too many open accounts, too many closed accounts;
too many credit inquiries, too few credit inquiries;
too high a debt-to-income ratio, too low a debt-to-income ratio;
too many returns of purchases like clothing;
too many cards open;
too many cards closed;
any payments over 30 days past due;
any missed payments;
AND for
living where there is a history of foreclosures;
working in a company or industry where there are high layoffs;
shopping suddenly at low-end stores after a history of high-end stores;
and the list goes on. Isn't this absolutely astonishing?
How do the credit-card companies USE this information? They increase your interest rates and lower your credit availabilities........all this while they are insolvent themselves AND getting bailed out with YOUR MONEY!
Do you think it's a little hard to have an excellent credit rating these days?
Impressively high credit scores probably only go to those who don't NEED any credit because they have a lot of money AND pay their bills in full each month.
For the rest of us, don't be too alarmed at your credit score, but do monitor it to make sure there are no frauds against you.
Avoid fraud entirely by joining LifeLock.com. It'll cost you $10 a month per individual and they have a host of services they provide.
Just the above information should be
reason enough, all by itself, for you to set the goal of getting debt
free. Start today by visiting the link at the left called Credit-Card
solutions. We're not even done with the credit-card game, however, so read on before you go!
CREDIT-CARD COMPANY TRICKS!
Yup, that's right, THEY got the bail-out money, NOT YOU, and they got it with YOUR MONEY. Nobody is bailing YOU out, but here are just a FEW credit-card company tricks that have been reported to me SO FAR. They want your money, as much of it as they can get away with:
SOME (Not All) Credit-card companies CAN (and DO):
Change your due date at will. Read every statement. Keep a chart of accounts just like bookkeepers do and pay your bills ten days ahead of the due date.
Change your interest rate at will and for no reason, multiple times, and exorbitantly so. Read every statement.
Make your payment due include odd cents so you might overlook it and they can then charge you a late fee for not paying enough. Read every statement.
Make your payment-due amount VERY HARD TO READ The amount due can be fuzzy looking against a fuzzy gray background! Confounding! Read every statement. Use a magnifying glass if you have to. I see 20/25 unassisted, but even I have to use a magnifying glass for certain statements! That's how bad it is!
Delay crediting your account and blame it on YOU. Pay your bills ten days early, use your bank's online bill-pay service, and thereby you will have proof of payment. Make sure you copy and paste your bank's payment confirmation into an email that you send to yourself so you can prove that you REQUESTED PAYMENT, how much, and when. Seriously! If your bank's bill pay does not make the payment, and you cannot prove you requested it, it will cost you serious bucks when the credit-card company instantly raises your interest rate, even if you discover the error and make the payment a few days later. Believe it! (See my Credit-Card Solutions link at the left of this page for ways to solve this problem, by the way. You have to learn how to play the game!)
Or, pay each bill on the credit-card web site. It's free. Again, be sure you copy and paste your payment confirmation into an email and send it to yourself so you have proof of when and how much you sent! Seriously! If they neglect to process your payment at all, or on time,THEY WILL raise your rate instantly and it will cost you a LOT OF MONEY. (See my Credit-Card Solutions link at the left of this page for ways to solve this problem, by the way. You have to learn how to play the game!)
Do NOT rely on regular US Mail delivery to get your payments there on time. If you are going to use the US Mail, buy extra services like proof of mailing and/or return-receipt requested. Online bill-pay is free at a lot of banks if you keep a certain balance, and any fraud encountered using their bill-pay service they are liable for. Consequently, their security is really tight. Only 1% of all fraud occurs from online transactions anyway.
To find the WORST CREDIT-CARD COMPANIES, do a Google search on them BEFORE you take out any credit with them, and you might also check with the Better Business Bureau and RipoffReport.com
What can you do about this besides the suggestions I have made above? If you think it will do any good, write your congress people and ask them how the credit-card-reform legislation is going. The BEST thing, of course, is to work to get debt free. See my link at the left of this page called Credit-Card Solutions for help.
If you have a credit-card company that is causing you fits and it is governed by the FDIC (ASK THEM IF THEY ARE), you can file a complaint with the FDIC at this address: Consumer Response Center, 2345 Grand Boulevard, Suite 100, Kansas city, MO 64108. Their toll-free number is 877-275-3342.
If you know of any other credit-card tricks, I would love to know about them and would like to add them to this page. Just email me at achieve11@mac.com.
BONUS INFORMATION FROM AN ATTORNEY
This information was sent to me by a friend whose wallet had been stolen:
1. Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED."
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
3. Put your work phone on your checks! Instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS! # printed on your checks. (DUH!) You can add it if it is necessary. But if you have it printed, anyone can get it.
4. Place the contents of your wallet on a photocopy machine Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, credit cards.
Unfortunately, I, an attorney, have firsthand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more. But here's some critical information to limit the damage in case this happens to you or someone you know:
5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all: (I never even thought to do this.)
7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.
By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchase, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.
Now, here are the numbers you always need to contact about your wallet, etc., that has been stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) Trans Union : 1-800-680-7289
4.) Social Security Administration (fraud line): 1-800-269-0271
Now, do visit Credit-Card Solutions from the left link bar, and thank you for visiting this page!
