3 Ways to Revive Your Credit Score

A credit score can’t be rebuilt overnight. If you’ve encountered tough times and have seen your credit score drop in recent years, the sad reality is it will take some doing to get it to where it’s respectable again. All the more reason to start rebuilding as soon a possible, here’s how:

Find and correct errors- Credit reports are extremely complicated to compile, even if you know yourself to be in debt, don’t ever assume that a credit report is accurate. There may be errors on it that add to your problem. Often there are debts listed as outstanding when in fact you have paid them. These days, identity theft is also a real threat, there may be debts on your credit report that you didn’t incur at all.

Your credit report is the basis of your credit score, the last thing you want when you are in debt is to have a credit report that is errant to your detriment. Should you find errors on your credit report, you will need to file a written complaint with all of your supporting documents attached. The Federal Trade Commission will investigate the issue and rule within 30 days. Should they find in your favor you could get a boost from between 50 to 100 points.

Settle your balances- It’s a simple and obvious enough tip, but not many realize the actual impact. Your credit utilization ratio comprises 30% of your credit score. This is the ratio between the amount of credit you’ve used, and the amount you’re entitled to. A ratio higher than 30% can really damage your credit score.

Automate all your loan payments- In this day and age, there are few institutions that can lend you a substantial amount of money that don’t provide a means to settle your debt automatically. If you have a lot of bills and debts to pay, it’s easy to lose track of what needs to be settled and when. Set up electronic payments for all your debts, this should prevent you from incurring any additional penalties due to late payment.

Should you manage to follow these tips religiously, you will have a perceptibly better credit score before you know it.

Dissect Credit Card Offers with a Metaphorical Scalpel

While most credit card offers come from legitimate credit card companies, it’s extremely important to watch out for fraud. By following a few important guidelines, you can distinguish between fraudulent and genuine credit card offers.

Avoid Pre-Approved Cards and Hidden Fees
First of all, be sure you read the fine print. Don’t be seduced by pre-approved cards, and make sure you’re fully aware of the interest rate you’re paying. Also, make sure you know if any ‘teasers’ will increase after a certain period of time. You should also investigate any hidden fees.

Shop Around
Always compare interest rates. You have a right to select the card that best suits your needs. There are a plethora of different cards out there, and they each have perks and disadvantages. Choose a card that has rewards that you’ll actually be able to use.
Never, ever pay fees up front to acquire your credit card. No legitimate credit card company will ever require you to pay anything up front to obtain your credit card. Also, stay away from ‘credit consultants’ that try to help you get a credit card.

The Benefits of Special Types of Credit Cards
Sometimes it’s a good idea to acquire a special type of credit card, such as a secured credit card, prepaid credit card, or premium credit card. You may have special financial needs that require you to place a deposit on whatever card you are using. Don’t consider this a disadvantage. Rather, you should use this as an opportunity to build credit.

If you’re able to successfully manage one credit card, then you’ll be able to increase your credit so that later on you can qualify for a mortgage or some other purchase that requires good credit.

Credit Card Legistlation to start February 2010

Debt seems to define the American population, and in many cases, it is the sole problem most Americans are facing financially, economically, emotionally, mentally. Credit card companies and their high credit card rates do not seem to be helping either. In February 2010, the Credit Card Accountability, Responsibility and Disclosure Act became active in hopes of helping this credit card debt problem.

In May 2009, a bill was passed on credit card limitations to be set into action in February 2010. The bill’s details can be summarized into the soul purpose of eliminating extreme penalty fees from serious credit card owners. In opposition, avid credit card users could be in trouble of some of these regulations.

As a result, many credit card companies are threatening to take away rewards programs to make up for the loss of ROI on the distribution of fees.

The Credit Card Accountability, Responsibility and Disclosure Act covers the following:

Banks must wait 60 days after due dates before charging late fees on late bill payments. This could be a good thing for people who are usually prompt in paying bills right on time. However, if you’re not very good

at meeting the date, this could mean an extra 60 days grace to you, but a higher fee in the end if you miss the date.

Credit card companies now must give a 45 day notice to cardholders before they change the interest rate fees.

Banks and credit companies are required to send a bill 21 days in advance of the due date, to ensure holders have an ample amount of time to get their bill paid on time.

Bill payments counted the day after due to holidays and weekends will not be counted on time to credit card companies and banks.

Payments on multiple bills with different interest rates will now be applied to the bills with the highest interest rates.

Banks now must issue ‘permission’ before ‘allowing’ you the privilege of spending more than your issues amount on your credit card.

Credit card users now must be 21 to issue a card, otherwise a parent or guardian must be the primary cardholder. This can be appealed based on the amount of independent income of an individual under 21.

Dormancy fees on credit card gift cards now must be clearly stated from the issuer to the buyer the day of the purchase, which includes a 10 point font rule on the card and documents.