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As of Sept. 1, New Yorkers can get a free copy of their credit report to ensure that their information is correct and their identity is protected. Additionally, to further protect consumers, legislation that requires public and private organizations to notify customers when their private information has been breached was signed into law to take effect in December.
Under the federally mandated Fair and Accurate Credit Transactions Act (FACT Act), residents can obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies (Equifax, Experian and TransUnion).
Identity theft can happen to anyone. In this day and age, thieves are finding new ways to exploit unsuspecting individuals. In fact, they can do it without even breaking into your home or car. While this alarming trend has gained widespread attention, measures are being taken to protect consumers. In previous years, the Assembly passed legislation that established the crime of identity theft and prohibited vital credit information from appearing on printed receipts.Full article on Buffalo News
Some sage advice about credit cards. I like the part about calling to demand that they waive the fee on your credit card. As I've come to realize, with the credit card companies, if you want a lower interest rate, you have to ask for it. If you want them to waive a fee, you have to ask. They might say no, but if you don't ask, they'll figure you're happy to keep paying out the nose.
I never cease to be amazed at the way credit card companies work. They send out those 30-page documents with all the fine print--yeah, that one you never read. The fine print essentially covers their butts against any possible complaints or problems that might arise. Oh, and there's the tiny details like the fact that they can raise your interest rates or change the terms of your account at any time for any reason. Gotta love that. Anyway, the reason for this post is actually on a more positive note. I want to share an experience I had and offer some advice for getting a lower interest rate on your credit cards. What happened was that I was calling one of my credit cards to ask what kind of APR was available for balance transfers. In passing, I asked what my current interest rate is (since it seems like it's always changing). She told me what it was and then proceeded to say that she could lower it 3% if I wanted. What? Of course I want it lower. Is that the lowest you can go? Yes. Darn. Well, better than nothing. I then asked if my interest rate would have been lowered if I hadn't been talking to her on the phone and she said no, it was only lowered because I asked for it. Wow! Glad I asked. Well, I didn't really ask, but glad it came up in the conversation. The lower interest rate is supposedly available because of my good payment history with that card. After getting off the phone with her, I called up another credit card that I have a balance on. "I'm calling to see if I can get a lower interest rate," I say. They have to transfer me to another department, AKA the next cubicle over, then sure enough, the nice lady is able to shave 5% off my annual percentage rate! Incredible. I could have saved a lot of money in interest if I had known about this sooner. If only I had known. Well, at least now I know. And consider yourself warned. Call up your credit card company today and ask for a lower interest rate. The worst that can happen is they'll say no. Well, I guess they could laugh at you for asking, but that's not much worse than them saying no. So go give it at try. If you're carrying a balance on any of your credit cards, pick up the phone right now and call. If you've been good about making your payments on time they might have mercy on you and lower your interest rate to something slightly more reasonable. The best alternative is to pay off your credit cards in full each month so you don't have to pay any interest at all, but if you're paying interest on a credit card, you might as well get the lowest possible rate.
AccountingWEB.com - October 11, 2005 - Lost or stolen credit cards still account for a large percentage of identity thefts as do scams such as credit-card skimmers used at restaurants and ATMs, says Chris Thoms, chief risk officer at MasterCard International, according to MarketWatch.com. These thefts can result from the consumer’s behavior. But well-publicized breaches of giant data systems like ChoicePoint, Bank of America and CardSystems Solutions could potentially affect 56.3 million people, MarketWatch reports.Full article from AccountingWeb.com
We all know life isn't fair. Someone ate that piece of pie you were saving for later. You deserved that promotion more than Esmeralda did. Nice Mr. Jones gets cancer and his house burns down, while annoying Mr. Smith wins the lottery.
But life has recently gotten even less fair for some people -- maybe even you. Join me in the exciting world of credit scores. (Hey, it's all relative. Credit histories are arguably more exciting than taxes or insurance). You surely know that lenders check your credit scores when you apply for loans such as mortgages. (Get great tips on buying a home and special mortgage rates by visiting our Home Center.) But did you know that others are spying on your credit history, too?Full article from Fool.com (registration may be required) Offering commentary on a recent Consumer Reports article about the different ways companies are using our credit scores. The Fool makes the point that since an estimated 80% of credit reports (and scores) are inaccurate, the widespread use of credit scores could needlessly cost consumers a lot of money--in terms of higher interest rates, denied coverage, denied credit, etc. So do yourself a favor and check your credit reports if you haven't done so recenly. The best time to check and fix your credit report is before you need the credit. If you wait until you need a good credit score, it could be too late.
Here's the link to a PDF version of the press release about a recent survey of consumers' knowledge about credit reports and scores. The survey was conducted by ORC on behalf of the Consumer Federation of America and Providian. The study found that consumers are wising up on credit-related issues, but there is still a lot of misunderstanding. The survey found that 76% of consumers believe that they have the right to obtain their credit score for free each year. The truth is that the credit score is only available for a fee, unless they apply for a loan, which will sometimes allow them to get a free credit score. Otherwise, the credit report is free, but the score is an extra fee. According to the press release, CFA and Providan think all consumers should know the following facts about credit scores:
- Scores reflect only one's own past credit history, not personal characteristics such as age and gender or level of income. Over time consumers have the ability to control these scores.
- Low scores could not only cost you up to thousands of dollars a year in additional finance charges, but also deny you access to credit, insurance, electric and telephone service, a rental unit, and even a job.
- Consumers with scores below 600 are typically charged relatively high, “subprime” loan rates, while those with scores above 700 are usually charged relatively low “prime” rates, and those with scores above 760 are charged the lowest rates.
- Consumers can purchase credit scores (credit reports are free) from all three credit bureaus for $44.85 by contacting Fair Isaac (myFICO.com), or individual reports and scores from the three bureaus -- TransUnion (www.transunion.com), Experian (www.experian.com), Equifax (www.equifax.com) -- for as little as $14.50. One can receive a TransUnion-derived credit score monthly for free if one holds a Providian credit card. Mortgage applicants can obtain their score for free from the lender.
CFA and Providian have created a web-based quiz to help us all better understand credit scores, available at www.consumerfed.org/score
"Want to raise your credit score? Try maxing out your credit card, to show you can handle credit, as long as you can squeak by with the minimum payment each month. Or, for a quicker fix, marry somebody with a high credit score, which will automatically raise yours. Then test the success of your strategy by checking your credit score, which you can get for free once a year under a new federal law.
I hope you didn't believe anything I said, because none of it is true. But if you fell for this fake 'strategy' (I was testing you) you have plenty of company. Although Americans' knowledge of credit scores has improved, a second annual survey by the Consumer Federation of America and Providian Financial shows a continued lack of understanding of the scoring system."Some good advice from Humberto Cruz
"Republican senators yesterday petitioned Sen. Charles E. Schumer for his personal assurance that Democratic Senatorial Campaign Committee (DSCC) staff has not accessed their credit reports, as the committee's opposition researchers did to Maryland Lt. Gov. Michael S. Steele.
In a letter to Mr. Schumer, New York Democrat and DSCC chairman, the Republican senators said previous denials of such conduct from the DSCC's spokesman and attorneys are insufficient.
'The security of our families' finances is too important to rely on the assurances of professional political staff and consultants whose primary focus is defeating us next November,' the senators said."Full article from the Washington Times
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