Credit Card News: Having a Baby Means More Credit Card Debt for Some Americans

Having a baby (or several babies) can be a very expensive endeavor. I know this from personal experience. If the parents-to-be don't prepare well in terms of budgeting and financial planning, they could run into the problem of running up a lot of credit card debt, as mentioned on the CardRatings.com blog.

cbs11tv.com - Dallas Man Admits Changing Credit Reports For Cash

A Dallas man has pleaded guilty to changing consumers' credit reports.

The man and three other employees at the Experian Credit Bureau admit they improved credit histories, in exchange for money.

Prosecutors say Experian was a victim in this case and the company cooperated with the government to catch the culprits.

Full report from cbs11tv.com

Tips on managing credit reports

For the average consumer, settling the score with creditors is no easy feat.

Consumers are doing better at managing credit card payments -- the number of people behind on their bills reportedly is on the decline -- but there is always room for improvement.

As part of a regular feature, the Times asked for reader tips on how to improve a credit score.

'You would be surprised what talking to a live person will do,' said James Moneyhun of Manteca. 'I've negotiated for terms such as lower interest rates, loan balances and new payment terms, all in a matter of minutes just from having a friendly conversation with an operator.'

'Most will sympathize with your situation because, most likely, they have been in the same situation,' he said.

Moneyhun said his credit score five years ago was between 450 and 500. He obtained credit reports from Experian, Trans Union and Equifax -- 'go to all of them because all three will show you different information,' he said -- and researched each.

'I started with the agencies I knew I could pay off right now. The ones I knew I could pay off and still live comfortably,' Moneyhun said. 'Then, I called all the creditors who were just too high to pay off and asked them if I (were to) pay the balance up front.'

Full article on ContraCostaTimes.com

New way to score credit still flawed

Not a lot of love for the credit bureaus' new Vantage score...

By now you might have heard that the three major credit bureaus have introduced a new scoring system they hope will someday replace the current FICO credit score.

Equifax, Experian and TransUnion recently unveiled what they are calling the 'VantageScore,' a system that will reportedly simplify credit-risk scoring that helps determine what interest rate consumers will pay.

Eventually, the companies would like credit grantors -- banks, credit card companies, auto dealers, mortgage lenders -- to stop using FICO scores, which are calculated using software developed by Fair Isaac Corp. FICO is the most widely used scoring model.

The three bureaus hold the financial histories of millions of people. The information in the files is used to create a score from a low of 300 to a high of 850 in the case of the FICO system.

The credit bureaus say they've introduced this new system so that the scores being reported to credit grantors are consistent and easier to interpret. To understand what that means, you need to know that while we all get a score generated from each bureau, how those scores are determined can vary greatly.

Full article on ContraCostaTimes.com