Credit Score Tag

29 Sep 11 Mistakes to make on a Credit Card, Part 2

More mistakes to make on your credit card accounts. If you haven't read Part One, go on back.
  • Foreign Charges

You've bought something on credit while on vacation in another country. In addition to the exchange rate on the date that the cahrge hits your account, creditors can add 1% to 3% (of the purchase) fee on all purchases in addition to the 1% exchange rate fee. Now that purchase just cost you as much as 4% more than you thought. What a bargain.

  • Cash advances

Take a cash advance on your card and it will likely bear a different interest rate than if you made a purchase. Mny cards will then apply your payments to the lower interest rate balances first, thus assuring that the higher rate amounts will bear interest for a longer period of time.

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28 Sep Top 15 Myths Of Bankruptcy (Unless You’re Counting) Part One

TOP 15 MYTHS OF BANKRUPTCY (UNLESS YOU'RE COUNTING)
1. YOU CAN T FILE BANKRUPTCY UNDER THE NEW LAW
*FALSE - The "new" law (actually effective in 2005) put some hurdles in the way of filling for bankruptcy, but the effect is just to slow you down to give your creditors more time to pick at you before you file. Filing is just as possible as it was before. If you are in financial distress, consult with a consumer bankruptcy attorney before you do anything to get the al facts.
2. YOU MUST BE BEHIND IN YOUR BILLS OR BROKE TO FILE BANKRUPTCY
FALSE - If you are facing distress over your bills or see it coming down the road, do not wait until it is an emergency. With proper planning, you can avoid the stress of lawsuits, judgements and wage garnishments.
3. YOU CAN T WORK AND FILE BANKRUPTCY
FALSE - In fact, you should have income if you expect to be able to meet your living expenses. The purpose of bankruptcy is to give you a fresh start. What better way to get a fresh start than to have a job that pays for food, shelter and necessities rather than depending on government handouts.
4. YOU WILL LOSE MY HOME IF YOU FILE BANKRUPTCY
FALSE - If you have a mortgage and can afford to pay that mortgage, there is no reason the bank will try to take your home. If you have equity in your home in excess of the mortgage, each state has different levels of protection for homes. Connecticut's state exemption is $75,000 of equity per homeowner ($150,000 of equity for married couples). This is measured in addition to your mortgage balances when compared to your home's value.
5. IT WILL DESTROY MY CREDIT IF I FILE FOR BANKRUPTCY, MY CREDIT SCORE WILL GO DOWN
FALSE - If you are facing financial distress, your credit score probably has already gone down. The exact measure of a credit score is unknown, but just having too much credit outstanding even if current can reduce your credit score.
1. YOU CAN'T FILE BANKRUPTCY UNDER THE NEW LAW

FALSE - The "new" law (actually effective in 2005) put some hurdles in the way of filling for bankruptcy, but the effect is just to slow you down to give your creditors more time to pick at you before you file. Filing is just as possible as it was before. If you are in financial distress, consult with a consumer bankruptcy attorney before you do anything to get the al facts.

2. YOU MUST BE BEHIND IN YOUR BILLS OR BROKE TO FILE BANKRUPTCY

FALSE - If you are facing distress over your bills or see it coming down the road, do not wait until it is an emergency. With proper planning, you can avoid the stress of lawsuits, judgements and wage garnishments.

3. YOU CAN'T WORK AND FILE BANKRUPTCY

FALSE - In fact, you should have income if you expect to be able to meet your living expenses.

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21 Mar Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 6: Your Credit Report/Score

Part 6 of my review of Kevin Trudeau's book, "Debt Cures "They" Don't Want You to Know" examines Chapter 8 (Highest Points Wins), 9 (The Report); 10 (Knowing the Score) and 11 (Show Me the Money). The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises. These four chapters dissect the parts of a consumer's credit report and explain what information will be on the credit report. Trudeau speaks about the importance of the accuracy of the information on the report.
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