A deluge of television and radio ads promoting free credit reports  have certainly caught the attention of many consumers. After all, no one would put so much money into an expensive advertising campaign unless it worked, right?

Take a closer look at what is being offered and you soon learn that there is a string attached to the so-called free offer. You will get your credit reports for free, but you’ll have to pay for a second service – credit monitoring – that you may not need.

How To Get Your Free Copies

Instead of paying for something that you don’t need, why not get copies of your report for free? As a result of an amendment to the Fair Credit Reporting Act in 2003, Congress authorized the Federal Trade Commission to require that copies of your credit report be made available to you for no charge. Previously, in order to obtain your copy, you would have had to pay a fee for each one. Beginning in September 2005, residents of all fifty states became eligible to get a free copy of their credit report from Experian, Trans Union, and Equifax once annually.

Why were the reports made available at no charge to consumers? Well, even though all three companies operate independently of the federal government, their combined strength carries so much weight in determining your credit standing that a decision was made that everyone should have the right to obtain their personal credit reports on demand. Moreover, since a substantial number of these reports have been determined to include errors, consumer advocates insisted that you shouldn’t have to pay to rectify someone else’s errors. Thusly, the Fair Credit Reporting Act as amended in 2003 became law.

Get It Online Or In Writing

There are several ways you can order your free credit reports, but there is only one web site that will give you your reports for free: www.annualcreditreport.com. Again, only this one site acts on behalf of Equifax, Experian, and Trans Union to give you your reports to you for free.

You can also call the following toll free number to order your free credit reports: 1-877-322-8228

If you wish, you can place your request in writing after downloading and filling out a form found online at http://www.ftc.gov/bcp/edu/resources/forms/requestformfinal.pdf. If you choose this method, you will need to mail the form to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

For more information about the Fair Credit Reporting Act and the Federal Trade Commission, please visit the following site: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm

When ordering your reports you can also ask for your FICO score. Unlike your free credit report, you will pay a small fee – usually $5 and $8 – to get your score. If you choose to find out your score you can use a credit card to pay for your order.

The three national credit reporting bureaus may also seek to sell other services to you while you are checking off the information for your free credit report. These services include alerts, but you probably don’t need them. If you select some of the other offers, you will be charged for those services, so be careful what you choose.

Resources

Check Your Credit

Federal Trade Commission

Financing Tips

Tags: credit score, Equifax, Experian, Federal Trade Commission, free credit report, Trans Union

If your credit is excellent or very good, you can still find some credit card deals that are worth taking. Over the past many months, credit requirements have tightened as lenders reigned in their lending restrictions, preferring to do business with consumers who have the highest credit scores first.

For the person who has average or poor credit, securing a good deal on a credit card might not be possible, requiring people in this position to pay an application fee, annual fee, settle for a high interest rate, and be subject to other restrictions. Clearly, if your credit isn’t good, then now isn’t the time to try to get a credit card.

As for me, I’m still getting offers in the mail for new credit cards, but I’m not interested in taking the bite. However, I like to explore the various offers out there and am still finding some nice surprises, offers that I would seriously consider if I was looking for a new card.

Among the benefits being still offered to people with excellent credit are:

No annual fee — Some American Express cards charge a fee, but I won’t pay them. There are various versions of the American Express card that are free, though you may not accumulate points so easily or get other discounts. If you choose a fee card, perhaps do it through your work or personal business where either someone else will pay for the annual fee or you’ll be able to deduct the fee on your income taxes.

0% balance transfer – A number of these types of cards are still out there which I find to be surprising given the current economic problems we’re facing. What these cards offer is 0% APR on balance transfers and in some cases on purchases for up to 12 months — be careful as some charge transfer fees.

Rewards program — Most credit card offers include a points program which can yield valuable gifts or money when redeemed. For every dollar charged, get 1, 3, or even 5 points, something that can add up very quickly. Some issuers will give you a big lump sum of points, let’s say 5,000 points, the first time you use your card. Gift levels usually start at 2500-7500 points, meaning you can quickly redeem what you’ve earned for something free. Of course, if you use your card regularly and you run monthly balances, then your points are quickly canceled out by the interest you’ll pay on your cards.

Low interest rates – Interest rates don’t matter to the person who pays their card off monthly. Therefore, don’t be scared away from a card offering a good rewards program, but a lousy interest rate. You’ll never pay a penny in interest as long as you pay off your card each time a bill is presented to you.

Online access – These days, no card is worth getting if you can’t access your financial information from a secured site 24/7/365. With people traveling all over the world like grasshoppers, who can wait ’til they return home to view their statements? I like cards that allow me to view everything online, make a payment, receive notifications if something is amiss (like, who authorized a charge in Borneo when I’m standing in Boston’s Logan Airport?) Also, I want to be able to actually reach someone when I call about my statement or need to raise my credit line.

For the person with excellent credit, they’re in the driver’s seat these days. Banks and other financial institutions make money by lending money out and are clamoring for your business. Compare offers, shop smart, and snag the best credit card deal that you can find. For everyone else, grab an offer only if it’ll benefit you and not some hungry card issuer.

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Adv. – How about a card you need that fits your financial objectives? Whether you are a savvy consumer or first-time user, there is a credit card that will meet your buying-power needs. Please visit nBuy.com to conduct your smart credit card search.

Tags: credit, Credit Cards, credit score, rewards card

FICO, which stands for Fair Isaac Corporation, is a term which describes your personal credit score. That score is used by lenders who will determine if you qualify for a loan and the interest rate you’ll
charged as well as the length of your loan. The higher your score, the more likely you’ll be approved for a consumer loan and receive favorable terms.

In these pressing economic times, not everyone has a good FICO credit score, which can be especially problematic if you need to apply for a consumer loan. Whether seeking a mortgage, a home equity loan/line of credit, car loan, credit card, or some other type of loan, you need to get the highest score possible.

Raise Your FICO Credit Score Step By Step

Fortunately, you can raise your score and see significant results within 2-3 months time. If you plan on applying for a loan some time over the next few months, the following steps can help you improve your FICO credit score:

Shrink those balances: You don’t have to pay off your credit cards, but running big balances is a red flag to creditors. Work on reducing your debt, a step which will gradually raise your credit score.

Don’t apply for too many loans: You may have unwittingly caused your credit score to drop by applying for too many loans in a short period of time. This can happen if you are planning to shop for a new car and are arranging your own financing. By applying to several different lending institutions for the sake of finding the best deal, you’ll be shooting up another warning flag to creditors. Find out the rate first, then apply.

Remedy credit problems: If you’ve been late making payments in the past, then your score will take a hit. Make payments on time and pay more than the minimum amount due each month. Get free copies of your credit reports and check them for errors; notify the credit reporting agencies if you find mistakes. They are required by law to fix mistakes within thirty days or that information must be automatically removed from your credit report.

Keep consumer accounts open: Odd as it may sound, closing a credit card or other consumer account will negatively impact your credit score. Simply tuck your unused credit cards away in a safe place and don’t use them again. You can gradually close them after you secure new credit, especially if you have no plans to borrow again in the near future.

More accounts means a reduced score: Opening more accounts will work against you. Only open up enough consumer accounts as needed.

Consider NOT moving your money around: Consumers have gotten into the habit of shifting outstanding balances from one account to another, but that move can actually reduce your credit score. Consolidating your balances to one account may cause your credit score to drop.

Building a good credit history is an achievable and laudable goal for any consumer. Take care of your credit score and your credit score will take care of  you in the form of favorable lending terms for your next consumer lending opportunity.

Tags: auto loan, car loan, consumer credit, consumer loan, credit card, credit score, FICO, home equity, line of credit, mortgage