Although some credit restoration companies may encourage participants to cancel their credit cards immediately, the fact of the matter is that doing so can negatively affect your credit score. Any credit repair program worth your time will know this, and help you navigate through the complex system.
People looking to go through the credit restoration process should know that canceling cards may temporarily drop your overall credit score, but over time that number should go back up. Here’s why:
The length of your active accounts will be cut down. Having a couple of credit cards that have been in good standing for years can help boost your score. Cancel them, and you cancel out some of your positive credit history.
The type of credit you use will be less diverse. Cutting down on your revolving credit may be a good idea for long-term credit restoration, but in the short term it hurts your score.
Your overall credit limits will go down – and that can be a bad thing for your credit score. On the other hand, by having lower limits, you’ll be less likely to get in over your head in debt – something that can save you a lot of time dealing with credit repair programs.
In short, there are benefits and drawbacks to pretty much any decision you make dealing with credit. The key is to make sure you make the best decisions possible for your future; thinking long-term is going to benefit you much more than focusing on the short term.
If you’re not sure what to do, get in touch with a credit repair program or talk to a credit restoration expert. Make sure you choose a company or individual who knows what they’re talking about and has good references, and you’ll come out on top.
Are you looking for ways to help out Haitian relief efforts, but short on cash? No problem! Now, credit card companies and banks are making it easier than ever for people like you to make an impact in Haiti by enabling cardholders to donate points to Haiti. Even those who have recently gone through the credit restoration process are able to donate, although the donation amounts vary. Here are some of the most popular companies that allow you to donate points to Haiti:
American Express. Those enrolled in the Membership Rewards program can redeem points. 1,000 points is equivalent to a $10 donation. You can donate points to Haiti in increments of 1,000, 5,000, 10,000, 50,000 and 100,000.
Bank of America. B of A already allows customers to use WorldPoints Rewards and Power Rewards points to other charities, including the Make-A-Wish Foundation, but now customers can also donate points to Haiti by logging into their accounts online and selecting the “Rewards” tab.
Capital One. Capital One has been in front of the pack when it comes to donating rewards points to charities. They started their tax-deductible “No Hassle Giving Site” in 2008, and have seen an 850 percent increase in giving so far this year.
Chase. Cardholders can donate points to Haiti via the American Red Cross Haiti Relief and Development Fund. 2,500 Ultimate Rewards points is equivalent to a $25 donation.
Citibank. Citibank customers can donate points to Haiti by calling 800-THANK-YOU. Donations can be made in denominations of $50 and $100.
Already, people have used these programs to make a real difference in the earthquake-ravaged country. With the exception of Captial One, companies suggest that you check with your accountant before counting the donations as tax-deductible on your income tax return (particularly if you’ve recently gone through the credit restoration process).
The North Scottsdale Chamber of Commerce, the Valley of the Sun Jewish Community Center and Boomerz invite you to
Find out how to benefit from: The New Laws and Incentives that will Change
How You Invest, Borrow & Bank Your $$
Thursday, Feb 11, 5:45pm
Valley of the Sun Jewish Community Ctr 12701 North Scottsdale Road
Find out to how to prepare for and take advantage of recently passed “stimulus” incentives, new laws and regulations in the areas of “safe money” investments, bank loans and products, real estate, credit and credit cards. Find out what experts think about whether or not we have “bottomed-out” and
* What banks and credit card companies can and cannot do and your recourse
* The ins, outs, and why’s of the community bank movement What a CDAR is
* Whether it is now a good time and strategy to put money into bonds, oil and gold or if it is too late
* How new laws affect how I can get a car loan, personal loan, mortgage, business loan?
* How the new real-estate incentive might affect me?
* How I can protect my FICO score
PANEL
* David Harris ,CIMA, principal Harris Investment Advisors
* Andrew Bloom, Remax Excalibur Scottsdale
* Mick Bernard. President Credit Strategies
* Allan Baron, Moderator. Proud Boomerz and North Scottsdale Chamber member
* Tanya Wheeless, President and CEO, Arizona Bankers Association
So you’ve rehabbed your credit with a credit restoration or credit repair program: you could now be charged annual fees for paying your bills on time. In response to new credit regulations that limit when banks can raise interest rates on credit card and loan bills, banks executives are doing their best to maintain profits. This translates to an increase in fees of all types, as well as new fees being introduced.
One of the most common ways banks are trying to recoup their money is by charging (or increasing the rate of) annual fees for each account. Previously, people who have gone through a credit restoration or credit repair program have been immune from such fees. So, what’s the reward for being a reliable customer who pays his or her bill on time?
Apparently, there isn’t one. People with good credit who find that they’re being charged with annual fees have the choice of either paying it or closing their account and opening another one elsewhere. Unfortunately, if you’ve had the credit card account for a while, it can potentially hurt your credit score to close it out. Suddenly, people who have had good credit all their lives may end up needing to join a credit repair program – just to avoid paying a higher annual fee.
If you think this doesn’t sound fair, you’re not alone. People are getting outraged over the fee hikes, while bank analysts are trying to figure out exactly how much they can raise annual fees while without losing a huge chunk of customers. Most people who have gone through a credit restoration program already put up with ridiculously high interest rates, and now they’re being told to swallow an additional annual fee on top of that.
So, what’s a person to do? The first step is to check your credit card statement to see if you’re one of the people getting charged! If you are – contact us and we’ll advise you on what steps to take.
In a world where almost everyone seems to have a Facebook, MySpace or Twitter account, it’s no wonder financial institutions are itching to get their hands on your personal information. But can your social media pages affect your credit? Surprisingly, the answer is yes…but that doesn’t mean it’s a bad thing.
If you’re in the process of getting credit repair help through a credit repair program, it’s possible that your social media pages can improve your chances of getting credit. If your social media pages are kept open to the public and you apply for fresh lines of credit, it’s possible (or even likely) that the financial institution considering your application will check out your pages.
When they’re snooping around your Facebook or Twitter page, they collect information and create a consumer profile about you. So, if you’re a fan of a popular credit repair program on Facebook or Tweet about getting credit repair help, the institutions will see that and take notice. This information gives them insight into your behavior patterns, and gives them a better perspective of your creditworthiness.
However, it’s not just about whom you follow on Twitter or who you’re a fan of on Facebook – they also look at whom you’re friends with and what they like. Overall, it’s more about acquiring as much usable marketing data as possible, and less about improving or harming your actual credit score.
By figuring out which groups of people are most likely to seek credit repair help or enter into a credit repair program, financial institutions are able to target their marketing messages more effectively and efficiently. This means that if you’re friends with a lot of people who have bad credit histories, your chances of being marketed to are higher than somebody who only has friends with good credit.
Most people use the Internet every day, without ever thinking of the potential risks to their identity’s security. Considering the facts about identity fraud, maybe they should. The Federal Trade Commission estimates that 1 in 6 Americans will be a victim of identity theft, this year alone! Since it’s easier to prevent identity theft than it is to get credit repair help, here are five common mistakes that you might be making:
1. Assuming your security software is keeping you safe. Criminals create new viruses all the time, and unless you constantly update your security software, it won’t keep you safe. To keep yourself from signing up for a credit repair program in the future, make sure you have the latest version of your security software.
2. Accessing your accounts through email links. If your bank sends you an email suggesting that you update your account information, manually type in the URL you want to go to – never click the link. “Phishing” scams have become wildly popular, because they’re so effective and extremely hard to detect. Save yourself the headache of having to use a credit repair program, and type the link in yourself.
3. Using the same password for all of your accounts. Unless you want to pay somebody for credit repair help, change up your passwords! Use a variety of numbers and letters, and change your passwords at least twice a year. Otherwise, you’re leaving yourself susceptible to the cyber crooks that want to max out your credit cards.
4. Downloading free software. We’re not saying that everyone who downloads free software will need credit repair help in the future, but be wary of downloading something just because it’s free. Before installing anything, do a little online research to see if anyone has had problems with the software. As many identity fraud victims can tell you, an ounce of prevention is worth a pound of cure!
5. Shopping online without checking to see if you’re secure. Before you buy anything online, make sure the URL starts with “https”, which offers much more security than “http”.
It’s also a good idea to frequently check your credit report – just in case. If you find something unusual, find an expert and get credit restoration help immediately. The longer you ignore it, the worse it will be later on.
Where Identity fraud is a unlawful change of identity. It indicates illegal activities that use the identity of another person as a target of a crime. Lets make this clear that identity fraud can occur without identity theft.
Identity theft wont just ruin your day, it will take over your life! Trying to get your life back will not be a short process and the more you delay on correcting ID theft the more money you will be responsible for. This is a not-so-fun fact: The average time spent by victims resolving the problem is about 330 hours. Also that 15% of victims find out about the theft through proactive action taken by a business. There are many different kinds of identity theft types:
business/commercial identity theft (using another’s business name to obtain credit)
criminal identity theft (posing as another when apprehended for a crime)
financial identity theft (using another’s identity to obtain goods and services)
identity cloning (using another’s information to assume his or her identity in daily life)
medical identity theft (using another’s information to obtain medical care or drugs)
My goal is not to scare you but to make you aware of what is out there. If you ever see anything out of the ordinary ie. card you did not apply for etc., these are the following steps that should be taken:
1. Remember if you find out that your identity has been stolen remember to collect and keep a record of mail, phone calls, letters, dates and times. This is the only evidence that you will have to prove your case.
2. The next step is to contact one of the three big credit reporting agencies (listed below), they in turn will contact other two. If your bank account has been penetrated, then close your account immediately and contact a bank representative.
3. Notify your employer and cancel all direct deposit payments to your account. So not to loose any more money and also you may need it if your accounts are frozen. The initial phone call to close out the accounts will only get the process started, institutions want to see the evidence before totally closing out any bank or card.
4. Remember cover your back and make sure to send your information certified mail, so you have proof that they received it, as we know this companies can easily lose important documentation. This is were it can get tricky, first file a police report, so you can prove to creditors that there was a crime.
5. Then file a identity theft complaint form with the Federal Trade Commission so you can understand how you can, “deter, detect, and defend against identity theft”. Which will guarantee that credit agencies are not able to release your information with out your consent.
These steps will get started! If this seems like a lot it is, I am talking form experience. If you’ve suffered from identity theft and ruined your credit, call us for credit repair help.
I received a email recently from an old client the topic was regarding Credit Card increases. Due to the latest legislation that was past earlier this year, credit card companies are trying to do anything and everything they can before the new rules are implemented on February 22, 2010. As we know the average consumer should never agree with “Big Business” at face value. So what are the big credit card companies trying to pull before February 22, 2010, first they have raised the bar for who they deem as “good consumers” in-turn marginalizing the majority of credit card holders. Second, research is showing from the Pew Health Group, that these unjust credit card practices have become even more rampant. Pew research, has also reported that not one of the card companies reviewed would meet the in Credit Card Act regulations passed earlier this year. Even after being called out, they do not even want to show face! At times I wonder how do they sleep at night. Are you surprised, I am not! Will Credit Card companies change there business practices, lets be realistic not until they are forced to.
Let’s keep the following practices in mind, because they are pretty alarming:
99.7% of companies have raised interest rates on outstanding balances
95% of card companies have engaged in harmful practices towards there customers
90% of card companies are using hair trigger option that would increase rates after a card customer makes just one or two late payments. Documentation shows that some payments have gone up 29%
12.24% and 17.99% is the median annual percentage rate used by bank credit cards
Just to put this topic in prospective, people in this country pay around $15 billion a year in credit card penalties. Furthermore, 80% of American families have a credit card, and 44% of families carry a balance on their card. At times it seems like a stacked deck, and you probably say to yourself what can the average credit card user do! Throughout all my years and experience I think creating personal awareness is the most important. As we all know these companies are not our friends. Before I started a career in credit repair I was just like everybody else on the other end of the spectrum. Hopefully, the new Credit Card Act will me implemented and will have oversight. Let’s wait and see I will be optimistic. After finding these new figures, I am making it one of my New Year’s resolutions to report the unjust acts that occur. So you will not fall victim to to these practices. My goal writing this blog was not be depressing going into the New Year, but I want to gear everybody up for a fresh start in 2010.
If you ever have any questions you can email us on our homepage and we’ll answer them on our blog!
So you’ve rehabbed your credit with a credit restoration or credit repair program: you could now be charged annual fees for paying your bills on time. In response to new credit regulations that limit when banks can raise interest rates on credit card and loan bills, banks executives are doing their best to maintain profits. This translates to an increase in fees of all types, as well as new fees being introduced.
Most people use the Internet every day, without ever thinking of the potential risks to their identity’s security. Considering the facts about identity fraud, maybe they should. The Federal Trade Commission estimates that 1 in 6 Americans will be a victim of identity theft, this year alone! Since it’s easier to prevent identity theft than it is to get 
