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Important Steps to Take Following a Credit Card Rejection

Credit Score

If you receive a credit card rejection, it may come as quite a surprise, particularly if you have enjoyed easy credit in the past.

Upon receiving a credit card rejection, you will definitely want to investigate and remedy the problem so you can, once again, enjoy access to credit.

Here are the following steps you will want to take following a credit card rejection:

1. Order a copy of your credit report from all three credit reporting agencies – If you are denied credit based upon your credit score, you are entitled to receive a free copy of your credit report. Take advantage of this offer and order a copy of your credit report so you can begin to understand where the problem lies.
2. Fix the problems on your credit report – If you find information that is either inaccurate or incorrect, you will want to immediately dispute the credit report’s information. To do this you will need to provide the credit reporting agency with a written request to dispute the information, along with any supporting documentation. Once the dispute has been submitted, the credit reporting agency will investigate the situation and provide you with an answer, usually within 30 days.
3. Fix the problems in your budget – If you have made more poor financial decisions that have led to your credit card rejection, the first thing you will need to do is make a household budget so you can have a better idea of how your income is being divvied up among your financial obligations each month. You can’t fix your credit problems unless your first understand how to manage your monthly income and expenses.
4. Fix the problems with your spending – If your spending is the problem, now is the time to make decisions that will either positively or negatively reflect your credit from here on out. Order copies of your credit card statements from the last 12 months and carefully review them so you can get an idea how and why you were overspending. In order to remedy your credit problems, you must face the music by taking the time to really understand the mistakes of the past.

Common Questions about your Credit Report

Credit Score

How much do you really know about your credit report?

Most of us know that a credit report is vital for obtaining any type of credit, yet very few of us actually know our credit score or what is found in it.

If you want to learn more about your credit report, you may have quite a few questions regarding the process of building and maintaining a credit report. Here are the most common questions about credit reports and what you can do to build a strong credit score:

Q: Where can I find my credit score?

A: Each individual actually has three credit scores from the three credit reporting agencies: Equifax, Experian and TransUnion. A creditor may pull your credit report from any of these three agencies, so it is important to check your credit through all of these agencies.

Q: Does it cost money to order a copy of my credit report?

A: Each individual is entitled to a free copy of his or her credit report from all three major credit agencies each year. In addition, if you are denied credit, the creditor who denied you credit must tell you from which credit reporting agency they pulled your credit report; you can then order a free copy of your credit report from that credit reporting agency. You may also receive a free copy of your credit report if you were denied employment or insurance based on your credit report.

Q: What do I do if I find inaccurate or incorrect information on my credit report?

A: You can dispute the information found on your credit report with the credit reporting agency. To do this you must provide your dispute, in writing, to the credit reporting agency, along with any supporting documentation. The credit reporting agency will then investigate your dispute and provide you with the results, usually within 30 days. Any inaccurate or incorrect information will then be taken off your credit report.

Q: Who can get my credit report information?

A: The only way a creditor, insurance company or employer can obtain your credit report information is with your approval.

How to Save yourself From Financial Disaster

Credit Card Debt

There are certain things you can do to ensure your financial future will be bleak. Risky, irresponsible financial decisions can quickly get you in trouble, so it’s important to realize bad decisions before you make them.

If you are concerned that your current actions will have a negative effect on your financial future, then you owe it to yourself to understand the many decisions that can wreak havoc on you and your credit report:

• Using balance transfers without concentrating on paying off the debt – If you are a serial balance transfer individual who doesn’t have any kind of game plan for paying off your debt, you could be heading into murky financial waters. Instead of transferring your balances only to transfer them again once the promotional period has ended, take the time to set up a realistic repayment plan so you can say goodbye to feeling like a hamster running on a wheel, going nowhere.
• Failing to pay attention to your credit report – What you don’t know can hurt you, and this is particularly true when it comes to your credit report. Mistakes, errors and inaccuracies can cost you in the form of higher interest rates or even credit rejection, which would have a serious impact on your finances.
• Spending freely on retail credit cards – There have been many studies conducted that show consumers are more likely to overspend in a store if they have a retail credit card in their wallet. Because of this, many people charge up retail credit cards and get themselves in over their heads, thanks to the high interest rates and fees that come along with many of these types of cards.
• Failing to make a budget – A household budget is essential if you are to maintain your financial health. In other words, you can’t begin to make good financial decisions if you are unaware of where your paycheck is going each month.
• Making just the minimum payment – You can assured of going nowhere fast if you pay just the minimum payment each month. Often times the minimum payment barely covers the finance charges, thereby sticking you with a balance that goes nowhere but up.

How to Handle Finances with your New Spouse

Introduction

Once married, many of us begin to share finances. From checking and savings accounts to mortgage payments and credit cards, finances for newly married couples can be a tricky endeavor, particularly if you don’t plan ahead and ask the right questions.

Here’s what you will need to consider when it comes to finances and your new spouse:

• Don’t automatically begin sharing finances if you and your spouse aren’t prepared – If you are recently married, and you haven’t yet had serious conversations about everything from a household budget to credit card spending, keep your finances separate. Some couples keep their finances separate throughout their marriage, and that’s okay; it’s about whatever works best for you as a couple.
• Keep the lines of communication open – If you must make a large purchase, inform your spouse and get his or her input. Expect your spouse to do the same. Keeping financial decisions from each other is a recipe for disaster, and it may lead to trust issues within the marriage.
• Talk about debt and how to get rid of it – If you or your spouse has credit card debt or student loan debt, for example, make a game plan for paying it off. It just doesn’t make good, financial sense to enter into a marriage with loads of debt, so the sooner you pay it off the sooner you’ll have the money to afford large purchases, like a home.
• Talk about monthly spending – If your spouse is a spender, keep him or her in check by setting a monthly spending limit, and follow it yourself, too. Keep each other honest by charging purchases on one, joint credit. Doing so can also allow you both to examine your monthly spending habits and find ways to cut back.
• Order a copy of your credit report, and ask your spouse to do the same – It’s nearly impossible to set financial goals together as a couple if one or both of you has past credit problems. Carefully review both credit reports so you can better gauge where you stand in terms of finances. Then, aim to repair your credit, if necessary, or to correct any errors or discrepancies.

A Great Credit Score is in your Future!

Credit Score

If you haven’t had a chance yet to establish a strong credit score, you may be wondering how to go about doing so. Luckily, there are a number of ways you can begin building your credit score so you enjoy the many benefits of a strong FICO score.

Here’s what you need to do to begin your journey to a strong credit score:

• Order a copy of your credit report from all three major credit reporting agencies. Although you may think your credit report will be virtually blank, mistakes do happen and it’s possible that there are errors on your credit report. You are entitled to a free copy of your credit report from the credit reporting agencies once a year so take advantage of this opportunity and order them today!
• Once you have checked your credit report, you must open a checking or savings account. Lenders of any kind like to see an active bank account, as it shows financial stability. Plus, it provides you with a means to pay on monthly bills and debts.
• Understand the factors that credit reporting agencies take into consideration when determining your credit score. Understanding that your credit score is made up of a number of factors, including payment history, payments and the ratio of debt to income, will better help you build your credit score.
• Start with a secured credit card to begin building your credit history. Secured credit cards are essentially credit cards that are secured with a cash deposit. Once you have established a history of regular payments with a secured credit card you can likely apply for – and be approved for – an unsecured credit card.
• Don’t think just in terms of credit cards when considering your credit score. In fact, lenders and credit reporting agencies look at your payment history on other types of monthly bills, including student loans and utilities, just to name a few. In other words, be responsible when paying any type of monthly bill or debt, as it could reflect poorly on your credit score if you don’t.

Easy Strategies for Keeping more Money in your Pocket in the New Year

Introduction

Have you made a New Year’s resolution? If so, you’re in good company. But I wonder how many people have made a financial resolution? If making a financial New Year’s resolution seems about as plausible as sticking to your New Year’s diet resolution, cheer up: it is possible to change your financial thinking and keep more money in your pocket this year.

Here’s what you can do to change your financial future so the New Year won’t be so frightening in terms of finances:

• Start the New Year out right by ordering a copy of your credit report and clearing up any errors. Ordering a copy of your credit report from all three credit reporting agencies is a great first step to kicking off your New Year’s financial resolution. Simply put: you can’t fix things if you don’t know they exist. Bite the bullet and take a good, hard look at your debt.
• Gather your family around you and set financial goals together. Write them down and make it a family effort to see the goals through. Whether it’s to spend less and give to charity more, or it is to save more money for the family summer vacation, your financial goals should reflect your family values.
• Gather your credit cards together and set a game plan in motion for getting them paid off. It may seem like an impossible task, but the reality is that all you need is a solid game plan for making it happen. It will take perseverance and a good deal of determination, but make a plan for setting aside a particular amount of money each month that you’ll put toward your credit card goal so you can free yourself of the burden of debt.
• Take a credit card vacation and see how it changes the way you spend. Many families spend freely on credit cards but, when faced with paying with cash, are much more frugal. Taking just a one-month break from credit cards may provide you with an incredible amount of insight regarding your spending habits. You may also find that you spend much, much less!

I was Denied Credit: What Are my Options Now?

Choosing Credit Card

You applied for a credit card, home loan or car loan when, unexpectedly, you receive notice that your application for credit was denied. You naturally assumed your credit score was strong, so this news comes as quite a shock.

The biggest question that comes to many individuals’ minds when they are rejected for credit is: Now what?

Well, the worst thing you can do at this time is nothing. Simply accepting that your credit score is not strong enough for credit won’t do anything to begin fixing what went wrong. So here’s what you need to do:

• Order a copy of your credit report. The good news is that you are entitled to a free copy of your credit report from
  the credit reporting bureau that was used by the creditor to determine your credit worthiness. However, it is important to order a copy of your credit report within 60 days of your credit denial in order to take advantage of this free offer.
• Verify all information on your credit report. In other words, it’s not just your credit history you should be checking. You should also make sure your name, your birth date, your social security number and your address are all correct. Other information you may find on your credit report details marriages and divorces, bankruptcies, lawsuits, and any and all types of credit you possess.
• All credit accounts, along with your payment history from at least the last two years, will appear on your credit score. Make sure the payment history is accurate, as well as the creditor to whom you are paying and the type of creditor it is.
• Make a detailed list of any and all information that is in question. Anything that appears incorrect, out-of-date, or difficult to understand should be included in your list. You will also want to keep a close eye out for any information and activity that appears fraudulent.
• Take the time to contact the credit reporting agency and submit a dispute. It is then up to the credit reporting bureau to research your dispute so you can have these errors corrected in an effort to raise your credit score.

Should you Purchase Credit Card Monitoring Services?

Identity Theft

With all the scary stories of credit card and identity theft running rampant on the news these days, many of us feel rather vulnerable when it comes to your credit cards and the safety of our identity and personal information.

With that said, many consumers check their credit reports frequently as to ensure the safety of their identity. Many consumers also take it one step further and purchase credit monitoring services.

What are Credit Monitoring Services?

Credit monitoring services are paid services, through one of the three credit reporting bureaus: Equifax, Experian and TransUnion.  Credit monitoring services may also be provided through independent companies, such as Lifelock.

What do Credit Monitoring Services Do?

Instead of you, the consumer, checking your credit report for signs of non-authorized activity, the reporting agencies do it for you, with a price tag of around $60 to $180 per year. Credit reporting agencies, through credit monitoring services, monitor your credit report for any unusual changes and then alert you to these changes. The advantage of credit monitoring services is that you can catch any suspicious activity almost as quickly as it happens, thereby lessening your chance of being caught in an identity theft situation.

Lifelock, and companies like them, often go one step further when it comes to protecting your identity, as they review how your credit is being used and if your social security number has been compromised or used fraudulently.

Are Credit Monitoring Services Worth the Money?

According to a recent study by Javelin Research, the use of credit monitoring service has dropped off nearly 42 percent since 2008. Unfortunately, though, credit card and identity theft has risen dramatically during this time.

The truth of the matter is that most people do not think about identity theft until they have become victims themselves. Although consumers have several options when it comes to protecting their identity, paying for credit monitoring services may very well be the best defense against fraudulent credit card use and identity theft.

In addition to purchasing credit card monitoring services, you can also protect yourself by: shredding any and all personal documents; safeguarding your social security number and your social security card; and being selective about where and when you use your credit card.

Facts about Credit Cards and your Credit Score

Credit Score

Do you think you know the secret to a great credit score? Most of us certainly seem to think so, but there are quite a few factors – many of which we are not aware – that can have a big impact on your credit score.

• To activate or not activate – Many individuals think that if they don’t activate the credit card they receive in the mail then it won’t show up on their credit score. Unfortunately, this is not the case, as the account shows up as being active, even before you activate it. So if you change your mind about a credit card somewhere between applying for the card and activating it, know that the account has already shown up on your credit score. Your best bet is to make sure you take the time to understand whether a new credit card is right for you before you apply for it.
• What you don’t know about can hurt you – If you think you are in the clear because you pay your bills on time, you may be wrong! Many people have incorrect information on their credit reports that ultimately damages their credit scores and their chances of getting competitive interest rates on everything from cars to homes. Your best bet? Always take the time to check your credit score to ensure that the information that is on it is accurate. Most financial analysts recommend checking your credit score at least once a year.
• Paying your bills on time are just one part of the equation -  You pay all of your credit card bills on time each month, so you must have great credit, right? Most people don’t realize that bill payments are just one part of your credit score. Another large part of your score involves the amount of open credit on your credit score. In other words, if your credit cards are maxed out, regardless of whether you are able to pay your monthly minimum payments, your credit score may take a hit because you have very little available credit.

Credit Cards and Marriage: Getting started Right

Introduction

If you are getting married soon, chances are you and your spouse will each come into the marriage with your own set of bills; and that includes credit card bills. In order to start your life out on the right foot, you and your spouse will need to be on the same page when it comes to finances; and to do that you need to remain open and honest with one another.

Here’s what you and your spouse, or soon-to-be-spouse, may want to discuss:

• Order copies of your credit reports – There is no better way to start a marriage than by laying everything out on the table. Regardless of the financial mistakes you or your spouse made in the past, it is best to begin your life together with complete knowledge of where you stand financially. Agree not to judge each other; just concentrate on your goals moving forward.
• Consider consolidating debt or paying it off – One of the best things you can do before you even think about any other financial decisions is to pay off outstanding credit card bills that either you or your spouse currently possess. Paying off debt, especially high-interest credit card debt, will free up your household budget so that you can move forward and work together to save money and create savings.

In addition, if you or your spouse have a great credit card with a low interest rate, consider transferring your other credit cards to just this one card.

• Consider opening a joint credit card account instead of carrying separate accounts. A joint account will allow you and your spouse to keep better track of your household spending and work together to pay the bill each month. This is also a good way for both you and your spouse to stay better informed regarding your credit card debt.
• Choose the card that’s best for you – Consider your options regarding credit cards, and decide on a card that will benefit both you and your household. For example, you may want a low-interest, no-frills credit card or one that comes with attractive rewards.