About Credit / Debt Management

Should Employers View Credit Reports?

2009-11-07T11:45:13Z

When you put in a job application, the employer might check your credit report. Why? To predict job irresponsibility or financial overload that could interfere with the job. In some financial jobs, credit reports are used to assess the risk of embezzlement or other financial dishonesty.

You do have the right to view the report and dispute any inaccurate information if the employer takes some adverse action against you based on your report.

But is a credit report a reliable way to predict how someone will perform on a job? Does having several past due bills indicate that you can't or won't perform well?

What do you think? Should employers be allowed to use your credit report in hiring, promotion, and reassignment decisions?

More Reading:
When To Check Your Report | Credit Report Dispute | How To Read Your Report

Should Employers View Credit Reports? originally appeared on About.com Credit / Debt Management on Saturday, November 7th, 2009 at 11:45:13.

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Credit Union Credit Cards Are Better

2009-11-06T12:45:01Z

If you're looking for a good credit card deal, try your credit union. A recent study shows credit cards offered by credit unions have lower interest rates and fees. Even the average default rate - the interest rate charged when you miss a credit card payment - is lower with credit unions (an average 17.9% for credit unions compared to 28.8% for credit cards backed by other banks). Similarly, the median late fee for credit unions is $20 versus $39 for bank credit cards.

If you're not already a member of one, you may be able to join a credit union based on your job or affiliation with certain organizations.

Source: Forbes.com

More credit card news: Read more...

Credit Union Credit Cards Are Better originally appeared on About.com Credit / Debt Management on Friday, November 6th, 2009 at 12:45:01.

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Can You Afford More Debt?

2009-11-03T00:36:08Z

While you might think a credit card or a loan is helping you "afford" to buy groceries, it's only postponing an inevitable financial crisis. According to Merriam Webster's dictionary, to afford something is "to manage to bear [it] without serious detriment." Before you take on more debt, think about how it will affect you. If you're already having trouble paying your bills, adding more debt will make it even harder.

Using your credit card seems like the easy answer when you're strapped for cash and need more groceries, but it's only a quick fix for a bigger problem. If you're having trouble making ends meet, it's time you evaluated your finances and made some adjustments to ease the situation.

Here are some resources to help you:

Can You Afford More Debt? originally appeared on About.com Credit / Debt Management on Tuesday, November 3rd, 2009 at 00:36:08.

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Your Credit Card Just Isn't That Into You

2009-10-30T12:15:25Z

Are your creditors trying to get rid of you? According to American Banking News, that could explain why they've been hiking interest rates to unbelievably high levels. After all, if your credit card companies wanted to keep you as a customer, they wouldn't hike your interest rates and slash your credit card limits, would they?

American Banking News credits Dave Ramsey with the idea that credit card companies are trying to get rid of certain types of debts. It's certainly one possibility.�Of course, the impending credit card rules and profit losses might have something to do with it too.

When credit card companies raise your interest rates, they're required to give you the opportunity to opt-out of the new rate and pay your credit card at your lower rate. In exchange, you have to close your credit card account. If you opt-out of the increased interest rate, your card issuer can double your minimum payment or request that you pay off your balance in five years.

Credit card news roundup:

Chase lowers an Ohio couples minimum payment after it more than doubled last June. (CNN)�Some credit.about.com readers have also been able to go back to their previous minimum payment by converting their balance to a five-year fixed-rate loan.
I guess I'm the only one who has my credit card number memorized. Amazon has started using a new service called PayPhrase that lets you make purchases using a two-word phrase along with a PIN. PayPhrase stores your credit card information - your card number, expiration date, and security code - and retrieves it when you enter your phrase and PIN. -GadgetCraze
WalletPop's roundup of the best credit cards and the worst credit cards.
Curtis Arnold, founder of CardRatings.com, will answer Baltmore Sun reader questions on November 3. You can post your questions on their blog. -Baltimore Sun
Small business credit card offerings grow as loans for business start-ups are less common. Terms on small business credit cards are often better than terms for consumer credit cards. -CNN Money
Bank of America cancels a cardholder's credit card after she complained about her credit limit being lowered. Days later, the bank called, apologized, and reopened her account.-Huffington Post

Your Credit Card Just Isn't That Into You originally appeared on About.com Credit / Debt Management on Friday, October 30th, 2009 at 12:15:25.

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Think Your Credit Report's Right? You Could Be Wrong

2009-10-29T00:45:09Z

Don't take for granted that your credit report only contains accurate information or that errors will somehow correct themselves. It's up to you to check your credit report periodically to make sure it's right.

Having an accurate credit report is important because lenders, landlords, utility service companies, and even employers check your credit report to make a decision about you. If the wrong information is on your report, it could end up bad for you. Fortunately, you have the right to an accurate credit report and can have �errors removed through a�credit report dispute.

Connecticut Senator Moves to Freeze Credit Card Interest Rates

2009-10-27T01:05:32Z

Senator Dodd of Connecticut introduced a piece of legislature that would stop credit card companies from increasing interest rates until the new credit card rules take effect, according to the Wall Street Journal. Since the new credit card law was approved in May, nearly every major credit card issuer has raised interest rates on its cardholders.

Though the new rules aren't supposed to take effect until late next February, another piece of pending legislation aims to move the effective date to December 1 this year. Last week, the House Financial Services Committee voted unanimously to move the date. The law still has to be voted by the entire House, then the Senate before it becomes effective.

According to a Credit.com survey, the majority of consumers want the credit card rules pushed up. However, Federal Reserve Chairman Bernanke warns moving up the date could ultimately be costly for consumers since credit card companies would pass down the cost of rushing to meet the new law.

If it's approved, an interest rate increase freeze could prove to be just as beneficial for consumers as moving up the date for the new credit card law. After all, the goal is to prevent credit card issuers from taking advantage of cardholders.

You can avoid the effects of higher interest rates by paying your balances in full when your billing statement comes. That way, you don't have a balance subject to finance charges.

A piece of the new law has already gone into effect requiring credit card issuers to give a 45-day advance notice of interest rate increases.

Federal Reserve Chairman Says Moving Up Credit Card Rules Might Hurt Consumers

2009-10-23T14:06:17Z

Congress is considering moving up the effective date of the new credit card rules from February 22, 2010 to December 1 this year. But, according to Boston Herald, Federal Reserve Chairman Ben S. Bernanke has warned Congress that moving up the rules could hurt consumers. Bernanke says it would be costly for credit card companies to get ready for the new rules so quickly. Like they typically do, credit card companies would pass these costs off to consumers.

In a recent Credit.com survey, 56% of consumers say they want the credit card rules moved up. I tend to agree with Bernanke. It'd be nice to have the rules implemented sooner, but I'm sure we'd see all types of other (more costly) changes in the meantime.

Weekly credit card news roundup: Read more...

Federal Reserve Chairman Says Moving Up Credit Card Rules Might Hurt Consumers originally appeared on About.com Credit / Debt Management on Friday, October 23rd, 2009 at 14:06:17.

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7 Types of Loans

2009-10-22T13:43:00Z

A loan is an amount of money that's given from one (the lender) to another person (the borrower) with an expectation of repayment. Loans are a type of debt. If you're not careful when you take out a loan, you could end up with one that's hard to repay, leaving you in debt. Learn more about the loans you can borrow by reading Seven Types of Loan.

7 Types of Loans originally appeared on About.com Credit / Debt Management on Thursday, October 22nd, 2009 at 13:43:00.

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Citibank Closes Shell, and Other Gas MasterCards

2009-10-20T00:31:29Z

Without warning, Citibank has closed their oil-branded MasterCard credit card accounts, according to Associated Press. There hasn't been a statement on the number of credit cards that have been closed.

Unfortunately, you don't always have control over whether your credit card gets closed and when. Credit card companies can close your credit card at any time, without warning and without an explanation.

In some cases, closing a credit card can hurt your credit score, especially if you have a balance on the credit card. If your Citibank oil MasterCard has been closed, consider paying off the balance immediately to reduce the impact to your credit score.

Citibank Closes Shell, and Other Gas MasterCards originally appeared on About.com Credit / Debt Management on Tuesday, October 20th, 2009 at 00:31:29.

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First Premiere Credit Card Has a 79.9% Interest Rate

2009-10-17T10:55:27Z

When I first read the headline, I thought it must be a typo. Either the author made a typo or the credit card issuer included a typo in the credit card disclosed. Neither. NBC San Diego says a Sacremento man received a pre-approved credit card offer from First Premiere. The man, not believing the interest rate, called First Premiere and the company confirmed that 79.9% was indeed the APR on the credit card being offered. No wonder he was pre-approved.

Not only does the credit card have a sinfully high interest rate, it's also loaded with upfront fees that take up 80% of the credit limit, leaving only $50 of available credit. After the new credit card laws become effective next February, credit card issuers won't be able to take up more than 25% of available credit with these initial fees. Unfortunately, the interest rate is perfectly legal.

There is no federal cap on interest rates. Instead, each state has their own maximum interest rate rules and some states have no caps at all. You can avoid an interest rate like this by turning down the credit card offer.

Source: WalletPop

Credit card news roundup: Read more...

First Premiere Credit Card Has a 79.9% Interest Rate originally appeared on About.com Credit / Debt Management on Saturday, October 17th, 2009 at 10:55:27.

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