Man wanted for identity theft by Honolulu Police

Honolulu Police is looking for a man involved in identity theft and asking people to identity this man. According to Honolulu police, this person makes 27 transactions in only 20 days time from October 8 to October 29, 2007 using different ATM cards located at 651 South King Street.

Further investigation with Washington Mutual Bank in NY, it was discovered that someone used all of the victims personal information and changed their PIN via phone. Most of the victims claiming that they have their cards in possession and the suspect was using the ATM cards in NY, Las Vegas and Hawaii.

Police have asked people to call on the CrimeStoppers at 955-8300 if they get any information about this incident.

Link – Via - khnl.com

Arkansas customers will have access to “Security freeze” in the New Year

Arkansas consumers will have a new tool in the form of ability to freeze their credit report which will take effect from Jan 1st 2008 against identity thieves.

Security freeze that allows customers to put a freeze on their credit report is on the top of many laws that are going to take place from the 1st of 2008 in the State.

Under security freeze, the customers who have been the victim of identity theft can ask the credit reporting agencies to place a freeze on their credit report. This security freeze will stop credit agencies from releasing the customer’s credit report and credit score information in response to a request for opening a new account or to get credit.

Link - Via - pbcommercial.com

Credit report and credit score myths explained

Have you heard too much about credit reports, credit history and credit scores? It seems as if everyone has surly some advice for you. Some of the advices are right but some of them may be wrong as well. If you have some confusion about your credit report and looking for the answers of some of your credit report questions then you are on the right place where you are going to clear some of your credit reports and credit score myths:

1. Closing or canceling of existing credit accounts
   

   Some people have the misconception that closing down of some of existing credit accounts will help them to increase their credit score. But the fact is that closing some of your credit accounts will not help you but instead damage your credit score further because you will have shorter credit history then. So open few accounts that you can manage easily and in case you have opened too many accounts, you are just damaging your credit score as handing higher number of credit accounts is not going to be easy.

   
   


2. Checking my credit is going to harm my score
   

   Some people misconception that regular checking of your credit score is going to harm it is not true. But the fact is that you are going to harm your credit score in case you don’t check it regularly. By checking your credit score, you have better idea about the things that are going on with your credit accounts.

   
   


3. All of the credit reporting agencies gives the same credit score
   

   It is not true that all of three credit-reporting agencies Equifax, Trans Union and Experian give you the same credit score. All of bureaus offer you credit score on the basis of information reported to them. And since the credit reporting agencies are being help by different companies. So it’s not necessary that they all have the same information reported about you.

   
   


4. Marrying to someone with bad credit will lower my credit score
   

   Marrying to someone with a bad credit will have no effect on your credit score by the time you do not have a joint account. Both of you have different credit report and different credit scores. So your spouse credit history can never have an impact on your credit report by the time you have separate credit files.

   
   


5. My credit score will improve with my debt payments
   

   In case you haven’t paid your debt or made the late payments, that information is going to stay on your credit report for at least seven years. So paying your debt later will not help you in removing ‘unpaid debt’ from your report for seven years.

   
   


6. Too many credit card offers are hurting my credit score
   

   It’s not true that any credit card offer can have bad impact on your credit score by the time you don’t respond to them. Your response to every promotional credit card offer will generate several inquiries into your credit report and that will bring your credit score down.

   
   


7. I don’t need to check my credit report because I pay my bills on time
   

   This is not true that you don’t need to check your credit history in case you pay your bills on time. But the fact is that 80 percent of credit reports contain errors and 25 percent have errors serious enough to deny you any kind of credit. So check your credit report regularly.

   
   


8. Bankruptcy and foreclosures can’t be deleted
   

   It’s not true that bankruptcy and foreclosures can’t be deleted from your credit history. There are companies who specialize in deleting negative listing including bankruptcy and foreclosures.

   
   


9. I must have big income to make a big credit score
   

   Credit score has nothing much to do with your earnings. Credit score has much to do with your paying capacities. No credit score or credit report has your income mentioned. The issue with credit isn’t how much you are earning but has much to do with your repayment obligations. A person who earns $50,000 per year can have better credit score compared to a person who earns $300,000 per year.

   
   


10. What is a really good credit score?
    

    There are some misconceptions about a good credit score. Credit score of around 700 is really a good credit score. One should always aim at that score. With good credit score, you’ll have credit available easily and on lower interest rates.

    
    

How to change An adverse credit history?

There are so many ways which can reduce your credit history “Adverse” to “Normal”. It may take many months or years to do this, but it is more financially viable in the long run. It may be possible that you have paid off your all debts and still the credit agency showing you in adverse credit history. You should have one set of document with you to verify standing. Many people found that credit agencies having incorrect report that may be effect on financial worthiness of applicants. There are debts that adverse credit ratings are not removed from the report many months and years after they have been paid off. These will still give you an adverse credit history rating, and it is in your best interest to have them removed. Following ways that can be used are:

1. Debt Counseling


2. Debt Consolidation

Debt Counseling: Many people having worst credit history and their debts are unmanageable and day-to-day they are going to be increase in humongous way. The effect could be their rate of interest may be increased what initially they have got. A debt counseling service is a company that may be work for an individual or a family. Debt counseling company may be work for profit or non-profit. The main aims of the debt counseling service are to control the debt so that repayments are manageable and, if necessary, to repair the client's credit score. Debt counseling services can offer advice on how to reduce monthly debts bill. One way can be convert High interest credit cards in to low Interest. These cards may be offered sometimes low interest rate. Transferring bills this way can save a great deal of money.

If you own your own home, then a debt counseling service may advise obtaining a home equity loan. By doing this, you will be able to secure a low interest loan. This is a good option when trying to reduce your monthly debt bills and lower your overall debt. Personal loans that are not secured usually have a higher interest rate and are usually last resort options when borrowing.

The debt counseling service may be helpful in reducing long-term debt plan. This plan helps you to maintain and use the debt now and in the future. Of course the debt counseling agencies help you about the proper use of the debt and stop misuse/Clear of debt.

Debt Consolidation: That is like it name appears consolidate the debt and than disperse. It helps to reduce the interest rate that applicant pays for various payment. It allow consumer to assorted or combine their unsecured bill and change in to one payment. Instead of making payment into various banks, shops etc. give it to debt consolidation agency then they will disperse funds for you.
Debt consolidation also helps in time saving that may be help you in other valuable activities. These types of debt consolidation agency work in every city or society.

Lets talk more in Detail about Adverse Credit History

An adverse credit history is being is tracked by Credit Agencies. When someone takes credit from financial organization, this credit history effects his lending option. For adduce the Credit Agencies find out the financial worthiness for borrower. This information can be quite detailed and arduous to navigate by a potential lender dealing with a new applicant. Credit Agencies investigate the applicant credit worthiness based on Credit Scoring. In western country (like America) a good credit scoring lies “Between” (350-800), that credit scoring offers a standardized way for lenders to assess that risk rapidly and "without prejudice.

Applicant having adverse credit history may get reduction in lending money or home loan or investment in other sources. In the United States, in certain cases, insurance, housing, and employment can also be denied based on a negative credit rating. Important thing is, this task is related to Credit Agencies to find out whether an individual Credit History is “Adverse” or not. That is totally depend on the lender or Financial Institution. In the United States, a creditor is required to give a reason for denying credit to an applicant immediately and must also provide the name and address to the credit reporting agency who provided data that was used to make the decision.

Due to your adverse credit history a lender or Institution may refuse to give you the credit or can increase Interest rate on the credit that they have offered to applicant. Credit agencies track your repayments on loans and other forms of credit. They keep this information on record and assign each person a credit score. If your credit score is below a certain amount, then you will be marked down as having an adverse credit history. This may mean that you are unlikely to repay your credit transaction on time or that you may miss payments.

Top reasons why you have lower credit score

In case there are some serious errors in your credit report, they will lower your credit score and as a result lenders may think twice before giving you credit or will offer you credit on big interest rates. And if you can give some time to improve your credit rating, you will have better situation when you apply for a credit card, loan or mortgage next time.

Make sure that everything is fine with your credit report. And if you have some doubts about your credit report, take help and try to improve your credit status. Keep on checking your credit report and maintain a good credit history. Sun money has given some tips about how to avoid and how fix the mess:

• In case you have missed payments in the past : all of those evidences stays in your credit report for the next 36 months and all of these records will leave negative impact on the lenders. If there is any particular reason like illness or accident due to which you missed the payments, you can add a note in your credit report, which will make a big difference in your standings before the lenders.


• Lenders will not notice you much in case you have lots of credit already. In case you already have many credit card, loans and have debts to pay for, you will have problems in getting more credit. If you have cards you don’t use or loans with a very small amount to be repaid, cancer and clear them before asking for more.


• If you have made several applications for credit recently, they all will be available in your credit report to the lenders. And when they see too much of credit applications, they will believe that you're in dire need of money or planning a credit fraud. If the lenders are planning to run credit search on you, make them understood that you are just looking for the information and ask them to set the records straight.


• You are not registered to vote at existing address. Lenders use Electoral poll as a precaution against fraud to determine you are who you pretend to be and you are staying at the address where you are saying. If you don’t have one, contact your local council.


• You have been bankrupt – most of the bankruptcies are discharged in a year these days but the records of bankruptcy stays in your credit report for the next six years at least. During this interval, you will be really hard for you to get any credit.

Hard Pull VS Soft Pull

Credit Inquiries:-

When the terms comes Credit Inquiry that can be divided in to two parts e.g. "Soft Pull" & "Hard Pull". Both having large implication in credit inquiry. So what’s they are exactly and how they effect on Credit Inquiries. Both are having well defined terminology as their name appears.

How they Works:-

When we are talking about “Hard Pull” so it can be described as an initiative that could be taken by applicant and inquiry made by company. For example if you are applying for a loan or post paid connection , so lender will run a credit check or voluntarily check out your financial back ground. In another way this can be called as voluntary inquiry.

But it does not mean that every voluntary inquiry will be called as “Hard Pull”. For example if you apply for account opening in any financial institution they will not run any Hard Pull inquiry. They will conduct only “Soft Pull” inquiry that means creditors only check the pre-approved document. In case you only need to send the accurate document for verification. If you check your credit history that is also called “Soft Pull” Inquiry.

But with definition of credit bureaus they have slightly different terminology.

TransUnion lists credit inquiries in two categories:

• Regularly inquiries: These are equivalent to “hard pulls” and will remain on the credit report for two years;


• Account review inquiries: These are “soft pulls” and according to TransUnion, companies use “soft pulls”

For the purpose of an account review or other business transaction with you. These inquiries are not displayed to anyone but you and will not affect any creditor’s decision or any score.

Experian shows credit checks as:

• Requests viewed by others: These requests are usually “hard pulls” as they are Results of actions involving you, such as the completion of a credit application or the transfer of an account to a collection agency, application for insurance, mortgage or loan application, etc. Creditors may view these requests when evaluating your creditworthiness.


• Requests viewed only by you: These are “soft pulls” that are not available to creditors when they evaluate your credit.

Soft Pull Inquiry:-

A Soft Pull inquiry that does not have any effect on your credit score. Soft Pull inquiry eventually fast happened and you may not be aware of happening it. Each of the soft credit check does not show in your credit report. They are available only for your reference and not available in lender record. There are many examples which show the case of Soft Pull:-

1. Credit score and report check by you.


2. Credit background checked by curious employer.


3. Initial credit check by credit card Company that wants to solicit you pre-approved credit check.

How Do Soft and Hard Pulls Show Up On Your Credit Report

The three credit bureaus, TransUnion, Experian, and Equifax have different names for soft and hard credit pulls, but they operate in the same way. Soft credit pulls are recorded on your credit history file but have no effect on your credit score and are only available for you to see. Hard credit pulls on the other hand will negatively hurt your score and each hard inquiry can be viewed by lenders looking to extend you credit.

Rule Of Thumb:

At the last but not least there should be a “Rule of Thumb” that is if possible avoid the “Hard Pull” Inquiry that will effect your credit score and infect that drop 5-10 points in your credit score per year. Soft pull inquiry shows your rich attitude and financial strength. When lender run a credit check or inquiry, he goes to your credit score or report and people who is having more hard pull inquiry in his credit reports treated as poor debtor. In case lender will not give any preference such type of applicant. So if you are not sure which type of inquiry a bank or lender going to be run ask and then go for it. Eventually you must go for a “Soft Pull”. Because each hard pull hurts your credit history temporarily a bit (with some exceptions), people always very protective of their credit checks. I personally try to keep them down to about 4-5 within the last rolling six months. Because present scenario everybody is trying to reach out the mount and getting more and more credit. So lender is also interested to giving it at more interest rate that can be because your credit report shows that you have gone through more “Hard Pull.”

Considering Points while apply for Credit

As economy is growing so every one is in queue for getting credit. Most important part is, when some is going to take the credit how much interest rate he got. Now considering this point we will have to look the aspect which needs to improve for a debtor. There are following points which may be improve a debtor financial worthiness. There are lots of agencies who work for borrower and help to improve their credit score.

An applicant who is facing the same problem and lender is denying to give the credit, so he may be take help to this agency. There is one of the renowned credit agency called Equifax which collect the information about applicant. Information can be divided in to five phases ; Your personal Information, Inquires, Credit History, Public Record and Your over all Credit Score.

Personal Information:

Personal Information can be your details e.g. you’re Name, Your spouse name; Job Status; Security Status, Current & Formal Address, Job History & Financial background. This information should be appropriate and correct. If necessary you can take out help of Equifax Credit Agency to collect all information. This should be authenticated or updated as per your current status.

Inquiries:

Next is your Inquiry section that is most important part for an applicant. In case of Equifax report there are two types of Inquiries; one is Hard and second is Soft Inquiries. Hard Inquiry is like which is initiated by you and made by company, e.g. an applicant who applies for Mortgage loan or Credit Card. But in case of Soft Inquiry that does not show the creditor unless until you request for it. So it’s totally depends on the initiative taken by applicant.

Credit History or Public Relation:

Third is Credit History & Your Public Relation that all shows your financial status and worthiness. It include how you done your debts and payment. Credit history lies between the credits score & would be a major factor for considering applicant financial strength. Long pending debts or overdue can be reduce your credit score. Even if your public relation is not strong that can also effect on your credit score. They usually will stay on your Equifax credit report for six to ten years.

Credit Score:

Last is your credit score. That credit score shows how credit risk taker you are. More creditors are interest in applicant credit score. In UK and America credit score lies “Between” 350 to 850 considered as best credit score. Creditors consider that more credit score means you are less risk taker and eventually that decided your credit amount. If the score is lower, you will be seen as a higher risk and while you still may get loans, you will likely be headed toward higher rates of interest.

Your Equifax credit report has a big influence on your ability to make purchases on credit. Many state and federal laws allow you to receive a copy of your Equifax credit report either for free or at a low cost. Take the time to get a copy of your Equifax credit report, as well as ones from the other companies. That way you can be sure that all information are correct and decided how risky you are while taking loan.

Equifax improved and enhanced its customers online credit report

Equifax credit reporting agency has made some improvements to its existing credit reports for its customers. New version of credit reports will have debt to credit ratio, account summaries with no additional cost.

Under the new version, front page of your credit report will have more detailed summary of your credit history. A customer credit report front page will include credit history, including accounts, debt- to-credit ratios, account age, and potential negative credit histories -- all on one page. Each section will have brief explanation to help customers to understand their credit report in a better way. Click on the following link for a Sample Equifax Credit Report

Equifax Personal Solutions was the first company in the industry who started offering online reports to its customer’s way back in 2001. Since than millions of Americans have used this service to access their credit reports, to identify signs of identity theft and disputed errors in their account and as a way to understand their credit health in a better way.

"We learned that most consumers pulled their credit report to evaluate their own credit standing," said Steve Ely, President of Equifax Personal Solutions. "To help them achieve that goal, the new format lets them understand what they need to know about their credit at a glance."

"In these rapidly changing economic times, understanding your credit health is critical to achieving your financial goals. By presenting your credit information in a clear and concise manner, Equifax is helping consumers meet those goals," Ely said.

To know more about Equifax and its products visit www.equifax.com

Credit crunch expected to ease

Australian interest rate is likely to be peak at 7 % early next year with central bank involvement expected to ease global credit crunch.

Global credit market was almost frozen in the last few weeks with banks refusing to lend money to each other because of the worries where the credit crunch is going to hit after US.

Via NEWS.com.au

People who can Apply Credit Card with bad credit history

Credit cards for people with bad credit: aims at strengthening and rebuilding the credit history that is currently poor. Do you feel that all is lost, when one particular lender refuses to issue you a credit card that doesn’t sound sense? It was all once upon a time when there were only very limited lenders and hence there was a demand for them. Today, there are numerous in the field coming every day who cannot really avoid people like you; if they want to be in the field. Credit card providers offer credit cards for a person with poor credit history, bad credit record holder or even people with no previous credit history.

There are big list of companies providing credit cards to people having bad credit history. In UK one in four having bad credit history, so it means that no body can escape with debts. Do you feel distressed because of bad credit history? No nee to worry you can search a lot of companies through browsing the net and choose the best lender for credit option.

How to repair your bad credit history?

There is no quick or fast way to repair bad credit history. Your credit history is maintained by credit reporting agencies that they collect from various loan lenders, banks and other creditors. If you have a bad credit history due to illness or unemployment, they can be repaired with time.

Your bad credit history can have big negative impact in case you are in dire need of credit in the near future. You have to take positive actions and change your attitude towards money as a way to improve your credit history. There are some actions you can take to repair your bad credit history:

1. Get a copy of your credit report from credit reporting bureaus and check it for errors. If there are errors in your credit report, contact credit bureaus to fix them. Sometime contacting the creditors who reported the errors can help you.


2. In case there are outstanding debts in your account, repay them quickly with the highest interest rates first.


3. Always pay your bills on time to create better credit rating.


4. And in case your debts are overwhelming, make a debt consolidation plan by contacting a nonprofit credit counseling organization.


5. Be aware of companies that tend to offer you credit repair or debt consolidation loans.


6. Request for a credit limit reduction from your account in order to lower your borrowing and available credit.


7. Sell your valuable assets to pay off your debt. Purchase just daily routine things and use rest of the money for paying your consolidated debts.


8. Plan with your credit counselor how to repay your debts and try to establish a good credit history by keeping the same job and house and maintain your savings.


9. Once you have repaid your debts, try to build a good credit history. Pay off your credit cards monthly balance on time to build good credit and learn to use credit cards in a responsible way.


10. Chose credit card carefully that can help you build a good credit history.

You have an adverse credit history or poor credit history?

Adverse credit history is a negative credit rating. Adverse credit rating is also called sub-prime credit history, non-status credit history, bad credit history, impaired credit history or poor credit history. The credit provider companies when judging credit history are using all of these temps. No one loves to have an adverse credit history.

When you apply for a loan, lenders will check your credit worthiness by looking at your credit history. They get this information from the credit reporting agencies. Credit reporting agencies keep track of your financial transactions while repaying loan or credit. They use this information to decide whether you have a poor credit history or not.

On the basis of your financial transactions, credit agencies assign you a credit score. And in case your credit score is below a certain amount, you will have bad credit history. It means that you are not likely to pay your credits on time or you may fail to make the payments altogether.

Banks and credit card providing companies pay to credit agencies to get this information. If you have an adverse credit history, lenders may simply refuse your credit request. And in case they agree to offer you credit, they may be offering you the lower amount than you have requested or may offer you credit on higher interest rates than you would have been offered if you do not have a bad credit history.

Credit scores are free or not?

Our credit report shows how much strong we are financially. Credit reporting bureaus provide credit score with your credit reports. These reports are being used by loan lenders to check your credit worthiness. According to the Federal law, consumers can get a free copy of their credit report once in a year from all of three credit reporting bureaus Equifax, Experian and TransUnion.

But getting your credit score is not free. You have to pay some dollars to the credit reporting bureaus in case you want to know your credit score:

Equifax (1-800-685-1111) charges $7.95
Experian (1-888-322-5583) charges $5.95
TransUnion (1-800-916-8800) charges $7.95

Getting your credit report will allow to identify errors that may be lowering your credit score and also whether you are a victim of identity theft. According to a report released by Federal Trade Commission, 8.3 million American adult became victim of identity theft in 2005, 3.2 million of them experience the misuse of their existing credit card accounts and another 1.8 million of adults found new accounts been opened or their personal information being used for other fraud activities.

Season of credit card scams

The New South Wales police have asked Christmas shoppers to be extra careful when using their credit cards during this time of year.

It is the season of festivals, celebrations lot of shopping and is also the big season of credit card scams.

Employer card being used to buy Gas – According to criminal complaint filed on Friday, 44 year old Brian B. Long; Sheboygan man used his employer credit card to buy $1200 gas in the last four days. Long has been terminated from his job, send to jail and a $10,000 fine if convicted on the wrong charge of fraudulent use of a credit card via Sheboygan Press

Entire village being hit by credit card scam – Police believe that hundreds of people living in Houghton on the Hill, Leicestershire may have fallen victim of international credit card scam. The money has been withdrawn from counties including Australia, India and Philippines via BBC NEWS

Woman being arrested for credit card fraud – Kelly Marie Mancuso is facing the charges that she used her job to get consumers credit card numbers. Kelly is free on $500 bond pending a hearing in Bradley County General Sessions Court via NewsChannel 9

A credit card fraud king from Pakistan – A Pakistan-American Afzal Sodagar, finds himself in big trouble after his son Saarum Sodagar informed the police that his father carried credit cards that did not have his name via Daily Times

How to freeze your credit report?

You have to pay $10 to any of the three credit reporting agencies and also have to send them a copy of your ID to freeze your credit report. Credit bureaus take five business days to freeze your credit report and another 10 business days to send you a confirmation letter with a PIN and toll free number to call in case you need to lift the freeze.

And if you are a victim of identity theft, then you do not have to pay to freeze your credit report but you have to provide the police report or complaint to the credit reporting agencies. After the freeze, no one will have the access to your credit report or credit score.

You can temporarily lift the security freeze by paying $10 if you required or pay $12 so that selected creditors have the access to your report. Here are credit reporting agencies contact info you can use to receive a copy of your credit report, to dispute information on your credit report or to place a fraud alert

Equifax: 1-800-525-6285, www.equifax.com, P.O Box 740241, Atlanta, GA 30374-0241

Experian: 1-888-EXPERIAN (397-3742), www.experian.com, P.O Box 9532, Allen, TX 75013

TransUnion: 1-800-680-7289, www.transunion.com, Fraud Victim Assistance Division, P.O Box 6790, Fullerton, CA 92834-6790

Credit score improvement tips

Improving credit score can save a lot of money for you. Your credit score indicates your credit worthiness, how well you pay back your credits sometimes called as Fico score. The higher the credit score you have the healthier situation will be for you about getting loans or credit cards. Try to bring your credit score above 620. And if your credit score is below 600, you will have problems in getting loan. And in case you are able to get loan with a low credit score, the interest rate being charged will be quite high.

And if you have credit score above 760, you will have to pay the lowest rate of interest. 850 is a perfect score a consumer can get and 723 is an average credit score. Under the Fair and Accurate Credit Transactions Act, you can get a free copy of your credit report from the Credit Reporting Bureaus annually. The Fair Credit Reporting Act also gives us the right to get our credit score from these credit reporting companies. For this they are allowed to charge a reasonable fee which is approx $15 for your scores.

There are some steps you can follow to improve your current credit score:

• Try to maintain a long and healthy credit history. Keep your old credit card accounts alive and pay your bills on time. And in case there is some credit crisis, at least pay the minimum changes.


• Managing too many credit cards can be a tedious task. So keep fewer credit cards and make a habit of saying No to the new credit card offers. Maintain a good credit limit.


• Check your credit report and make sure that it does not have errors and if there are some errors report them to the credit reporting agencies.


• Never try to suddenly open or close your accounts, as that will create a suspicion that you are trying to manipulate your credit report.


• Do not use credit cards where you have the cash to pay


• Try to keep your credit card balance low and in case you keep that max that will lower your credit score


• Do not open a credit card you do not need. Opening a new account lower your credit score by an average of 10 points


• Do not close your unused accounts as closing them will delete the established credit history. If you have a card with a five-year of established history, hang on to it.

Annualcreditreport.com with various ways to get credit report

Annualcreditreport.com is a website jointly operated by three US credit reporting agencies Equifax, Experian and TransUnion. This site was created to provide fair and accurate credit reports to the customers.

According to a provision passed by Fair Credit Reporting Act (FCRA) in 2003, credit-reporting agencies provide, upon request, a free credit report to every customer after a gap of 12 months. This was done to allow customers to get correct credit information and to guard against identity theft.

When you go to Annualcreditreport.com to get a copy of your credit report, you have to register there and have to provide the basic information’s like your name, address and social security number during the registration process. Then you will be sent to a credit reporting agency website you select where you have to answer few more security questions to confirm your identity before getting your credit report.

As a customer you can request the free copy of credit report from credit reporting agencies at a time or get it once from all of three credit-reporting bureaus a year. AnnualCreditReport.com site is accessible to the Internet Service Providers here in US and its territories. And using this service will not lower a consumer credit score.

You can request for a copy of your credit report via phone (877–322–8228) and you will receive your copy of credit report via mail within 15 days. You can also request it at annualcreditreport.com and you will have instant access to your credit report. You can also fill in Annual credit report request form by mailing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281 and get your credit report via mail within 15 days.

Using credit repairing software?

Credit repair software helps customers to repair mistakes or inaccurate information from their credit reports and also enables them to improve their credit scores. There are many companies who have introduced credit repair software giving consumers a hint how their actions have affects on their credit score.

Some of these credit repair software direct the consumer through the complexities of credit scoring models, credit score simulation, loan qualification, and automate the process by generating letters for disputing errors and negotiating with creditors and tracking progress.

The most lawful software programs are those that have passed the strict guidelines for permissible purposes from the credit reporting bureaus and those who actually pull a credit report within the software program.

Good credit repair software enables the customers to repair inaccurate and error information from their credit report. By repairing the inaccurate information from their credit reports, consumers will be able to improve their credit scores.

These software programs enables a customer to report the errors as well as update his credit files quickly. But before making the decision to buy any of such credit repairing software, make sure that you really need it.

It is best that when you obtain a copy of your credit report and then you decide whether you need any of such software programs. In case you find something that need to be addressed and sort out quickly, then buying such software can be very vital.

And in case you are looking to buy such kind of software, you should look for the companies who updates their software according to the new laws that are appearing or one already in place are also updated. Also make sure that they have the correct legal form that you will be using as a way to repair the errors from your credit report.

Using credit report monitoring services to detect identity theft

Credit report monitoring is the process of monitoring your credit report as a way to find doubtful activities and changes in your credit report. Companies provide this service on a subscription basis. Credit monitoring can help you find fraud and identity theft kind of activities from your account.

It is advisable to get credit reports or credit monitoring services from all of three national credit reporting bureaus to detect criminal activities from your account. Credit monitoring provider companies inform you about important activities such as inquiries, public records, delinquencies, negative information, and employment changes, new accounts, address changes etc.

There may be many people who suggest you to check your credit reports once a year. But I will recommend frequent checking of your credit files to detect criminal activities from your account.

And incase you prefer to get your credit report only once a year, then you may be too late to get notice of the identity theft activities from your account. But with credit monitoring services, you will get alert on daily or weekly basis about the changes in your credit and that will surely help you to stop theft activities before they gets out of control.

According to Federal Trade Commission, approx 10 million people became victim of identity theft last year and each victim had to pay an average of $5,000. But two third of victims who were able to find the misuse of their personal information within five months, not had to pay out of pocket expenses. So this is what credit monitoring is. It cannot stop the credit fraud related activities from your account, but can cut down their effect.

Some steps to avoid identity theft

According to a recent report released by Federal Trade Commission, about nine million Americans are being affected by identity thefts every year. The problem has become so big that President Bush commissioned a task force to find solutions to this problem recently.

The April 2007 report, titled “Combating Identity Theft: A Strategic Plan,” concluded that reducing opportunities for identity theft and increasing public awareness were two of the most vital steps in reducing the number of victims.

A latest press report states that more than 17,700 cases of identity thefts were reported in Florida last year. Florida is on the fifth spot in US among identity theft complaints. Although there is none who can remove the occurrence of identity theft completely, but people can take positive steps to reduce the risk of being cheated by the crooks.

Thieves can use any tactics to get your personal information. And the best way to ensure your identity is not being stolen is regular checking of your credit files at annualcreditreport.com

According to a press release from Florida Agriculture and Consumer Services Division, when you make purchasing online, do shopping only from decent stores and also do not forget to check your privacy policy before making a purchase.

People need to keep the best anti-virus and spyware they can afford. And incase you become the victim of identity theft, contact FTC (Federal Trade Commission) on their consumers hotline 1-800-435-7352 and for info visit

www.ftc.gov/bcp/edu/microsites/idtheft/

Your credit report has errors

According to a latest report from US Public Interest Research Group, 25 percent of consumers have errors on their credit reports and these mistakes can be serious enough for a lender to decide not to give credit. Now a days getting credit is becoming harder and harder. So it is advices to get a copy of credit report and check them carefully to make sure that your credit report does not have errors.

You can get a free copy of your free credit report from annualcreditreport.com and if your credit report contains errors you can report your credit report inaccuracies online.

And under the current Fair Credit Reporting Act, credit reporting agencies have to correct the errors once they are informed about them.

Where to get your credit report

All of us spend their money during the holiday shopping season. And this is also prime time of activities for identity thieves. So it is important for all of us to stay updated with your latest credit reports.

There are many online websites that offer you free credit reports. Most of these sites provide you credit report services after signing up there for a 30 day trial membership. Once that trail period is over, they start changing you for their services.

You have the option to cancer your membership at any time. But some people find it really hard to cancel their membership their.

Some of the credits reporting sites are owned by three big credit reporting agencies. So these companies make million of dollars per year for their services. You can get free copy of your free credit report once a year from www.annualcreditreport.com

Best and worst credit scores

The credit score range that most of the financial intuitions accept is between 300 and 850. Also, the organization that is considered to be the leader in accurate credit scoring, FICO (Fair Isaac Corp.) also uses the same range.

A good credit score lies in the range from 700 and higher and in fact known as an excellent credit score or Very Good credit score. Credit score from 680 to 699 will be considered as Good credit score. Credit score from 620 to 679 is just Average credit score. Credit score from 580 to 619 is Low credit score and a score from 500 to 580 is known as Poor credit score. And if you have a credit score in the range from 300 to 499, you have a Bad credit score or worst credit score.

Your credit score can change your life and can have big impact on your lifestyle. If you have the excellent credit score, you can do anything whatever you want – like buy a car, house, have more credit cards or get approved for any kind of loan you want. And if you have the worst or bad credit score, getting approved for a credit card will be nearly impossible.

Mostly people in US have credit scores in the range of 620 to 679. It is not the case that people with low credit score will not be approved for a loan, they will also more likely to be approved but with higher interest rates.

Best and worst credit score table

Starting Range	Ending Range	Credit score Ratings
700	850	Excellent credit
680	699	Good credit
620	679	Average credit
580	619	Low Credit
500	580	Poor Credit
300	499	Bad Credit

Thieves chilled by new credit report law

Recently seven people in US District Court in Hammond admitted their role in an identity theft plan that rang up $400,000 in unauthorized credit card purchases from 1998 to 2004. How they were able to do it?

They used to collect people personal data from a car rental desk at O'Hare International Airport and used that date to obtain credit cards by other people names. This show how easy identity theft can be.

But now a new Indiana law will frustrate thieves to use Hoosiers' good names and credit to rip them off. The law works on the concept:

It lets consumers freeze or block third party access to their credit report unless the consumers want to release them. So freezing of your credit report will stop criminals from obtaining credit by your name.

When you request for a freeze to your credit report to the credit reporting agencies, they will send you a unique PIN (personal identification number). This PIN will allow you to release the freeze on your credit report when you want to apply for credit. By Indiana law, placing a security freeze will not hurt your credit rating.

As Indiana Attorney General Steve Carter says, "I anticipate this will be a welcome tool for many people, and it gives Hoosiers an advantage in protecting themselves from financial and other fraud."

Complete instructions are available on their website www.aarp.org/in or consult the attorney general's Web site; www.IndianaConsumer.com

Fico Score – your credit rating system

FICO is the acronym for Fair Isaac Corporation which is a public traded corporation and is well known for creating best and widely used credit score system in United State. Fico score is a number that is calculated to know the credit worthiness of an individual based on many factors such as his bill payments history, outstanding debt and ability to pay.

As I mentioned Fico score is a numeric value and is calculated on the basis of your credit history collected from your credit report. Your Fico credit score change with new activities in your credit report.

Fico score is a kind of credit score that determines the likelihood that credit users will pay their bills. Your Fico score or credit score mostly called is used by various credit card providers and banks to decide your credit limit, rate of interest and even your paying period.

Credit check that does not harm your credit score

There are a lot of numbers that we have to keep track of in our life. But there is none significant as your credit score is. If you have a good credit rating, you will have better interest rates on your credit cards, loans and mortgages. And if the case is opposite i.e. you have a bad credit rating that can have big negative effect on many aspects of your life. So we must keep track of our current credit score where we are standing right now.

If we monitor our credit activities regularly, we will be in better position to remove and fix detrimental items. And when you have a good credit rating, you will have many financial benefits that will make your life really smooth. So the best and easiest way to keep track of your credit activities is going online.

There is a website gofreecredit.com where you can check your credit stats from all of three big credit bureaus. They are providing this service free of cost for the first 30 days to monitor any kind of activity related t your credit. If you check your credit score via gofreecredit.com will no negative impact on your credit score. And if you use other alternates to access your report, it is possible that 10 points will have been reduced from your credit score. So you can check your credit activities whenever you like without any worry with gofreecredit.com

Once the trial period of 30 days is completed, they will be changing $11.95 every month for their service. You have the option to cancer your membership within trail period or anytime you want there is no compulsion. Credit monitoring, automatic notification of credit activity and complete personal analysis are all incorporated in this service.

Most of the time people remain unaware about the negative activities within their credit reports. Most of the times they do not have the idea about the things that bring their score down. Bankruptcies, judgments, collections and past 30-days late payments are some of top factors that can have really big negative impact on your credit score. If you are able to improve your score, you will have more options about getting success with your finance.

Credit crunch negative impact on small and medium businesses

According to a latest report from CBI, more than one third of small and medium size companies are worried that current credit crunch will dry up the funding for their businesses. According to the report, 12 percent of companies have already witnessed the funds being chocked and another 22 percent expecting some problems over the next three months and another 33 percent companies expecting its effect in the next six to 12 months.

More severe lending conditions and higher rate of borrowing costs were seen as the signs of worsening. More serious doubts over new finance being refused and previous credit lines being closed off were less frequently cited.

And according to another survey that was carried out on 1860 UK working adults, two third of working adults have the view that credit crunch will have negative impact on Briton economy and 12 percent of them have the view that downturn due to credit crunch would be significant.

Freeze your credit report and say goodbye to crooks

Customers here in Arizona and 10 other states have been given access to a powerful tool that will stop identity theft with the rest of nation. But like other tools, this tool also has to use with lot of care.

All three major credit reporting bureaus decided earlier this month that all will be free to freeze their reports for a modest fee. Freezing of your credit files will not allow crooks opening an account by your name.

And if you want to temporarily lift a freeze on your credit report to refinance your mortgage, for a new insurance policy or for opening a new credit account, you can easily do that with a personal identification number being provided to you by all of three credit bureaus. Freezing of your credit files will block new account application and will not disturb any of your existing accounts.

Customers who keep track of their credit activities, destroy unnecessary personal document and take other precautions might not need this tool against identity theft. To apply for a freeze on your credit report, you have to give information like your name, address, Social Security number and other personal information and payment of $10.

How to dispute credit report inaccuracies online

The best way to increase your credit score is removing the negative elements from your credit report. So check your credit report for all kind of inaccuracies. Always check your personal information section in your free credit report.

This section contains the list of all addresses and employer you have worked for. Your inaccurate employer and address information will have negative impact on your credit score. Your address and employer information shows how much stable you appear to be. If your credit reports includes lots of addresses and employers list in the last year, that will lower your credit score. Check your report carefully for multiple listings of the same address and the addresses that does not belong to you anyway. So you will need to remove these inaccuracies from your credit report.

There are three ways by which you can report inaccuracies in your credit report via mail, phone and online. All of three credit reporting agencies have online forms you can fill up to file a dispute which looks to me the easiest way to solve credit report inaccuracies. Here I’m sharing the online form filling link of all credit reporting agencies for dispute about your credit report:

Equifax Online dispute form
Experian online dispute page
TransUnion credit reporting dispute

Some people will claim that you should dispute items even if they are completely accurate in hopes that the creditor will be unable (or unwilling) to verify the disputed item. I am advising you against this for a few reasons. Once the investigation about the inaccuracies is complete, you will be informed via email about the corrections in case you used the online form for reporting inaccuracies. And you will also get a free copy of your corrected credit report.

Note that if your inaccuracies are listed in all of your three credit reports, then you have to dispute it with all three credit agencies.

Freezing your credit report or not?

Now we have new tool available to protect our identity theft: ability to freeze our credit report. Freezing our credit report can help protect fraud victims. Now consumers have a strong weapon in the form of security freeze, where they will be able to keep theft away from obtaining a credit by our names.

When you freeze your credit report, you will be preventing creditors from checking your credit history that can be one of big drawbacks of freezing your credit report. There are some important things we all need to know before freezing our credit reports:

1. Security freeze is not same as fraud alert


2. You have to freeze your credit report from all three national credit bureaus – Experian, Equifax and TransUnion.


3. Credit reports are frozen at individual level. If you are married, you and your spouse have to separately request for freezing of your credit reports and have to pay fees separately.


4. Think before deciding whether to freeze your credit report or not. The credit bureaus take five business days to freeze your credit report and ten business days to send a confirmation letter with your personal id number and toll free number to lift the freeze on your credit report. You can ask credit bureaus to temporarily lift freeze on your credit report. The credit bureaus take three business days to lift the freeze temporarily. So keep all these things in mind before requesting for the freezing of your credit report.


5. Freezing credit report is not going to affect your credit score any way. But it will stop you from getting instant credit. Although you will have access to your free credit report that you can obtain every 12 months through annualcreditreport.com


6. Freezing of your credit report will not prevent existing creditors from accessing your credit report and will also not affect your ability to use your credit accounts.


7. Security freeze is not the ultimate solution against identity theft.

Best ways to improve your credit score

More and more people knowing the importance of credit score. Credit score are not just used for getting credit. They can have effect on many factors like interest rate, car insurance rates and you being hired by your employer or not. The Federal Reserve Board has provided some tips for the consumers to improve their credit score:

• Get a copy of your credit report and go through the information available in your credit report


• Visit annualcreditreport.com for getting few copy of your credit report. As per federal laws, consumers can get a free copy of their credit report from all of three credit-reporting agencies every year.


• Consumer can call (877) 322-8228 or fill up the annual credit report request at ftv.gov/bcp and mail it to Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348


• Do not forget to pay the bills on time


• Understand how credit score is calculated and what are the factors having effects on it.


• Whether the bills are paid on time. The level of outstanding debt and the amount of credit left.


• Length of consumer credit history


• Amount of credit being applied recently. Applying for too many credits have negative effect on your credit score


• The number and type of credit account you have also matters

To know more, check out Federal Trade Commission publication on credit scoring at ftc.gov/bcp

Top 10 things that credit report can do for you

Credit report is a valuable source of information that can help you in controlling your financial status. You know what credit report contains:

1. Credit report does not only contain information about your credit cards, loans and mortgages but it also includes anything that involves giving you credit, from your mobile phone account to a shopping catalogue.


2. Credit report gives you complete details about what you owe and the status of your credit agreements. This helps you keep track of any financial commitments by seeing all your borrowing in one place.


3. It contains information about the details about the organizations that have given you credit.


4. It keeps track of your credit applications. These stay on your report for 12 months, so you can quickly check that you aren't re-applying to a lender you've already considered who's rejected you.


5. It also shows if any lender has misunderstood your request for information as an application or has searched your report more than once in response by mistake.


6. Your credit report can help you protect against identity theft. If you don't recognize searches on your report, it may be the case that someone is applying for credit in your name. If you fear that you may be a victim of identity fraud, alert your lenders and the authorities immediately.


7. It keeps track of whether you are registered to vote at the existing address.


8. Keeps the list of all addresses where you have lives at so far.


9. It gives an overview of your repayment history over time. Your credit report tracks your repayment history for every credit account you have ever opened. It can act as a reminder that you had problems with a particular lender or account and shows which lenders are most likely to make you an offer in future.


10. It can be amended if you disagree with an entry. If there is an entry on your report that you do not agree with, you should be able to remove this provided you have the necessary proof.

Top 10 elements having negative effect on credit report

When you are working hard to get out of debt, we have to keep in mind some elements that can have negative impact on your credit score. It is always suggested to get your annual free credit report from all of three bureaus Equifax, Trans Union, and Experian.

1. Delinquencies (30-180 Days From Date Of Missed Payment) Remain for 7 years


2. Closed Accounts (No Longer Available, Negatives remain for 7 years, Positives remain for 10 years)


3. Collection Accounts (7 years from original delinquency Date


4. Charge Off Accounts (7 years from date of initial missed payment)


5. Bankruptcies *chapter 7, 11, 12 remain 10 years, Chapter 13 for 7 years)


6. Civil Judgements (7 years from filing date)


7. Tax Liens (cities, counties, states, federal government remain for 15 years, paid remain for 7 years)


8. Child Support Liens (remain for 7 years from filing date)


9. Lost Credit Cards (delinquent payments appear from date card was reported lost)


10. Credit Inquiries (remain for 2 years)

Negatives are eventually purged from your credit reports.

Which free credit report to get?

There has been lot of talks about getting free credit report. But we need to know what exactly a free credit report comes with. There are three types of credit reports being advertised out:

The first type of credit report is the credit report where you just get a credit report from just one of the three bureaus namely Equifax, Trans Union, and Experian. There is no logic getting credit report from one bureau only. There are three bureaus all of them report somewhat different information. We need to get credit report from all of three bureaus. This is called 3-1 credit report.

The second type of credit report is the 3-1 credit report with credit score. In this credit report, you will have all of three bureaus reporting your information with credit score from just one agency. This is better to some extent compared to the first credit report. But since there are three bureaus reporting about your credit, it would make sense to get score from all of them and not just from one agency.

The third type of credit report is the 3-1 credit report with scores from all 3 agencies. This is the best credit report because this is the report that lenders look at. Most of people getting a free copy of their credit report are not sure what they are actually getting. It is in our interest to get your credit report with all three bureaus and all three scores.

How to get free credit report without paying a single dime

It is true that we can get our credit reports free of cost. We do nt need to pay a single dime to anyone to get our credit report. Unfortunately, there are many people who do nt about it. They ultimately pay some money to their credit reports which they can get free of cost.

According to Federal law – The Fair Credit Reporting Act (FCRA), every American should be provided free copy of their credit reports whenever they request for it. You can simply get your credit report from all of three major credit reporting agencies. You can get your free credit report online – from your office or home depending upon your comfort.

If you need to know more about free credit reports, do a little search on the internet and study some free credit reports pages there. On the internet there are many articles sites and forums where you can know about free credit reports. With forums, you can participate in the discussion going on or you can ask your own questions about free credit reports or any related question.

Britons dependant upon credit cards for Christmas cost

According to a recent survey, four out of every ten Britons had to rely on their credit cards to meet the cost of Christmas last year and a fifth of them are still paying the left dues.

Around 41 percent people used their credit cards to buy gifts and food items in 2006. But only 29 percent of them were able to clear the debt when they got their bills in Jan 2006. According to a recent price comparison made by website savebuckets, approx. 17 percent of people who used their credit cards for purchasing on last Christmas, still have not cleared their debts.

People who have lower income are most likely still be paying their last Christmas bills. 43 percent of people who used their credit card have yearly earning less than £35,000, 19 of them are still paying their bills.

Credit card fraud on the rise

According to Abbie Milton from Absa Bank's card merchant services, fake credit card transactions have cost SA business between R25-million and R40-million in the past 18 months - and that is only what has been reported so far.

Milton said 90 percent of the fraudulent cases Absa encountered were from mail order transactions when a customer's card details were faxed.

With SA, credit card fraud is on the rise in Indian as well. The Commercial Street police here arrested Morris D’Souza), the mastermind of one of the biggest credit card rackets in recent times, with three of his associates in Bangalore. The police recovered 90 credit cards of different nationalised and private banks, four vehicles, telephones, mobile handsets, SIM cards, cash and gold ornaments from him (Via The Times Of India).

Though the estimates put the loss at Rs 6 crore, the police suspect it could be double that. "We've sent letters to leading banks. A clear picture will emerge once they produce their statements," the police said.

In Chennai another metro city in India, The Central Crime Brach (CCB) police arrested a courier company employee with his four associates, who misused credit cards to be dispatched to customers and purchased electronic goods and jewellery (Via The Hindu).

Credit crunch bigger blog on world economy next year

According to International Monetary Fund Managing Director Rodrigo Rato, credit crunch will have bigger blow on world economy next year compared to the current year.

Fallout of the credit crisis, triggered in July by a meltdown in U.S. mortgages, would felt most in the United States and Europe and lead to a "mild" slowdown in the global economy, Rato told reporters in the Saudi port city of Jeddah. The consequences of the crisis are "manageable," he said.

Credit cards allowed to everyone especially students?

The biggest mistake the students make is opens a credit card account and also do properly understand the meaning of having one credit card.

Most of the students are being targeted by credit card companies at the age of 18 or so. The biggest mistake the students make is missing out the scheduled payments. When they miss payments, it goes to the credit bureau and it makes it harder after college when you want to apply for a loan for a house or a car.

Justin a junior sports management major, who is having a credit card with him, is predetermined that he will never go into debt. This is the approach we need to adopt.

Credit is not cash because if we don't have it in our bank account; how do we expect to pay it off? Credit cards trick you into believing you have all these great benefits and bonus points to your account but one mistake can take all of that away.

Having credit card does not mean that you have more money in your account. When we have a credit card account, that brings a lot of responsibilities and we need to use that in a careful manner with understanding of our current financial status.

Bank Of America to cut 3000 jobs due to credit crunch

Bank Of America is cutting 3000 jobs in its investment banking sector due to credit crunch. The announcement comes less than a week after the second-largest U.S. bank posted a 32 percent slide in profits due to trading losses and write-downs on bad loans.

Bank Of America is planning to leave wholesale-mortgage business which will help them in cutting 700 jobs. According to the bank, employees exaggerated by the downsizing are qualified to apply for open positions at other Bank Of America units. A cut of headcount by 3,000 represents 2 percent of the bank's work force.

Most of the layoffs will come from Bank Of America’s global corporate and investment banking, which took a hard hit from disruptions in the credit market. The Charlotte-based bank's net income dropped $100 million, a decline of 93 percent from a year-ago figure of $1.43 billion.

Birth of the Credit Card

UK Financial options blog has written an interesting post about the birth of credit card. Here is how he does..

Almost a half century ago, the UK experienced the birth of one of the most influential pieces of plastic in existence today. Yes, it’s true, that slim piece of plastic, which is found in almost everyone’s pocket, the credit card, began way back in the 1960’s. It’s amazing the revolutions that have occurred in less than 50 years. Today, most of us can not survive without our credit cards. They have become that much of an ingrained part of ourselves.

Did you realise that in the UK, our credit card ‘history’ was borne via the Barclaycard? At that time, the Barclaycard was little more than a charge card, meaning that the entire balance had to be paid, 100% every single month. Today, people would scoff at it’s measly maximum limit of £100. These days, you can find a credit card with absolutely no limit, though these ’super’ cards, are limited to only the very wealthy!

Our credit cards of today, can be found with a credit limit, and applicable requirements, for people from all walks of life. Regardless of whether you’re Mr. Or Mrs. Beckham, or a low income fish and chips worker. There are well over 1400 different credit cards available in the UK today. Certainly there is a card for almost anyone.

Via - Link

Credit default swaps

A study of credit derivatives, in the FRM, begins with the default swap. More specifically, a single-name credit default swap (CDS). A single-name CDS protects against a single asset (e.g., a bond); a basket CDS gives protection against several assets. The CDS is like a credit insurance agreement between two parties. The investor (the protection buyer) may own a bond asset and seek to "insure" its default risk.

The investor pays the spread (akin to periodic insurance premiums) to the protection seller. If the loan never defaults, the protection buyer has lost the stream of spread payments over the swap's tenor. We could liken this to an investor (the protection buyer) purchasing a put on the reference asset; without a default, the put goes unexercised and the investor loses the put premium.

If the reference asset (the bond) does default, the CDS seller pays cash to the buyer. The cash paid will be either net of recovery or the full par value of the asset:

* If the CDS is cash-settled, the seller pays the difference between the par value of the reference asset and the recovery (market value of the defaulted bond).
* If the CDS is physically-settled, the CDS buyer delivers the defaulted asset to the CDS seller and the CDS seller pays the full par value in cash

The CDS buyer does not need to own the reference asset! Note that if the CDS buyer does not own the asset, he/she assumes additional risk with physical settlement: the CDS buyer will need to retrieve the asset for delivery to the CDS seller (Via Bionic Turtle).

The credit crunch that never ends

One analyst calls this the summer that will never end. All view this as the continuation of debt emergence, against the backdrop of short-term turmoil and economic downturn.

Libor spreads in Europe's interbank market jumped to 64 basis points, roughly the level that set off the credit crisis last summer and prompted a liquidity rescue by the European Central Bank. The iTraxx Crossover index that measures spreads on corporate bonds has jumped 100 basis since last week to 364 yesterday.

"It's the summer that won't end," said Peter Berezin, a strategist at Goldman Sachs.

He said investors were shaken by last week's drop in US home-builder sentiment to an all-time low and by fresh falls in the ABX index for sub-prime debt. "We continue to learn that it pays to respect the sell-offs in ABX and housing-related credit. This has elements of the February and August sell-offs, where credit markets signalled problems," he said.

This is the volatile activity against which warning signals about the British economy are winking amber. More and more economists are questioning the foundations of the British economy, pointing to the high debt burden, public sector splurge, poor infrastructure and low skills.

An economic downturn may be further exacerbated by inflation creeping in. Food prices have increased and families are paying more for staples: a development that hits the poor worse:

Economists have been warning for some time that the crisis in some key commodity markets – especially the dairy market – would eventually hit shoppers in the UK. David Lang, a food analyst at Investec, said: "It's only starting to filter through to consumers now. But it will go on for some months to come. Prices will have to be raised again."

Sean Carter, at the Rural Shops Alliance, said: "Supermarkets keep their prices very sharp on certain items, and claim there is a continual price war going on. But, in actual fact, their profit margins never seem to fall. You can be sure that if they cut the prices on some items, they are increasing prices on other items."

The gloss is beginning to come off Brown's custodianship of the economy. It is clear that he did not tackle any longterm problems and relied on state spending to mask this lack of policy.

Link - Via The Bewilderness

Parcells credit for bargain grocery shopping

It's easy to point out Bill Parcells' early-round draft whiffs during his Valley Ranch tenure. CB Terence Newman and OLB DeMarcus Ware are the only first- or second-round picks from the Tuna's four draft classes producing like high picks.

You have to give Parcells credit, however, for stocking this roster with mid- and late-round steals.

Eleven current Cowboys were picked by Parcells in the third round or later. Follow the jump for a look at each one.

TE Jason Witten (third round, 2003): You can make a strong argument that Witten is the best all-around tight end in the league. San Diego's Antonio Gates is the only TE with more yards and catches than Witten (42-540). Indy's Dallas Clark and New England's Ben Watson are the only ones with more than Witten's four touchdowns. Witten is a better blocker than all those dudes.

ILB Bradie James (fourth round, 2003): Dallas defense's emotional leader and leading tackler. Per the stats from the coaches' film study, he had 59 tackles entering the last game, 11 more than any teammate. Limited in pass coverage but not asked to cover downfield as much in Phillips' system.

CB Nate Jones (seventh round, 2004): Can be overmatched physically and athletically, but he's a smart player who doesn't blow assignments. One of team's top special teams players.

WR Patrick Crayton (seventh round, 2004): Established himself as an excellent No. 3 receiver last season and is proving he can be a decent No. 2. Ranks 31st in the league with 400 receiving yards on 26 catches, including four touchdowns. Challenging T.O. for status as Cowboys' best quote machine.

CB Jacques Reeves (seventh round, 2004): Leads team with 11 pass deflections, in part because opponents have tried to pick on him. Has been adequate as a fill-in starter.

RB Marion "The Barbarian" Barber (fourth round, 2005): Doesn't start, but he's established himself as one of the NFC's premier backs. Adrian Peterson is the only 50-carry back in the league who averages more than Barber's 5.7 yards per carry. His five rushing TDs rank behind only LaDainian Tomlinson. Has scored 22 TDs since start of 2006 season, more than any player other than Tomlinson.

DE Chris Canty (fourth round, 2005): Major reason the Cowboys rank seventh in the NFL against the run. Described by Wade Phillips as a "disruptive force." Leads Cowboys DL with 17 tackles. Blocked field goal vs. Vikings was biggest play of game.

DL Jay Ratliff (seventh round, 2005): Natural DE has done excellent job filling in for injured NT Jason Ferguson. Established himself as solid pass rusher last season. Proved in last seven games that he can hold up against the run.

DE Jason Hatcher (third round, 2006): Pushing 2005 first-rounder Marcus Spears for playing time. Has been playmaking machine this month, with a sack, two tackles for losses, fumble return for TD and forced fumble in three games.

FS Pat Watkins (fifth round, 2006): Struggled when pushed into starting duty as rookie, but he's been steady in the dime package this season. Leads Cowboys with 12 special teams tackles and returned blocked field goal 68 yards for TD vs. Vikings.

OL Pat McQuistan (seventh round, 2006): Valuable reserve whose versatility allows Cowboys to carry only seven offensive linemen on 45-man active roster. Could develop into starter at tackle or guard.

Link Via - cowboys.beloblog.com

Tech school partners with Lakes Learning

Making transition easier. That’s what Lakes Learning and the Minnesota State Community and Technical College’s new partnership is all about.

When entering MSCTC, students take an Accuplacer Assessment test to determine what math, reading and writing level class they should enter.

Some students who take that test may come up with a score a bit lower than they had hoped — right on the edge of one class and a higher level.

Rather than needing a course, maybe all the student needed was a refresher course before the test. Enter Lakes Learning.

“The college felt the need for math, reading and writing but not to exhaust financial needs,” Helene Hedlund, MSCTC dean of Academic and Student Affairs.

So without making the student take a lower level class than actually needed, Lakes Learning Instructor Amy Fish will tutor students in the desired field. The student can then test a second time and hopefully earn a better score.

“That way they’re not paying for unnecessary three credits,” Hedlund added.

Two afternoons a week — which will change to include evenings at Lakes Learning, located in the Lincoln Education Center — Fish tutors students at the college.

“This is what they do; it’s their expertise,” Hedlund said about having Lakes Learning on board. “It’s a great partnership, such a benefit. It’s a benefit to anyone in post secondary because financial is always important.”

Even further, Hedlund said she hopes to form a partnership with the English as a Second Language program to bring a more diverse population to the college.

“Our hope is for students to improve their skills and go to college. The transition is nice,” Fish said.

Another form of transition Lakes Learning has to offer is a pre-certified nursing assistant class at the college. The class lays the groundwork for the CNA program at MSCTC by going over medical vocabulary and skills. And Lakes Learning classes are free.

Also at Lakes Learning are Instructor Patti DeGroat — resident math expert — and Lead Instructor Kathy Simison.

Lakes Learning and GED serves as a “safety net” for students who have tried high school or ALC and neither worked.

Known for offering the GED — General Education Development — that isn’t necessarily what Lakes Learning is all about. For example, DeGroat worked with the employees at TEAM Industries who had to take and pass a machinist test to keep their jobs.

As much as the instructors can cover, they can’t always cover every subject needed.

“Volunteers are absolutely essential,” Fish said.

Lakes Learning is a part of the Detroit Lakes Public School system, and because of that, funds are limited. Therefore, volunteers are a big part of those helping at Lakes Learning.

“We’ve grown steadily throughout the years,” Simison said.

Those volunteers are “giving back to the community,” she added.

“We complement each other real well,” DeGroat said of the instructors and volunteers involved in Lakes Learning.

Wednesdays, DeGroat offers a math phobia class, and Thursdays she offers a basic Ojibwa and history of White Earth class. They are open to anyone. Simison pointed out that most of the people in the White Earth class are actually people from the Detroit Lakes community wanting to learn more about the reservation.

Hedlund commended Lakes Learning’s teamwork strategy.

“That’s why students are so successful,” she said. “There are tons of success stories. You can see the enthusiasm in the faces of the graduates.”

And now MSCTC can join in on that teamwork.

“We’re happy with the way it’s working out and moving forward,” Simison of the partnership.

Lakes Learning is open Mondays and Wednesdays from 8 a.m. to 5 p.m. and Tuesdays and Thursdays from 8 a.m. to 7 p.m.

Link Via - DL-Online

7 On Your Side: Credit Card Farm

The owner of White Egret Farms in far east Austin is charged with stealing from her customers.

59-year-old farmer Lee Dexter's turned herself into authorities last week.

The Travis County Sheriff's Office said Dexter received orders via the Internet, then ran her customers credit card numbers at a nearby feed store.

According to the warrant, several customers claimed they were overcharged.

"We're very sorry if that indeed did occur and we will refund those moneys if that did indeed occur," Dexter said.

The owner of the feed store told 7 On Your Side he received charge-backs because of this. He said he's out $10,000.

"Our recent bill with them is more like $3000 and so we'll certainly apologize to the business and make it right with them in the future," Dexter said.

The Better Business Bureau received more than 100 complaints about Dexter's farm in the past year and a half.

Customer David Rice filed a complaint with the BBB. Rice said he goes out of his way to support local markets and farms. However, he said he paid White Egret Farms for an order and never received it.

"We got absolutely no response back and ultimately the Better Business Bureau let us know that they didn't get any response from them, either," Rice said.

7 On Your Side asked Dexter about David Rice's case.

"We understand they are due a steak and we will either deliver that to the customer or invite the customer to come to the farm and pick it up," Dexter said.

What about the other complaints?

"We thought being mentioned in a book that hit the New York Times Bestseller List would be a boom and instead it turned out to be a nightmare," Dexter said.

Dexter said her farm was bombarded with orders in the summer of 2004 and she's still filing some of those orders.

The Office of the Attorney General said it's received almost thirty complaints about the White Egret Farms.

Meantime, Dexter said her farm is still in operation and she plans to fight the theft charge.

Dexter said in some cases, the overcharging may have come from customers asking for next day delivery.

An OAG spokesperson urges consumers to scrutinize credit card statements to make sure a business is not overcharging.

If you feel you've been overcharged, you can file a complaint with the OAG by
CLICKING HERE

Link - Via myfoxaustin.com

Credit Crunch Claims Another Bank

Bank of America Corp. posted a 32% drop in third-quarter net income amid a dismal performance by its investment bank and higher reserves to cover potential bad loans.

The combination of more than $1.4 billion in trading losses in its investment bank and about $2 billion in provisions for credit losses pushed the Charlotte-based bank's third-quarter profits down to $3.7 billion, or 82 cents a share, from $5.42 billion, or $1.18 a share, a year earlier. Revenue fell 12% to $16.3 billion. It was the first time since late 2005 that Bank of America has failed to boost its year-over-year profits.

While other banks have been struggling with the fallout from this summer's credit crunch, and analysts were bracing for a bad quarter, Bank of America's results fell far short of Wall Street's expectations of earnings of $1.06 a share on revenue of $18.3 billion.

THis is more troubling news from the financial sector. The WSJ has a "cheat sheet" of the credit crunch/mortgage impact on earnings from a variety of companies. It's not a pretty sight. Merrill, IBM, UBS, Citigroup, WAMU are all on the list as are some of the other largest companies on the exchange.

The bottom line is the impact has been sweeping and wide. And with another 12-18 months of ARMS resets to go, we're just getting started with the problems in earnings.

Link - Via - Bonddad blog

Credit card commercial song

Overdraft agreements are financial life that are associated with your educational expenses. You are also required to put up your property like home as collateral with the lender. As the success of funding a loan the way often rubs off on the ones that follow. The interest rate is the borrowing capital . The long way of lower interest rate and earlier credit score is well met when you opt for online secured personal loan.

Thus, though an overdraft agreement may not provide you with all the money you need for online secured personal loans away. The huge amounts of funds and finding you an other benefits, the approval comes soon. As long as the interests do not push the bad credit, you do not need to worry. This provides flexibility which is very useful for those who have just gone through an account beyond the credit limit and they are starting to rebuild their most entrepreneurs. You have an access to the reasonable period of time and if credit history is good and you have revolving credit accounts, then credit bureaus is possible to achieve. Once the decision to invest in a franchise is taken, unless the entrepreneur has access to his yet- to- become franchisee, the options to find capital to fund his venture is one of the money the way decide on the success of his franchise. After your credit gets better by using this tool you can resort to improving financial health to continue increasing your credit score.

Debt versus Credit Worthiness

Most consumers have heard of the credit score and the various credit reports that are available. Many consumers understand that these files are based on a person’s level of debt and the manner in which that debt was repaid to the lenders. There are other issues, though, that are less obvious to most consumers, yet they can have a profound effect on what is known as creditworthiness. This article explores some of the lesser known variables that affect a person’s creditworthiness.

It is important for consumers to understand that debt is the fuel that runs the credit reporting machinery. If there were no debt there would be no need for repayments, and without repayment there would be no need for reporting. Every credit report is basically a log of debts incurred and the history of how those obligations were repaid. It reflects whether or not a particular loan was paid on time or if it was late. It details the consumer’s income as compared to his or her outstanding loans. It contains personal information as well as any legal actions that may have occurred during the course of the report.

As you can see, debt is the catalyst. Debt and how it is handled during the course of any particular loan and all loans, in general, make up the factors that are used to determine a person’s creditworthiness.

Of particular importance is the issue of timely payments. Failing to pay bills on time or not paying them at all can be one of the most detrimental entries into a credit report. In many cases, these late payments can stay in the credit report for up to seven years, and during that time, lenders will take their inclusion into the report as red flags and warnings.

Another issue that is used to determine a person’s current creditworthiness is the amount of debt that a person has as it compares to income. It goes without saying that the more income a person has the more debt that person is believed to be able to carry. The same is true conversely: the less income a person has the less debt he or she should be taking on. The debt-to-income ratio can vary, however, and there is no one set limit that governs loans at all times. Generally, the tighter the credit market is (meaning lenders are willing to take fewer risks) the lower the number will need to be in order to secure a new loan.

One of the best ways to improve creditworthiness overall is to pay off loans on time. This not only shows lenders that you are financially able to make your payments but it also lowers the amount of current debt that you have on file. This decrease in your overall debt will lower your debt-to-income ratio, which is a good thing.

Creditworthiness can also be improved by communications with the lender when things begin to go wrong. Consumers are allowed to include written statements of excuse for those occasions when they may have been in financial straits. Lenders do not have to give these statements any weight but many will do so especially if supporting documentation is included with the consumer’s statement.

Article Source: ABC Article Directory
The Author: Peter Kenny is a writer for The Thrifty Scot

Best way to understand your credit report

READING YOUR CREDIT REPORT

Credit scoring is complicated to say the least. When you are born you probably had a credit score of (450) The highest credit scores we have seen exceed (800) In the lending arena and the Federal Government Home Loan Guaranty process, we know that a credit score of (620) or higher can get you a mortgage approval. Now, if your credit scores are lower than that, yep, you can get approved, but guess what? At a much higher rate. So knowing that credit scores affect the amount of your payments is important.

What we are going to tell you now about your credit report is SHOCKING. The single most item that will lower your credit scores is a RECENT LATE PAYMENT. We have seen credit scores plummet from (690) down to (590) in one day because an account was recently (30) days late. It does not matter the amount of money. Even if the account was for $50.00 and you were recently late, your credit scores plummet drastically. Credit scores are NOT determined by the dollar amount of the entry but by the record of payments.

This is perhaps one of the most important documents that you will come across in your lifetime. It is more important than a, marriage license, drivers license, social security card, paycheck, bank statement or any other documents. This document determines how much you are going to pay in interest when you want to buy something. If you do not care nor understand anything about your credit report, okay, just keep paying high interest.

A little bit about interest. Lets say that two twin brothers live across the street from each other. Both work for the local power company. Both have worked there for (25) years. Lets call one Bob and the other Fred. Now, Bob decides to go to the local dealer and buy a new pickup truck. He comes home one Saturday morning driving that new pick-up and wow Fred is really curious. He asks, Bob how much he paid for the shiny new pickup truck. Bob says I paid 27,550 for it.

Fred goes inside and his wife is also more than curious, she is antsy. She says to Fred, If your brother can buy a new pickup and drive it home, only to show off, we can do the same. So, Fred and his little wife (Mary) drive down to the local dealer and even though, Bob has a red one, Fred and Mary pick out a white pickup truck. They make a deal and drive it home. They pull up into Bobs driveway and honk the horn. Bob comes out and, Mary says See, we can also drive a new pickup truck. Bob asks his brother, How much did you pay for the truck? Fred says I paid $27,550 for it. Now here is where the elephants are separated from the giraffes.

Bobs monthly payment is $475.00 and his brother Fred has a monthly payment of $675.00. WHY? Because, Bob has better credit than Fred. Same price but different interest rates. Fred will pay over $200.00 per month or $ 2,400 per year more for the use of money. Multiply that times (6) years and Fred is paying $ 14,400 MORE for his white truck than his brother. Is this fair? Sorry, but that is the system and that is a perfect example as to WHY you should understand your credit report. There are many stories like this and virtually millions of Americans that do not understand their credit reports.

Lets get into what is a credit report. It is a history of how you pay your bills. Are credit reports accurate? Congress has always known that over 70% of credit reports have some type of an error. After all, the credit reporting agencies only report the information that is reported to them from the creditors. Pay attention here, because we will later refer to creditors as furnishers of information.

How you pay your bills is data entry into a computer by the HUMAN ELEMENT. Do humans make mistakes? You answer that one. Credit Reporting Agencies do not care about your credit. They, are supported by merchants that pay a small fee to find out about your bill paying history. Lets just say that out of three hundred million people, everyday over one million credit reports are provided. Now, multiply that times $12.00 and you have Twelve million bucks to divide between THREE major companies daily. If that doesnt wake you up, nothing will.

When something is wrong on your credit report and you get frustrated attempting to get it taken off or corrected, you usually give up. After all, there are NO CREDIT COPS. Sure, we have the Federal Trade Commission to look after us. But they are a bureaucracy and if you believe in BIG BROTHER looking out for you, you need to get your thinking readjusted.

In order to understand how to understand your credit report you MUST READ ALL of the information on the report. Do not just glance at it. It contains many codes that are very confusing to say the least. I have talked to Bank Officers, Attorneys, Mortgage Lenders, CPAs, Brokers, Realtors, Underwriters and just about every expert in the credit field. I can say this from a personal experience. Over (90%) of the so called experts that I talk to are NOT aware of Federal Laws and how they affect how much you will pay for the cost of borrowing money.

Lets get started:

Look at your entries on your credit report and look very close at the little lettering above which says DATE OPENED. This is always the single most cause of high credit scores and we want you to become an expert in knowing when an account was opened. Why? Well, the Fair Credit Reporting Act, Section 623(a)(5) says the period of reporting derogatory information in a credit report is for (7) years. That means YOU are in credit prison for (7) years for being late on a payment or having one charged off or placed for collection.

How would you feel IF, someone came into your credit prison and added (5) years to your credit prison sentence and you did not even know it? Well, friend, it happens EVERY SINGLE DAY. That is called AGING and is a violation of Federal Law. How would you know this, if you did not know where to look and what to look for?

Here is how it works. Lets say that you bought a refrigerator from Honest Harry and for whatever reason it stopped working and decided you were not going to pay for it until Harry fixed it. He wouldnt fix it, so now he reports it to your credit bureau that you quit paying in June of 2003. Remember, your (7) year period of being in so called credit prison starts in June of 2003. BUT, here it is 2006 and Harry decides to turn your account over to Happy Landings Collection Agency.

When did they get the account? Well they got the account in June of 2006. So, they report to the credit bureau that this account was OPENED with them in June of 2006. My new friend/s GUESS WHAT has just happened? Happy Landings Collection Agency has just added (3) years to your credit prison sentence and this derogatory item is now on your credit report for (10) years. Fair? NOT AT ALL. What can be done? Without any knowledge or what to do about it, or how to find it, NOTHING. BUT, if you understand everything that you have read so far, you can notify the credit bureaus and the furnisher of information that the account is AGED and Federal Law prohibits that.

Do creditors react to this? It all depends on the knowledge that you have and how you communicate with them.

Now, since we understand aging and how long an item can remain on your credit report, lets look into another item or entry. Federal Law says that a furnisher of information MUST report the date in which an account was first late and that triggers the commencement of the initial delinquency. There is a National bill collection agency by the name of NCO. In the summer of 2004 they were found guilty by the Federal Trade Commission of this violation and fined $ 1,500,000. Thats right! I said ONE POINT FIVE MILLION SMACKEROOS. Is that heavy? You bet your brother Freds new white pickup truck that is heavy.

Why would they intentionally do this? Guess? With all of the millions of folks that are in their files, they can use this phony date to scare the daylights out of people. They can even turn the files over to the legal profession and they in turn scare you into paying..

Look at the far right column. It has a 30,60 and a 90 day paying history. This is supposed to let you know how often you were 30,60 or 90 days late. This is an area of constant errors. Look at your own credit report now. Some times it will report a consumer being 90 days late (4) times and 60 days late (2) times. Now, lets use some common sense. How can you be 90 days late before you are 60 days late? Not possible. So, in order to be 90 days late (4) times, it is numerically impossible if you were not 60 days late at least (5) times. Sorry, cannot get to third base without passing second base.

You will also find that the majority of bill collectors do NOT report the opening date of an account. WHY? Because they do not know it. If they report the date that they received the account as we described earlier, than they are aging the account. This is to your advantage because the law says they MUST provide 100% accuracy.

Another entry that we want you to be aware of on your credit reports are items that truly do not belong to you. There are many cases where the same name or similar names cause information to be entered into the wrong files. Sometimes this can be disastrous when applying for a loan. The underwriter, banker or lender ONLY has the information that is front of them.

Here is a favorite trick of collectors/creditors in entering the same account but with a different account number. Now you might owe someone $1,500 and they turn it over for collection. Well, the collection agency simply puts their in-house account number on it and that is what they report. For example: Lets say you had a credit card with Capital One. The account is turned over for collection and you cannot figure out why you have two accounts with virtually the same amount. Guess what? Neither, can most mortgage brokers, realtors or counselors understand this. Most of all, they do not know how to figure this mess out.

Again, its the law. The account number of the original account and the 1st time that you were late AND NEVER GOT CAUGHT up is the determining factor. If pressed, the creditors always respond. Sorry to say, but they only respond when you have knowledge and press your point. The greatest weapon to get their attention is through Small Claims Courts. Do not believe this garbage that IF you make a partial payment it will help your credit. That is absolutely wrong and is a favorite old ploy by bill collectors. This does NOT restart the seven year clock. The ONLY way that the seven year clock is re-started is IF YOU BECOME CURRENT. That means paying off all of the late dates. That is your choice. We do not advocate not paying your bills. We simple teach your rights under the law.

Most entries in any credit report have information that is not accurate or information that is critical for you is missing. Be very aware, as I mentioned earlier about the opening date of an account and when you were first late.

Now that you have learned the most important parts of your credit report, just remember, getting a better credit report is not like putting a new coat of pain on a room. It is not easy but with a little practice you can understand your credit reports better than most people today.

Remember your rights under the Fair Credit Reporting Act. All information MUST be 100% accurate. If you attempt to dispute with the Credit Reporting Agencies, be very careful that you do not write frivolous letters. (means letters that dont mean anything). If you have documentation to back up your claim or you have a copy of your credit report and you underline those items that you know are not accurate, you stand a very good chance of getting your credit straightened out.

As we mentioned earlier, if bankers, attorneys, mortgage lenders do not understand the law, how do expect anyone else to help you. There are NO credit counselors out there that can help you to understand your legal rights.

They are wonderful people that get paid (by you) to teach you how to budget your paycheck. They then make deals with creditors to take payments. IF THAT is knowledge, than I am the Eiffel Tower in France.

The last thing that we want you to pay close attention to is the reporting of the late dates. Now we talked about paying history earlier. Now lets talk about reporting of late dates. The law is specific. A furnisher of information MUST report the commencement of the initial delinquency that led to the action (charge off or collection). Without this critical data, no one can determine how long an entry will remain in your files. Look closely at the reporting of late dates. This is a common practice. Late dates: (120) June (120) May, (120) April, (120) March. Now is this accurate reporting? NOT AT ALL. Where is the commencement of the initial delinquency? When was this account first late? This is powerful stuff.

We have personally assisted folks just like yourself to attain higher credit scores, once they understood their credit reports. We have a number of clients that came to us with credit scores below 550. Within (6) months and a lot of work, we have seen their credit scores jump up to 650 and higher.

Finally, there is a major industry that has brewed in the past couple of years and you are a part of it, whether you want to be or not. When credit cards can no longer be legally collected many law firms and private investors have gotten together and purchased these (debt barred) accounts for .02 -.05 cents on the dollar. Now, when they send you that nasty letter and you get intimidated because it is from an Attorneys office you fall down, ask for forgiveness and pay as they tell you to. Folks, you cannot believe the profits these bottom feeding characters are making. After all, if they bought a product for .02 cents and sold it for .50 cents, would you think that is unfair? Well when they buy your TIME BARRED DEBT and collect on it through intimidation, they win BIG PROFITS and you are the victims. Even bank robbers have the benefit of the Statute of Limitations. Another reason to keep listening.