Tag: credit report

Credit Card: Questions And Answers. Part 1

Here in this article you will find all the answers about credit cards, credit history, credit report and so on.

For what the credit card is necessary to me?

At credit card use, it is possible to pay purchasing at once and to repay indebtedness later, completely or by parts. It is more convenient payment method. It is not necessary to carry with itself great sums of cash on a case of contingencies. I.e., credit cards are also protection against theft and loss of cash money funds. The credit card allows planning optimum your budget, to pay the goods and services, using bank means.

How the credit card differs from a debit card?

Depending on purpose of account bank cards share on credit and debit. Realization of debit card transactions is produced at the expense of own means of the holder of the card which need to be brought previously on the bank account.

Unlike debit, the credit card allows, without bringing previously own means — at the expense of a credit limit, that is at the expense of bank means — to pay any purchasing or services worldwide, and also to receive cash money funds in bank departments.

What is the difference between credit card and a credit line?

These are two different concepts having different conditions of issue and an order of debt repayment. The basic difference between a credit line and the credit, first of all in a payment procedure and term of payments. At credit line reception, the size of the credit and flexible hours of its repayment is given. I.e. you can spend once all sum on the given out credit line then will come to make accounts with the request minimum payment.

The size of minimum payment depends on the company which has given a credit line (see treaty provisions). If you want you can extinguish the entire sum at once too. As a rule, with a credit line, any new documents each time when you buy something aren’t required. Usual, the creditor asks for it you once at the very beginning of conversation, i.e. at your first meetings with it. You can pay for training in college, at furniture purchasing etc.

What are the features of payment by means of a credit card?

You don’t need to bring in bank own money funds previously. The card holder uses money of bank and repays indebtedness during the term established by bank.

How much will cost the reception of a credit card and its annual servicing? Where I can find the information about it?

With it there should be no problems. The matter is that the law obliges credit establishments without fail to inform clients on conditions on which they perform granting of credit cards.

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What To Do To Keep Your Credit History Clean: Choosing A Credit Card

In this article we will talk about how correctly to choose a credit card with the zero interest rate on purchasing, during an induction period (Intro period). The induction period (Introductory Period) is a time interval during which time credit granting soft terms act.

Agree that the offer on reception of such credit card sounds very seductively. And it is very frequent, banks offer credit cards with 0 interest rate with the period from 6 about 15 months.

For example, all this period you can use bank money free of charge, correctly? — It is not always so. Necessarily read agreement conditions at credit card reception (Terms and Conditions). The correct choice of a credit card is such at which, the client will pay to bank a minimum for using the credit, or will avoid this payment at all. Be convinced that you understand value and kinds of collections and penal damages. Sometimes late payment, can lead to a credit overdrafting that also can increase the balance sheet on the card.

At a choice of a credit card with 0 interest rate, it is necessary to remember that:

such rate is applied not to all operations with the card (purchasing, balance sheet transfer, cash withdrawal);

in the agreement with bank it is often said that in case of payment delay, the bank has the right to cancel action of an induction period and to start to apply the usual interest rate;

after induction period end, at balance sheet calculation unusually high interest rate will start to be applied. It is possible to close the account certainly, or to translate the balance sheet on other card. But what to do, if you don’t have cash, and the new card doesn’t manage to be received?

After end of induction period, at balance sheet calculation on the card, the balance sheet amount of last month of an induction period (see the clause) can be considered.

Credit cards with rewards programs:

There is a set of offers of various credit cards with rewards programs (Rewards Program). The majority of the given programs work exclusively with certain shops and it is necessary, literally to “juggle” with credit cards, using one credit card for food shops and another for autorefuellings. Each credit card issuer to aspire to become number one for the client that has led to development of new conditions for credit cards with rewards programs.

At use of the given kind of cards it is necessary to pay attention on:

1. An annual interest rate.

2. Some credit cards can have a limit determining, the maximum quantity of compensations.

3. Choose credit cards with rewards programs depending on personal needs then you can earn on the credit card.

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Credit History: How To Watch Your Credit Scores?

There are many ways to watch for your credit scores and credit history, that is why today I want to present you another optimum variant of such program that will easy for you your financial side of life.

So let us begin:

The program review “Score Watch”

“Score Watch” is a program which allows tracing changes in your credit report. Under the program name, it is possible to guess that more attention is given to monitoring of credit points. So, on a web site you can find the reference to viewing of the report. Good news that within 30 days the program is free. What to do further – to buy or not, is only for you to decide!

Procedure of registration is simple enough. It is necessary to fill out the name, the address, and phone. Further, pair of verifying questions, something like: “In what of the specified monetary institutions you have opened your account”, etc.

Having opened the main page of the program, it is possible to see the sum of your credit points of the report from credit bureaus and in the free version it is impossible to look at quantity of credit points.
Having pressed a tab “What it means to you” it is possible to learn, on what percent at purchasing of the house, the car you can count and to what group of risk you concern.

Having clicked on a tab “Understanding Your Score”, it is possible to see pluses and minuses in your credit history at present time. Further it is possible to look at the overall review of credit history and open accounts.

From this report I can see all accounts opened on my name, quantity of active accounts with the balance sheet and without, recent inquiries about account opening, and also records of agencies on collection of debts (collection agency).

Further on a tab “Accounts” names of open accounts, with balance sheet instructions as of the last month are in more details shown

The tab “Inquiries” – shows in more details, what creditors did on you inquiry in credit your agency, in calculation inquiries for last 12 months.

There is also a very attractive page where displayed the information on new open accounts, on a balance sheet growth on them, change of other information and so on, that will be very useful for you to and of course for your credit history.

In a tab “Settings” you also can establish automatic notifications on a case of any changes in your credit report. Such notification will be sent on the electronic address specified by you or on your cellular telephone. So it is pretty cozy. So you can use this program for your own advantage.

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Credit History: Versions Of Interest Rates, Collections And Payments Part 1

The understanding of versions of rates and payments helps to be specified most accurately with a credit card choice.

Let’s consider their basic versions.

Kinds of Annual Percentage Rate
The interest rate (Annual Percentage Rate) is the sum specified in percentage expression to a credit amount which the credit receiver pays for using it counting on the certain period (month, quarter, and year).

For example, 5 percentage quarter rates is equal to 20 percentage annual rate

Interest rates are usual estimated in relation to:

* to the sum on which purchasings are made;

* to the sum of monetary advance (cash withdrawal);
* to the sum of the translated balance sheet from other card.

Annual interest rate on purchasings (APR for purchases). The rate applied to the sum of purchasing which have been made with use of the given credit card.

Annual interest rate on the transfered balance sheet (Balance Transfer APR), such rate extends for the sum which has been translated from other credit account. Annual interest rate for the sum of monetary advance (Cash Advance APR) it is applied to the sum which has been drawn from account in the form of cash.

The multi-level interest rate (Tiered APR), this is such rate which changes the size depending on the balance sheet on the card. For example, 16 % at the balance sheet from 1$ to 500$ and 17 % on the balance sheet over 500 dollars.

Application of the penal interest rate (Penalty APR). An example from treaty provisions of crediting: “In case payment arrives with delay more than two times during the period of six months, the creditor has the right to apply punishment in the form of an interest rate increase”.

Annual interest rate at a preferential induction period (An introductory APR). Such interest rate will be applied to the account till certain time. For example, the annual interest rate equal 0 % with period of validity of the offer till September, 2008 is offered. After the expiration of this term the rate which is specified in the conditions of the credit company will be applied. It is possible to notice also that the interest rate on cash withdrawal always is considerable above than an annual rate on made purchasing.

Versions of commission fee and penal damages

Under certain circumstances credit companies levy a payment from the client.

The annual installment (Annual Fee) is an annual payment for using a credit card. Now only about 20 % of credit establishments establish an annual installment.

Payment for cash withdrawal of money (Cash Advance Fees). The credit companies also establish a certain payment at cash withdrawal from the account (through an ATM, for example).
Besides, very often credit companies stipulate the minimum payment for money withdrawal. For example, the payment for cash withdrawal of money is equal 5 % from the sum, but not less than 3$.
By the way, at balance sheet repayment on the account the sum which has smaller APR and only then the sum which has greater APR at first is repaid.

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Credit History: Versions Of Interest Rates, Collections And Payments Part 2

Service fee of transfer of the balance sheet from one card to another (Balance-transfer fee). Balance sheet transfer is a deed of conveyance of indebtedness from one account (credit card) into other account. As a rule, it is motivated by more favorable terms of credit. In such cases the bank in which you transfer the balance sheet, sends the check for the same sum. This check produces payment of a debt to other bank.

Payment for payment with delay (Late Fees). The payment for untimely payment is levied when the client has delayed monthly payment on a credit card. If payment has been delayed not because of the client the bank is obliged to return money. In practice, the credit companies don’t like to argue with clients if they hear in their words the weighty reasons of delay of payment.

Payment for a credit overdrafting (Overdraft Fee). It is levied in a case when expenses of the client have exceeded the admissible sum.

Payment for account opening (Setup Fee). A single payment for bank account opening.

Payment for return of the poor check (Return-item fee). It is levied, when the client pays (check), but on the account there were not enough means for a covering of expenses. In such cases usually use expression “bounced check”.

There are also other kinds of payments and collections. For example, a payment at payment by phone, and also at use of other additional types of service which use depends on the discretion of the client.

For today there is a huge set of credit cards.

1. With what it is necessary to begin a choice of credit card?

Yu should know the answer of the following questions:

What type of a credit card I search?

How will I pay for expenses: completely every month or monthly by installments?

On the type, all credit cards can be divided into following basic categories:

cards with a low interest rate;

cards with soft terms of transfer of the balance sheet;

cards with bonuses;

cash back cards (the bank returns from 1 to 25 percent from the spent sum);

prepaid cards;

cards for those who doesn’t have credit history;

cards for students;

card business.

How correctly to choose a credit card?

At filing of application on a credit card, automatically you face variety of unfamiliar concepts.

The special attention should be stopped on:

* a version of interest rates;

* a version of collections and payments.

2. Where it is possible to learn about credit card conditions?

With it there should be no problems. The law of the USA obliges credit establishments to inform the clients on conditions on which they perform issue of credit cards. As a rule, these conditions are listed in so-called “Schumer’s box” (in honor of the senator of the State of New York who has published the law fixing the given rule). Schumer’s Box, it is possible to find on the back offers sent by the credit companies by mail.

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Importance Of Good Credit History: Taking A Car In Credit. Part 1

How correctly to take a car in credit?

The majority of us buying the car fall in love with it and forget about financial nuances. This factor can play a bad role, especially at car purchasing in credit.

How to avoid errors? Let’s consider the most widespread of them.

Error number one is that people at first go to choose the car but only then choose terms of credit.

The employee of a motor show can suggest receiving to you a machine purchase credit directly in their dealer shop. And, as a rule, this offer is much more unprofitable than the offer received directly from bank. Try to consider that cost of the car in the end of term of payments, loses the original cost. On the average, the car gets already cheaper on 10-15 % while the new owner leaves on it from motor show territory. For comparison, think, what is going on with the business of the real estate purchasing in the market?

Such situation, American people name “Upside down” i.e. when for the machine have paid more money, than it of that already costs actually. Thus, the best method is at first to purchase the credit, and then to go and buy the car!

What size of an annual interest on the credit is considered normal?

Certainly, the less is the better. Banks give a smaller annual interest for people with good credit history.

It is possible to check up free of charge credit report from which it is possible to find out on what annual rate for you to count at machine purchasing on credit.

Error number two is barrowing of too great sum of money payments on which you can’t master.

Exit is very simple. Take the calculator, a pencil and a paper blank leaf, sit down to table and make calculation of the monthly budget.

What sum it will be convenient to pay every month? How purchasing of the new machine is entered in the personal (family) budget?

The third error is signing of the credit for very long term, without possibility to extinguish it ahead of schedule without paying thus the penalty (prepayment penalty).

You can also download the list of questions in more convenient form in the internet. You can download there all the questions which are necessary for asking the future creditor. Take the list with your and consistently mark points, at credit reception in bank or a personal call to the future creditor. Also hold it before yourself before arranging the credit through the Internet.

Also you should definitely read the next part of this article and find there also all the necessary information that will be definitely very useful for you in taking a car in credit.

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Importance Of Good Credit History: Taking A Car In Credit. Part 2

Credit insurance. We will not name this point as an error. However, it is your choice — to arrange the insurance on the agreement of crediting or to refuse it if other isn’t provided by conditions of bank (creditor).

Usually it is offered two kinds of insurance of the credit.

Life insurance credited or Credit Life Insurance. It is the first kind of insurance. This kind of insurance pays expenses in case of death credited. The sum which remained not paid at date of death of the insured person is meant expenses. The insurance company will pay this difference, and the car remains at relatives or relatives credited.

The second kind insurance is insurance on a case of work incapacity, accidents, illnesses or Disability or Accident and Health. The name speaks for itself. Expenses will become covered during time when you can’t work, were ill or had an accident. Usually, in the conditions of the insurance company, it is told that the insured should be invalid not less than 15-30 days, depending on conditions of the insurance company.

The future owners of cars set to creditors very few questions. Or set, but not what should be set. Often happens that the person faces for the first time registration of a purchase credit of the car, and fear to seem incompetent in this question, forces it to agree simply silently with the seller of cars (or the creditor).
It is necessary to notice that the dealer organizations, as a rule, give the credit from 100 % a guarantee even if there is no credit history. Before it, they certainly will arrange small show to give the importance of their offer, but it already from psychology area, instead of the finance. It is necessary to notice only what to agree on this offer, it is extremely undesirable. Dealers are not banks.

Nevertheless, if you have decided to arrange the crediting agreement in dealer agency, ask more about credit conditions.

The best that it is possible to make is to constitute the list of such questions.

Let’s consider questions which are necessary for asking the future creditor:

what is size of an annual interest rate?;

what is the period between monthly payments (accounts)?

what is the term of loan payout? (Whenever possible, take the credit for smaller term. It is less term — less payment for using the credit);

Whether there is a penalty for premature loan repayment?

what is size of the minimum monthly payment?

what sum you pay for the credit finally if will produce only the minimum monthly payments during all period?

what collections it is necessary to pay at credit registration?

Is it necessary or not to arrange the insurance on the credit? How much does costs?

Whether there is an advance payment (down payment)?
the size of the interest rate is fixed or changeable?

what documents it is necessary to give?

* what time is required to them for decision making?

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What Is Better: A Loan Or A Credit Line?

In the given article the answer to following questions is given:

— In what a difference between a “loan” and a “credit line”?

— They render what influence for the sum of credit points?

So let us begin:

Let assume that we will understand in more details the difference between these concepts.

The basic difference between a credit line and a loan, first of all consists in a payment procedure.

So any way what is better: a loan or a credit line?

Credit line (line of credit)

The received means in the various purposes give the chance to the borrower to use the agreement on credit line granting. At credit line reception is the total established sum which the client can obtain in bank. The flexible hours are given — there is no fixed maturity date, for example, you can spend once the entire sum then will come to make accounts with instructions of minimum payment. The size of minimum payment depends on conditions of the company which has given a credit line. The available credit amount proportionally renews in process of debt settlement.

The credit line doesn’t demand each time to legalize papers in bank on purchasing.


The loan, assumes target granting of means with the accurate schedule of payments, it has a definite period of repayment which makes a reservation in the contract (two years, ten years etc.) For many clients, discipline of repayment of an amount of debt for a definite period is more attractive offer than payment during uncertain term.

Now, let’s look how the loan or credit line is used, it is displayed on a condition of credit points.

At loan use, in the credit report it is possible to see:

How the payment is produced;

Extent of a debt;

Predictability of expenses;

The size of a remainder of a subject for payment.

At credit line use:

to the creditor it is not clear how and when the client will extinguish the balance sheet completely;

it is impossible to predict expenses on this account.

The size of a limit of a credit line is underlined in the report. Approach of expenses to a limit of expenses of a credit line is equivalent to approach to a limit of expenses on a credit card. The given circumstance negatively affects the sum of credit points of the report — credit points start to fall. For example, credit line use is inexpedient in that case when you try to increase a score in the credit report. In it, actually, the question in the given clause also consists. So now you know all the necessary information about credit lines and loans and you know what to choose for yourself.

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Credit History: Transfer Of The Balance Sheet Into Other Account

The majority of credit card issuers in the USA for attraction of new clients is advertized by the credit cards, offering very big induction period on extent (sometimes about 15 months!).

For variety of people the termination of period of validity of an induction period of credit card is a signal of the beginning for searching the new one. Many people use such offers to cut down the expenses, i.e. not to overpay money to creditors, throwing the debts into new, interest-free credit accounts. The smaller size of an annual interest or its total absence and accordingly the card holder will pay less money behind using the credit.

For balance sheet transfer usually it is required to call in bank where you want to translate the balance sheet and to ask them to send you the check for balance sheet transfer. Such checks differ nothing from their habitual kind. After reception of such check write out it addressed to bank in which you want to extinguish the balance sheet. Transfer of the balance sheet into the card with lower interest rate can save money if you don’t repeat the most widespread errors.

Also you should pay attention to the following issues:

1. A payment while translating the balance sheet (Balance transfer fees)

The majority of the credit companies levy a payment for balance sheet transfer. Such payment can be fixed (we will tell $35 – $70) or expressed in percentage of the translated sum, more often this percentage expression with instructions of minimum and a maximum amount.

At the moment of a writing of this clause, the majority of the most known emitters suggest to translate the balance sheet on their cards for 3 % from the translated sum (is usual makes a reservation that not less than $5 and no more than $75) that sounds attractively enough.

2. Other interest rates

Pay attention to the size of other interest rates on a new credit card where you are going to translate the balance sheet. Very often this category of cards has higher interest rate for the sum of purchasing or cash withdrawal. Higher – means above, than on a credit card which you now use for purchasing. Another matter if you aren’t going to use this card for purchasing.

3. Sequence of repayment of the balance sheet

Remember that in treaty provisions of absolute majority of emitters, first of all the order of repayment of your indebtedness begin with the sum greater interest rate, and only then your payments extend for the sum with the leviable smaller interest rate. For example, you have transferred the balance sheet at a rate of 3000$ into the new account, and have then made purchasing on 400$.

In the end of a month you have sent in bank the check for the same sum of 400 dollars. If under treaty provisions, APR on purchasing is above than for the sum of the translated balance sheet the check written out by you for 400 dollars, will go on repayment of an outstanding amount of the translated balance sheet (i.e. $3000 – $400 = $2600).

4. The induction period expiry of the term

The induction period won’t last eternally. Therefore it is necessary to reflect over, whether it will be favorable to you to use such credit card in the future?! You agree to pay 17 %, 20 % (and more than percent) after the induction period expiration?

Also remember that the credit company can change the interest rate at infringement of treaty provisions by you (at untimely payment, for example).

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How To Protect Yourself From Credit Card Swindle? Part 2

So let us continue talking about credit card protection measures.

For swindle revealing, and also fraud risk decrease it is recommended to known and to do the following:

1. Regularly to perform monitoring of your account, also you should be convinced that all operations are authorized.

2. Use of service of the notification by e-mail or SMS, at address modification or large purchasing. This service usually is offered by bank. Check the e-mail regularly.

3. Attentively look through accounts of payment and reports from banks.

4. Check your credit information in the basic credit bureaus, it is possible to make free of charge usine the web site or it is possible to do by the phone call.

5. Consider the problem on signing on credit monitoring. For the best protection, be convinced that services perform monitoring of all three cores of credit bureaus.

If you have found out swindle or loss of your credit or a debit card, it is necessary to perform following actions:

1. Address in bank, the credit company or to the seller immediately, by phone or in writing the letter if it seems to you that you can appear a victim of swindle.

2. Close any accounts which can be subject to a swindle.

3. Consult at your bank about their conditions of a guarantee from swindle to help you to solve and overcome any potential losses.

4. Having received a copy of your credit report in any of three credit bureaus, you can make “the credit prevention” that your account can be subject to swindle. It will act 90 days from the date of registration, it won’t allow other creditors to use your name without preliminary identification. During these 90 days you also can subscribe for a longer period of time “the credit prevention” acting during seven years.

5. Attentively study conditions of the agreement which change depending on staff. Find what notifications to you should be undertaken at theft of your credit card.

6. Consider possibility completely to refrigerate your credit information, now it is authorized in 12 states, it will cease display of your credit report by all without an exception.

7. Address in police field office where there was a theft or credit card loss, and receive a copy of the constituted report.

8. You also can call by in federal trade commission and report it about the swindle fact.

Be vigilant, at realization of operations with credit and debit cards.

So now you know exactly what to do and how to act in case of the case swindle or card loss. Just be careful and attentive as it will help you to prevent any bad situation with your credit cards, credit history and your personal money.

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