REALTOR® Magazine-Daily News-30-Year Rates Back Below 5%
Great article!!
For all your real estate needs, contact the best!
Jess Mangubat
Dilbeck Realtors
626.431.2266
jessmangubat@yahoo.com
Friday, February 25, 2011
Tuesday, December 21, 2010
How to Dispute Mistakes In Your Credit Reports With the Credit Bureaus
A few helpful tips if you see something that shouldn't be on your credit report.
You can dispute mistakes with the credit bureaus by mail or telephone, but you’ll get the fastest results if you initiate a dispute online. Here are the websites and phone numbers you should use for the credit bureaus when you contact them to dispute errors:
http://www.investigate.equifax.com or 888-800-8859
http://www.Experian.com/disputes or 866-200-6020
http://www.Transunion.com/investigate or 800-916-8800
It’s best to dispute errors one at a time – because contesting a slew of alleged mistakes all at once may cause your dispute(s) to be thrown out. By law, the credit bureaus can opt not to investigate your claims if they deem your dispute(s) to be “frivolous” or “irrelevant.”
What to Expect From the Credit Bureaus
Generally speaking, all three credit bureaus allow you to dispute errors related to the “Ownership” of an account or the “Account Information”/“Status” of an account. For example, when you fill out the dispute investigation forms supplied by the bureaus to mail them in, or when you file an online dispute, the bureaus will ask you to check off boxes that specify what information you are contesting.
Disputing Ownership of an Account
If you dispute “Ownership” of an account, you will check one of these boxes:
• I have no knowledge of this account.
• This account does not belong to me.
• This is not my account; it belongs to a relative or another person with same/similar name.
• This account belongs to my ex-spouse.
• This is a fraudulent account; account opened by someone who stole my identity.
• Fraudulent charges were made on my account.
• Creditor agreed to remove my liability on this account.
• Corporate account.
• I am no longer liable for this account.
• I did not authorize this inquiry.
• This is a fraudulent inquiry.
• Other.
Disputing “Account Information or “Status”
If you dispute the “Account Information” or “Status” of an item, you will check one of these boxes:
• This account is included in my bankruptcy.
• My credit limit and/or high credit amount is incorrect.
• My account balance is incorrect.
• Please verify date of last payment, date opened, date closed, or date of delinquency.
• Please verify the account descriptions shown on my account.
• I have never paid late.
• This account is closed.
• This account is not closed.
• My account is closed per my request to the creditor.
• This account is paid.
• I have paid this account in full.
• I paid this account before it went to collection or before it was charged off.
• Too old to be on file, please remove.
• Terms are incorrect.
• Creditor agreed to remove charges and/or fees.
• Creditor agreed to remove this account from my file.
• This account is transferred to another lender
• I am a victim of a natural or declared disaster.
• I have Active Military Duty status.
• Account is deferred.
• This account is settled.
• Other.
There may be variations in some of the wording. But as of this writing, these are all the possible reasons for disputes at Equifax, Experian and TransUnion.
The Differences Between Equifax, TransUnion and Experian
At Equifax and TransUnion, you can only choose from either the “Ownership” dispute category or the “Account Information” category that best describes your dispute. You can not make selections from both categories.
Equifax’s online dispute system also allows you to add a “Dispute Account Statement.” There you can type up to 250 characters to provide additional information to support your dispute.
At Experian, you can enter up to 120 characters about your reason for disputing something in your credit file. Experian alerts consumers that it will send your statement to the creditor. For example, assume you check the reason for your dispute as “I have never paid late.” If you then want to explain your position, you might add a statement such as: “The creditor said they misapplied my payment,” or “I moved but my creditor acknowledged that they erroneously sent the bill to my old address.” Such statements will be sent by Experian to your creditor to help them understand why you are disputing certain reported information. (Under federal law, all creditor bureaus are supposed to forward your explanation statements or supporting information to creditors/furnishers when you have a dispute. But critics say the credit bureaus routinely violate this requirement just to cut costs and save money).
At TransUnion, the online dispute service specifies that you can make only one submission that includes all of your requests for investigation or changes of information. If you need to make additional requests after your online dispute, you must call or write the bureau. TransUnion’s mail-in form, called a “Request for Investigation,” also includes a section for you to write in additional comments related to your dispute.
Proving That a Mistake Exists is Up To You
Remember: In the event of a mistake, the burden is on you to notify the credit agencies about that error. And it’s not enough to simply say something is “incorrect.”
You have to state why certain information is erroneous or outdated. Once you do, your claim will be investigated. If you have documentation like statements or cancelled checks, provide copies to support your claim.
In general, the credit bureau has 30-45 days to investigate your dispute and respond to you, in writing, with the results of the investigation.
Hopefully this helps and let me know your input.
You can dispute mistakes with the credit bureaus by mail or telephone, but you’ll get the fastest results if you initiate a dispute online. Here are the websites and phone numbers you should use for the credit bureaus when you contact them to dispute errors:
http://www.investigate.equifax.com or 888-800-8859
http://www.Experian.com/disputes or 866-200-6020
http://www.Transunion.com/investigate or 800-916-8800
It’s best to dispute errors one at a time – because contesting a slew of alleged mistakes all at once may cause your dispute(s) to be thrown out. By law, the credit bureaus can opt not to investigate your claims if they deem your dispute(s) to be “frivolous” or “irrelevant.”
What to Expect From the Credit Bureaus
Generally speaking, all three credit bureaus allow you to dispute errors related to the “Ownership” of an account or the “Account Information”/“Status” of an account. For example, when you fill out the dispute investigation forms supplied by the bureaus to mail them in, or when you file an online dispute, the bureaus will ask you to check off boxes that specify what information you are contesting.
Disputing Ownership of an Account
If you dispute “Ownership” of an account, you will check one of these boxes:
• I have no knowledge of this account.
• This account does not belong to me.
• This is not my account; it belongs to a relative or another person with same/similar name.
• This account belongs to my ex-spouse.
• This is a fraudulent account; account opened by someone who stole my identity.
• Fraudulent charges were made on my account.
• Creditor agreed to remove my liability on this account.
• Corporate account.
• I am no longer liable for this account.
• I did not authorize this inquiry.
• This is a fraudulent inquiry.
• Other.
Disputing “Account Information or “Status”
If you dispute the “Account Information” or “Status” of an item, you will check one of these boxes:
• This account is included in my bankruptcy.
• My credit limit and/or high credit amount is incorrect.
• My account balance is incorrect.
• Please verify date of last payment, date opened, date closed, or date of delinquency.
• Please verify the account descriptions shown on my account.
• I have never paid late.
• This account is closed.
• This account is not closed.
• My account is closed per my request to the creditor.
• This account is paid.
• I have paid this account in full.
• I paid this account before it went to collection or before it was charged off.
• Too old to be on file, please remove.
• Terms are incorrect.
• Creditor agreed to remove charges and/or fees.
• Creditor agreed to remove this account from my file.
• This account is transferred to another lender
• I am a victim of a natural or declared disaster.
• I have Active Military Duty status.
• Account is deferred.
• This account is settled.
• Other.
There may be variations in some of the wording. But as of this writing, these are all the possible reasons for disputes at Equifax, Experian and TransUnion.
The Differences Between Equifax, TransUnion and Experian
At Equifax and TransUnion, you can only choose from either the “Ownership” dispute category or the “Account Information” category that best describes your dispute. You can not make selections from both categories.
Equifax’s online dispute system also allows you to add a “Dispute Account Statement.” There you can type up to 250 characters to provide additional information to support your dispute.
At Experian, you can enter up to 120 characters about your reason for disputing something in your credit file. Experian alerts consumers that it will send your statement to the creditor. For example, assume you check the reason for your dispute as “I have never paid late.” If you then want to explain your position, you might add a statement such as: “The creditor said they misapplied my payment,” or “I moved but my creditor acknowledged that they erroneously sent the bill to my old address.” Such statements will be sent by Experian to your creditor to help them understand why you are disputing certain reported information. (Under federal law, all creditor bureaus are supposed to forward your explanation statements or supporting information to creditors/furnishers when you have a dispute. But critics say the credit bureaus routinely violate this requirement just to cut costs and save money).
At TransUnion, the online dispute service specifies that you can make only one submission that includes all of your requests for investigation or changes of information. If you need to make additional requests after your online dispute, you must call or write the bureau. TransUnion’s mail-in form, called a “Request for Investigation,” also includes a section for you to write in additional comments related to your dispute.
Proving That a Mistake Exists is Up To You
Remember: In the event of a mistake, the burden is on you to notify the credit agencies about that error. And it’s not enough to simply say something is “incorrect.”
You have to state why certain information is erroneous or outdated. Once you do, your claim will be investigated. If you have documentation like statements or cancelled checks, provide copies to support your claim.
In general, the credit bureau has 30-45 days to investigate your dispute and respond to you, in writing, with the results of the investigation.
Hopefully this helps and let me know your input.
Sunday, December 5, 2010
How to Safeguard Your Credit, Privacy and Accounts While Holiday Shopping
After a tough couple of years, Americans are loosening the grips on their wallets and planning to do a bit more shopping this holiday season.
The National Retail Federation predicts the average U.S. shopper will spend $689 over the holidays, up slightly from $682 in 2009.
Many of us will hop on the Internet to comparison shop and score bargains. But plenty of people will head to the malls and other brick-and-mortar stores to purchase holiday gifts, decorations, toys and more. Here are some helpful tips to safeguard your credit, your privacy as well as your bank accounts whether you’re shopping over the Internet or in person.
For Online Shoppers
While Black Friday – the day after Thanksgiving – has traditionally kicked off the official holiday shopping season, savvy consumers are increasingly interested in Cyber Monday deals that can typically be found only online.
So if you’re like me and you dread the thought of getting up early for in-store deals or battling massive hordes of shoppers, use these guidelines to shop safely and easily from the convenience of your home.
Only Use Secure Sites
The number one rule of safe online shopping – during the holidays or any other time of the year – is to only use secure websites. These are highly safe sites because they utilize encryption technology, which scrambles your credit card number and other personal information, making it nearly impossible for thieves and hackers to steal your data.
You’ll know a site is secure if it has any of these three things:
*a website or order page that says https://. The letter ‘s’ is your clue that the site uses encryption;
*a closed padlock at the bottom of the page. Don’t place any orders on sites where there’s an open padlock; or
*an unbroken key, which also signals safety measures are in place.
Stick With Reputable Sellers
When buying online, it’s best to patronize merchants and retailers you know, or those you’ve done business with before. If you plan to purchase something from an individual or a company that you’re not familiar with, be sure to first check out consumer reviews about the merchant. You can also check out companies from the Better Business Bureau.
Pay the Right Way
Never sends personal checks or money orders for merchandise you buy online. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered.
Guard Your Passwords
Many websites require you to set up an account or create passwords in order to complete online transactions. Be sure to keep passwords private and not divulge them to others. Also, don’t create easy-to-crack passwords, such as those with birthdates.
Read the Privacy Policy
To decrease the chances of winding up on someone’s spam list, or getting unwanted junk emails, always find and read the privacy policy for an online retailer you’re patronizing. Usually the privacy policy is on a website’s home page or in a section called “Legal.” The privacy policy will tell you what information the seller plans to collect from you, and how that information might be used, and how you can stop data about you from being distributed to third parties. Don’t ever give up private information like your social security number to anyone online. And ideally, you’d want to see a seal from a privacy enforcement organization, such as BBBOnLine or TRUSTe.
Complain if Necessary
If something goes wrong with an online purchase – say, your order doesn’t arrive or you get double billed – don’t hesitate to complain to the seller. If your complaints are not satisfactorily handled, you can also register complaints with the Better Business Bureau (http://www.bbbonline.org), the Federal Trade Commission (http://www.ftc.gov or 877-FTC-HELP) or the State Attorney General in either your state or the seller’s state (http://www.naag.org).
For In-Store Shoppers
Those of you shopping in retail stores should follow these tips:
Know the Return Policy
You should know a retailer’s return policies before spending money in a particular store. In addition to getting the low-down on how many days you have to make a return, or what items are and aren’t exchangeable or refundable, pay close attention to return policies that are specifically tied to your use of credit cards. For example, some stores may demand that you show the same credit card used during a purchase if you want to make a return. Others will only give you store credit, or credit back on your credit card, as opposed to cash refunds. Whatever the details, make sure you understand everything upfront before buying anything.
Keep Those Receipts
In the hustle and bustle of holiday shopping, it’s easy to lose track of how much money you spent and where. To minimize your risk of being over-charged and to protect your credit information, destroy carbon copies you might get from retailers, but keep the receipts. Later, check those receipts against the charges shown on your credit card statements to make sure everything is correct.
Limit What You Carry
Don’t carry your entire collection of credit cards, your checkbook and a wad of cash with you all in the same wallet. If a pickpocket targets you or you lose your wallet, you could lose all of it. Instead, leave some things at home and carry only what you need. And remember, never carry your Social Security card in your wallet.
Protect Your Cards
Lastly, you can protect your credit cards in several ways while shopping in stores. Start by only carrying one or two cards with you. Also, always double-check to make sure that cashiers return your credit cards after you’ve made a purchase. And finally, create a list of all your credit card account numbers and the numbers to call if they’re lost or stolen. Put this list away at home for safe-keeping.
By following these steps, you’ll have peace of mind this holiday season, knowing that your personal information, credit and privacy are all being properly guarded while you’re shopping online and in person.
The National Retail Federation predicts the average U.S. shopper will spend $689 over the holidays, up slightly from $682 in 2009.
Many of us will hop on the Internet to comparison shop and score bargains. But plenty of people will head to the malls and other brick-and-mortar stores to purchase holiday gifts, decorations, toys and more. Here are some helpful tips to safeguard your credit, your privacy as well as your bank accounts whether you’re shopping over the Internet or in person.
For Online Shoppers
While Black Friday – the day after Thanksgiving – has traditionally kicked off the official holiday shopping season, savvy consumers are increasingly interested in Cyber Monday deals that can typically be found only online.
So if you’re like me and you dread the thought of getting up early for in-store deals or battling massive hordes of shoppers, use these guidelines to shop safely and easily from the convenience of your home.
Only Use Secure Sites
The number one rule of safe online shopping – during the holidays or any other time of the year – is to only use secure websites. These are highly safe sites because they utilize encryption technology, which scrambles your credit card number and other personal information, making it nearly impossible for thieves and hackers to steal your data.
You’ll know a site is secure if it has any of these three things:
*a website or order page that says https://. The letter ‘s’ is your clue that the site uses encryption;
*a closed padlock at the bottom of the page. Don’t place any orders on sites where there’s an open padlock; or
*an unbroken key, which also signals safety measures are in place.
Stick With Reputable Sellers
When buying online, it’s best to patronize merchants and retailers you know, or those you’ve done business with before. If you plan to purchase something from an individual or a company that you’re not familiar with, be sure to first check out consumer reviews about the merchant. You can also check out companies from the Better Business Bureau.
Pay the Right Way
Never sends personal checks or money orders for merchandise you buy online. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered.
Guard Your Passwords
Many websites require you to set up an account or create passwords in order to complete online transactions. Be sure to keep passwords private and not divulge them to others. Also, don’t create easy-to-crack passwords, such as those with birthdates.
Read the Privacy Policy
To decrease the chances of winding up on someone’s spam list, or getting unwanted junk emails, always find and read the privacy policy for an online retailer you’re patronizing. Usually the privacy policy is on a website’s home page or in a section called “Legal.” The privacy policy will tell you what information the seller plans to collect from you, and how that information might be used, and how you can stop data about you from being distributed to third parties. Don’t ever give up private information like your social security number to anyone online. And ideally, you’d want to see a seal from a privacy enforcement organization, such as BBBOnLine or TRUSTe.
Complain if Necessary
If something goes wrong with an online purchase – say, your order doesn’t arrive or you get double billed – don’t hesitate to complain to the seller. If your complaints are not satisfactorily handled, you can also register complaints with the Better Business Bureau (http://www.bbbonline.org), the Federal Trade Commission (http://www.ftc.gov or 877-FTC-HELP) or the State Attorney General in either your state or the seller’s state (http://www.naag.org).
For In-Store Shoppers
Those of you shopping in retail stores should follow these tips:
Know the Return Policy
You should know a retailer’s return policies before spending money in a particular store. In addition to getting the low-down on how many days you have to make a return, or what items are and aren’t exchangeable or refundable, pay close attention to return policies that are specifically tied to your use of credit cards. For example, some stores may demand that you show the same credit card used during a purchase if you want to make a return. Others will only give you store credit, or credit back on your credit card, as opposed to cash refunds. Whatever the details, make sure you understand everything upfront before buying anything.
Keep Those Receipts
In the hustle and bustle of holiday shopping, it’s easy to lose track of how much money you spent and where. To minimize your risk of being over-charged and to protect your credit information, destroy carbon copies you might get from retailers, but keep the receipts. Later, check those receipts against the charges shown on your credit card statements to make sure everything is correct.
Limit What You Carry
Don’t carry your entire collection of credit cards, your checkbook and a wad of cash with you all in the same wallet. If a pickpocket targets you or you lose your wallet, you could lose all of it. Instead, leave some things at home and carry only what you need. And remember, never carry your Social Security card in your wallet.
Protect Your Cards
Lastly, you can protect your credit cards in several ways while shopping in stores. Start by only carrying one or two cards with you. Also, always double-check to make sure that cashiers return your credit cards after you’ve made a purchase. And finally, create a list of all your credit card account numbers and the numbers to call if they’re lost or stolen. Put this list away at home for safe-keeping.
By following these steps, you’ll have peace of mind this holiday season, knowing that your personal information, credit and privacy are all being properly guarded while you’re shopping online and in person.
Saturday, December 4, 2010
Dos and Don'ts For Credit Card Balance Transfers
Dos and Don'ts For Credit Card Balance Transfers
Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.
Here are some do’s and don’ts if you’re considering a credit card balance transfer.
DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.
For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?
Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.
DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:
• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards
DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.
For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)
Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.
Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)
DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.
First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.
Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.
So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.
Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.
Here are some do’s and don’ts if you’re considering a credit card balance transfer.
DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.
For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?
Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.
DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:
• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards
DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.
For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)
Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.
Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)
DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.
First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.
Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.
So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.
Dos and Don'ts For Credit Card Balance Transfers
Dos and Don'ts For Credit Card Balance Transfers
Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.
Here are some do’s and don’ts if you’re considering a credit card balance transfer.
DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.
For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?
Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.
DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:
• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards
DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.
For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)
Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.
Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)
DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.
First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.
Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.
So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.
Shifting debt from one credit card to another can save you lots of money – particularly if you’re taking debt from one high interest rate card and transferring it on another lower interest rate card.
Here are some do’s and don’ts if you’re considering a credit card balance transfer.
DO Look at the Entire Deal
Too often, when people conduct balance transfers, they only look at the interest rates of the credit cards involved. But it’s really wise to look at the overall deal you’re getting.
For example, is there a fee involved to do the transfer? If so, how much? Does your old or new card have an annual fee? What terms apply to each card? What credit limits will be imposed on each card?
Weigh all of these factors in your decision-making, and do the math to make sure a balance transfer makes good economic sense.
DO Get Online
Comparison shop online to make sure you’re getting a good deal. Several consumer-friendly websites – such as Bankrate.com, CardWeb.com and CardRatings.com* – will help you shop around, which can save you time and money when you’re trying to find a card that best fits your needs. The sites let you search for cards in multiple categories, such as:
• Low rate (ranked by APR)
• Low Intro/Promotional Rate
• No Annual Fee
• Rewards (gas, travel, cash-back, etc.)
• Secured (deposit required)
• Business
• Student
• Pre-paid/Gift Cards
• Smart Cards
DON’T Apply for Too Many Cards at Once
I don’t recommend applying for multiple credit card accounts at once, even if you get multiple offers with very low interest rates. Opening up too many accounts at once can actually hurt your credit score for two reasons.
For starters, the length of your credit history is one factor (approximately 15%) used in determining your FICO® credit score. Generally speaking, the longer you have been managing credit, the more positive that influences your score. So if you open several new accounts at the same time, the average age of your accounts will decrease and possibly lower your score. (Source: MyFICO.com)
Additionally, you don’t want to have too many inquiries on your credit report. When you apply for credit, a “hard” inquiry is generated. Even though inquiries account for just 10% of your FICO® credit score, my personal experience has found that it's not uncommon for a single inquiry to result in a double-digit drop in your score.
Although this “hard” inquiry stays on your credit report for two years, the good news is that a “hard” inquiry only counts against you for the first 12 months. After one year, that inquiry is no longer taken into consideration when your FICO® score is calculated. (When you check your own credit report, a “soft” inquiry is generated. “Soft” inquiries have no impact on your credit rating and don’t hurt your score). (Source: MyFICO.com)
DON’T Close Old Accounts Immediately
Some people mistakenly believe that getting rid of their credit cards will improve their credit. Therefore, they immediately close certain accounts once they pay them off, or when they complete a balance transfer. But doing so is a mistake that could hurt your credit score in two ways.
First, if you cancel existing accounts, you don’t get the full benefit of having those older accounts get counted in the “average age” of your accounts. And remember, a longer credit history is viewed more favorably.
Also, if you close a credit card account, especially one that now has a zero balance after you’ve done a balance transfer, you can inadvertently impact your credit utilization rate. With less credit available, your credit usage ratio will increase, lowering your credit score.
So even if you do a balance transfer, it’s generally best to keep open an older account that has a long credit history open. If for some reason you simply don’t want the card any more – perhaps it has a high annual fee – just keep the account open for a while after you complete the balance transfer. Later, you can close it, after you’ve had the new credit card account for a year or so.
Thursday, October 21, 2010
Tuesday, September 7, 2010
LA County Fair Discount
LA County Fair Discount
COURTESY OF Bolton and Company
We are again pleased to offer to all Bolton clients, your employees and their family members, special pricing for the LA County Fair, which will be opening Labor Day weekend (Saturday, September 4th). The Bolton rate is $9 for adults (vs. $17 on the weekends) and $6 (vs. $12) for children ages 6-12 (please note that there is a $1 processing fee per order). This discounted pricing can only be obtained online with the exclusive access code as listed on the flyer below.
Enjoy!
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