Consumer Fraud Alert: ATM Skimming

Using an automatic teller machine (ATM) has its risks especially at night, or in poorly lit areas, or wherever traffic is infrequent. A criminal element is often at work, but perhaps in a way you never expected. No, you may not become a victim of a mugging, but you could end up having hundreds of dollars stolen from your account without your knowledge.

What You Should Know

ATM skimming is a rising threat, one where perpetrators place a tiny plastic ring in the slot where your card goes in, recording security details embedded in your card.

• jump to our BLOG article on ATM skimming
• also protect yourself from ID Theft

You have seen the ads: if you have bad credit, we can provide a car loan for you! Unfortunately, if you take them up on their offer you could end up paying a very higher interest rate for your loan, costing you a mint in financing charges.

Experian, one of the three credit reporting bureaus, says that a person whose credit score is above 700 “usually suggests good credit management.” They also say that most scores fall between 600 and 750 which means that if your score is below 600 then you pose a greater lending risk. (see Experian.com: What is a Good Credit Score?)

But bad credit does not mean you cannot get a new or used car. What it does say is that if you are patient and work first on improving your financial picture, then you can get an affordable loan to cover the cost of your new ride.

Let's take a look at some steps you might want to take in a bid to improve your credit score:

• Pull your credit reports. Did you know that you are entitled to one free copy annually of your credit reports? AnnualCreditReport.com is a site managed by the three credit reporting bureaus—Trans Union, Experian, and Equifax—where you can obtain copies of your reports.
  
  All three reports contain important consumer information about you including your credit accounts, loan balances, payment history, job and personal information, and other details.
  
  
• Review your credit reports. Examine your credit reports closely to make sure that the information contained in each is accurate and up to date. Wrong or outdated information can pull down your credit score, perhaps enough to affect what lenders will charge you for your car loan.

Nolo advises consumers to “complete the form the credit bureau provided to dispute entries in your report. List each incorrect or out-of-date item and explain exactly what is wrong.” After thirty days, that information must be removed from your credit reports if in error. (see Nolo.com: How to Clean Up Your Credit Report)

• Obtain your credit score. Through AnnualCreditReport.com, you can obtain your credit score too. Unlike your credit report, you will need to pay a fee for this service.
  
  Trans Union and Equifax offer credit scores through this service (Experian requires you to obtain it through their website), so choose just one company and pay that fee. This information will serve as a baseline score going forward, a number you will want to improve as you fix your credit.
  
• Analyze your debt. In addition to reviewing your credit reports for mistakes or outdated information, these reports can give you a good indication of what is holding down your credit score.

You cannot do anything about negative, but correct bad credit information such as defaulting on a loan or filing for bankruptcy. Those events will show up on your credit reports for at least seven years. But if you have made late payments to your creditors, landlord, or utility companies then work toward making your payments on time while also paying more than the minimum balance on your credit cards each month.

Give it time. Certainly, if you want or need a new car right now there is not much to stop you from applying for a loan. But consider this: if you are considered to be a sub-prime borrower, then you could pay two or three times the going rate for your car loan. Better for you if you were to delay your purchase until your score improves.

Work actively to pay down your debt, resist taking out new credit, pay your bills on time and within six to twelve months you can pull your credit reports and obtain your credit score again. By then, your score may have improved enough to where you can get a car loan at a favorable rate.

Considerations

• When it comes time to get a car loan, shop around. Credit unions generally offer a lower rate than commercial banks.

• Put more money down. If you have bad credit, then make a larger down payment. If you assume a greater portion of the risk, then lenders may adjust their terms accordingly.

• The look, feel, and smell of a new car is enticing. However, your car can lose as much as one-third of its value within the first year of ownership. You may do better finding a late model used car whose price reflects its depreciation.

2008/09/08 credit management

The Federal Trade Commission (FTC) through an act of Congress has authorized that all three major credit reporting bureaus provide one free copy of your credit report to you on an annual basis. This ruling has proven to be a boon for consumers who are now able to learn what creditors are saying about them and quickly respond to errors and omissions. However, not all businesses offering to help you obtain your free credit reports are in truth free. So let's review how you can know if a particular offering is right for you.

Firstly, only AnnualCreditReport.com is the web site recognized by Experian, Trans Union, and Equifax to supply free credit reports for consumers directly by these three big credit reporting bureaus. At that site, you can get one free copy once per year from each company, however you will have to pay $5-8 to receive your credit score, which is separate from your credit report. You don’t have to order your score, but it is valuable information that every consumer should have.

Secondly, there are companies out there who claim to provide free copies of your credit report and credit score. At face value these schemes might look like acceptable offers, but they almost always come with caveats, namely requiring you to purchase some other services. These services may include credit monitoring, credit watch, and so forth. Charges for these services vary, but you'll probably commit to paying $8 to $12 per month for most plans. Together, you may pay out more than $100 annually for this kind of program while it would only cost you $20 or less yearly through the FTC’s authorized site at AnnualCreditReport.com

Finally, it is not illegal for these businesses to offer these services to you. It can seem to be a bit deceptive, but they normally are upfront about what is being offered to you through their plans. However, if you obtain your credit reports on a scheduled basis, then you simply don't need their credit watch service. Just keep on the alert for possible problems cropping up through your free reports.

If you choose to utilize a credit monitoring program, make sure that you can cancel the plan at any time. Stay away from yearly contracts but consider using these kinds of businesses if you need an extra pair of eyes to watch out with you. In some cases (such as an ongoing identity theft issue) these services may be helpful, but in the majority of cases your personal oversight will do the trick while also saving you money.

2008/09/08 credit management

You Can Gain Control Over Your Electrical Bill

Consumers are reeling from the sudden shoot up in fuel prices at the pump, paying $4 or more per gallon for regular gasoline. Unfortunately, home energy prices are also going up, stinging homeowners with increases of !0-50% over the past year.

While you may be able to cut back on driving, you may not be able to do so with cooling your home, especially if you live in an area where high temperatures and stifling humidity reigns supreme all summer long.

There are ways you can reduce your energy consumption without being very uncomfortable this summer. Less energy burned means more money that will stay in your wallet, a good thing because you'll need those extra funds to pay for gas!

The following tips can help you gain control over your electrical usage this summer:

Replace your thermostat -- If you still have a manually operated thermostat, consider replacing it with an electronic one. By automatically setting the inside temperatures to go up and go down at strategic times of the day (like just before you come home from work), you'll be able to cool down the house without wasting electricity. Consider also getting your HVAC system tuned up for the hottest months of the year.

Close your blinds -- If any part of your home gets direct sunlight at certain times of the day, make sure your blinds are closed and your curtains drawn during those hours. Your air-conditioner won't need to kick on as quickly when the inside of your home remains cooler longer.

Run the dishwasher and clean clothes at night -- Many utility companies structure their rates to charge you more for using their services during peak hours. Hold off washing the dishes and running the dishwasher until the evening and you'll save a nice amount of money. Check with your electrical company to find out when the lowest rates apply.

Take control of your lighting -- Turn lights off when not needed and consider replacing bulbs with lower watt bulbs wherever possible. Also, incandescent lighting uses less energy than fluorescent lighting.

Take control of your water heater -- Especially in the summer months, you can lower the temperature of your water heater and still have it hot enough to sanitize dishes and get you clean. Wrap the unit in insulation and it won't have to work as hard to warm up your water.

Consider air drying your clothes -- Clothing dryers are a wonderful convenience, but if you can air dry at least some of your clothes, then you can use your dryer less and save electricity.

Microwave is the better way -- People who own a microwave and an electric oven can save money by choosing the microwave for cooking. If you can cook it in either oven, then put it in the microwave for quicker cooking and less strain on your electrical system.

Finally, if you are planning to buy new appliances this year, choose those with an Energy Star rating at the top end of the scale to reduce your energy consumption even further

2008/06/05 home tips

It is a given that most consumers carry at least one credit card, perhaps several when you include department stores, gas station cards, plus MasterCard, VISA, AmericanExpress, Discover and others. Consumer lending is a huge industry, one that lenders depend on to fuel their businesses.

Not all credit card offers are equal with some offering high rates and no rewards to others which will give you a low, fixed rate and shower you with special prizes. Before you choose your next card, let's take a look at the variety of credit card options out there for your consideration.

Low Interest Rate Credit Cards -- Despite the recent run up in interest rates, there are still credit cards available with low rates, even zero percent financing for balance transfers. Usually, these special rates are in place until the transfers are paid off with newer purchases charged at a higher rate.

Low Introductory Rate Credit Cards -- To get you to use a new card, some credit card providers will offer you a special "teaser rate" that will run for several months, usually for as long as six months. You can make purchases at the very low rate (let's say 1.9% for six months) and then pay 12.9% or more after that time. This can be a great way for consumers to make an expensive purchase they plan on paying off within a few months time.

Pre-paid Credit Cards -- For consumers with bad credit and for students who are off to college, a pre-paid credit card allows holders to build up their credit while still having the convenience of shopping with plastic. No worrying about carrying around a wad of cash -- if you lose the credit card you haven't lost your money.

Rebate Credit Cards -- Use your credit card and get paid for it! Sounds like a come on, but it is true: some credit card providers will give you cash rebates on select purchases. Spend $1000 and you could have $10 or $20 credited to your account, depending on the offer.

Award Credit Cards -- Also known as rewards cards, an award card works similarly to a rebate credit card: you get to select gifts based on points you have accumulated with your purchases. Typically, one point is awarded for every dollar spent and you can redeem those points online or through a catalog sent by the credit card company. Many award credit cards will automatically give you 500 or more points with your initial purchase and some will incentivize their offers through special promotions which can double or even triple your points during a special promotional period (for example, the Christmas shopping season).

The previously mentioned credit cards choices are typically MasterCard or VISA network credit cards, but American Express and Discover have special offers which might be of interest to you too. You can manage your various rebate cards with this free download to help you get the rebates and rewards coming to you.

2007/11/27 credit cards

If you’ve recently received a copy of your credit report from either Experian, Equifax, or TransUnion (the three major credit reporting agencies) you might be surprised by just how much information that they have about you. Trouble is, some of that information may not be correct. Should that be the case, then you need to take the appropriate action to correct your reports because if you don't, then wrong information could come back to haunt you the next time you seek to obtain credit, rent an apartment, even apply for a new job.

Credit Report Errors Can Harm You!

Mistakes found in your credit reports can work against you, possibly affecting your ability to obtain credit at an interest rate favorable to you. Left undiscovered, credit report errors can harm you by causing you to pay hundreds of dollars more each month on your mortgage or finding that your new auto loan application has been turned down. This shouldn't happen as each credit reporting agency -- Experian, Equifax, and TransUnion – must supply to you one free copy of your credit report on an annual basis upon request.

You can obtain your credit report copies at www.AnnualCreditReport.com, the website which has been approved by the Federal Trade Commission to process your request. Just to let you know, your all-important credit score is not included with the offering, but you can and should obtain that information too by paying a separate, token fee for the service.

How To Report Errors On Your Credit Report

Credit reporting agencies are required to repair errors on your credit report as per the Fair Credit Reporting Act. All the same, they will only take action if you inform them of the problem first. Be prepared to draft a letter to the respective credit bureau and send it to them by means of certified mail. That letter should include the following information:

• Your complete name, address, social security number, and your date of birth.
• The disputed company’s name and your account number with them.
• State your reason for the dispute, share your correct personal information, and ask that they amend your credit report consequently.

Mistake?  By Law, They Must Be Corrected Or Expunged

By law, the credit reporting agency will get rid of any disputed information that they cannot be verify, so make certain that you do a thorough job to corroborate everything correctly. Naturally, if you do have a track record of credit problems that information will remain on your credit report and it will reduce your credit score. Please keep in mind that if you filed for personal bankruptcy that information can stay on your report for as long as ten years.

In conclusion, don’t forget to obtain free copies of your credit reports from Experian, TransUnion, and Equifax, cautiously examining each one to look for mistakes.

2009/05/11 credit reports