Now that everyone is so obsessed with their credit reports and FICO scores, credit monitoring services have popped up everywhere. For a modest recurring fee–one that easily adds up to over $100 a year–you can have a company constantly watch your credit report and alert you of any changes in it, so you can always be on top of your creditworthiness. But should you bother? The consumer director of the U.S. Public Interest Research Groups federation (U.S. PIRG) tells BusinessWeek that credit monitoring is a “protection racket” that turns people into “financial hypochondriacs… who are scared of their own financial shadows.” [More]
Is A Perfect Credit Score of 850 Even Possible?
By April 9, 2010
A perfect credit score of 850 is technically possible, according to FICO spokesperson, Craig Watts but may not be possible for anyone. [More]
62 DFAS Employees To Be Terminated For Bad Credit
By March 22, 2010
The Defense Finance and Accounting Service (DFAS), a military payroll facility in Ohio, has told at least 62 of its employees that they will be terminated for having bad credit, reports WKYC. Troy Marshall, a 17-year veteran at the DFAS and one of the people being fired (incidentally, he’s also the president of a union that expanded jobs at the DFAS five years ago), told WKYC that he handles Social Security numbers and maiden names, but nothing else. “We are people. We are not just numbers. We are not just credit reports… Look at the whole person.” [More]
Let's Ask BillShrink About Credit Cards Under The CARD Act
By February 22, 2010
Greg wrote to us and said that he’s in the market for a new credit card: “I canceled my Chase card because they raised my interest rate to 29.99% + prime. What credit card companies should I be looking at for a replacement card? What are their perks, their drawbacks?”
I spoke with Samir Kothari, the co-founder and vice president of products at BillShrink.com, to see what he thinks about the CARD Act and how it will change the credit card marketplace.
Get Ready To Disclose A Lot More Information When Applying For Credit
By January 13, 2010
The downside to responsible lending is that the lenders will need more information about you, says the WSJ. [More]
If Your Adult Child Dies, Do You Have To Pay His Credit Card Debt?
By December 31, 2009
Reader Mat has a question. His uncle passed away a few days ago and his credit card company is telling his grandparents that if his bank account can’t pay the balance — they’ll have to. He’s wondering if this is true. [More]
New Rules Require Lenders To Say Why They're Gouging You
By December 22, 2009
Under new rules issued by the Federal Trade Commission and the Federal Reserve Board, lenders will be required to tell consumers why they’re sticking them with high rates or other lousy terms. How will creditors perform this incredible feat? By lying, of course. No, just kidding. They’re going to give you a free credit report and a note explaining their decision. [More]
Give Us Your Questions For The White House: Small Business Edition
By December 9, 2009
Yesterday, President Obama spoke at the Brookings Institute about his administration’s plan for spurring job growth in our not-quite-a-recession-anymore-but-still-pretty-much-a-recession. Now they’ve invited Consumerist to bring our readers’ questions about the program to Austan Goolsbee, the staff director and chief economist on the President’s Economic Recovery Advisory Board. [More]
6 Credit Card Fee Traps To Avoid
By December 8, 2009
Despite the passage of the Credit Card Accountability Responsibility and Disclosure Act (“Credit CARD Act”), there are still fee traps out there waiting to snare you. [More]
Denied A Credit Card? Try A Reconsideration Letter
By November 9, 2009
Frugal Travel Guy has a story of how he was able to get a credit card for his son after the company first denied him. The magic bullet was a well-crafted “reconsideration letter.” What’s that?
Taking Credit Card Offers Hurts Your Credit
By November 7, 2009
Last week, I wrote about how to turn your good credit into cash. I purposely excluded credit card offers from the list because I wanted things that, should you implement them, wouldn’t hurt your credit. Today, I want to warn to the overzealous.
How to Cash in on Your Good Credit
By October 31, 2009
Now that we know all the unexpected places our credit score is being used, is there anyway to turn this to our advantage? How do you cash in on your good name?
Legal Uses of Your Credit Report
By October 17, 2009
Once upon a time, credit reports were used only for credit. Now, companies use it for a lot of decisions. Find out what is legal and what is not.
Where to Get Credit Report & Credit Scores
By October 10, 2009
Don’t buy a credit score from anyone other than the credit bureaus or Fair Isaac, makers of the FICO score equation, and don’t buy a credit report from anyone, you can get your credit report for free by law.
Help! My Credit Card Is Adding An Annual Fee!
By October 9, 2009
Michael is in a situation that we anticipate will become very, very common in the coming months. His credit card company has imposed a $99 annual fee. He can accept the fee, or close his account. Not only is this his only credit card, but it’s the oldest credit line he has, so closing it would hurt his credit score. What would you do?
Prepaid Debit Cards Are Money Sucking Black Holes In Your Pocket
By October 8, 2009
Be very careful about activating any sort of over-the-counter prepaid debit card, reports the New York Times. They looked at a handful of prepaids currently on the market and discovered ridiculously high hidden fees—the first two months of use can cost you up to $80.
You Paid Your Bill 3 Hours Early? Then It's 30 Days Late
By October 2, 2009
John’s fiancee bought an Apple computer earlier this year, financing it with a Juniper Visa account, then paying the account off early. That’s the responsible thing to do, right? Not according to Juniper, which branded her as a filthy, filthy deadbeat. The bank marked the payment she sent in as “late” for arriving three hours before the end of the billing cycle.
How Your Online Life Can Mess With Your Credit
Blogging at SF Gate, personal finance expert and author Erica Sandberg writes about how things you do online — including your choice of friends in social networking sites and even comments you leave on blogs — can influence creditors. [More]