Nocita Carter's Blog

Should I Have My Credit Frozen?

This is better known as having a security freeze on your credit report to assist in detouring and hopefully eliminating individuals from using your credit information without your permission or knowledge.  A security freeze can also assist in the prevention of identity theft. 

The cost of having a security freeze placed on your credit report is minimal compared to the overall identity theft protection products that are currently available to the consumer.  In many instances you may be paying as much as $15 per month for identity theft protection that may not be effective in preventing your identity from being stolen.

The cost of placing a security freeze on your credit report with each credit bureau is approximately $10 if you are under the age 65.    If you are age 65 or older, the cost of placing a security freeze on your credit report with each credit bureau is approximately $5.  The overall cost to have a security freeze placed on your credit report file would depend on the laws of the state where you reside.

In many states, if you are a victim of identity theft there is no cost to place a security freeze on your credit report file with each credit bureau. A security freeze to protect your credit file is available to all consumers in the United States and U.S. territories. 

You may be wondering, how do I add a security freeze to my credit reports? Well, you can start by contacting each of the following credit bureaus directly to start the process:  TransUnion, Equifax, and Experian. 

So, having a security freeze on your credit report file may be something you may want to consider.  By having a security freeze with each credit bureau, this may aid you in protecting yourself against identity theft.  In addition, if you have already been a victim of identity theft, freezing your credit report file, may help eliminate further problems with your credit information. You may want to visit the following websites for each of the credit bureaus to get started with obtaining your security freeze for each of your credit reports: 

TransUnion

Equifax

Experian

Credit Card Red Flags To Avoid

Credit cards are a wonderful convenience for many consumers that utilize them.  However, credit cards can become an unhappy experience if not used wisely.  In today’s fast paced technological environment many people want the ability to pay for goods and services with ease.  With this in mind, it is important to recognize some of the red flags that a credit card user may want to avoid to minimize or alleviate potential problems along the way which include the following tips:

Tip One: 

Do you really want to charge a latte to your credit card? Is that latte really worth the interest you may be charged? You may want to think twice about this before you use your card to make small purchases.  Consider paying cash or using your debit card for certain purchases instead.

Tip Two:

Before using your credit card you may want to think about whether or not you can pay off your purchase in full when you receive your monthly statement. If your answer is no, then you may want to hold off on making that purchase until you can afford the product or service you want to buy.

Tip Three:

Have you recently checked on the amount you are paying in interest by looking at your credit card statement? If you determine that the annual percentage rate(APR) you’re paying is too much, then you may want to consider contacting your creditor to see if you can get your interest rate reduced.  If you’re unsuccessful in reducing your rate with your credit card company you may want to research other banks or credit unions to secure a lower interest rate in order to transfer your high interest balance to another credit card.

Tip Four:

Thinking about letting someone other than your spouse use your credit card or having a secondary user on your account? This is probably not a good idea.  Keep in mind that you will become ultimately responsible for any charges another person makes on your  credit  card account after you have authorized them to use it.

Tip Five:

Are you thinking about traveling to another country? Well if you are, you may want to check with your credit card company on what they will charge you for foreign currency exchange rates and international transaction fees.  These rates can vary so it is important that you check on this before you begin your travel plans.  This should eliminate unwanted surprises when you receive your credit card statement after you return from your travels abroad.

Tip Six:

Review your credit card statement monthly to assist you in correcting any errors that may be on your statement.  This may assist you in catching potential problems on your statement and will also help you to stay on track with your budget and bill paying.

 

Hopefully these tips may assist you with avoiding some of the potential credit card flags that can occur if you do not stay active in reviewing your credit card  information.

 

Is Your Credit Card Blocked By Your Credit Card Company?

If your answer to this question is yes then you may be wondering why this has happened to you.  The answer to this question in many instances is that your credit card was blocked for your own protection by your credit card company to prevent the unauthorized use of your credit card by potential criminals committing identity theft against you.

You’re probably saying to yourself, well that’s great but, I am the one  being inconvenienced because you are the person actually trying to use your own credit card and unfortunately the purchase you want to make has been declined because your credit card has been blocked by your credit card company.  Unfortunately due to the billions of dollars lost annually to fraud, credit card companies have increased security to safeguard their customers credit cards.

So, you may be wondering is there any way to know when my credit card may be blocked?  There is no specific way to make this determination however, the following tips may assist you in knowing what may activate a block of your credit card by your credit card company:

Tip One:

Charging small amounts to your credit card may prompt a block of your credit card.  Unfortunately criminals test the waters by charging small amounts to credit cards initially prior to making a larger purchase. 

Tip Two:

A change takes place in your shopping behavior.  Normally you may only spend a minimal amount of money on your credit card and then you change your spending habit and begin to spend large amounts of money on your credit card.  You already have a preexisting spending history with your credit card company so changing your spending behavior may trigger a block to your credit card.

Tip Three:

The use of your credit card while you’re traveling on business or while you’re on vacation in another city, state or country.  This may be unusual credit card activity for you and may cause your credit card to be blocked by your credit card company.

Tip Four:

In some instances making numerous purchases within a short period of time may trigger a block to your credit  card.

 

If your credit card has been blocked or declined by your credit card company you may want to consider following:

1) Contact your credit card company as soon as possible.  You may have already received a telephone call, email or text message from your credit card company advising you of their concern for the prospective unusual activity on your credit card.

2) Try to have another credit card or debit card available for your use until you have the problem resolved with your other credit card.

3) If you are traveling on business or for pleasure let your credit card company know this information.

If your credit card becomes blocked by your credit card company, just stay calm and understand that your credit  card company is trying to protect you from being a prospective victim of unwanted fraudulent activity that may result in identity theft against you.

Are You Harming Your Child’s Future?

Casey headed to her mailbox with anxiety written all over her face.  As she opened her mailbox she pulled out a huge stack of bills.  She thought to herself, more bills and more bills, how in the world am I going to pay all of these bills? Casey knew that her mortgage payment, electric bill, car payment, water bill, property taxes and five credit card bills were all past due and delinquent.  She had previously borrowed money from all her credit cards to pay her bills but, her credit cards were maxed out and she did not know what she was going to do.  Casey also knew that she could not borrow money from her family and friends because either they did not have monies to loan her or she had already received money she never paid back to them.  Casey believed that she needed to figure out how she was going to get the money to pay her bills, so she pondered about what she was going to do. 

As Casey sat in her den at her computer thinking about her dilemma she came across a retail website advertising a fifty percent off sale on her favorite designer shoes while she was on the internet.  She thought to herself that there would never be another sale on her favorite designer shoes and she really wanted to purchase the shoes while they were on sale.  Casey thought to herself, how can I buy my favorite designer shoes although all of my credit cards are maxed out? She then came up with an idea that she thought may solve her problem.  She decided that she would use her son Michael’s personal information to apply for a credit card in his name.  She thought that since she had her son’s social security number and all of his personal information it would be a great idea for her to get a credit card in his name.  So, Casey moved forward with her idea and applied for a retail credit card in her son’s name to purchase her favorite designer shoes that were on sale.  She also added a designer dress and handbag to her purchase that day because she wanted her shoes to match these items. 

Casey was so excited that she was able to get approved for this retail credit card in her son’s name with such ease, that she decided to obtain additional credit cards.  She grew even bolder with applying for more credit cards in her son’s name by obtaining a total of eight additional credit cards over a ten month period.  She thought it was okay for her to get these credit cards in her son’s name because she planned to pay the cards off in a few months and it was her son’s duty to help her.  However, Casey was never able to pay on the credit cards she had obtained in her child’s name.  Michael’s credit was ruined by his mother and he was only ten years old.

Casey really did not see that her actions were not only harming her child’s future, but, that her actions were illegal because in reality she had committed identity theft and financial fraud against her own child.

So, if you are a parent that may be anticipating using your child’s identity to get credit, opening bank accounts, etc… in your child’s name please STOP don’t do this to your child! Think about your child’s future, it’s very important you put your child’s future first and foremost.  Your child should have every opportunity that is available to them for their future without any obstacles and hindrances from you.  Remember as a parent you are the protector of your child and your child is depending on you to do this.  After all you were a child yourself and you looked forward to having a future that you could blossom and shine.

Keep in mind the downside you may face as a parent committing identity theft and financial fraud against your minor child or adult child may be the following: 

1) A possible felony or misdemeanor conviction based on the severity of the identity theft and financial fraud offense committed.

2) Federal or state prison time or possibly both based on the severity of the identity theft and financial fraud offense committed.

3) Fines may be imposed.

4) Restitution may be ordered as payment to the victim of the crime in addition to prospective fines imposed.

5) Possible long term or permanent separation from your child voluntarily or involuntarily.

It is noted that children or adults affected by identity theft and financial fraud caused by their parent may be faced with the following problems:

1) Emotional distress, feelings of resentment, sadness, distrust, being violated and betrayed.

2) The discovery of several credit cards, loans, bank accounts, etc… previously taken out in their name using their personal information when they attempt to apply for a loan in their own name.  It is noted they are denied credit due to their bad credit created by the parent.

3) The young adult tries to apply for a driver’s license and is denied because their social security number was used previously to secure a drivers license using their name.  The young adult discovers that the driver’s license issued in their name has numerous traffic violations that are unpaid and a warrant has been issued for their arrest.

4) Several collection agencies are sending collection letters and calling the minor child or adult about delinquent unpaid bills for accounts opened by their parent.

5) Your credit report and FICO score are run and you discover that there are prior credit accounts opened in your name and your credit is now tarnished.

6) You’re trying to decide whether or not you should contact law enforcement to file a police report due to your parent committing identity theft and financial fraud against you the victim.

7) The feeling of being isolated from your family members if you report the crime of identity theft and financial fraud to the police although you are the victim of this crime that has been committed against you.

This list for children or adults affected by identity theft and financial fraud caused by their parent goes on an on for many victims.  So, the question is; Are You Harming Your Child’s Future? If your answer is yes to this question then do the right thing and take responsibility and accountability as part of the first step to fixing this major problem you have created for your child now!  Second, apologize to your child for what you have done and explain why you created this problem for them. Do not try to justify your crime of  identity theft  and financial fraud as being okay because it is not, no matter how you want to perceive this situation. 

Keep in mind it can take years for your child to clean up their credit from this major problem you have created for them.  Do you really want to hurt your child this way? Don’t you want your child to have a better future? Doesn’t your child deserve all the opportunities that may be available to him or her?

Looking To Get A Lower Interest Rate or Approval For A Home Loan?

So, you have submitted your loan application for a home or perhaps you’re trying to refinance your current mortgage to a lower interest rate when you’re suddenly told by your prospective lender that you are not approved for your loan or you are approved for the home loan but your interest rate will be astronomically high because of your credit report and score.  You may be in shock or disbelief about this news you just received from the lender because you thought your credit was in good standing and you would be able to qualify for a home loan and secure a lower interest rate.

You are probably wondering how you can go about trying to get a lower interest rate for your home loan or approval for a loan, you may want to consider using rapid rescoring.  Rapid rescoring is a service offered by most lenders and independent credit bureaus for a fee to assist consumers applying for a home mortgage to secure better interest rates for home loans and possible approval of a home loan.  It is noted that this service is not available directly to  consumers.  The consumer must go directly to the lender or mortgage broker to utilize rapid rescoring.

The way rapid rescoring works is that if there are mistakes or errors found on your credit report you will have to provide written documentation to prove there is an error or mistake on your credit report.  The documentation you have provided is then given to the rapid rescoring representative who will research and gather information to provide to the three national credit bureaus Experian, Equifax and TransUnion.  The rapid rescoring representative will ask the credit bureaus to correct your credit report information.  This process normally takes approximately twenty four to seventy two hours and your credit report is normally corrected and your credit score increases as a result of this effort.  It is noted that if you did this process yourself it could take several weeks to get your credit report corrected.  In many instances time is of the essence for the  consumer  attempting to secure a home loan purchase or refinance of an existing home mortgage.

Keep in mind when you’re trying to purchase a home or refinance your existing mortgage that you are diligent in trying to get the lowest interest rate you can and also ensure if you are turned down for a home loan that you give yourself a second chance by asking the lender or mortgage broker if they offer rapid rescoring.  In addition, if you decide to use rapid rescoring, be sure you do your part by providing the documentation needed by your rapid rescoring representative to assist in correcting negative information or errors that may be listed on your credit report.  You may also want to check with your rapid rescoring representative to see if your debt can be restructured to also increase your credit  score.

How Can I Dispute A Debt That Does Not Belong To Me?

 

Jennifer completed a credit application at a local vehicle dealership near her home.  She is ecstatic that she has saved enough money for a down payment to purchase her first vehicle. It took Jennifer several months to save the money she needed to purchase a vehicle to solve her transportation dilemma.  She commuted several hours daily on a bus to work and school and now she had the opportunity to cut her commute time significantly by securing a vehicle of her own. 

 

After Jennifer completed her credit application for her vehicle loan, the finance manager ordered her credit report and provided Jennifer with the outcome of her credit history.  The finance manager told Jennifer about a delinquent credit card that appeared on her credit report.  Jennifer was unaware of the credit card that was listed on her report.  In fact, this credit card did not even belong to her.  Unfortunately this credit card created a negative impact to her overall credit rating making it difficult for her to obtain financing for the vehicle she wanted to purchase.

 

Jennifer left the car dealership furious and upset that she was turned down for her vehicle loan because of the credit card that appeared erroneously on her credit report.  She decided that she would dispute the credit card charge listed on her report, but, she was unsure how she would go about doing this.  Well Jennifer, you may want to consider using these tips to dispute the credit card listed on your credit report:

 

Tip One:

Call the credit card company or creditor listed on your credit report and dispute the credit charges.  During your telephone conversation with the company representative secure their name, and mailing address for the company.

 

Tip Two:

Send a certified letter to the credit company confirming the telephone conversation you had with their representative and that you are disputing the charges applied to your credit.  Request that the creditor send you written information concerning the charges applied to your credit and the name of the original creditor.  Be sure to ask the creditor to remove the erroneous charge from all your credit reports and provide confirmation of when they anticipate this will be done to restore your credit. 

 

In the interim while you’re awaiting a written response from the creditor on this disputed credit charge listed on your credit report, the creditor or debt collector must report your dispute to the credit bureaus.  Keep in mind that it may take some time for the creditor to investigate your disputed credit charge.  Just be sure to follow-up with the creditor if you believe it is taking too long for a response to your request.

 

  

Tip Three:

Review all three of your credit reports (TransUnion, Equifax, and Experian) to monitor any erroneous charges that may appear.  Follow-up with creditors on charges that do not belong to you to have this information investigated for removal from you credit reports.  You may want to consider ordering a copy of your credit reports annually for free at annualcreditreport.com or call 1-877-322-8228.

 

Tip Four:

Continue to follow-up with the creditor on your dispute until the matter is resolved and your credit is restored.  Ensure that this information has been updated with all three credit bureaus to reflect your updated credit standing.

 

Tip Five:

If you continue to have problems with the creditor in getting your credit issue resolved you may want to consider contacting a non profit credit counseling service or legal counsel.

 

Tip Six:

Make sure you do not pay for debt that does not belong to you.  This may negatively impact your overall credit for several years.

 

Jennifer was now ready and armed with information to proceed with disputing the credit card listed on her credit report.  She felt confident that she would be able to get her credit issue resolved in order for her to purchase a vehicle.

What Can I Do To Fix My Bad Credit?

Roger was facing this same dilemma of not knowing what to do to fix his bad credit.  He had been laid off from his job for nine months and had not been able to pay all of his bills.  He recently found employment and was trying to get back on track with paying his bills.  His credit had suffered substantially during the time he was unemployed.  Unfortunately, Roger’s credit  situation is a problem that many people are currently facing due to the state of our economy. Roger wanted to start working on fixing his bad credit but he was unsure how he should proceed.  Well Roger, a good way for you to start is to take action by using some of the following tips:

Tip One: 

Order copies of your credit reports from the three credit reporting bureaus:  Equifax, Experian and TransUnion.  You are entitled to a free copy of your credit reports from each of these bureaus every twelve months if you make a request.  The centralized website to order your free annual credit report from each of the three credit bureaus is: annualcreditreport.com or you can call 1-877-322-8228. You can also obtain free copies of your credit reports from the three credit bureaus if you have been denied credit, insurance or employment. Just keep in mind that you will need to make a request to the three credit bureaus within sixty days of receiving the notice you have been denied credit,  employment or insurance.

Tip Two:

Consider paying off your higher interest rate credit  accounts first by making larger payments to decrease and eliminate your balances quicker.

Tip Three:

If your debt is totally out of control, consider utilizing a non profit credit counseling organization to assist you with consolidating your debt.  In many instances by using this type of service you may be able to reduce your finance charges and your monthly payments to your creditors.

Tip Four:

Consider not using the credit cards  and other retail credit accounts you already have.  You may want to put these credit  cards away in a safe place and only consider using them in case of a dire emergency.

Tip Five: 

Stay on track with paying your existing bills on time to assist you in rebuilding your credit.

Tip Six:

After repaying the majority of your outstanding debt you may want to consider applying for a new credit card to rebuild your credit history to a good standing.  Make sure that when you use this new credit card you pay off the balance timely every month. If you’re unable to qualify for a regular unsecured credit card then consider applying for a secured credit card to assist you with rebuilding your credit.

Tip Seven:

Secure a copy of your three credit reports and FICO score on an annual basis so you can keep track of what’s on your credit report.  Remember you’re working hard to rebuild your credit back to good standing and you don’t want any surprises on your credit reports.

Roger is now armed with information to get him started with his quest to fix his bad credit   by using these tips.  He now feels that he will be able to accomplish the task of rebuilding his credit to good standing and getting back on track for his future goal of becoming a homeowner.

How Often Should I Check My Credit Report?

 

You may want to consider checking what’s on your credit report at least once a year.  That’s right at least once a year get a copy of all three of your credit reports to check your credit.  In addition, you may want to know what is being reported on you by your creditors via the three credit reporting bureaus which are the following:  TransUnion, Equifax and Experian.  So, as a general rule it’s a good idea to get copies of all of your credit reports to determine the accuracy of the information being reported. 

 

You are able to secure copies of your three credit reports on an annual basis for free at www.annualcreditreport.com.  In addition, if you decide you want your credit reports more often than on a yearly basis, you can order your credit reports directly from following three credit bureaus: 

 

www.experian.com

www.equifax.com

 www.transunion.com

 

Ordering copies of your credit reports is a very good idea.  The sooner you start this annual practice of getting your credit reports the more informed you may be about the status of your credit.  This will give you a better peace of mind and will hopefully eliminate surprises when you go to apply for future credit and new employment. 

 

Can Your Current Or Future Job Be At Risk If You Have Poor Credit?

Maybe yes, Maybe no.  It all depends on your prospective or current employer.  These days it's not unusual for a credit check to be done on you when you are applying for a job or if your current employer decides they want to check your credit status by running your credit report and your credit  score.  Seems unfair but unfortunately in some cases that's the way it is. 

 

You think with everything else people are worried about these days which includes: unemployment, loss of home due to foreclosure, credit line restrictions or the abrupt closure of your credit  accounts by some financial institutions,  loss in retirement funds and the list goes on and on... you would hope you would not have to worry about something else on your plate.  Unfortunately this is not the case.

 

As a tip to consider, you may want  to keep your eye on your credit report and credit scores.  Hopefully your credit scores and report will  meet the test that your current and prospective employer are looking for in order to keep your job or for you to secure new employment.

 

So what do you think about this? Do you think that your credit  should be used for keeping and getting a new job?