No one can repair your credit for a fee: If someone says they can, or you read an ad that states, “Will fix all credit issues for a fee” or “Can raise credit scores right away for a fee” don’t buy it. By law, no one can screw with your credit rating or credit report or alter the information.

Credit counseling organizations should be your last resort: It’s not all that hard to work with creditors yourself to work out a repayment plan which is basically what credit counselors do. However, working it out yourself can save you some stress. Many credit counseling organizations are nonprofit but that doesn’t mean they’re always free. They may charge high fee, hidden fees, or pressure you to donate to the company.

Look for credit counselors who offer in-person counseling: Don’t deal with online or phone only counseling. You can find a more reputable credit counselor at your local university, credit union, many military bases, and at branches of the U.S. Cooperative Extension Service.  Get referrals from trusted sources like friends and family or your bank.

Real credit counseling is more than fixing your credit this time: Reputable credit counseling organizations will not only help you to solve the debt crisis you’re in now, but they’ll also advise you on managing your money and debts for future success. They should help you create a budget and be certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors should talk with you about your entire financial situation help you create a workable and personalized plan that can cure your financial issues.

Choose an accredited counselor: Visit the National Foundation for Credit Counseling or The Association of Independent Consumer Credit Counseling Agencies to locate a credit counselor then check out that person with the Better Business Bureau.

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Post from: Thrifty Mommy

Even with the new law, the Illinois CPA Society notes that college kids still need to practice smart and responsible credit card ownership, such as…

• Do shop around before choosing a card. Look at and compare monthly rates, grace periods, transaction fees, rewards, and penalty charges.
• Don’t pay late which will incur costly fees.
• Do protect your card. Don’t give out pin numbers, account numbers, or ever loan your card to anyone.
• Don’t fall for low teaser credit card rates. These are rates that seem amazing, but actually only last the first few months.
• Do review your monthly statements. Credit card companies make mistakes or charge you fees they shouldn’t have. Plus it’s smart to check for any suspicious charges.
• Don’t toss statements for about a year – it’s wise to have them on hand for any potential charge disputes.
• Do check your credit history annually. Check out your credit history by obtaining a free credit report.

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Post from: Thrifty Mommy

You can get a free credit report IF:

• You’ve recently been denied credit for any reason. You have to request the report within 60 days.
• You’re unemployed and are actually planning to apply for work within 60 days of requesting a report.
• You’re receiving public assistance.
• You think your credit report may contain errors due to fraud – for example, someone applies for a credit card, bank account, or car loan in your name (or using your social security number).
• You haven’t had a credit report sent to you during the past year – everyone is entitled to one free credit report a year (BUT note that it won’t be in-depth).

To get a free credit report you’ll need to contact one of the major credit bureaus:

• Equifax
• Experian
• TransUnion

All of the above send pretty much the same report if you’re getting one free. They each also offer in-depth credit reports, but it’ll cost you. Something important to note is that if you check your report, it won’t lower your score. This common misconception is likely due to the fact that other people checking your score can lower it. Say you apply for credit every two months – THAT can lower your score, but you can check your own credit.

So have you checked your credit lately?

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Post from: Thrifty Mommy

Around the holidays, many folks turn to credit for at least some of their holiday shopping. That said, I figure it’s a good time to go over some basic tips that will keep your credit score in good standing.

Obvious tips:

Pay your bills on time all the time.

Credit is best used as a tool for ease of shopping, or to gather perks, not as a loan. If you can, pay off your cards in full each month.

Keep your balances low – high revolving credit affects your score negatively.

If you miss payments, catch up as fast as you can. The quicker you get back on track, the quicker your score will raise.

Extra tips:

Pay off credit cards before investing in other financial endeavors even retirement and your kids college savings. If you like, save for retirement while paying off creditors, but it makes more sense financially to put more money into credit bills than extra retirement funds.

Closing cards will not (in the short term) raise your score.

Store credit cards may be more trouble than they’re worth for you and your credit score.

The older your accounts (on average) the better your credit score. If you have three decent old accounts, opening two new ones will lower your accounts average age, and possibly your score.

Don’t open too many accounts at once, or make too many credit inquires at once, it can lower your score.

Don’t move your debt around too much. Paying off a card may help you, while moving the balance to a new low interest card and canceling the old can sometimes backfire and lower your score.

Know where you stand – knowing if there is any incorrect info on your report is important. Getting rid of the problem can raise your score. There are plenty of pay for credit score sites online. Two actual decent sites are MyFICO and Equifax; I personally use Equifax, but have pals who do like MyFICO. You can also get one free credit report a year from Annual Credit Report, but it won’t be so in depth as a paid site.

Do you have any handy credit score tips? 

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Post from: Thrifty Mommy