Archive for the ‘Financial Tips’ Category

Credit report errors and its effect on consumer’s creditworthiness

Financial Tips | Posted by Jacob ONeill
May 27 2011

According to the reports of the new study that was released today by the Policy and Economic Research Council (PERC), consumers can now rest easy and they need not be too concerned if there is a possibility of errors occurring in their credit reports, which could be negatively affecting their creditworthiness.

The PERC research is a statistically sound and comprehensive study that is performed under rigorous peer review. The accuracy of the data that has been collected and maintained by the three major credit reporting agencies – Equifax, TransUnion, and Experian, and the impact of the outcome of the credit report disputes, has been studied in great detail. More than 2000 consumers were engaged in the study in order to examine their credit report entries, spot inaccuracies, and file disputes wherever necessary, as well as to discuss their satisfaction levels candidly with regard to the outcomes.

The study revealed the following:

  • At least 0.93% of the credit reports that were examined by the consumers had prompted a dispute which resulted in a correction in the credit score which resulted in an increase in the credit score of 25 points or more.
  • After the completion of the dispute process, 0.50% of the credit reports that were examined by consumers had scores that moved to the high-risk tier due to the consumer dispute.
  • 95% of the consumers who were part of the study were satisfied with the outcome of the dispute process.

Dr. M

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Tags: Report, Report Errors
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Shop Until Your Credit Score Drops: Advice for Shopaholics From Billy Bad Score

Financial Tips | Posted by Jacob ONeill
May 20 2011

This post is especially for you shopaholics out there who feel guilty about putting so many unneeded purchases on your credit cards – and I’m not just talking to women. Men, you know you’ve purchased the latest gizmo or the best seats at the game when cash wasn’t necessarily available.

I want to make sure you know about the upcoming shopping season. Memorial Day sales are coming. Those new shoes, that to-die-for bathing suit, the new sofa you need for the living room, and that flat screen TV – they’ll all be on sale. Shortly after that, we’ll have Fourth of July sales, then back to school shopping. Computers will be a good deal then. And what about all the concerts and sporting events that take place during the summer? Shopaholics – the sky is the limit for you in the next few months.

And it’s my job to tell you to go ahead and spend. You may be getting those credit card balances up there, and it may even be a little difficult to make all the payments, but think what you’re doing for the economy and the greater good. Things won’t get better if people like you don’t get out there and spend, spend, spend, right? Debt, like greed, is good! It’s not as if too much debt made the economy plummet like a bankrupt spendthrift’s credit score.

You can be certain I have only my best interests at heart when I tell you these things. Sure the people report that high credit card debt can screw up your credit scores.   That’s because high balan

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Tags: Credit, Credit Score
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Don’t Let One Bad Score Prevent Your Spring Credit Scores From Blooming

Financial Tips | Posted by Jacob ONeill
May 16 2011

Spring is the season of green thumbs. But did you know you can save a lot of green on interest rates if you tend to your credit scores as carefully as some people tend their gardens? Credit scores are like gardens: if you don’t give them care and attention, a nasty bad score can show up and ruin everything. If you want to get to the root of your credit scores, FreeScore will help you do the digging.

Know Before You Grow

Before you try to cultivate favor with lenders, insurers and employers, you need to know your 3 credit scores. FreeScore lets you know if your credit scores are flourishing or wilting. And that’s important, because you can’t negotiate the best interest rates without knowing what each of the three national credit bureaus TransUnion, Experian and Equifax has to say about your credit scores.

Monitor New Accounts

Have you ever started a garden, only to find a pervasive weed has snuck in? If you don’t monitor newly opened accounts in your name, you could fall prey to identity theft and not realize it until you receive collection calls for debt you didn’t charge. But with FreeScore, you don’t have to monitor your credit for suspicious activity; we do it for you, and let you rest easy knowing that a thief won’t sow seeds that will lead to bad credit scores.

Be On The Alert

If only there were some way for a garden to tell you it needs water, or that a new type of bug has been feasting on its leaves. Fortunately,

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Tags: Credit Scores, Scores
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A High Score Equals a Low Rate, So Refinance Before It’s Too Late

Financial Tips | Posted by Jacob ONeill
May 12 2011

How many times have you heard this one recently: “Interest rates are at an all-time low.” It seems every commercial peddling a mortgage or refinance program lives by that mantra.

Well, it’s true: Due to continuing economic uncertainty, interest rates remain remarkably low, making now a great time to either buy a home or refinance your current home. If you are refinancing to lower your home payment because you are struggling to pay in full on time each month, you will absolutely want to refinance before you ever miss a payment.

The New York Times published an eye-opening article on mortgages and credit scores. Just missing one mortgage payment by 30 days can mean a serious hit to your credit score – but that’s not the only thing. Loan modifications, short sales, foreclosures and a series of missed payments can all drag down your score, making it harder to refinance or attain a lower interest rate.

The article reveals a FICO study, showing the effect of late mortgage payments on credit scores for people with a spotless record (780), slightly tarnished record (720) or average record (680):

780 720 680 Payment 30 Days Late 670-690 630-650 600-620 Payment 90 Days Late 650-670 610-630 600-620 Short Sale, No Balance Owed 655-675 605-625 610-630 Short Sale, Deficiency Balance Owed 620-640 570-590 575-595

Before you apply for refinancing, make sure you know where you stand by checking your three credit scores at . As the in

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Tags: It’s, It’s Late
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Sony Security Breach Reminds Us of the Importance of Credit Monitoring

Financial Tips | Posted by Jacob ONeill
May 02 2011

Just in case you hadn’t heard, Sony’s Playstation Network (PSN) went offline mysteriously on April 20, 2011. The company’s Qriocity music service also went offline. With little to no word on the cause from Sony, millions of gamers were left to speculate about such massive and prolonged outages. However, PSN users recently received an email which stated the following:

“We have discovered that between April 17 and April 19, 2011, certain PlayStation Network and Qriocity service user account information was compromised in connection with an illegal and unauthorized intrusion into our network.”

Names, addresses, PSN/Qriocity logins, email addresses and birthdates were obtained by the intruder(s). Also, Sony states that there is a possibility that credit card numbers stored on the server may have been obtained.

While this news is certainly alarming, the company does provide some information that can help those affected prevent identity theft. Sony recommends that PSN users review financial statements and credit reports for unusual activity.

If you’ve been affected by this security breach, FreeScore can help put your mind at ease with its around- the-clock credit monitoring feature, which automatically alerts you to fraud and errors in your credit information. In addition, at you’ll be able to easily access and review your credit scores from all 3 major credit bureaus – Equifax, Experian and TransUnion. By being vigila

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Tags: Sony, Sony Security
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High Credit Scores Could Help You Pay Less for Your Education

Financial Tips | Posted by Jacob ONeill
Apr 24 2011

The cost of higher education can empty your savings account and leave you buried in debt before you ever cross that stage to accept your diploma. AOL reports that the amount of debt owed in student loans now tops the amount of credit card debt Americans are saddled with. Americans currently owe $829.8 billion dollars in student loans, $300 billion of which has been taken out in the past four years.

An Associated Press-Viacom survey shows that nearly half of students polled are uncomfortable with the amount of student debt they hold. The survey also found that students are more likely to consider dropping out of college because of money trouble than bad grades.

Before you begin to evaluate schools and programs, take a minute to look at the different ways you can finance your degree. Federal loans are available for students based on need. If you want to take advantage of them, you’ll first need to complete a FAFSA form. Often, especially if you are attending college in another state, the federal loans offered will not cover the cost of tuition, room and board and student fees. Many banks offer students private loans which, unlike federal loans, are based on credit-worthiness. Another option is to pay for college on a credit card to finance your education on a monthly basis. But bear in mind that your eligibility for the lowest interest rate and highest credit limit on a credit card is likely to be dependent on your credit scores.

Will you need to take out loans or pay for college on a credit card? B

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Tags: Education
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