Credit Card Articles

How to Recognize Identity Theft Scams

Tue, 30 Nov 2010 00:00:00 GMT

You don’t want to be a victim of identity theft scams if you can help it. One way to avoid them is to recognize a scam when you see it. If you’re like most consumers, you’re faced with scams on a regular basis. You get them in your email, or you may hear ads on radio and television and not realize that they are scams. Here are some ways to know how to recognize them so that you can protect yourself.

Phishing Scams

When you receive email messages asking you to assist someone you do not know in transferring money to you, it’s a phishing scam. For example, an email message that claims you’re a lottery winner but that you need to send your bank account information so that the prize can be transferred to your account is a phishing scam.

A less obvious phishing scam is one in which a company sends an email that appears to be from an online business that you have an account with. The email asks you to click on a link and provide your password or other sensitive information. You should always go directly to the company website to see whether you have any messages to take an action, such as to change your password.

Call to Get Lists

Some companies obtain personal information by pretending to offer a benefit. One of the more popular identity theft scams is to entice listeners of radio or viewers of television to call to get a list, such as list of foreclosed homes or a list of banks that will offer pre-approved credit cards even if you have a bad credit history. What happens is you have to give your information before receiving the list, which is often useless or you could have researched the information yourself on the Internet. The problem is that scam artists will steal your information to open fraudulent accounts.

You can protect yourself from identity theft scams by being very selective about whom you give your information to. It’s also important to install protective software on your computer, such as anti-spyware, so that you don’t accidentally allow others to gain access to your computer as a result of your online activities.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

4 Steps to Protect Yourself from Online Identity Theft

Tue, 30 Nov 2010 00:00:00 GMT

Online identity theft continues to be a problem for online users, as thieves take more sophisticated approaches to stealing personal information and financial data. You have to be proactive about protecting yourself online to avoid becoming a victim. Here are 4 steps you can take:

Step # 1 - Be Careful Where You Share Your Personal Information

You don't have to share personal information about yourself just because you're asked. The easiest way for online identity theft to take place is to steal it during the transmission of personal information or after you share it. You wouldn't give away information to a stranger who shows up at your door and demands it. Neither should you do it online. This includes information requested to open accounts on social networking websites or to create your user profile. A dedicated thief will find your information and use it against you.

Step #2 - Create Secure Passwords

There are software programs that make it possible for thieves to figure out a weak password. You may have weak passwords for some of your most sensitive online transactions, such as to access your online bank account. Use these guidelines to make strong passwords, so that you don't become a victim of online identity theft:

Use more than just letters, such as numbers and characters
Try to lengthen your password to at least 12 characters
Include punctuation marks at the beginning or end of the password

When you create secure passwords, you have the difficult task of remembering them if you don't use them often. Don't email it to yourself, because you'll just expose yourself to a thief who can hack into your email account and find it.

Step #3 - Avoid Phishing Scams

A phishing scam is often fake email messages sent by thieves who want to steal your personal financial data, such as credit account numbers. You may receive an email from a company that looks like one that you've made a purchase from in the past, requesting your account information. Another common scam is one in which a stranger contacts you to transfer money into an account, which you purportedly are entitled to receive. All you need to do is provide your bank account information. Don't be fooled by these scams. Delete those email messages, and ignore any links or attachments in the email. Make sure that you have anti-virus software installed on your computer.

Step # 4 - Download Reputable Applications for Handheld Devices

Third party software developers are constantly creating new applications for various handheld devices. While users find many applications helpful, there are risks to downloading some of them. It's one more avenue for online identity theft. If you choose the wrong application to download, you could end up giving access to the financial data on your device to a thief without even knowing it. You should only download applications from reputable companies and websites, and research the application you want to download ahead of time.

These steps will help you to safely utilize the Internet for personal or business use. You don't have to fear online identity theft, if you do what is necessary to protect yourself.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

How to Stop Creditor Harassment

Mon, 29 Nov 2010 00:00:00 GMT

Creditor harassment has increased significantly despite the Fair Debt Collection Practice Act. Some creditors could not care less what the law says. They want to collect debts owed by any means necessary, and the means of choice is often harassing phone calls to your home or workplace. This is one of many reasons why you should avoid debt in the future, but for now, this is what you can do to stop creditor harassment.

Document Every Interaction

The first step to stopping creditor harassment is to document every interaction with your creditors. Write down what the creditor says to you during phone calls and your response. You can record the telephone conversation as well, but you have to tell them that you're doing so. Say, "I'm recording this call to protect my rights, do you wish to continue?" to give them sufficient warning and to protect yourself from being accused of illegal wiretapping.

Contact an Attorney for Help

You may be able to ignore creditor harassment at home, but it may be difficult when you're at work. Co-workers and your employer will eventually notice, and it could have a negative effect on your job performance and even your job status. Contacting an attorney to file a complaint could get the creditor's attention, and your attorney can file motions to get a temporary order to stop the calls at work. Your attorney can also contact the creditor and instruct them that all calls must legally be directed to him. Find an experienced attorney who knows how to deal with these types of creditors. Try to get a personal referral to an attorney, but you can also contact the local bar association for referrals.

Send the Creditor a Certified Letter

You or your attorney should send a certified letter with "return receipt requested" to the creditor. In the letter, ask the creditor to stop and desist from calling your home or workplace. Cite the Fair Debt Collection Practice Act, because that's the law that can be enforced against the creditor if they continue to harass you after you send the letter. Keep a copy of the letter, as well as the signed return receipt for your records. You'll need it as evidence if you decide to initiate a lawsuit.

Negotiate with the Creditor if Given Opportunity

There might be an opportunity to talk reasonably with the creditor. Look for those opportunities in phone calls if the creditor harassment is mild. See whether the creditor would be open to discussions on a debt repayment plan, or even a full payment of the debt at a future date. It's important to remain calm in order to take advantage of those opportunities. Ask them if they have any suggestions for a resolution, and at a willingness to explore their proposed options.

Living with creditor harassment is stressful and can impact your peace of mind. Do what you can to stop it, even it means hiring a lawyer for help.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

What Counts as Illegal Creditor Harassment?

Mon, 29 Nov 2010 00:00:00 GMT

Whether or not the creditor harassment you're experiencing is illegal has to do with the Fair Debt Collection Practices Act. The law prohibits certain actions by the creditor in the attempt to collect outstanding debts. Here are some of the rules to know, which can help you determine whether your creditor is breaking the law:

Calls during Odd Hours

Creditors are prohibited from calling you during odd hours. Examples of odd hours are six o'clock in the morning or at 10 o'clock at night. It's what reasonable minds would consider off-business hours, or hours that would make the call intrusive. If your creditors are calling you during odd hours, they are engaged in illegal creditor harassment.

False Representations about Collection

It's illegal creditor harassment to give false representation about how they will collect the debt from you. Some creditors go as far as to make false representations about the way they intend to collect the debt in order to threaten and intimidate you. A notorious example is threatening to call your employer about the debt owed. Creditors know that many consumers will fear losing their job or appearing in a bad light to their employer because of that threat. Another common threat is that they will sue you and take all of your assets, when they have no intention to file legal action.

Misrepresentation of the Amount of Debt Owed

If the creditor adds collection charges and attorney fees to the debt amount, they are misrepresenting the debt owed. That collection practice is not legal according to the Fair Debt Collection Practices Act. The creditor must reveal the actual amount of the debt owed without the addition of miscellaneous charges.

Your options for dealing with illegal creditor harassment are to solicit the help of an attorney to stop it and file a lawsuit if necessary, or to send a letter to creditors asking them to stop contacting you.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

How Business Credit Scores Are Determined

Wed, 24 Nov 2010 00:00:00 GMT

When you first open your business, your business credit score may be nonexistent. This may require you to open loans with your personal name. However, aside from these initial loans, your personal credit will have nothing to do with your business's credit. In fact, business scores are calculated with different factors.

Balance Sheets

The primary factor used to determine a business's financial health is its balance sheet. Reviewing your financial report that lists your assets, debts and liabilities will be a top priority of any lender considering you for a loan. Building up your balance sheet takes more than just paying off debts on time. You must show you have an asset base large enough to continue to fuel your operations in the future. You must also show you have turned past debts into income at a high rate in order to remain financially appealing to lenders.

Income and Debt Ratios

Your business's income and debt ratios play large roles in your credit score. A lender will first view your balance sheet, comparing your assets to your liabilities. Then, a lender will view your accounts receivable, attempting to learn your anticipated profits over a certain period. Even a business with a low asset base can be a good borrower if the business has high income but relatively few debts to its name. For example, a web design company has few assets other than a personal computer. However, if the company is owned and operated by one person with no debts, this low asset base may not matter. As long as the individual's income is high enough to repay debt costs, a lender will understand the operation is very lean yet deserving of a loan.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

How to Improve Your Business Credit Score

Wed, 24 Nov 2010 00:00:00 GMT

Your business credit score is built the same way as your personal score. Your business is assigned a number, called a taxpayer identification number, and any lender doing business with you will ask for this number. Then, the lender will report how successful you were at repaying your debt to the major credit agencies, and the agencies will file the reports under your number. If you want to increase your score, try these tips to associate positive debt arrangements with your tax payer ID.

File Loans in your Business Name

The first and most important step to increase your credit as a business is to make sure all of your debts are in your business name. When you first open your doors, you may take loans in your personal name or in the name of one of the owners. This is often necessary since your business has no credit of its own. However, as the business grows, it will develop a legal identity and a financial profile. This can be used to secure debts independent of your name, and you should begin making these arrangements as soon as possible. If you have a business loan secured with your personal information, replace this with a business loan secured in the business's name as soon as possible.

Grow your Business Capital

Credit is determined using a complex algorithm, and a key part of this algorithm is how much worth your business has compared to its debt. By building up your assets and capital, you can increase your business's credit score. If you do not have a large initial asset base, consider taking on investors. Unlike loans, funds from investors do not count as debt, and they will only add to your asset base without increasing your debt load.

Open a Business Credit Card

A factor in the way your credit is calculated is a comparison to the potential credit available to you versus how much of that credit is currently in use. By increasing the amount of credit in your business's name, you can boost your credit score. Open a business credit card, and use the card wisely. As long as the balance remains low, this will help your score. Do not open too many credit cards, however, as this can also drop your score. Instead, you should have a healthy credit-to-debt ratio without having too much available credit.

Pay Debts on Time

The most basic advice about credit is also the best: build your credit by paying your debts on time. When you pay off your credit card each month, you receive a little boost in your score. These two or three points each month can add up to huge increases in your credit score. You will see the largest increases when you pay off big loans, such as your start-up loan. To keep these boosts coming, finance business materials or machinery and pay off the debts on time. If you continue this record, your business will have a very high rating in just a few years.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

Credit Repair Scams: What to Do if You're a Victim

Tue, 23 Nov 2010 00:00:00 GMT

Credit repair scams abound as more and more people who have taken on debt are desperate to find a way out. The scam is the same over and over again. These "companies" promise to erase your credit and help you start fresh, and all you have to do is pay them a fee. What ends up happening is that you're in a worse position than before once you start dealing with these scam artists, and you're out the money you pay them. Here's what to do if you've been the victim of credit repair scams.

Contact State Consumers Affairs

There are state laws to protect consumers against credit repair scams. Start by contacting your state's consumers affairs office about what happened. The office would be helpful in explaining your credit rights, as well as investigate your complaints against the individuals and companies involved. The agency might also refer you to the state attorney general.

Report Scam to the Attorney General

You don't have to go through the state consumers affairs office to report the scam to the attorney general. The office of the attorney general in your state also gets complaints of credit repair scams and is charged with enforcing the laws against those who are perpetrating those crimes. You can contact the office directly and request that they investigate and pursue the matter for you. It's within the discretion of the attorney general which individual cases to pursue, but if your case is chosen, you'll have a chance of recovering any money you paid as a result of the scam.

Avoid companies in the future that want you to pay them to manage your debt. These are most likely credit repair scams that will set you back, rather than help you become debt free.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

What to Do if You're a Victim of Identity Theft

Tue, 23 Nov 2010 00:00:00 GMT

If you find yourself a victim of identity theft, you can take some steps to minimize the damage and protect yourself against future theft in the process. It's important to react as soon as you discover that a theft has taken place, so that thieves don't have more time than necessary to completely destroy your finances or cause you a lot of problems. Here's what you should do:

Investigate All Wrong Doing

You have to know the extent of the theft in order to take the appropriate actions. To begin with, you should obtain copies of your credit report to see what unauthorized accounts have been opened. You should also check your bank accounts, credit accounts and all other accounts to search for fraud activities. Once you have an idea of what's happening, you'll know what steps to take.

File a Police Report

A police report is probably not going to cause the police to pursue the matter, because other types of crimes are often given a higher priority. However, it is helpful to have one as you work to undo the fraud and theft. For example, your bank may readily refund any money stolen if you submit a copy of the police report that documents the crime. It's also part of your legal documentation should you decide to pursue the matter in court.

Notify Credit Bureaus

Write a letter to all three credit bureaus stating that you are a victim of identity theft. Explain the circumstances, and relay any information you have about fraudulent accounts opened in your name. Each agency, TransUnion, Equifax and Experian have fraud departments to handle identity theft cases. You'll probably get a fraud alert on your file to make it difficult for future accounts to be opened without your authorization.

Contact Financial Institutions

You also need to send letters to every financial institution where you have an account, and where there's evidence of fraudulent activity. They may also have a fraud department as well to help each victim of identity theft. It's also a good idea to place a call to those institutions where you haven't noticed any tampering, just in case it's next in line. You can ask them to place a hold on the account and not to authorize any transactions until you give them further notice.

Close Fraudulent and Tampered Accounts

As soon as you discover accounts that have been opened in your name by an identity thief or tampered with, your best option is to close those accounts. Go the banks and other financial institutions in person if you can, but if not, close the accounts in writing. You don't know who has your information and how many times it may have been sold. Even if you ask for holds to be placed on the accounts, you may end up with problems in the future once you lift hose holds. Follow up by filling out the forms necessary to dispute purchases or transactions that you did not authorize.

You don't have to remain a victim of identity theft. Take these action steps to minimize the damage done and reclaim your life.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

Sample Credit Dispute Letter

Mon, 22 Nov 2010 00:00:00 GMT

A credit dispute letter is a tool that you can use to get inaccurate information removed from your credit report. You can ask each of the consumer reporting agencies to delete the record or to modify it in some other way. The departments in charge of handling disputes will conduct an investigation, and either grant or deny your request. Here’s what you need to know about writing a credit dispute letter:

Sample Credit Dispute Letter

The three major components of any letter you write are:

Your statement that the record in dispute is incomplete or inaccurate
Explanation of the reasons why the record is not complete or correct
A specific action request, such as to delete or change the information

The Federal Trade Commission offers a full sample credit dispute letter when contesting errors on your credit report at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm. Here’s an excerpt from the letter which incorporates the three major components:

"This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information."

Things to Accompany the Letter

Investigators at the reporting agencies will pay particular attention to the reasons you've stated for why the record should be modified. It's important to provide as detailed an explanation as possible. You'll also need to include documentation to support your claims. You have many options for documentation support, including:

Copy of your credit report with the record highlighted or encircled
Court documents
Records of payments
Letters from creditors confirming the full payment of debt

It's often not enough to make your requests without some documentation if you want investigators to take the actions you've requested. Make sure that your documentation relates to the explanations you've given in your letter. If what you provide has nothing to do with your statement that the record is incomplete or not correct, then the credit dispute letter won’t be effective. To obtain a free credit report, visit www.annualcreditreport.com.

Where to Send the Letter

You should address your credit dispute letter to the complaint department at each of the consumer reporting agencies. The addresses are as follows:

TransUnion

Complaint Department

P.O. Box 6790

Fullerton, CA 92634

Experian

Complaint Department

P.O. Box 9532

Allen, TX 75013

Equifax

Complaint Department

P.O. Box 740241

Atlanta, GA 30374-0241

Your letter will be forwarded to investigators who will notify you that they are in receipt of your letter, and at a later date will explain the outcome of your request.

Take immediate action by sending a credit dispute letter when you discover a discrepancy on your credit report. You can order a free credit report annually or pay for a service that sends alert based on new records that appear on your credit report.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

How to Recognize Credit Repair Scams

Mon, 22 Nov 2010 00:00:00 GMT

Learning how to recognize credit repair scams will save you pain and money. The scammers promise to remove negative information from your credit report, so that you can be approved for future credit. They can't deliver on those promises, and the fee you pay to them is lost. The good news is that these scams follow the same patterns, so once you understand how they work, you can avoid them. Here's how they work:

Pay Us First

Credit repair scams work by getting consumers to pay the scam artists money up front, so that they can disappear with it or provide incomplete or inadequate services. You shouldn't pay anyone a fee to repair your credit report, which you can do on your own, and certainly not before they've provided the services they promised. You should also be aware that the Credit Repair Organizations Act makes it illegal for companies to charge upfront fees prior to repairing credit. There are also related state laws that prohibit this practice.

We'll Contact the Credit Reporting Agencies

The pitch made by companies behind credit repair scams is that they'll handle everything, and that there's no need for you to contact the credit reporting agencies on your own. Red flags should go off in your head when any company wants to block you from dealing directly with anyone. If the company you're dealing with tells you this, then you’re probably in the middle of a scam.

Start a New Credit History

Some companies suggest that they can help you start a new credit history altogether by using alternative identification numbers. For example, a company may advice you to obtain an employer identification number (EIN) and to obtain credit using it, instead of using your social security number. That's opening the door to fraud and the company will be long gone with your money when you end up in legal hot water.

We Can Get Rid of Accurate Information

Any information that's accurate on your credit report cannot be removed by you or a "credit repair company." However, this remains to be one of the top credit repair scams going. The company offers to use insider knowledge to remove the record that's accurate, but you have to pay them for their expertise and service. What they don't tell you is that the credit reporting agency cannot and will not do it. To do so for consumers would be to destroy the entire credit reporting system and those agencies aren't going to risk that.

Get a Credit Card from Us

Some consumers feel the need to obtain new credit in order to rebuild their credit. There are credit repair scams to meet that need, and one example consists of the company offering a pre-approved credit card to the prospective victim. All you have to do is call one or more 900-numbers to get your cards. What often happens is that you're charged for the call, and you either get a bogus list of companies offering credit cards or you don't get anything.

Avoiding credit repair scams is difficult if you're feeling hopeless about your debt situation. There are legitimate ways to eliminate debt and get back on the path of good finances for free. Research those strategies first, before seeking help from others.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.