Will using a credit service ruin my credit score?

Reporting on consumer news never gets old. I’ve warned you about contaminated toys, scam artists, crash tests … anything that helps you become a smarter consumer.

I get a lot of my ideas from you, the reader. From credit scores to oil changes, I receive a wide variety of questions. Here are some of the e-mails that have appeared in my inbox lately.

It could, but it could also get you moving in the right direction. If your debt load is already unmanageable – your credit cards are maxed.

credit score is probably already low. So getting help from a reputable credit counselor is the smart way to go.

The fact that you are receiving credit counseling may be noted in your credit report, but according to Craig Watts, public affairs manager for Fair Isaac Corporation, it will not impact your credit score. Watts says your FICO score may be affected (positively or negatively) if the counseling service has you close accounts, pay down outstanding balances, or negotiate partial payments of your debts.

“As a general rule, when a lender settles for only part of the balance due on an account, the way this status is reported to the credit bureaus will lower a person’s score,” Watts explains. The way to restore a poor FICO score, he says, “is to begin a new, consistent pattern of responsible credit management.”

The bottom line: If using the services of a reputable credit counselor gets you back on track, do it.

source : http://www.google.com/news

Tips for borrowing

Though it's tougher to get credit these days, it's not impossible. Here are some tips to ensure your small-business loan application doesn't get cast aside:

• Apply at a bank with an appetite for the type of loan you want. Each bank has a different investment philosophy; match your project to a bank's niche.

• Be prepared to offer collateral such as real estate, stocks, bonds or other personal assets.

• Know – and if possible, bolster – your credit score before walking in. A borrower's credit score can be just as important as his business plan.

source : http://www.google.co.uk

Identity theft: Education is key to avoid falling prey to fastest-growing crime in U.S.

It’s the fast growing crime in the United States, and one of the best ways to protect against it is educate yourself and become more aware.

Identity theft is a broader categorization for crimes involving fraud, theft or embezzlement, or a mixture of all.

“This problem of identity theft, it might just be a two-word problem, but it’s got arms that reach out across the country,” said Mike Prusinski, vice president of public affairs for LifeLock, a company that helps protect against identity theft.

“The one that you see the most often is the ID theft,” Prusinski said. “It’s more fraud. It’s the use of the credit cards or identities to establish a false line of credit and running up the accounts.”

Enid Police Department detective Mark Pettus said the department receives the most reports concerning two types of fraud.

“The majority of reports we’re getting now is counterfeit checks and people finding out someone is using their account in another city, or state even,” he said.

A popular scam involving counterfeit checks or money orders targets those who have advertised something for sale online or in the newspaper. The amount sent as payment is much more than the price of the item, and the remainder is asked to be returned.

Other reports involve those who have discovered their accounts have been used without their knowledge or their information has been used to establish new accounts or lines of credit.

Prusinski said LifeLock has seen an increase in using the stolen identities of children to establish lines of credit or for the purpose of employment.

“Children have been the one segment we’ve seen a huge increase in,” he said. “Criminals now see children as a fresh source of credit. They get a hold of it and use it for years.”

He said these crimes often are not discovered until a child turns 18 and begins seeking credit or applies for loans.

Banking scams

When text messages and e-mails were sent to thousands in Enid during the first of the month claiming their Central National Bank accounts had been suspended for security purposes, the police department received hundreds of calls.

Pettus said only a few people, fewer than 10, gave out their personal information during the three attempts this month. Bank scams are difficult for police to investigate because they are rarely based in the EPD’s jurisdiction.

“We very seldom get a banking scam in Enid. They may target Enid, but they are very seldom based in Enid,” Pettus said. “Normally, we try to find out where it happened and forward the information to the jurisdiction where it happened.”

He said victims of a banking scam should contact their financial institution.

“First thing to do is call the police to and a get a report made,” Pettus said. “Then call a credit reporting agency and put a fraud report on your account.”

Once it happens ...

A fraud alert is a flag placed in your credit report warning potential creditors they must verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they won’t stop thieves from accessing your current accounts if your information lands in their hands.

source : http://www.google.com/news?

Five things you should know about your credit score

Valorie Simpson, your go-to gal for all things money and finance, is back with more advice. Every other week or so, you'll find her debunking moolah myths and answering your financial questions here. Got a question for Simpson?

This week, Simpson provides five very helpful tips on how to improve your credit score. Before you learn any credit lessons the hard way, read up on what people never tell you.

Q: What's up with my credit score?

Simpson says:

A credit score, commonly referred to as a “FICO” score, is used by lenders to aid in determining your likelihood of repaying their loan. Not only is it important for you to be able to borrow money when you need it, but it can also make a big difference in what interest rate you pay … which ultimately means you pay less for what you buy. FICO scores range from 300 to 850; the higher the score the better.

FICO scores are weighted by five factors:

* Payment History – 35%
* Total Amounts Owed – 30%
* Length of Credit History – 15%
* New Credit – 10%
* Type of Credit in Use – 10%



Five steps to improving your credit score:

1. Pay your bills on time: this is the single most important contributor to a good credit score, comprising 35% of your total. Delinquent payments, charge-offs and bankruptcies lower your score. If you have trouble writing checks in a timely manner, consider having the payments automatically taken from your account, paying bills on-line or write the check the same day you receive the bill. Recent credit history carries more weight than the past, so starting to pay bills on time today will make a difference within a short period of time. Derogatory credit remains on your credit report for seven years, and bankruptcies for ten.
2. Make sure you establish credit: Many people like to pay with cash, thinking it will help them get a loan some day because they don’t have any debt. Not true. Even though it might seem counter-intuitive, it helps to have credit if you don’t have too much. Keep in mind, checking accounts are not reported to your credit bureau. That is, unless you overdraw your account, the bank closes it and turns it over to a collection agency.
3. Don’t close your revolving loan accounts when you pay them off. Again, this might not seem logical to you…but let me explain. One criterion to help increase your score is how much you have available on your credit card or line of credit, versus how much you owe. The lower percentage the better. If you “close” a revolving debt, the available credit is reduced, thereby lowering your credit score.
4. Keep balances low on revolving credit: One of the criteria in determining your credit score is your account balances compared to your available credit. For example, if you have a $5,000 credit card limit, it helps your credit score if you owe $1,500 instead of $4,500. Why? Because you aren’t maxed out on your debt, which makes you a better credit risk in the eyes of a lender.
5. Frequent loan inquiries can hurt (lower) your FICO score. This means every time someone pulls a credit bureau, it could hurt your score. So if you go shopping for cars and allow five dealerships to pull your credit bureau to try to get the best deal…it might backfire on you. It is the same with any type of credit: mortgages, furniture, credit cards, etc. The only exception is a “soft inquiry” which is if you pull your own credit bureau.

source : http://www.google.com/news?

2008 Best's Insurance Reports(R) Now Available

OLDWICK, N.J., Aug 01, 2008 (BUSINESS WIRE) -- A.M. Best Co. has released the 2008 editions of Best's Insurance Reports - Life/Health and Property/Casualty - United States & Canada. This standard-setting financial resource provides in-depth analysis and commentary on thousands of U.S. and Canadian insurance companies.
Best's Insurance Reports is presented as a multi-component service including a CD-ROM with unabridged reports, a convenient print edition featuring slightly condensed reports, and online access to updated data and news. Each report provides A.M. Best's complete analysis of an insurer's financial strength, including the Best's Rating and Rating Rationale; Financial Size Category designation and Best's Profitability, Leverage and Liquidity tests; financial statement items such as net premiums written; business review; and management and contact information.
Subscribers can download up to 10 real-time AMB Credit Reports at no extra cost, for the most comprehensive financial information available on any insurers listed in the publication. Additional reports can be purchased at a 33% discount. Multiple-user licensees receive unlimited online access to the latest AMB Credit Reports.
Single- and multi-seat subscribers are also entitled to 33% off the cost of Historical AMB Credit Reports, available in print or online at www.ambest.com/ratings, dating back five years, while purchasers of unlimited subscriptions receive access to these reports at no additional cost. Additionally, subscribers can access Best's Corporate Changes and Retirements at www.ambest.com/ccr, an online database featuring 15 years of data that lets users find changes impacting existing companies, locate surviving insurers for companies that have gone out of business and more.
All purchases include a one-year subscription to Best's Review(R), A.M. Best's award-winning industry magazine, and BestAlert Service(TM), our company-tracking and e-mail notification service. For an additional cost, Full Service subscribers also receive a one-year subscription to BestWeek(R), which provides weekly, daily and real-time news and access to archived articles as well as statistical studies and special reports published by A.M. Best Company.
For more information, visit www.ambest.com/sales/bir, call Customer Service at (800) 424-2378, or e-mail customer_service@ambest.com.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

source : http://news.google.com/news?