Debt Settlement Links - Personal Finance Resources
NEWS
Credit Card Rates Hustle Higher - Even as the Federal Reserve has cut interest rates, financial institutions have sharply raised rates for credit card customers - even those who pay on time - as they grapple with losses from other bad consumer loans.
Between Unruly Debt and Bankruptcy, a Settlement Solution - ...issue of debt settlement. This differs from credit counseling and debt management plans (DMPs) in that debtors pay creditors a negotiated percentage, rather than the full amount, of their debts.
RESOURCES
AnnualCreditReport.com
This site "allows you to request a free credit file disclosure,
commonly called a credit report, once every 12 months from each of the
nationwide consumer credit reporting companies: Equifax, Experian and
TransUnion." Includes a FAQ. Sponsored by Equifax, Experian, and
TransUnion.
Your Access to Free Credit Reports
Under an amendment to the Fair Credit Reporting Act (FCRA), consumers
can request a free copy of their credit report once every 12 months.
This site has the details and the URL of the only official request
website.
Understanding Your FICO Score
"This booklet provides a thorough description of credit scoring,
including ways credit scoring can help you, the relationship between
your credit report and your credit score, what a FICO score considers,
and interpreting your score." Details about what a FICO score considers
include payment history, amounts owed, length of credit history, new
credit, and types of credit in use. Opens directly into a PDF document.
From Fair Isaac Corporation, creator of the FICO score.
Build a Killer Credit Score in 2008
This January 2008 article discusses changes in the calculation of credit
scores by Fair Isaac, the company that created the FICO credit score.
Changes listed include how applying for new credit accounts may hurt
your score less, and how having high credit card balances could hurt
more. Also includes suggestions for increasing your credit score. The
article notes that FICO 08 may not be in widespread use for some time.
From MSN.
Facts for Consumers: The Credit Practices Rule
This rule, "which became effective March l, l985, prohibits many
creditors from including certain provisions in consumer credit contracts.
It also requires creditors to provide a written notice to consumers before
they cosign obligations for others about their potential liability if
the other person fails to pay. Finally, it prohibits one method of assessing
late charges." The site provides an overview of these requirements
for consumer loan contracts. From the Federal Trade Commission (FTC).
Your Credit Score: How It All Adds Up
Consumer fact sheet on credit scoring, "a grading system that adds
or subtracts points based on select data in your credit report. ... Your
final grade -- your credit score -- is said to measure how likely it
is that you will repay a loan." Discusses factors used to determine
credit scores (such as payment history and amount owed), ordering credit
reports, and tips for improving your score. From the Privacy Rights Clearinghouse.
Your Credit Scores
Questions and answers about credit scores, "number[s] that help
lenders and others predict how likely you are to make your credit payments
on time." Uses the FICO (Fair Isaac Corporation) score system to
show the factors affecting a credit score, such as payment history. Includes
examples of actions you can take to boost scores, and contacts for credit
reporting agencies. From the Consumer Federation of America and the Fair
Isaac Corporation.
Facts for Consumers: Credit Scoring
Fact sheet on credit scoring, "a system creditors use to help determine
whether to give you credit." Discusses the credit scoring model,
what individuals can do to improve their credit score, the reliability
of the credit scoring system, what happens if you are denied credit,
and how to file a complaint. From the Federal Trade Commission.
