Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software. . . . → Read More: If you really want a free credit score, visit Credit Karma!]]> The guys on TV that sing about a Free Credit Score are stretching the truth.  If you want to see your credit score for free, visit www.creditkarma.com It’s totally free (no tricks) and a very informative site.  We love Credit Karma.

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

Most credit card penalties will be limited to $25, and fees for customers who don’t use their cards will be eliminated under rules released Tuesday by the Federal Reserve.

The Fed also ordered a review of all credit card interest rate hikes imposed since January 2009, including most of the record . . . → Read More: Credit card rate hikes reviewed, penalty fees crimped]]> Good news for consumers! From CNN/Money

Most credit card penalties will be limited to $25, and fees for customers who don’t use their cards will be eliminated under rules released Tuesday by the Federal Reserve.

The Fed also ordered a review of all credit card interest rate hikes imposed since January 2009, including most of the record increases that came in the wake of a nationwide cutback on credit.

The rules, which implement a final set of changes that Congress passed in May 2009, take effect Aug. 22.

“The Federal Reserve’s guidelines issued today are great news for consumers,” said Rep. Carolyn Maloney, D-N.Y., one of the authors of the credit card laws.

The Fed’s rules could result in lower interest rates for consumers. Banks will be required to reconsider the reasons for hikes that kicked in over the past 18 months. They would have to reduce rates if the reasons for the increases no longer exist, and regulators will review and enforce such cuts.

Consumers will most immediately notice the new penalty fee limit of $25. Reducing penalty fees was a central provision of the credit card law, but Congress left it to the Fed to determine how to do it.

The Fed leaves room for larger penalty fees to be charged if a consumer has shown a pattern of “repeated” violations or if a card issuer can show that a higher fee reasonably offsets its own costs in dealing with the violation that spurred the penalty.

Other parts of the new rules:

Consumers won’t have to fear being charged a fee for failing to use their credit cards.

Penalty fees can’t exceed the dollar amount incurred by the consumer’s violation that spurred the fee. For example, if a customer is late making a $20 minimum payment, the fee can’t exceed $20. A consumer who exceeds her credit limit by $5 cannot be charged an over-the-limit fee of more than $5.

Consumers will no longer face multiple penalty fees, if the violation was based on a single late payment.

The provisions announced Tuesday by the Fed complement previous rules implementing the 2009 credit card law that are already in effect.

Starting in February, issuers were prohibited from hiking interest rates on existing balances as long as customers paid their bills on time. They also have to notify customers at least 45 days in advance of interest rate increases and most fee changes.

The Fed was tasked with figuring out a way to set penalty fees in a way that’s “reasonable and proportional” to the violation that caused the fee.

Consumers scored a win, since these fee caps go beyond what the Fed had suggested earlier this year in a draft. The $25 limit will mean significant savings for consumers who face median penalty fees of $39, according to data collected by the Pew Safe Credit Cards Project.

However, if a cardholder is late or over his credit limit two times within six months, issuers could hike the second penalty fee to $35, or possibly more if the issuer can justify the fee to regulators, according to the Fed rules.

Although the Fed is cracking down on penalty fees, it hasn’t addressed the interest rate hikes that are also imposed on consumers who violate the terms of their credit card agreements.

So a consumer who spends more than his credit card limit by $15 may only face a $15 fee. But that consumer could still face a permanent penalty hike on his interest rate, which would apply to any future purchases.

Still, some banking groups have concerns. Financial Services Roundtable’s senior lobbyist Scott Talbott warned that the Fed’s cap on penalty fees will limit the industry’s ability to offset the risk that credit cardholders don’t pay their bills.

“The restrictions in the rules the Fed issued will decrease the ability of the credit card industry to price for risk and the net effect will be a decrease in [credit] availability,” Talbott said.

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

Daniel Rosen is an author, consumer advocate and . . . → Read More: The Kindle Edition of our “Credit Repair Secrets” book has launched at Amazon!]]> The Kindle Edition of our credit repair secrets book has launched at Amazon!! Do you have a Kindle? Are they cool? I have no clue, but I’m proud to say I’m a now a Kindle author. If you have a Kindle, check it out! http://www.amazon.com/dp/B003L77MVO

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

Following is . . . → Read More: The Credit CARD Act of 2009 = Good News for Consumers]]> On May 22, 2009, the Credit CARD Act of 2009 was signed into law by President Barack Obama. The full title of the law: Public Law 111-24 is the Credit Card Accountability Responsibility and Disclosure Act of 2009. It amends the Truth In Lending Act, the Federal Trade Commission Act and the Electronic Funds Transfer Act.

Following is a description of the main provisions of this important consumer protection legislation. Keep in mind that there are many sections of the law where the Federal Reserve Board (often with the cooperation of other regulatory agencies), will be required to develop rules that describe how the law will work in real life. In other words, this is not the final word on this law, but it is meant to help you understand it and not provide a legal interpretation.

Most provisions in this bill go into effect on February 22, 2010.

Here’s the breakdown on the changes when the law comes into effect February 2010.

Consumer Protection

• Retroactive interest rate increases are banned except when a cardholder is more than 60 days late paying a credit card bill.
• Credit card issuer must review the cardholder’s account six months after increasing the interest rate, and return the APR to the previous lower level if the cardholder has been on-time with payment.
• Interest rate cannot be increased within the first 12 months, and promotional rates must have a minimum of 6 months in duration.
• Advance notice of 45 days prior to significant changes in credit card terms: this includes the benefits and reward structure of a credit card.
• The practice of universal default and double-cycle billing are no longer allowed.
• Over credit limit fees are now prohibited unless consumers specifically agree to allow transaction to go through instead of being denied.
• Bills must be sent out no later than 21 days before the due date.
• Payments cardholder makes must be credited as on-time if the payment is received by 5 P.M. on the due date.

Enhanced Consumer Disclosures

• Clear disclosure on how long it would take to pay off a credit card balance if cardholder makes only the minimum payment each month.
• Clear disclosure on the total cost in interest and principal payments if a cardholder makes only the minimum payment each month.
• Late payment deadline and postmark date are required to be clearly shown and disclosed to cardholders.

Protection of Young Consumers

• Credit cards cannot be issued to people under the age of 21 unless they have an adult co-signer or show proof that they have the means to repay the debt (proof of reasonable income).
• College students will be required to receive permission from parents or guardians in order to increase credit limit on joint accounts they hold with those adults.
• People under the age of 21 will now be protected from pre-screened credit card offers unless they specifically opt-in for offers.

Gift Cards

• Gift cards are now required to remain active for at least five years from the day of their activation.
• Dormancy or inactivity fees on gift cards can no longer be imposed unless there have been no activity in a 12-month period.
• Dormancy or inactivity fees must be clearly disclosed to gift card buyers.
• If the gift card expires after 5 years, the terms of expiration needs to be clearly disclosed to gift card buyers.

Effective Date

• The majority of the new rules will be taken into effect 9 months after the signing of the bill, which puts the effective date on Feburary 2010.
• The rule on 45 days advance notice of major changes in account terms will take effect 90 days after the bill’s enactment, beginning September 2009.

MORE DETAIL AS FOLLOWS:

Protection Of Credit Cardholders

Advance Notice of Rate Increase and Other Changes

Credit card issuers must notify you of a rate increase — or any other significant change in terms to your credit card account — at least 45 days in advance of the effective date. (The Board will develop rules that address what a “significant change” means.) This notice must be clear and conspicuous, and will give you the opportunity to close the account. (This requirement goes into effect in August 2009.)

If you decide to close your account to avoid the new terms, issuers won’t be able to charge a penalty fee for closing your account, place you in default just because you close your account while you still owe a balance, or require you to pay your balance in full immediately. But if your card issuer does raise your rate (or tells you it is going to) and you close your account, your card issuer can require you to pay back your balance over five years, or double your previous minimum monthly payment.

Retroactive Rate Increases and Universal Default Prohibited

Issuers cannot increase the annual percentage rate, fee or finance charge on your existing (outstanding) credit card balance except in certain circumstances.

• Your rate can go up if the rate you were given was clearly disclosed as lasting for a certain period of time. For example, your card issuer could offer an introductory rate if you were told what the new rate would be after the introductory period expired. Promotional rates must last for at least six months unless the Board comes up with other rules that allow for shorter promotional periods.
• Variable rate cards (which change as the underlying index changes) are still permitted. For example, if your interest rate is based on the prime rate plus 5.99%, adjusted annually, your rate will change if the prime rate changes.
• A credit card issuer may raise your rate on your outstanding balance if it had been temporarily lowered during a “workout” or temporary hardship arrangement that you either completed, or dropped out of.
• If you are sixty date late on a credit card payment, then your issuer can raise your interest rate retroactively, but you must be given the opportunity to earn back your previous rate if you make your minimum payments on time for six months.

An issuer cannot raise your rate on your credit card in the first year except in the circumstances above (such as an introductory interest rate, or if you fall 60 days or more behind.)

Interest Rate Reductions

If a credit card issuer increases your annual percentage rate based on factors such as your credit risk as a borrower, or market conditions, the creditor shall consider changes in those factors in subsequently determining whether to reduce your annual percentage rate.

Every six months (at a minimum), issuers must review accounts on which they raised the interest rate since January 1, 2009, to assess whether the facts they used to raise the interest rate have changed. If so, they must lower your rate. For example, let’s say your card issuer raised your rate due to a decline in your credit score. If, a year later, your credit score is back to where it was when they first raised your rate, the card issuer would likely be required to lower your rate.

This section of the law can clearly get complicated, so the Board must issue final rules describing how this will work no later than 9 months after enactment, and this section will go into effect 15 months after the date of enactment.

Double-Cycle Billing

Two-cycle, or “double-cycle,” billing is banned.

Over-the-Limit and Other Fees

Over-the-Limit Fees: Issuers cannot charge you a fee if you go over the limit on your credit card unless you have given them permission to authorize purchases that put you over your limit. Issuers cannot charge an over-the-limit fee if you go over the limit solely due to interest charges or fees.

If the issuer does authorize a purchase that puts you over your limit, you cannot be charged an over-the-limit fee unless you had opted-in to be allowed to go over the limit. (This does not require card issuers to allow you go to over your limit. They are still free to decline purchases above your credit limit.)

When over-the-limit fees are permitted, an issue cannot charge an over-limit fee more than once per billing cycle. If you only go over the limit that one time (and don’t continue making purchases that put you over your limit), you cannot be charged over-the-limit fees for more than three months in a row, even if your required minimum payments don’t bring you back under the limit.

Payment Fees: Issuers can’t charge fees for accepting payment by mail, electronic transfer, telephone authorization, or other means, unless the payment involves an expedited service by a service representative of the creditor.

Reasonable Fees: Late payment fees, over-the-limit fees, or any other penalty fees or charges, must be reasonable and proportional to the violation. The Board will work with banking regulators to develop guidelines describing what is reasonable here. (This provision becomes effective 15 months from enactment.)

Fixed Rate Means Fixed

If a credit card company offers a `fixed’ interest rate, the rate must not change or vary for any reason over the period specified clearly and conspicuously in the terms of the account.

Payment Allocation

If portions of your balance are at different interest rates, any payment in excess of the minimum payment must be credited first to the balance with the highest interest rate, then to each successive balance bearing the next highest rate of interest, until the payment is exhausted.

If you have a deferred interest arrangement (“buy now, pay later” or “interest-free for six months” for example), the creditor must allocate the entire amount you’ve paid above the minimum payment to the balance on which interest is deferred during the last two billing cycles immediately preceding the expiration of the period during which interest is deferred. (Essentially this gives you the opportunity to pay off your deferred interest balance without having to pay off your entire balance if you have other outstanding balances at different rates.)

Changes by Card Issuer: If a card issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments, and such change causes a material delay in crediting your payment during the 60-day period following the date on which that change took effect, the card issuer may not impose any late fee or finance charge for a late payment on the credit card account.

Subprime, or “Fee Harvester” Credit Cards

Fees on a credit card (not including late fees, over-the-limit fees, or returned check fees) cannot exceed 25% of the credit limit when the account is opened.

Statement Delivery and Due Dates

Statements must be mailed or delivered to a consumer at least twenty-one days before the due date. Tip: If you did not receive your statement, there is a federal law that protects you, but make sure you know and follow the rules.

If a due date falls on a holiday or weekend when payments are not received or accepted by mail, the creditor cannot count a payment late if it is received the next business day. Payments received by 5 pm must be credited the same day.

If a card issuer accepts payments at branch locations, they must be credited the day they are received at the branch.

If your credit card carries a grace period, your statement must be mailed or delivered to you at least 21 days before the due date.

Floating due dates — due dates that change from time to time — are no longer allowed.

This section goes into effect 90 days after date of enactment.

Credit Card Issuance

Credit card issuers cannot extend credit, or increase a credit limit, without considering the borrower’s ability to repay the debt.

Payoff Timing Disclosures

Credit cards must now contain a warning: ‘Minimum Payment Warning: Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance.’, or a similar statement the Board develops.

The card issuer will also be required to tell you how long it will take and how much it will cost to repay your balance if you only make minimum payments. They must also tell you how much you must pay in order to pay off your balance in three years or less, and supply a toll-free number where you can get information about credit counseling and debt management services.

Late Payment Deadlines and Penalties

If the issuer imposes a late fee, it must be clearly disclosed on your statement. And if the card issuer will raise your interest rate because you make a payment late, the new interest rate must also be clearly disclosed on the statement.

Internet Posting of Credit Card Agreements

Creditors will be required to create and maintain an Internet site on which they post copies of their cardholder agreements. Copies must also be given to the Federal Reserve Board, which will maintain a central repository of consumer credit card agreements, and make them easily accessible and retrievable by the public.

Prevention of Deceptive Marketing of Credit Reports

Advertisements for free credit reports must clearly disclose that free credit reports are available under Federal law at: ‘AnnualCreditReport.com.’ Television and radio ads must disclose ‘This is not the free credit report provided for by Federal law’. The Board will develop rules that detail the requirements in this section.

Procedure For Timely Settlement Of Estates Of Decedent Obligors

The Board, in consultation with the Federal Trade Commission and other agencies will develop regulations to require credit card issuers to establish procedures to ensure that any administrator of an estate of a deceased debtor can resolve outstanding credit balances in a timely manner.

Protection of Young Consumers

No credit card may be issued to a consumer under the age of 21, unless he or she has submitted a written application to the card issuer that meets the following requirements:

• The signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 who has the means to repay debts incurred by the consumer in connection with the account, or
• Financial information indicating that the person under the age of 21 has the ability to independently repay the debt.

If a parent or other adult has cosigned a credit card to someone under the age of 21, the card issuer may not increase the credit limit on the account without the cosigner’s written approval.

Prescreened credit offers may not be sent to those under the age of 21 unless they have opted in with the credit reporting agencies to receive such offers.

Colleges and universities must publicly disclose contracts or agreements made with a card issuer or creditor for the purpose of marketing a credit card.

Card issuers and creditors may not offer a student at an institution of higher education any tangible item to get them to apply for a credit card if the offer is made on or near campus, or at an even sponsored by or related to the college or university.

Colleges and universities will also be encouraged to limit on-campus marketing of credit cards, and offer credit card and debt education, and counseling sessions, as a regular part of new student orientations.

In addition, creditors will be required to submit a report to the Board describing the terms and conditions of all business, marketing, and promotional agreements and college affinity card agreements with colleges and universities, alumni organizations or foundations affiliated with or related to such institutions, with respect to any college student credit card issued to a college student at such institution.

The Comptroller General of the United States shall, from time to time, review these reports and periodically submit a report to Congress on the impact of these arrangements have on credit card debt. The Comptroller General will make legislative or administrative recommendations it determines to be appropriate.

Gift Cards

Generally, issuers cannot impose a dormancy fee, inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card unless there has been no activity with the previous twelve months, required disclosures (that describe these fees) have been made, and no more than one fee is charged per month.

Also, it is generally illegal to sell or issue a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date unless the expiration date is at least five years in the future, and the terms of expiration are clearly and conspicuously stated.

Further Study Required

Several issues were not directly addressed in this legislation. Instead, Congress ordered further study on these topics before deciding on a course of action.

Study and Report On Interchange Fees

The Comptroller will conduct a study on use of credit by consumers, interchange fees, and their effects on consumers and merchants. (The interchange fee is the fee merchants pay to credit card companies when they accept credit cards for payment.)

By 180 days after the date of enactment of this Act, the Comptroller shall submit a report to two Congressional committees containing a detailed summary of the findings and conclusions of the study required by this section, together with recommendations for legislative or administrative actions.

Board Review Of Consumer Credit Plans And Regulations.

Not later than two years after the effective date of this Act and every two years thereafter, except as provided in subsection (c)(2), the Board shall conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market, including:

• the terms of credit card agreements and the practices of credit card issuers;
• the effectiveness of disclosure of terms, fees, and other expenses of credit card plans;
• the adequacy of protections against unfair or deceptive acts or practices relating to credit card plans; and
• whether or not, and to what extent, the implementation of this Act and the amendments made by this Act has affected cost and availability of credit, (particularly with respect to non-prime borrowers); the safety and soundness of credit card issuers; the use of risk-based pricing; or credit card product innovation.

Comments will be solicited from consumers, credit card issuers, and other interested parties, such as through hearings or written comments. A summary of this review will be published and the Board will either propose new or revised regulations or interpretations to update or revise disclosures and protections for consumer credit cards, as appropriate; or state the reason for the determination of the Board that new or revised regulations are not necessary.

Report To Congress On Reductions Of Consumer Credit Card Limits

Before May 22, 2010, the Board, in consultation with other banking regulators, must submit a report to Congressional Committees that describes the extent to which, during the 3-year period ending on such date of enactment, creditors have reduced credit limits or raised interest rates applicable to credit card accounts under open end consumer credit plans based on:

• the geographic location where a credit transaction with the consumer took place, or the identity of the merchant involved in the transaction;
• the credit transactions of the consumer, including the type of credit transaction, the type of items purchased in such transaction, the price of items purchased in such transaction, any change in the type or price of items purchased in such transactions, and other data pertaining to the use of such credit card account by the consumer; and
• the identity of the mortgage creditor which extended or holds the mortgage loan secured by the primary residence of the consumer.

This report will also take a look at how these practices have affected low income or minority consumers, and will include suggested regulatory changes.

Board Review Of Small Business Credit Plans And Recommendations

The Board will conduct a review of small business credit cards (those used by businesses with fewer than 50 employees), and the credit card market for small businesses, including:

• the terms of credit card agreements for small businesses and the practices of credit card issuers relating to small businesses;
• the adequacy of disclosures of terms, fees, and other expenses of credit card plans for small businesses;
• the adequacy of protections against unfair or deceptive acts or practices relating to credit card plans for small businesses;
• the cost and availability of credit for small businesses, particularly with respect to non-prime borrowers;
• the use of risk-based pricing for small businesses;
• credit card product innovation relating to small businesses; and
• the extent to which small business owners use personal credit cards to fund their business operations.

By May 22, 2010, the Board must provide a report to Congress that summarizes the review and other evidence gathered by the Board, such as through consumer testing or other research, and make recommendations for administrative or legislative initiatives to provide protections for credit card plans for small businesses.

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

Most credit card lenders charge anywhere from 0 to 20% in interest (APR). I’ve seen some particularly creepy banks that charge as much as 35%! Most people do not realize that you can negotiate with your credit card company for a lower rate, especially if you’ve had any . . . → Read More: How to Negotiate With Your Bank to Lower your Credit Card Interest (APR)]]> How to Negotiate a lower Credit Card Interest (APR)

Most credit card lenders charge anywhere from 0 to 20% in interest (APR). I’ve seen some particularly creepy banks that charge as much as 35%! Most people do not realize that you can negotiate with your credit card company for a lower rate, especially if you’ve had any of your credit cards for a long time.

All you need to do is to call them up to insist on a lower rate. Shoot for 9% to 15%. You’ll be surprised at how easy it is to save yourself a lot of money.

Here’s how to do it:

1). Start with a credit card that you’ve had for a long time. One that you have never been late on with payments.

2). Look on the back of the card and dial the customer service number.

3). Start negotiating. Here’s a sample script:

Sample Script

You: (Upbeat and polite) “I just got an offer in the mail for a new credit card that has an introductory interest rate of only 6.9%! I don’t really want to switch cards, because your service has been wonderful. But even though I’ve had your card for five years, I’m still paying a 19% rate on my balance. I’m going to have to transfer my balance unless you can lower the interest rate.”

Them: (Over the sound of keyboard keys being tapped as your credit and payment history are being examined.) “Hmmm … well, that is the standard rate … but let me see …”

You: “Of course, I understand that, but I can pay a lot less in interest if I transfer my balance. I really need you to reduce the rate to 9% or so.”

Them: “Hold on while I check with my supervisor … OK, how about 9.9%?”

You: “No problem.” (Now pat yourself on the back for saving some bucks!)

This may not work as well if you’re frequently late on your payments and over your head in debt. But it can’t hurt to at least ask for an interest rate reduction. If you have a solid track record, handle your obligations and are generally polite, your lender should be willing to offer you a lower rate to keep from losing you to their competition.

4). Keep trying. If you don’t get what you want the first time, try to get another customer service rep or a supervisor on the line. They still won’t lower the APR? Mark in on your calendar to call them back in a few months.

5). Don’t be angry. I have found that I am far more successful in all financial endeavors when being polite. These financial “gatekeepers” have angry people calling them all day long. Imagine what that must be like? Aren’t you glad you’re not them? I’ve found that if you’re nice and treat them with extra respect, they often return the favor and give you a little extra care.

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

On May 22, 2009, President Barack Obama passed the “Credit Card holders’ Bill of Rights.”  This milestone measure received bipartisan support in both chambers and will make credit card issuers display fees more clearly and end many random abuses.  This bill takes full effect on February 2010.

Once the . . . → Read More: Good news for Credit Card Holders! Change is coming!]]> Good news for Credit Card Holders! Change is coming!

On May 22, 2009, President Barack Obama passed the “Credit Card holders’ Bill of Rights.”  This milestone measure received bipartisan support in both chambers and will make credit card issuers display fees more clearly and end many random abuses.  This bill takes full effect on February 2010.

Once the bill is effective, credit cardholders should experience a more consumer-friendly experience when the credit card industry is required to play by clear and fairer rules.

The Credit Cardholders’ Bill of Rights will help credit card users by:

• Restricting issuers’ ability to raise rates on existing balances.
• Requiring 45 days notice before raising interest rates on new balances.
• Requiring that payment amounts above the minimum payment be applied to the highest interest rate balances first.
• Allowing over-the-limit fees only when a borrower affirmatively consents to having over-the-limit transactions approved.
• Requiring that fees be reasonable and proportional to the violation of terms.
• Prohibiting issuers from charging consumers a fee for paying a bill by telephone or over the Internet.
• Requiring credit card statements to be mailed 21 days before the bill is due rather than the current 14 days.

Unfortunately, Obama’s new law does not put a ceiling on the level of allowable interest rates or the amount of the rate increases that are allowed.  There is no provision to address the industry practice of reducing credit limits at any time for any reason, or the continued insertion of forced arbitration clauses (that prevent a cardholder’s dispute being heard by a jury in court) in almost every credit card agreement.

Credit card usage is vital to America’s financial recovery and these extra protections are much needed.  Families rely on credit cards to help pay bills, buy groceries and make ends meet in today’s troubled economy.  Allowing unfair credit card industry practices to go unrestricted would have a harmful effect, just as toxic mortgage lending practices have done.

Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America's top-selling credit repair software. Get a free demo at www.credit-aid.com.

Roughly 1% of the population has perfect credit. Perfect credit would mean a FICO score of 850 on Fair Isaac’s scale of 300 to 850. Earning such a high credit score does not involve fancy tricks. Folks with such a such a high credit score all have the following traits in common:

This is a little bit a departure from my usual credit and finance blogging, but it’s definitely about about saving a lot of money, and everyone loves that.

How Groupon works:

1) Each day Groupon features something cool . . . → Read More: Groupon: One of the most innovative money saving sites I have ever seen!]]> I just discovered one of the most innovating money saving sites I have ever seen. It’s called Groupon.

This is a little bit a departure from my usual credit and finance blogging, but it’s definitely about about saving a lot of money, and everyone loves that.

How Groupon works:

1) Each day Groupon features something cool at an unbeatable, amazing-low price. restaurants, products, services, shows…I even saw skydiving listed! And these awesome products and services are often as low as half off the usual price — or less!

2) You only get the amazing deal if enough people join that day…

This site is fun to see, and it really has some amazing deals. It’s great for consumers with little extra to spend for niceties…. and it’s great for businesses who want to promote to a new audience.

WHen you first log on it seems to default to Chicago, but you can change to any major city. Check out Groupon. It’s worth a look. The site is www.groupon.com .
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Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America’s top-selling credit repair software. Get a free demo at www.credit-aid.com.

Some creditors and lenders do not report consumer credit limits. Instead they will only post the highest balance you have ever carried. Keeping proper credit limit information out of your file is not always an innocent oversight. It’s often done purposely by a bank . . . → Read More: Make sure your credit reports contain the proper credit limits. Banks can be sneaky!]]> Make sure your credit reports contain the proper credit limits!

Some creditors and lenders do not report consumer credit limits. Instead they will only post the highest balance you have ever carried. Keeping proper credit limit information out of your file is not always an innocent oversight. It’s often done purposely by a bank to make you look less attractive to their competitors, so they won’t send you pre-approved offers. Worst of all, it lowers your credit score!

Capital One is famous for this sneaky tactic: Instead of reporting customers’ proper credit limits, they often only report the highest balance carried, which give the appearance that you are closer to maxing out your card than you really are (which is bad for your credit score). Interestingly, we are told that FICO scores no longer use this information from Capital One when computing credit scores, but you may want to go through your credit report with a fine tooth comb to make sure that none of your other accounts are listed with inaccurate credit limits. Generally speaking, the more available credit you have, the better you look on your credit report.

If you find that a lender is not listing the proper credit line on your account, and it’s not Capital One, you might want to call and ask them to report the right amount. Sometimes, it is their company policy not to report, but you certainly can try.

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Daniel Rosen is an author, consumer advocate and founder of Credit-Aid Software.
America’s top-selling credit repair software. Get a free demo at www.credit-aid.com.