2010 is the year many new regulations go into effect for credit cards, and while most help the card holder, some create loopholes for unethical credit card providers to exploit. Here are 10 tips to help you avoid being caught in one of these loopholes.
1. Get rid of your balance.
This is simple the most effective protection against a tyrannical credit card company because if you don’t owe them anything, then you can walk away any time the terms aren’t to your benefit. If you can’t pay off the balance completely, pay down as much as you can because some credit card companies are hiking rates on existing balances before the new CARD Act regulations take effect on February 22.
2. Shop local for the best credit card.
Look into credit cards from local banks and credit unions. These providers tend to be much more reasonable, and you can usually transfer existing balances to a new, lower rate card.
3. Use it before you lose it.
Credit card companies don’t make a dime off you if you don’t use your card, but they’re still paying for the account to stay open. To prevent the company from closing your account, use your credit cards at least once every 3 months or so to keep the account active.
4. Check your credit score and credit reports regularly.
Keep up on your credit reports from the 3 major agencies (free from AnnualCreditReport.com , NOT free credit report .com!) and know your score if you might be borrowing money in the near future. Your credit report will determine your score. Make sure you don’t have any erroneous info on your report. I once had a bankruptcy listed on my credit report even though I was in high school at the time I supposedly filed for bankruptcy! Check your report because no one else is going to question things like this, instead they will proceed as though it is accurate information.
5. Improve your credit score.
Your credit score is important in determining how much you pay when getting a loan, but it can also play a factor in whether you are hired for a job, and how much of a credit limit you get on credit card accounts. While the CARD Act prevents issuers from raising your interest rate because your score has gone down, they can cut your maximum limit. Here are 5 Ways to Improve Your Credit Score.
6. Watch the mail.
The CARD Act requires that credit card companies notify you by mail at least 45 days before any changes in terms. If you miss the memo in the mail, you have little recourse after the terms are changed.
7. Watch your limit, and the offers to go over.
The CARD Act prevents credit card issuers from charging over limit fees unless you opt-in. If you don’t opt-in to be charged when you go over your limit, you won’t pay a fee but the transaction that would have put you over your limit will be denied.
8. Use your rewards points before you lose them.
The CARD Act does not affect rewards and reward points, but issuers may cut rewards or make them more difficult to redeem as a means of cutting their costs.
9. Ask for higher credit limits.
If you have good credit and don’t carry a balance, consider asking for more credit. Doing so will improve your credit score… provided you don’t spend more than you can pay. The CARD Act prevents issuers from raising the limit unless you can make the required minimum payments.
10. Consider services and alerts.
If you use your credit card company’s online services for checking and paying your bill, you may find they have free alerts for when your balance reaches a certain limit or that they offer a chance to get your credit score for free. It may be beneficial to make use of these services, provided there is no additional charge to you.
This is a Sponsored Post written by me on behalf of Coldwell Banker. All opinions are 100% mine.
If you are thinking of buying a home, there really haven’t been many opportunities as good as today’s buyer’s market.
According to The National Association of Realtors, affordability is the best it’s been since the 1970′s, and with the extension and expansion of the Home Buyer Tax Credit, it’s an even better deal.
Despite recent reports of IRS delays and the inability to e-file when applying for the first time home buyer credit, it’s still worth it – if you’re looking to buy a house for a home, and not for profit. The credit was expanded to non-first time home buyers as well. This was due to the fact that the tax credit had provided a big incentive to first time home buyers, but little else. So, it was expanded to help incentivise home purchases of “move-up” buyers.
Requirements To Qualify
For first-time home buyers.
First-time home buyers are defined as those who have never owned a home, or who have not owned a home in the last three years.
The maximum credit available for first-time buyers is $8,000.
Income limit is $125,000 for singles, $225,000 for married couples.
Buyers must have a written, binding contract by April 30, 2010 and close by June 30, 2010.
For move-up borrowers.
Move-up borrowers are defined as those who have owned and lived in their current home consecutively for 5 of the past 8 years.
The maximum credit available to move-up buyers is $6,500.
Income limit is $125,000 for singles, $225,000 for married couples.
Buyers must have a written, binding contract by April 30, 2010 and close by June 30, 2010.
You are looking to buy a house now (or the VERY near future).
Are planning on staying in this house for 5 years or more.
Can afford the house on your current income.
The credit may not be extended further, but if you can’t afford the home then it really isn’t helping you in the long run. And investing in real estate is a long-term proposition in today’s market, the go-go days of flipping your home is over. So, it makes sense for qualified buyers looking to buy a home and just an investment.
It also helps the economy. Every home sold creates one new job over the next 12-months, and injects approximately $60,000 into the local economy, according to The National Association of Realtors.
Here’s a video from Jim Gillespie, President and CEO of Coldwell Banker that explains the tax credit quite well:
It looks like home buyers looking to take advantage of the recently extended tax credit have a longer wait ahead of them than those who got the credit the 1st time around.
Due in part to scam artists filing false claims, and the IRS being unprepared for the extension, it can now take months instead of weeks for home buyers to receive the credit – and they won’t be able to file electronically.
E-file is out, and snail mail is in.
Buyers looking to claim the credit now will need to file their tax returns by mail and include documentation along with a new 5405 tax form. The IRS claims that the need for the new documentation, and lack of e-file is the result of scam artists gaming the system. The new documentation includes proof of residency, a signed mortgage statement and drivers license.
The delays effect those who bought homes after November 6th, 2009. The IRS was unable to process tax credit claims until recently.
The tax credit was originally set to expire on November 30th, but was extended to April 30, 2010 due to continued weakness in the housing market. The April 30 deadline is for contracts to be signed, buyers will have until June 30th to close.
WalletPop had a post yesterday about the dirty tricks of debt collectors.
The article highlights an experience of Ken Golde, who harassed by debt collectors after his business partner died unexpectedly, leaving him to deal with more than $200,000 in debt.
This may be an unusual case, be it show how some debt collectors have no decency and will stop at nothing to get their pound of flesh, or in this case their payment.
The article details some of the tactics that deb collectors aren’t supposed to use, after the passage of the Fair Debt Collection Practices Act (FDCPA). But, of course, some collectors still use those tactics.
The article is mostly a collection of vignettes of people unfortunate enough to have been targeted by unscrupulous debt collection agencies, and lists some web sites to visit if you too are being harassed by collectors.
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