You may be surprised to find out that credit files can often contain incorrect or inaccurate information which could seriously impact on your chances of getting financial services such as credit cards or loans. Sometimes this can put you in extremely difficult positions with financial institutions, especially if you’re looking to apply for one of their products.

A great way to keep on top of your credit file and make sure all the details are correct is to get hold of a copy for your self and take a read through! You’ll find that there are three main companies that keep credit files on consumers. These are Experian, Equifax and TransUnion. All three of these will be happy to provide you with a paper copy of your credit file for a small admin charge. Alternatively you can visit their websites and get your credit file online.

So now you have a copy of your credit report but have found errors or inaccurate details that you don’t recognise? Don’t panic. It’s in the interests of the credit bureaus to help correct any errors that may appear on your record. However you must be able to substantiate the reasons as to why you believe the information to be correct. The first thing to do would be to call the company who has added the problematic details and explain the situation, they will more than likely ask you to put your problem in a letter with details as to why you believe this incorrect, along with any supporting evidence such as documents or statements. This will allow them to look further into the issue.

You should also ask them to notify the credit bureaus that you are disputing an entry on your file. A notation will be added to your file, which will show any future searchers (these are the companies that search your file to check your eligibility for things like credit cards and loans) that you are disputing any negative entries. Of course, you don’t have to rely on the companies to notify the bureaus, it’s a good idea to contact them yourself also.

Normally, after investigating your claim, the company will contact the credit bureaus asking them to remove the data that has been mis-reported. You need to remember that you cannot have the entry removed yourself, as only the company who added the entry can have it removed.

By keeping a close eye on your credit file you can not only avoid being turned down for financial services, but you can also help protect yourself from identity fraud by looking for accounts, credit cards or loans that you do not recognise!

When looking for credit cards it’s often a good idea to limit your applications to cards that you are likely to be approved for, as multiple applications over a short period of time can damage your credit rating and lead to frustrating refusals! Think-CreditCards.com is a consumer orientated site designed to help you match your needs to a suitable credit card. Visit us today and find the perfect credit card for you!

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Credit cards are regarded by many people to be something of a double edged sword, being both a potential friend and a foe to be wary of. While they offer great benefits in terms of convenience (online shopping, widespread acceptance, and the security of not having to carry bundles of cash around if you want to make a substantial purchase) they can also land the cardholder in significant trouble financially.

For many of us there is a disconnect between what we spend on plastic and the effect our spending has on our real world finances – it’s all too easy to spend our way into significant debt, with all the problems associated with that unhappy situation.

Of course, credit cards do not automatically lead to debt problems, and with responsible and disciplined use you can enjoy the conveniences and benefits without the dangers. There are many ways of staying out of credit card debt, most of them complete common sense, but what many people don’t realise is that using a credit card can actually make you money, and not just in the ways you might think of first.

The most obvious way that you can earn off your card is by signing up for one which offers a cash back scheme. Under this, a very small percentage of your spending is either credited back to your account directly, or sent to you in the form of an annual check. The typical rate of cashback is a seemingly miserly 1%, although more generous introductory deals of up to 5% for a limited period are available.

The key thing to remember with cash back cards is that any earnings you make would be completely drowned out by interest charges if you carried a balance on the card, so ensure that you only use it as a way of spending and not borrowing, and pay your balance off in full each month. In this way you’ll avoid being charged any interest, yet still receive the cash back.

You can also earn money on purchases in a more indirect way. If you move all your day to day spending on to a credit card, paying the balance in full each month, you can transfer the money you’d normally be spending into a high interest savings account, letting it earn you interest for a few weeks before paying off the credit card balance in time to avoid interest. This might seem like a lot of trouble for little reward, but if you add up how much you spend in a month on essentials such as groceries, fuel, energy bills and parking costs etc, then you’ll see that earning even a month’s worth of interest on this figure could add up to a welcome bonus over the course of a year.

Couple this technique with a cash back facility, and you’re winning on two fronts, and so long as you are disciplined enough to pay off your balance during the grace period before interest is charged, then it really is a case of the more money you spend, the more money you’ll make!

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Most people are well aware of the old credit card game of exploiting 0% balance transfer deals to avoid paying interest on their debt, shifting the balance from card to card, always moving the debt along before the end of the introductory period to avoid interest charges almost indefinitely.

While this still works well enough, the introduction of balance transfer fees has somewhat cooled many people’s enthusiasm for this activity. Although you can still save money by doing this, it is no longer completely free, and in any case the tightening of the credit market means that it can be more difficult to get a credit card these days, especially if you have debts or a less than perfect credit rating. It is fast approaching the time for a lot of people that serious thought needs to be put into finally trying to clear those debts rather than moving them onto yet another card.

There is a more subtle approach to making 0% deals work in your favour though, and as it only applies to people with no debts and good credit ratings, the introduction of the balance transfer fee, although still unwelcome, has not had as profound an impact. We are talking about the activity informally known as ‘stoozing’.

This practice requires a balance transfer credit card that allows the facility to be used to pay off bank account overdrafts, as well as debts held on other cards. Not all cards will allow this, so check the small print before applying.

The basic technique is to acquire a suitable credit card with a high credit limit (hence the need for a good credit rating) and use it to pay off an ‘overdraft’ in your current account. In reality, this overdraft doesn’t exist, but your credit card issuer is not to know this so long as you don’t choose a card issued by your own bank!

If you transfer your entire credit limit into your current account, you can then transfer the funds into a high interest savings account where it can sit for the length of the introductory period, steadily earning you money in interest payments, before transferring it back on to the credit card to clear the debt before interest begins to be charged. But how effective can this really be? Let’s look at some figures.

For a simple example, suppose a credit limit of $10,000 was transferred for a period of 12 months. This would earn you $600 over the year if you put it into one of the best buy accounts earning 6% or more in interest. Of course, these days a balance transfer fee will probably apply, which at a rate of 3% would cost you $300, leaving you $300 in profit.

This equates to a 3% return on the deposit of $10,000 which isn’t perhaps that impressive – until you remember that the original investment wasn’t made from your own money, but from the credit card issuer’s funds, so it really is money for nothing.

Of course, the amount you can make with this technique will vary according to the various rates and charges of the individual credit cards and savings accounts you use, and in most cases tax will also be due, but the maths is simple to see if you will come out ahead. And, even if the actual profit involved isn’t huge now that balance transfer fees are here to stay, there’s at least a little satisfaction to be gained from profiting at the expense of huge financial corporations!

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A few years ago when I was working with an earlier project with my company, I was required to get a U.S. credit card.

Being a resident of Canada I don’t have U.S. citizenship or U.S. credit rating.

I felt the frustration one would have if they’re in a new country. My good credit score and good credit practices didn’t do me any good in another country.

Eventually I got a U.S. credit card with a small limit and it was secured by my companies reputation.

At the time I was frustrated because I’ve had excellent credit in Canada for 25 years. There was nothing to show that fact to a U.S. credit card company as Equifax U.S. didn’t have any records of my credit standings.

New Immigrants to Canada required to re-start their credit.

I can imagine the frustration that a family who is immigrating into Canada might have. Even if they’ve had a house with mortgage, credit cards, lines of credits in their former country, they’ll be forced to start all over again when they arrive in Canada.

Unless this family has a great deal of cash to work with they’ll be forced to rent an apartment while they save up for a home. Renting doesn’t affect your credit rating. They won’t be able to get loans of any type unless they have sizable security deposits or other assets.

One of the quickest and easiest ways for the new immigrant to Canada to start their credit rating is to get a secured credit card. These credit cards can be obtained for as little as $75. The beauty of a secured credit card is that it reports to Equifax and TransUnion the same as a regular credit card. This means that it helps start a credit score in as little as one billing period.

Every family that immigrates to Canada has hopes and dreams of owning a home, car and living the Canadian lifestyle. A secured credit card might just be fastest and most cost effective way for them to start their credit rating and move on to that home mortgage for their family.

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Collection agencies and their debt collectors can be held liable by the Federal Trade Commission (FTC) for violating the Fair Debt Collection Practices Act (FDCPA). Debt collection companies can be ordered to pay high fines for violations.

Violations such as debt collectors misleading, threatening, and harassing consumers. All of which are violations of the Fair Debt Collection Practices Act (FDCPA).

Some debt collectors, to make matters worse, threaten or falsely imply that consumers would have their wages garnished, property seized or initiate lawsuits or criminal actions against them for failure to pay.

Some debt collectors call people at their place of business or home and disclose information to employers, co-workers, family members and neighbors.

The FTC receives hundreds of complaints against collection agencies. However, it’s up to all of us as consumers to make the FTC aware of these violations.

Well, let this be fair warning: Debt collectors, you can no longer get away with violations of the FDCPA and with using abusive tactics. People are fighting back and are learning how to defend themselves.

Consumers must me more informed of their rights under the law. Some debt collectors still choose to walk the line and in some cases walk right over the line and keep on going. All in an effort to recover outstanding debts.

Debt collectors can be very intimidating and cause unwary people much undue stress. If you are a victim of such debt collector tactics, there are steps you can take to defend and protect yourself.

It would be helpful to submit your complaint online using the FTC Consumer Complaint Form, www.ftc.gov/ftc/complaint.shtm (copy and paste to your browser).

The FTC does not resolve individual consumer problems, but your complaint will help with investigating any illegal actions.

Further you can inform the debt collector that you are aware of your rights and that if they insist on violating the FDCPA you are prepared to submit your complaint to the FTC.

Document the debt collectors name, collection agency name and address, phone number, date and time of all communications. This will certainly be helpful when contacting the Attorney General of your state to submit your complaint.

Consider having a tape recorder handy the next time a debt collector chooses to go by the way side and violate the law.

Remember, filing a complaint may not necessarily eliminate your outstanding debt, but by being aware of these methods, you may be in a position of power when the time comes to negotiate payment or settlement terms.

Imagine how much leverage you will have when the debt collector’s supervisor listens to the taped conversation of his employee violating the Fair Debt Collection Practices Act. Pretty powerful stuff.

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