PRO ACTIVE VERSUS REACTIVE: Why being a sitting duck does not suit me

Several people have contacted me about the prospect of national legislation to standardize the way consumer-oriented commercial web sites collect and use the personal information of visitors to their sites. While I agree this would be worthwhile legislation that is long in coming, I feel I cannot just sit around waiting for some new law.  Having "clear and conspicuous notice" of the web owners; information policies, being given the opportunity to decline to give personal information or to authorize sharing it with others, and assurances that their information will be secure, are all basic practices that most, if not all, legitimate businesses would have no problem putting into place.  Many have already done so. These are standard business practices in offline interactions with consumers so why not use the same ethics in online transactions?

The problem is that many consumers think that putting new laws into place will mean they can continue to cruise around the Internet without taking precautions to protect themselves against identify theft. Legislation and whatever punishments lawmakers decide to attach to it are only good AFTER the damage is already done and IF the perpetrators can be identified and caught. Not only that but most ID thefts are not even done online. The main ways criminals obtain personal information or documents about others do not involve computers at all:

1. Dumpster diving (stealing mail or rummaging through discarded trash);
2. Retrieving information from discarded electronic equipment, such as old computers, that have not had their memories properly sanitized;
3. Searching through government records or public records search services, or purchasing this information through online people search web sites;
4. Stealing payment or identification cards by methods such as pick-pocketing or skimming a credit card twice while making a purchase such as at a store or restaurant; and
5. Eavesdropping on conversations in public places or shoulder surfing (watching while someone speaks or types their credit number into a phone);
6. Advertising bogus job offers so that victims submit applications complete with their full name, address, telephone numbers, and banking details

Studies by the Federal Trade Commission (FTC) and the Identify Theft Resource Center (ITRC) show that most ID thefts are committed by someone the victim knows, such as family, friends, or neighbors. New laws likely will not stop cyber-criminals from doing what they already know is wrong especially if they feel they have more to gain than lose. However, there are many things we consumers can do to be proactive (instead of reactively hoping for the law to come to our aid). If you are willing to take control of your financial future instead of leaving it to chance, all it takes is a little knowledge about the "do's and don'ts" of the credit system. Protecting and/or repairing your credit will take effort on your part but is worth it. Using the right knowledge to make good credit moves in advance, is so much easier and so much more rewarding!

Your first step: Get a copy of all three credit reports WITH YOUR FICO SCORE.

Step Two: Get a copy of this FREE MINI-BOOK to learn some secrets about protecting your personal information from identity thieves.

Step Three: Get the best credit fraud coverage in the business. LIFELOCK Only $10 a month buys our $1 million service guarantee.

Credit Repair Facts

There are a lot of credit myths out there about FICO score ratings and credit management. Often, these myths are simply based on outdated information that you get by word of mouth. However, amazingly you can even get incorrect information from lenders and bankers.

Regardless of how you get it, the bottom line is that bad information can cost you money.

A second major problem in the credit industry is that nearly 70% of all credit reports contain errors that may make it appear you have had credit problems, whether it is true or not.

Derogatory errors act to lower your FICO score rating, and as we all know, low scores will limit your options when applying for a mortgage, credit card or any other kind of loan.

Credit report errors require immediate credit repair. However, most people believe credit report errors are hard to fix.

Most people think they have to pay hundreds or even thousands of dollars to companies that specialize in credit repair services in order to get their credit reports repaired.

This is absolutely false! Credit repair is not hard. What is more, the person best suited to improve your credit score and properly manage your credit is you and no one else.

The only thing those expensive companies have (that you do not) is information!

You can repair your own credit and by doing so, greatly improve your FICO credit report score. We have the correct information you need to get it done.

Subscribe to our newsletter, and get a FREE copy of the Credit Secrets Bible mini-book to get you started.

The #1 Credit Restoration Course In America is the CREDIT SECRETS BIBLE!
which is available in an Instant download version and Mail-order (book & DVD) version

How Much Is Your Credit Score Costing You?

How Much Is Your Credit Score Costing You?
© Copyright 2008 by Carole Talley

I hate to say it but simply paying your bills on time is not good enough anymore. It used to be that all you had to do to have good credit was make sure you paid all your bills on time. Today, this is so far from the truth it isn't funny.

Now days, there are literally hundreds of factors that go into calculating credit scores, which also means there are lots of ways simple decisions on your part can cause bad things to happen to your credit score.

But, why? What is the average consumer missing that puts his or her financial livelihood in such peril? The truth is that although there are still right ways and wrong ways to do things in the credit world, those rights and wrongs have dramatically changed while we were focused elsewhere.

Unfortunately, while most consumers have a general idea of what credit scores are and that they are somehow important, we lack the specific information, tools and skills necessary to make the credit system work for us instead of against us.

So, that said, what are credit scores, who uses them, and why are they important?

A brief definition of credit scoring is that it is a numerical summary of how much you owe and how promptly you pay your bills.

That sounds pretty simple - short and to the point - but is it a little too simplistic?

I don't know about you, but for me that definition just doesn't seem to convey the level of importance credit scores can play in a person's everyday life. After all, credit scores can affect things like where you live, how you live, what you are able to buy, and how much you pay for it. These scores can prevent you from getting your dream job, your dream house or even whether or not you can buy insurance.

Something that can do all that is pretty darned important in my book! If you feel the same, read on…

Credit scores are all about risk and trust; they help lenders determine degrees of risk and trustworthiness when making decisions on questions like "Can I trust this person to follow through on his promise to do what he says he'll do? Is this risk worth taking?"

And, what verification do you suppose these companies rely on to illustrate that you are a trustworthy person? Your credit scores, of course!

Credit scores are widely used as an integral part of the decision-making process even though general rules each lender, insurer, employer and vendor uses will differ.

Credit scores are calculated by the "Big 3" credit reporting agencies Equifax, Experian, and TransUnion .

However, Equifax is the only one that uses the original (and I think the best) credit scoring software developed by Fair Isaacs & Co. Their scores are commonly known as FICO scores and range from 300 to 850. Scores of 720 or higher are considered excellent.

The other two, Experian and TransUnion, use their own proprietary software programs to calculate credit scores. It is not unusual to see differences of 50 points or more in the generic credit scores they generate. Although generic scores are based on similar criteria to the FICO score and can give you a general idea on how your credit history stacks up, they are not the scores most lenders use.

The majority of lenders, insurers, employers and vendors prefer to use Equifax's FICO scores. In fact, FICO scores are used by:

·  99 of the 100 largest banks in the United States

·  49 of the top 50 U.S. credit card issuers

·  More than 400 insurance companies

·  3 out of 4 U.S. mortgage loan originators

·  9 of the top 10 retail card issuers in the U.S.

·  More than 80 government or public agencies

·  More than 100 telecommunications carriers

To generate credit scores, the following kinds of information are used:

1. Payment histories provided by lenders and other creditors you have accounts with
2. Banks, stores, credit card companies, and others you have applied to for new credit
3. Public records, such as bankruptcy filings, judgments and liens filed against you, unpaid fines, and more

This information is constantly added to your credit file and then used to recalculate your credit score. Recalculation often occurs on a daily basis meaning your scores move up and down depending on the information reported.

About one third of your credit score is based on your payment history and is adversely affected by late payments. How severely your score is lowered depends on how late your payments are (30, 60 or 90 days or more), how recent the delinquencies are, how often your payments are late, and the types of accounts that have late payments. Bottom line: You still have to pay your bills on time, every time.

The second third of your score is based on the number of credit accounts you have, particularly unsecured accounts like credit cards, and the size of balances owed compared to balances available. Having a large number of credit cards can lower your credit scores but, much more important, is the adverse effect of carrying high account balances. Balances that are higher than 50% of your credit limits will count heavily against you. Bottom line: Owing too much lowers credit scores.

The final third of your credit score is made up of a myriad of factors. A few of these are:

1. How long your accounts have been open
2. Recency and number of credit applications
3. The number of inquiries attached to your credit report
4. The "mix" of your various credit accounts (house, car, credit card, lines of credit)
5. How long you've lived at your current address
6. How long you've work at your current job
7. Judgments, tax liens, bankruptcies, and other adverse information reported in public records

In summary, your credit scores tell companies how well you are managing your financial life. They, in turn, make decisions about their risk and your trustworthiness. High credit scores can open doors to just about anything you want, while low scores create huge hurdles that are hard to climb over.

If you are willing to take control of your financial future instead of leaving it to chance, all it takes is a little knowledge about the "do's" and "don'ts" of the credit system. Repairing your credit takes a lot of time and effort. Using the right knowledge to make good credit moves in advance, is so much easier and so much more rewarding!

YOUR FIRST STEP: Get a copy of all three credit reports WITH YOUR FICO SCORE .

STEP TWO: Get a copy of a FREE MINIBOOK to learn some secrets about protecting your credit from identity theft. It also has facts you should know if you are considering using a credit repair company.

STEP THREE: Get "Credit Secrets Bible", a step-by-step guide to credit management. In addition to the information in the mini-book, "Credit Secrets Bible" gives you the tools to boost your credit score well over that excellent credit "720" score.

STEP FOUR: Get started on your new better life!

 

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Although this article does offer valuable insights into the credit industry, it does not offer any personal legal, tax or financial advice. If you have specific legal or financial needs, we recommend you consult a lawyer or CPA to verify our information and provide advice relating to your particular situation.

 

It's A New Day!

Welcome to my new blog. I've been reading blogs for years but was never inclined to try it myself.

My passion has been real estate investing for as long as I can remember. My dad owned several rental properties while I was growing up so I got to see entrepreneurship in action from an early age. He'd take me and my sisters along when he made his rounds and we learned quite a bit about what it took to manage rentals. I bought my first investment property when I was 22 years old, and over the years, got my husband involved in the business.

As a matter of course, I found that credit and financing are integral parts of the real estate game. I was fascinated by the innumerable ways a deal could be structured depending on the availability of money, credit and financing. It also became quite clear that there are a lot of people out there with credit challenges standing between them and their dreams. Unfortunately, they struggle year after year because they lack the information that could turn their lives around.

I've spent so much time talking to friends and associates about ways to remedy credit problems, stretch dollars, and find ways around financial roadblocks that they suggested I find a way to get what I know out there so other people can use it.

Thus, my venture into the world of blogs. I hope you too find the information I share as interesting as others seem to. Above all, I hope you find it useful in your quest for financial independence.