Citibank Credit Cards Will Get Higher Interest Rates
Saturday November 15, 2008
If you have a Citibank credit card watch out for an interest rate increased notice with your next billing statement. Though Citigroup, the bank servicing Citibank credit cards, promised it wouldn't be increasing interest rates "at any time, for any reason" market conditions have influenced the bank's decisions to increase rates.
According to The New York Times, Citibank cardholders have until January to opt-out of the interest rate increase. If they choose to opt-out, they can continue paying and using their credit cards under the lower interest rate until the card expires. After expiration, though, those who opted-out would have to apply for new credit cards.
Interest rate increases and credit limit decreases are commonplace in the credit card market. These days, you can't take anything for granted with your credit card. Make sure to pay close attention to your billing statement and any inserts that come with it so you're aware of changes to your credit card.
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$1500 for Credit Repair? You Can Do it For FREE!
Thursday November 13, 2008
Today I saw a press release from a company offering credit repair services for $1,500. Look at what Credit Restoration Consultants claims they can do for you:
Credit Restoration Consultants is a credit service organization specializing in the restoration of consumer credit worthiness as well as identity theft. We assist consumers in achieving a favorable financial credit profile. Everything we do is legal utilizing laws enacted by Congress to dispute negative, erroneous, obsolete, and/or fraudulent information contained within your consumer credit profile.
Sound like it's worth $1,500 of your hard-earned money?
I noticed this company's promises didn't include the infamous "We can get you A++++ credit score in 30 days, guaranteed" types of claims. It's good for them considering the FTC is cracking down on smooth-talking credit repair agencies making deceptive claims. Still, there's no use in paying a credit repair company because you can do it for free and Credit Restoration Consultants lets you know that. They say, "Keep in mind that anything Credit Restoration Consultants can do - you can do yourself." Exactly!
If you can come up with $1,500 use it to pay off some of the legitimate delinquent accounts that are hurting your credit. You can dispute them all day long, or even over a period of six months, if they're accurate and the account issuer can prove it, the account will say on your credit report. The best way to repair your credit is to get rid of the negative information (by paying it current or letting it fall off) and adding positive payment history to your credit report.
You'll never find me advocating a credit repair service because there are too many free resources that tell you how to improve your credit. Like these:
Now's the Time for Layaway to Make a Comeback
Monday November 10, 2008
Remember layway? It's the polar opposite of store credit. You pick out your merchandise, then make payments on it before you take it home. Then, after you've completely paid for your purchase, the merchandise is yours free and clear. Of course, our need for instant gratification and the bank's greed for interest payments all-but-replaced layaway. But it's making a comeback.
Though Wal-Mart did away with layaway in 2006 in favor of credit cards, there are some other large retailers that still offer the convenience. KMart, Marshalls, Burlington Coat Factory, TJ Maxx, and KB Toys are a few reported by Wallet Pop.
With banks slashing credit limits, spiking interest rates, and Ebenezer-Scrooging new credit, layaway is a far better alternative for your holiday shopping. The best part of all - you won't have any holiday debt to pay off in 2009.
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What Influences Your Credit Score
Friday November 7, 2008
Your credit score is a pretty important number. Not only does it determine whether you get a credit card or loan, it also influences your ability to buy a house, buy a car, or get a job. If you don't know what makes your credit score go up or down, you don't know what you could be doing to help or hurt your creditworthiness.
Five key things go into your credit score calculation: payment history, level of debt, age of credit history, mix of accounts, and credit inquiries. To learn more about these and how much each influences your credit score, read How Your Credit Score is Calculated.
