Citibank Credit Cards Will Get Higher Interest Rates
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.
Articles related to interest rate increases:$1500 for Credit Repair? You Can Do it For FREE!
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
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.
Related Holiday Shopping Tips:What Influences Your Credit Score
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.
Debt Collector Calls on Your Cell Phone
No one wants to be contacted by a debt collectors, especially not on your cell phone while you're caught in evening traffic. But, debt collectors can legally contact you on your cell phone if your credit application lists your cell phone number as a contact number for you. Though cell phone contact is enforced by the Federal Communications Commission, rules of the Fair Debt Collection Practices Act (FDCPA, enforced by the Federal Trade Commission) still apply. For example, debt collectors can't call before 8am or after 9pm your time. You can stop debt collector calls by sending a cease and desist letter.
Dealing With Debt Collectors:Can You Afford More Debt?
While you might think a credit card or a loan is helping you "afford" to buy groceries, it's only postponing an inevitable financial crisis. According to Merriam Webster's dictionary, to afford something is "to manage to bear [it] without serious detriment." Before you take on more debt, think about how it will affect you. If you're already having trouble paying your bills, adding more debt will make it even harder.
Using your credit card seems like the easy answer when you're strapped for cash and need more groceries, but it's only a quick fix for a bigger problem. If you're having trouble making ends meet, it's time you evaluated your finances and made some adjustments to ease the situation.
Here are some resources to help you:FTC Goes After 33 "Credit Repair" Agencies
Earlier this week, the Federal Trade Commission (FTC) announced plans to target 33 credit repair agencies who violated both the FTC Act and the Credit Repair Organizations Act (CROA). According to an FTC press release, the agencies deceived customers by promising to remove accurate, negative information from their credit reports. The agencies also accepted advance payment for their services. Both actions violate the CROA.
The FTC launched what they're calling "Operation Clean Sweep" after receiving thousands of complaints from consumers like you. That's why it's so important to report unscupulous credit businesses. If the FTC receives enough complaints, they'll possibily file a lawsuit that could recover some, if not all, of your losses.
Credit repair organizations make some lofty promises, but truthfully, they're unable to act on those promises. You cannot legally remove accurate information from your credit report unless the reporting time limit has expired. If these companies promise otherwise, they're violating federal law. On top of that, credit repair companies can't do anything to improve your credit that you can't do yourself. You're better off researching credit repair, saving some money, and doing it yourself.
Credit Repair Resources:Paying Less Than the Minimum? You're Late
When you can't afford to make your minimum credit card payment, you might be tempted to just send what you can. If you've ever done it, you were probably shocked to see the late fee on your next bill. You paid your bill on time right?
Even though your card issuer may have received the payment before the cutoff time, you were still late. Most credit card agreements include language that instructs you to send at least the minimum payment by the due date or your payment will be considered late. You'll end up with a late fee and, possibly, a higher interest rate.
If you can't make the minimum payment, call your creditor before the due date to discuss other payment arrangements.
Resources:Think Your Credit Report's Right? You Could Be Wrong
Don't take for granted that your credit report only contains accurate information or that errors will somehow correct themselves. It's up to you to check your credit report periodically to make sure it's right.
Having an accurate credit report is important because lenders, landlords, utility service companies, and even employers check your credit report to make a decision about you. If the wrong information is on your report, it could end up bad for you.
More credit report resources:Good Credit's Your New BFF
I have to admit, here and there, I've been watching episodes of the MTV reality tv show Paris Hilton's My New BFF. It's kind of corny, but it's funny watching Paris Hilton fake friends with some of the girls/guys as the compete to become her new BFF (best friend forever).
A good credit score makes it easier to:- Get a credit card with a high credit limit
- Get low interest rates
- Rent an apartment
- Get a job
- Buy a house
If a good credit score will do all that for you, it's definitely worth working for minus the reality tv show setting, of course.
Credit Score Resources