Credit News

Credit News

Capital One Accused of Dishing Out Low Blows

] What would you do for a whopping $1.00 of new credit from your credit card issuer? Hmmmmm...let me see—nothing? You certainly wouldn't agree to move old charged-off debt to a new credit card just so you could start making payments and paying interest again, right? That would be absurd! That is, unless you were tricked into doing so.

Fiore Pokes Fun at Credit Card Reform

In response to the CARD Act, credit card companies are desperately seeking to boost profits by resurrecting old fees and creating new ones.

The long-lost inactivity fee is one that's been receiving a lot of attention in the media lately.  Use your card too much, and you end up in debt.  Use your card too little, and your credit issuer will slap you with a nasty inactivity fee for basically not being profitable enough.

Tsongas' Amendment Seeks Level Playing Field

[caption id="attachment_1107" align="alignleft" width="207" caption=" "]US CapitolPhoto by dbking[/caption]

It's been ten months since I first wrote about Experian ending it's partnership with Fair Isaac. Since then, consumers have been unable to purchase their FICO scores based on Experian's data, while lenders' access to the scores has remain unchanged.

The fact that individuals can only purchase two of their FICO credit scores while lenders can still access all three has not only outraged consumers across the country, but also many consumer advocacy groups and representatives in Congress. If any credit bureau wants to sell their credit scores to lenders, consumers should have the ability to purchase those same scores too. It's only fair, right?  There needs to be a level playing field between consumers and creditors.

"Damage Points" Chart Better Than Nothing

[caption id="attachment_1056" align="alignleft" width="183" caption=" "]Random NumbersPhoto by Irargerich[/caption] Liz Pulliam Weston, the popular personal-finance columnist, recently released an article on MSN Money entitled "5 ways to kill your credit scores". I actually follow most of Ms. Weston's RSS feeds, but for some reason I skipped over this one during my daily dive through credit-related news. I'm not sure why I skipped it. It must have been the name—it didn't really spark my interest. For whatever reason, I just assumed it was another one of those articles preaching the same old advice about credit scores. You know how they go, right? Pay your bills on time, keep your credit utilization ratio low, and avoid bankruptcy, or else you can kiss your good credit score goodbye.

CFPA Gets the Green Light

Despite a great deal of opposition from big-business lobbyists and right-wing politicians, the Consumer Financial Protection Agency (CFPA) has moved one step closer to seeing the light of day. The House Financial Services Committee, led by Chairman Barney Frank (D-Mass.), approved the CFPA's creation last Thursday and will now send the bill on to the full House.  And while the legislation is definitely a more watered-down version than others introduced earlier this year, its supporters, including President Obama, seem quite pleased with the progress so far.

Pay Up or Forget About Paying with Plastic

Have you ever thought about how much you would pay to keep your credit card? Years of no annual fees, favorable grace periods, and reasonable interest rates probably kept you from pondering such a question.

Signs of Life in the Credit Card Industry?

[/caption] While most mailboxes are enjoying a respite from the daily deluge of credit card offers, major credit issuers are clearly still interested in dropping big bucks to pursue one type of consumer - those with top-notch credit and big-time spending habits. I've seen ads everywhere lately for premium credit cards, such as the new Visa Black or Chase Sapphire card, and it's no secret their marketers are hitting mailboxes around the country pretty hard as well. According to a recent press release from Comperemedia, a firm that tracks direct marketing strategies, credit card issuers continued last year's trend into the 2nd quarter of 2009 by cutting their direct mail offers to consumers "as a whole by 8%." However, of the offers that were delivered, they also sent "28% more offers for premium cards than they did the quarter before." Launches Financial Literacy Challenge

It may come as no surprise to you that financial literacy among our youth is poor. A recent poll found that only 24% of respondents felt they have a decent understanding of personal finances.

"Stuck at Stupid"

A friend of mine recently sent me the following quote by Lou S. Barnes, an owner of a Colorado mortgage bank named Boulder West Financial Services.

It gave me a good chuckle, so for those of you that haven't already come across his remarks elsewhere, I thought I would share what Mr. Barnes had to say about the current home lending environment.

Pay off Student Credit Card Debt or Pad the 401K?

Millions of young college graduates are finding themselves trapped in the worst job market since the early 1980s. And it's been quite the wake-up call for a generation that's frankly had it pretty easy to this point.


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