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Changes in credit card measures

December 19, 2008 – 12:00 pm

The federal regulators have made new rules for the credit card industry on Thursday. This has been done in three decades which includes strict restrictions on interest rate hikes and late fees.

It’s goods news for the consumers because the regulation that is coming from July 2010, decided to block the companies who will charge high interest on the existing balances. At least 21 days time should be given to the consumers to make their payment only after crossing this time period the late fees will be charged.

The views on this measure differ from person to person. I am including few eminent people’s view below:

Federal Reserve Chairman Ben S. Bernanke said that the trend of the credit card was becoming very complicated due to the pricing scheme and the terms and conditions of the credit card companies. The mysterious charges lead to lots of frustrations for the consumers. For which this measures was needed.

Edward L. Yingling, chief executive of the American Bankers Assn. said that the banking industry is opposing the whole thing since now the credit card companies will try to make up their expenses that will incur due to the change in the regulation. The card companies will raise the interest rates in order to cover up the expense.

But the consumer advocates has a different view on this regulations according to them these regulations that were adopted by Fed, the Office of Thrift Supervision and the National Credit Union Administration, should have addressed the hidden traps and fees which are there in the fine print of the credit application.

"There has been a long time since these regulations have changed, and banking and card companies have had very successful lobbies that kept any meaningful legislation at bay," said Ginna Green, a spokeswoman for the Center for Responsible Lending. "But consumer advocates and congressional leadership have put the pressure on regulators to do what really needs to be done for a number of years."

Nicoli Tucker who is a marriage and family therapist from Northridge wanted this change.
Tucker had number of credit cards and in a year she realized that her interest rates rose from 5% to 28%. On the other hand she was given a very short time period for payment. As short as two weeks only this was down from a month.


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4 Guideline for improving your credit score

December 5, 2008 – 8:24 am

There are lots of credit repair companies which are there in the market which provides guideline to improve one’s credit score. These companies charges a huge amount of money for providing there service. The procedure that they follow to repair ones credit is not very hard to do. The only thing that is required for this is the awareness. Most of us don’t know the procedure and so imagines the whole thing to be very tough and complicated to handle. This lack of confidence gives the credit repair agencies to take up the charge. This is the reason I am jotting out few points below which will help an individual to repair one’s own credit by ownself.

Be aware of your own credit information

This is the most basic and important point in the whole process of credit repair. Keep information on the exact credit score that you have. This is not a very hard thing to know. You can take the report from the major credit bureaus and then check them properly. You can only improve you credit score if you have the knowledge of the exact credit condition. It’s better if you take 3 different reports from all the three major credit bureaus. Like this you can compare the three reports and can make a proper decision on how to improve it.

Make the corrections of the mistakes

Sometimes few wrong entries may come into your report. These are all very common mistakes that may be included in your credit report. Your credit report may contain a false entry of someone else whose name is the same as yours. For some reason it may get included and you have to sort out all these mistakes from your report. Make the corrections yourself by calling the companies and sorting out the reason. The companies are bound to answer you.

Follow up with your current creditors

One should always follow up with the existing creditors in this kind of situation. If you can make them understand what is your problem then they may consider the fact. You just have to make them understand that their money will be paid back but a little more time is required for that. This will go in your favor and will help you to solve the situation.

Make more frequent payments to the bank

Most of the banks calculate the interest daily but they are not shown in the report. This figure comes in the report at the end of the month. Then only it gets deducted. You should know how your credit history is being displayed by the bank. If you want to improve the credit score then you should pay the bank in frequent interval. These will reduce the interest amount and creditors will also come to know that you are serious about your payments. This is also a plus point for you.

The most important point in all the above are the basic knowledge about your own credit report and the confidence of over coming them. If you have full knowledge of your report and deal the whole situation with confidence then improving credit score is not a very hard work to do. Its very easy and can be done by one ownself without taking help of any credit repair companies. Sometimes because of time people may take help of the credit companies and get a readymade solution to your credit and get it improved.


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