Credit cards can be a powerful financial tool or a slippery slope into debt — all depending on how they’re used. This guide can help you brush up on a few key facts and learn how to reap the benefits. Ready? Let’s dive right in. How Do Credit Cards Work? Credit generally falls into one of two categories: revolving or installment. Installment credit includes mortgages and auto loans — they have a balance that is paid off in set increments (or installments) until the balance reaches zero. Most credit cards, on the other hand, are considered revolving — they come with a set credit limit that can be accessed repeatedly, as long as at least the minimum payment is made each month,

According to the FTC, in 2019 alone there were close to 1.7 million reports of fraud in the United States, with losses totaling $1.9 billion.   From imposter scams to identity theft, scammers and thieves are constantly adapting to make sure they’re one step ahead of consumers. If you’ve fallen victim to credit fraud, or you want to ensure you don’t, you’ve come to the right place.  Credit Card Fraud Credit card fraud generally happens in one of two ways: Someone obtains your physical credit card or they obtain the information pertaining to that card and they proceed to make purchases in your name.  How Does Credit Card Theft Happen? Here’s a staggering statistic: Reports of credit card fraud in the

Credit and debt are intertwined in more ways than one. The amount of debt you carry can impact your credit score. In turn, your credit score can impact the amount of credit and terms potential lenders may offer.  The Impact of Debt on Credit  Here’s the good news: Carrying debt doesn’t automatically mean your credit is negatively impacted. In fact, it could be just the opposite – it all depends on how you manage it. Do you carry large amounts of credit card debt and pay only the minimum amount each month? Then the impact is likely negative. Do you pay off your credit card balances monthly and make all installment loan payments on time? Then the impact is likely

Whether you know the collection calls will be coming, or you’ve just been blindsided by a debt collector, the process can be undeniably intimidating. Arming yourself with a few facts about how the process works, as well as understanding your rights, can help. Let’s start with the basics. Here’s how it can work:  An account in your name has become past due and the original creditor thinks they will be unable to collect payment. (Usually when it reaches the 180-plus day mark.) The creditor sells the debt to a debt collection company, generally for a portion of the amount due. Since the debt has now switched hands, the debt collection agency is able to keep whatever they manage to collect.

Whether you’re in the market for a new home, interested in purchasing a car, or heading to the store to grab groceries, there’s a good chance you’ll use some form of credit to complete the purchase.  Buying with credit means you are borrowing money which will later be paid back – but the amount owed and the time-frame required to pay it back depends on the type of credit it is. So knowing the type of credit you’re in the market for will help you understand how the arrangement might work.  Revolving credit A revolving credit account is one you can borrow from at any time, up to the limit set by the lender. This type of credit is paid

When it comes to getting approved for a credit card or loan – and getting the most optimal terms available – your credit plays an integral part. There are two overarching components of your credit that potential lenders will be looking at: your credit score and credit report. 

Any action you take to improve your credit can be called credit repair. Find and dispute an error on one of your credit reports? You’re working on credit repair. Learn ways to get better credit scores, including old habits to break? You’re working on credit repair.  It doesn’t matter if you’re doing this yourself or if you’re paying a company to do it for you — working to improve your credit is credit repair.

With big, bright signs offering quick cash, storefronts for payday loans are hard to miss. But while they may offer plenty of promises for easy financial help, there’s more to them than meets the eye.  Before you go down the financial rabbit hole payday loans can create, there are some things you may want to know. How Do Payday Loans Work? Payday loans are usually small, short-term loans with few approval requirements and high costs. Let’s take a deeper look at the factors that set payday loans apart from other types of loans.  Amount According to the Consumer Financial Protection Bureau (CFPB), the loan size is generally around $500, although limits may be higher or lower, depending on state laws.

Being “credit invisible” might sound like a superpower, however, in the world of finances it’s anything but.  Your credit report and credit score — two factors that are generally considered important for getting a mortgage, credit card, and more — are based in large part on your history of managing credit. If you are considered “credit invisible,” you don’t have a history for the credit system to pull from.  So then what happens?  The good news is, it’s not the end of the world. We’ve compiled some helpful information and tips for establishing your credit and potentially accessing the financial products you are looking for. What Does it Mean to Be Credit Invisible? There are three primary credit reporting agencies

Small changes in your credit scores can make a big difference in the mortgage interest rate you end up paying. That’s why some lenders offer something called a “rapid rescore.”  Find out how a rapid rescore works and what it could potentially do for you. Let’s Start with the Basics Before we dive into rapid rescoring, there are a few facts about credit that may be helpful to know.  There are three primary Credit Reporting Agencies (CRAs) –– TransUnion, Equifax, and Experian. The CRAs receive information from lenders and creditors (also known as “data furnishers”) which they use to compile a credit report. Data furnishers are not required to report to all (or any) CRA, so the information they each

Sometimes unforeseen disasters can spell doom for your credit, but there may be a way to give context to a credit score drop — the use of disaster reporting codes.   Find out how they work and if they could potentially lessen the COVID-19 impact on your credit.  A Little Background Before we take a dive into disaster reporting codes, there are some basic facts to know about credit scores and credit scoring models.  First things first: there are three primary credit reporting agencies (CRAs) — Equifax, Experian, and TransUnion. Lenders and creditors may report account information to one, two, or all three of them (or potentially none of them). This means you have a separate credit report from each CRA

Whether you’ve been the victim of credit fraud, or you’re just afraid you might be, setting up a credit fraud alert can be a good way to put your mind at ease. But first things first — let’s take a look at what credit fraud alerts are, how they might help, and what to be aware of once you have one in place.  What are Credit Fraud Alerts?  A credit fraud alert encourages creditors and lenders to take an extra step in verifying your identity — by calling you, for instance — before extending credit in your name. So if someone manages to get their hands on your Social Security number (or other identifying information), and a credit fraud alert

Data breaches increased by an alarming 33% from 2018 to 2019, leaving some to consider if a credit freeze is the best way to keep sensitive information away from thieves. But what does a credit freeze entail and what are the protections exactly? Let’s take a look.  What is a Credit Freeze? Also known as a security freeze, a credit freeze is intended to block identity thieves from using your information to open an account or apply for a loan in your name. Essentially, if a credit freeze is in place, a potential new creditor or lender should be notified when (or if) they attempt to run a credit check using your information. This should potentially raise a red flag