2008 Woodie Awards
How to take care of our financial needs
A guide to help you maintain and manage your credit file
Burgos, Paul
Issue date: 5/10/07 Section: Points Of View
When you are in serious credit card debt, it could mean big trouble. The reason is because credit card debt can eat at you not only in your current financial situation but also your future financial well-being. This is because, when you use your credit card, you are adding extra interest if you are only making the minimum payments each month.
I recently spoke with a financial specialist who does not want to be identified for security purposes. He told me that many people who try only to pay the minimum payment will find themselves deep in a hole, because in addition, the interest goes up anywhere from 3 to 8 percent.
In addition, if you miss a payment on your credit cards, you will be assessed a late penalty fee and a negtive credit mark will be issued on your credit file. Bad credit can remain on you record for up to 7 years. The bottom line, if you don't pay at all, you will go to jail.
These fees can be costly because penalty fees can cost about 6 percent if you count the principle total. It is important to take credit responsibly because if you max out your credit cards, go over the limit or stop paying, collectors, and credit bureau reporters will start to hound you and track you down for repayment.
Of course, if you also want to prevent yourself from being a victim of identity theft, you can check your credit report for any inaccuracies and see whether someone has opened a new credit card in your name. If you see something suspicious, contact the free credit bureaus, Experian, Equifax, and Trans Union.
These credit bureaus will then place a fraud alert and freeze you credit so that nobody can open any new credit accounts in your name. Later, an agent will investigate the case to see whether any criminal activity has surfaced or occurred. The agents will do all they can to apprehend the perpetrator and if nothing shows up, they can also find ways to resolve your other credit problems.
Also, see what your credit score is. Your credit score will tell if you if you are eligible for a car, refinancing your house or if you can get a good deal on credit cards. Credit reports are free although there are some credit companies that will charge you to see your credit file.
Employers are also checking credit reports. It is very important for employers and companies to check an applicant's credit because it can tell them if you are responsible with your credit.
To check out your credit report and find out whether to order one, just visit www.truecredit.com (Trans Union), FreeCreditReport.com (Experian) and www.equifax.com (Equifax). There, you can use the contact numbers to see whether you should contact them in case of any issues. So take charge of your credit; check your credit today!
I recently spoke with a financial specialist who does not want to be identified for security purposes. He told me that many people who try only to pay the minimum payment will find themselves deep in a hole, because in addition, the interest goes up anywhere from 3 to 8 percent.
In addition, if you miss a payment on your credit cards, you will be assessed a late penalty fee and a negtive credit mark will be issued on your credit file. Bad credit can remain on you record for up to 7 years. The bottom line, if you don't pay at all, you will go to jail.
These fees can be costly because penalty fees can cost about 6 percent if you count the principle total. It is important to take credit responsibly because if you max out your credit cards, go over the limit or stop paying, collectors, and credit bureau reporters will start to hound you and track you down for repayment.
Of course, if you also want to prevent yourself from being a victim of identity theft, you can check your credit report for any inaccuracies and see whether someone has opened a new credit card in your name. If you see something suspicious, contact the free credit bureaus, Experian, Equifax, and Trans Union.
These credit bureaus will then place a fraud alert and freeze you credit so that nobody can open any new credit accounts in your name. Later, an agent will investigate the case to see whether any criminal activity has surfaced or occurred. The agents will do all they can to apprehend the perpetrator and if nothing shows up, they can also find ways to resolve your other credit problems.
Also, see what your credit score is. Your credit score will tell if you if you are eligible for a car, refinancing your house or if you can get a good deal on credit cards. Credit reports are free although there are some credit companies that will charge you to see your credit file.
Employers are also checking credit reports. It is very important for employers and companies to check an applicant's credit because it can tell them if you are responsible with your credit.
To check out your credit report and find out whether to order one, just visit www.truecredit.com (Trans Union), FreeCreditReport.com (Experian) and www.equifax.com (Equifax). There, you can use the contact numbers to see whether you should contact them in case of any issues. So take charge of your credit; check your credit today!
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