This then gets into credit reports and becomes part of a credit history and becomes a problem for future loans. However, it should be noted that often there are errors and inaccuracies in the credit report. These credit report errors can and do affect one’s credit rating and places a person as a candidate for bad credit or poor. It is therefore very important that the inaccuracies be treated and a clean credit report be in place after all the discrepancies in the credit report were removed. People with a bad credit report that have a need to clean up your credit the law on their side that allows them to request a reinvestigation of information in a credit file dispute as inaccurate or incomplete. There is no charge for it. Everything a credit repair clinic can do for you legally, you can do yourself with little or no cost.
Under the Fair Credit Reporting Act people are entitled to a free copy of your credit report if denied credit, insurance or employment in the last 60 days. If an application for credit, insurance or employment is denied because of information supplied by a credit bureau, the company you applied to must provide you with the name of that credit bureau address and phone number. You can correct mistakes or outdated items on your report free credit. Ask the credit bureau for a dispute form or submit your claim in writing together with supporting documentation. Do not send original documents.
You’re probably thinking “Tell me something I do not know”, but in this time of low interest rates might be thinking that you have a great deal since credit card interest rates are low. Incorrect. The credit card companies have a limit to how low interest rates will go. So when interest rates are low for lending, that does not mean your credit card rate will be low too. If you do not know, or are unsure if your credit card company has a minimum interest rate just by looking at the fine print on the next credit card bill. If you can not read the small print, and most of us can not give customer service a call. If your credit card company has a minimum interest rate then I plan to look around and see the credit card companies do not. Because when falling interest rates, you should get a break on your credit card rate.
The fixed rate on credit cards actually increased in the last twelve months. Why? Because credit card companies have been losing money due to record numbers of delinquencies and bankruptcies. Those who can not now pay for their purchases in the past are sticking their bill for the rest of the credit card holders. So you may think you want to make sure that the credit card is being promoted by the credit card companies to pay the bill if you become disabled or unemployed. Not so fast. The average payment for a credit insurance policy is 30-50%. The National Association of Insurance Commissions actually recommends a payment of at least 60%. Payments for debt cancellation and debt suspension is in the range 1-3%.
That is not worth the premium. Get enough regular life insurance and disability insurance to cover their debt as their premiums are much cheaper and have more installments. Beware of a company credit card trick that I found myself in recently. I sent a payment a week before, but it was still an extra charge. Impossible to say. I found the payment was to be in the center of processing credit card company for a specified time on the date of expiration. Think about paying my credit card so it is the way via e-mail to a PO box, then get picked up, sorted, sent to the processing center, opened and registered. And this must be done in a given date in the expiration date. Ouch. I suggest mailing in your payment at least two weeks before.