Tag Archives: Consumers

Consumers Opt for Credit Building Credit Cards to Improve Credit Score

Consumers Opt for Credit Building Credit Cards to Improve Credit Score
News from Sacramento Bee:

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Tough economic conditions have taken a toll on many people’s finances. Many consumers have found themselves with reduced credit scores, as a result of tight budgets and have found difficulty in obtaining approval for a credit card. However, comparison websites, like comparethemarket.com, are finding that some consumers have chosen special ‘credit builder’ credit cards, as a good way to manage their money and increase their credit score over time through prudent management of their spending and account.

A ‘credit building’ credit card typically gives a greater likelihood of being accepted to people who have been refused other types of card. This includes newcomers to the credit card market and people with lower credit ratings.

Simon McCulloch, Director of Money at comparethemarket.com said: “‘Credit building’ credit cards can be a way to help increase your credit score if you regularly pay off your monthly balance and don’t exceed your credit limit.”

“However, ‘credit building’ credit cards may not be suitable for everyone so it’s worth taking the time to find the r…………… continues on Sacramento Bee

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Consumers’ credit card debt eases

Consumers’ credit card debt eases
News from Omaha World-Herald:

Amber Malone, music education student, saxophone player and percussionist, paid off her credit card debt after four years of working extra while attending the University of Nebraska at Omaha.


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By Steve Jordon | WORLD-HERALD STAFF WRITER

Premium ContentClick on Premium Conten…………… continues on Omaha World-Herald

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Credit card debt: Are consumers returning to bad habits?

Credit card debt: Are consumers returning to bad habits?
News from The Christian Science Monitor:

Credit card debt increased an estimated $ 64 billion in 2011, far more than in the previous two years. Holiday shopping bills will swell credit card debt even more in early 2012.

Americans are edging back toward their bad old pre-recession habits, when they charged whatever they wanted on their credit cards and didn’t worry about the build up of debt. After starting 2011 by paying down over $ 32 billion in credit card debt, consumers are on track to end the year with a $ 64 billion increase in their net credit card debt, according to Card Hub’s latest survey of credit card debt.

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That’s a far bigger increase than in either 2009 or 2010. Unfortunately, t…………… continues on The Christian Science Monitor

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Consumers’ credit card debt rises again on higher spending

Consumers’ credit card debt rises again on higher spending
News from Debtmerica Relief:

Recent data shows that consumers are once again spending more money on their credit cards, leading to higher debt levels, the likes of which haven’t been seen since the recession ended.

The latest 2011 Credit Card Debt Study from the consumer comparison site CardHub.com revealed that consumers added $ 18.4 billion in credit card debt during the second quarter, up 66 percent from the same period in the previous year, and 368 percent more than 2009′s second quarter, according to a report from Daily Finance. Americans are expected to end the year with $ 54 billion more owed on their credit cards than they starte…………… continues on Debtmerica Relief
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More consumers paying credit card bills on time

More consumers paying credit card bills on time
News from USA Today:

In another sign of household belt-tightening, the rate of late credit card payments fell to a 17-year low in the second quarter.

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The national credit card delinquency rate, which measures payments that are 90 days or more past due, was 0.6% at the end of the second quarter, according to credit reporting agency TransUnion. That’s down nearly 19% from the first quarter and 35% from the second quarter of 2010, TransUnion said.

Contributing to the decline in …………… continues on USA Today
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New Rule Requires Lenders to Provide Credit Scores to Consumers

New Rule Requires Lenders to Provide Credit Scores to Consumers
News from ABC News:

Starting today, lenders who deny a borrower credit or offer a higher-than-normal interest rate are required to show the borrower his credit score.

The new rule is part of an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act that passed exactly one year ago. Introduced by Sen. Mark Udall, D-Colo., it requires creditors to provide additional information in adverse action notices if a credit score was used in making a credit decision.

Udall said the credit scores to which consumers previously had access were often not the same as those lenders used to gauge an applicant’s creditworthiness. Bad credit scores, of course, can mean higher interest rates and less-favorable loan terms.

Now when lenders such as banks or credit card companies use credit scores to deny credit or offer an unusually high interest rates, they must disclose not only the relevant scores to the borrowers but also what influenced how their scores were arrived at, the range…………… continues on ABC News
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Credit CARD Act Turns Two: Are Consumers Better Off?

Credit CARD Act Turns Two: Are Consumers Better Off?
News from TIME:

It’s been two years since the landmark Credit Card Accountability Responsibility and Disclosure Act of 2009 was signed into law, and by all accounts, it’s led to some pretty significant changes in the giant industry grinding away behind those little pieces of plastic.

“The Credit CARD Act was passed in response to unfair practices. I think it’s one of the most important and tremendous pieces of legislation for consumers,” says Ed Mierzwinski, consumer advocate at watchdog group U.S.-PIRG. “It banned the worst credit card practices. We’ve all benefited.”

Other consumer advocacy organizations echo this assessment and even the American Bankers Association came around after initially saying that the law would be harmful to consumers (and, presumably, banks). “I think there have been a lot of positive changes for consumers,” says Nessa Feddis, vice president and senior policy counsel for the ABA. But she also says interest rates are higher on average a…………… continues on TIME
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American consumers place credit card payments above mortgage dues – AHN | All Headline News

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Consumers Still Pay Credit Cards Before Mortgages – ABC News

p>It’s not just mortgages that are upside down.

People are staying current with their credit card payments even when they are behind on their mortgage, continuing a trend first seen three years ago.

Data now shows that the flip was even more pronounced at the end of 2010, long after industry experts expected patterns to return to normal.

Among consumers who had at least one credit card and a mortgage, 7.24 percent were 30 days late on mortgage payments but current on their card payments at the end of 2010, credit reporting agency TransUnion said. That compared with 4.3 percent in the first quarter of 2008, when the change was first seen on a national basis.

In contrast, 3.03 percent of consumers with both forms of debt were at least 30 days late on credit cards, but current on their mortgage in the 2010 fourth quarter, compared with 4.1 percent in early 2008.

The reversal from traditional payment habits reflects the steep drop in home values and the spike in unemployment.

“As long as housing problems persist and unemployment is high, things are likely to stay flipped,” said Sean Reardon, a consultant for TransUnion who produced the study by …the source
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Consumers Turn Credit Card Debt Consolidation through Balance Transfer – Daily Rosetta

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Consumers Turn Credit Card Debt Consolidation through Balance Transfer -Image via Wikipedia

Most consumers are currently turning at balance transfer as a way to have their credit card debt consolidation. This provides an overall consolidation of a consumer’s debt in order to have a way to easily do the repayment of the amount owed by a customer. This also helps the customers have a way of easily managing his budget and be able to have enough time to pay for the debts owed by him.

Credit card debt consolidation through the use of balance transfer credit cards are currently becoming attractive with the low interest rates attached to it and also the attractive offers from different providers. This also helps those people with bad credit standing to effectively manage their credit card balances and also pay off any outstanding debts.

Still, people needs to keep in mind to think and consider some factors before coming into a decision of purchasing a balance transfer credit cards. A buyer may pay if it will be easier to pay for a single interest rate from a credit card t …the source
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