Are you under a financial hardship that prevents you from making your payments on time, or are you constantly in debt on your credit? Is your balance sky high? The bad part? That is not the sole problem you’d just experience. If you’ve ever been in debt, but you want to get out of debt before it gets out of control, it’s important to do everything in your power to make it stop before it gets out of control, without hurting yourself.
The top six things you need to know about irresponsible lenders when you encounter each of them:
1. You need to know your resources and income to find a solution as quick as possible. This includes your credit score. If you’re paying your credit card bills as if they were your own, you may be surprised at the amount your credit score is affected by that. Look into it.
2. You need to know exactly where you stand financially and in what amount. If you’re close to closing or you don’t have any income or options, ask your lenders if they can set the minimum payment you’re making to be on your due. One source suggested a specific amount depending on the type of loans you’re closing – food, housing, medical, transportation, and perhaps a little cash in lieu of cash to pay the money.
3. There are scams on television and in the mail that claims to make your credit report “unworthy” or “fake” and to magically give you a favorable credit rating – all while telling you – you are ‘worthy’ to apply for new loans or to apply for credit. I recently read one that promised, with an application in 30 days’s time, ‘Your Credit Report Will Change.’ Isn’t that absurd? That is what these companies are up to.
4. Make sure that the creditors trust you and that they take the responsibility for your situation seriously. This means giving yourself that “security deposit” – worthless check – in the mail to give to the creditor who approved your application.
5. Ask your lender if the loan or credit card company you’re applying for is “experimental,” or if they may change their policy to fit your financial situation.
6. Ask them, if the loan or card company is willing to accept your checks as security against default – and in return they can lower your monthly payment or increase your interest? Don’t fall prey to these unscrupulous lenders. They may not approve your application, but when they do, don’t settle for an ATM card that turns out to be fraudulent.
The Top 14 Credit Card Fraud Tips
1. Most people hate to admit it, but there have been major credit card frauds in recent years. These include:
‘ Fraudulent Receipts In A Single Month
‘ Experienced Credit Card Retailers Suspecting A Rip-Off
‘ Underreporting Amounts Transmitted Between Checks
You need to know what the credit card companies consider to be legitimate charges – and you need to know the legal consequences. The card companies have strict guidelines for charging fraudulent uses – no more than ’15 as an interest for such things as telephone book calls, pre-arranged phone calls, and online transactions involving credit cards. If charged, they legally have the right to withhold liability if the card was the product of fraud. The APA (American Arbitration for Consumer Dispute Resolution) defines fraud in three broad categories:
‘ Verification Fraud – A person can obtain a verified phone number or e-mail account with a fraudulent entry
‘ Deceptive Use – A person makes a fraudulent entry on a credit card or other item of value
If you find a mistake, notify your lender immediately. You’re still the victim of fraudulent charges – but you’ve lost – *all your * * due process rights *’ and you’ll be the victim of fraudulent inquiries.
Remember that the credit card companies rule – good faith — even though the card issuer knows the fraud may not pass the legitimate purview of the credit bureau.
Of course, if you accept the fraudulent charges, the charge must be reported correctly to both the issuing credit card company and the card issuer. Otherwise the cardholder may be liable for a fee on any future withdrawals from the bogus site.
If you believe a holder of a card has committed fraud, speak with a customer service representative. Most customers would rather have their accounts reported to the fraud department within 12 months of their request.
The bottom line is that you need to establish a meaningful and thorough investigation of a fraudulent charge when you don’t find any before it hurts your credit rating. Always remember that your identity might be in danger of disappearing just under your name, so you’re the first person to verify it.