New research by Credit Confidential shows that it is becoming more difficult for consumers to obtain unsecured credit from lenders.
By comparison, secured loans such as mortgages are now 13% more likely to be rejected, meaning one in three people will fail in their secured loan application. This is the highest failure rate since the height of the financial crisis in 2009.
Failed applicants also face an additional challenge: ‘footprints’ in their credit history.
Each time an application is filed, it is noted on your credit history, which is shared among credit card companies. If they see you’ve been turned down elsewhere, especially more than once, they are less likely to approve your application.
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Wednesday, June 15, 2011
Tuesday, June 14, 2011
5 Money 'Rules' Meant to be Broken
There are many money "truisms" that can keep you in the poorhouse.
You've probably heard them all, from ancient admonishments against any borrowing, to modern urban legends such as "you have to carry a balance to build credit."
So while some money rules should be taken with a grain of salt, others just need to be thrown out with the trash.
"A lot of times there's that kernel of truth in there," says Bill Druliner, financial counselor and group manager for GreenPath Debt Solutions. "Or it's true in some situations and not in all in others."
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You've probably heard them all, from ancient admonishments against any borrowing, to modern urban legends such as "you have to carry a balance to build credit."
So while some money rules should be taken with a grain of salt, others just need to be thrown out with the trash.
"A lot of times there's that kernel of truth in there," says Bill Druliner, financial counselor and group manager for GreenPath Debt Solutions. "Or it's true in some situations and not in all in others."
Read full story
Resources:
Monday, June 13, 2011
Beware prepaid card scams and the Bluetooth Bandit
One nice, unexpected bonus about researching credit card crime has been the lessons one picks up. In fact, both would-be victims and criminals can learn a thing or two by what's been going on in the news lately. Not sure what I mean? Well, here's what all people--both the good guys and the bad--can learn from the latest in credit card thievery.
The lesson for would-be crooks: If you're annoyed at your ex, don't steal her credit card. And certainly don't tell her you're stealing it.
The crime: In Bracebridge, Ont., James Hynes, 49, was apparently irked because his ex-partner had hidden the keys to his truck. So Hynes took her credit card from her purse, showed it to her through the window and then left. Even more stupid, Hynes then proceeded to take out a cash advance of $2,000 with the card and spent $960 of it before the police found him.
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The lesson for would-be crooks: If you're annoyed at your ex, don't steal her credit card. And certainly don't tell her you're stealing it.
The crime: In Bracebridge, Ont., James Hynes, 49, was apparently irked because his ex-partner had hidden the keys to his truck. So Hynes took her credit card from her purse, showed it to her through the window and then left. Even more stupid, Hynes then proceeded to take out a cash advance of $2,000 with the card and spent $960 of it before the police found him.
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Thursday, June 9, 2011
Wise To Prioritize Credit Cards Over Mortgage Payments?
The U.S. Census Bureau expects 188 million active credit card holders this year. Credit reporting agency Transunion says there is a growing number of Americans who are paying their mortgages late so they can pay their credit card bills on time. Host Michel Martin and personal finance expert Alvin Hall discuss whether or not logic exists behind this balancing act. They also review other important news in the credit world.
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Tuesday, June 7, 2011
10 ways to improve your credit score
With tougher credit standards post-housing boom, it's more important than ever that would-be home buyers have good credit.
But what do you do if you don't?
Advice and tips on improving your credit score are all over the Internet, in variations of five or 10 or seven. Many of the lists are pretty obvious and tend to repeat each other -- telling you to do simple things like pay your bills on time, don't max out your credit cards and know what your credit score is.
But there's one list I think is a little better at About.com, called "10 Things You Can Do Today To Improve Your Credit Score."
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But what do you do if you don't?
Advice and tips on improving your credit score are all over the Internet, in variations of five or 10 or seven. Many of the lists are pretty obvious and tend to repeat each other -- telling you to do simple things like pay your bills on time, don't max out your credit cards and know what your credit score is.
But there's one list I think is a little better at About.com, called "10 Things You Can Do Today To Improve Your Credit Score."
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Monday, June 6, 2011
Mortgage Q&A: Wiser after credit score hassle
In March 2009 I shared my personal story of discovering an incorrect identity on my credit report. While applying for an equity loan, I discovered Transunion, one of the three national credit reporting agencies, was reporting a different name under my Social Security number.
Unfortunately, this fellow had terrible credit, resulting in Transunion reporting my credit score as an appalling 533. Equifax and Experian, the other two agencies, scored me in the 790s.
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Unfortunately, this fellow had terrible credit, resulting in Transunion reporting my credit score as an appalling 533. Equifax and Experian, the other two agencies, scored me in the 790s.
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Friday, June 3, 2011
Aging Card Technology Drives Rise In Credit Fraud
U.S. credit and debit card fraud is on the rise. According to one survey, nearly a third of American consumers have reported credit card fraud in the past five years.
And part of the problem, as Andrea Rock of Consumer Reports tells NPR's Mary Louise Kelly, is that U.S. card issuers rely on security systems that lag behind measures taken in other countries.
"The credit and debit cards that most Americans use are really surprisingly vulnerable to fraud," Rock says. "Because, unlike cards in most of the rest of the world, they rely on outdated technology."
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And part of the problem, as Andrea Rock of Consumer Reports tells NPR's Mary Louise Kelly, is that U.S. card issuers rely on security systems that lag behind measures taken in other countries.
"The credit and debit cards that most Americans use are really surprisingly vulnerable to fraud," Rock says. "Because, unlike cards in most of the rest of the world, they rely on outdated technology."
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Wednesday, June 1, 2011
Banks' New Money Machine: Prepaid Cards
Gus Artiles used to wait anxiously for the mail carrier on Friday afternoons, hoping his California state disability insurance check would arrive before his bank closed for the day. Now Artiles, 54, doesn't worry about the the mail. By Friday morning, Bank of America (BAC) automatically loads his funds onto a prepaid card, which Artiles uses to buy groceries and gas like a regular debit card. "It's a beautiful thing," he says. "It's more convenient, and you get your money a lot faster."
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