Fast Credit Card Application

On March 1 both the Federal Trademission and the Federal Reserve announced proposed rules that would unify the credit score disclosure requirements in the FACS Act (Fair Access to Credit Scores Act), which is part of Dodd-Frank, the Risk Based Pricing Rules, which are part of the Fair Credit Reporting Act, and ECOA Regulation B.

The Risk Based Pricing rules, which went live on January 1st 2011 were thought to have solved the “credit score disclosure” problem, yet most lenders were simply avoiding the issue by choosing the non-score disclosure option.  The Fed/FTC move, while probably not in response to lender actions, serves the same purpose by requiring a score disclosure for a declination or adverse approval by July, which is the same requirement under the FACS Act.

As of right now the proposed changes to the Risk Based Pricing Rule are entering the publicment period.  Still, it’s hard to imagine the public not wanting to see their credit scores if they were used to deny them credit or charge them more in interest on an approved account.  If all goes as planned, and there’s really no reason to expect differently, consumers who are denied credit or adversely approved (approved but with less than great terms) will see their actual credit score by July 22, 2011.

It’s almost as if someone finally realized, “Guys, we have 3 laws here that say almost the same thing.  Let’s make them consistent.”  The bottom line: It’s looking good that on July 22, 2011 Dodd-Frank, The Fair Credit Reporting Act and ECOA Reg B will all require that credit scores be disclosed if a consumer is denied credit or approved with less than attractive terms.  Now we just need to convince lawmakers to apply the same rules to insurancepanies, property managementpanies and utility providers.

John Ulzheimer is the President of Consumer Education at SmartCredit, the credit blogger for Mint, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifa

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Tags: Credit Score, Federal Reserve, Rules

The credit rebuilding process can take between several months and several years, depending on how badly the credit score has been damaged. Unfortunately, without persistence, patience, and a proper repayment strategy, even a seemingly small amount of debt can accumulate into a significant financial challenge. The following are three practices to avoid when rebuilding credit, in order to simplify and expedite the process as much as possible.

1. Utilizing Loans to Repay Credit Card Debts

Repaying credit card debts is the first step in rebuilding the credit score. Although applying for a loan and repaying all credit card debts with one lump sum is an appealing concept, the logic behind this method of credit card repayment is flawed, as the cardholder is simply transferring debt from a credit card account to a payday/debt consolidation loan, which will often have a higher interest rate than the credit cards that they are used to repay. This is especially true if the credit score is already damaged, as lenders usually only loan money to “high risk” borrowers if they’re able to charge exuberant interest rates to mitigate the borrowing risk. It is

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Tags: Credit

Q: How do I get a Citi 2G Credit Card?

A: Right now, you probably can’t. But later in 2011? Then your odds are better. That’s when Citi will make its technologically advanced Citi 2G credit card available to the general public. Today, the card is still being tested, so only a small number of Citi customers actually have access to it.

In case you haven’t heard, the Citi 2G credit card is being advertised as the next generation of credit card. Citi released its electronic 2G credit cards in limited numbers in November of 2010. The cards come equipped with two buttons on their fronts. Cardholders can press one button to tell the card to pay for their purchases with regular credit. A second button allows consumers to pay for their purchases by redeeming points or cash rewards. Customers merely press one of the buttons to make their decision. The button that they press will light up, confirming consumers’ selections.

It’s a rather nifty toy. But remember this: It’s the first generation of this type of card. Do you really want to be one of the first users? It usually makes sense to wait until the bugs are worked out of any new technology before you sign up for it. Remember th

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Tags: 2g Credit, 2g Credit Card, Card, Credit Card

Just a friendly reminder: Discover’s promo of 0% on purchases and balance transfers for 12 months with no balance transfer fees is expiring in just a few days on February 28, 2011. If you want to take advantage of this offer, you’ll need to jump on it soon.

Tags: 12 Months, Balance Transfers, Fees

With so many financial burdens currently being placed on American households, it is all too easy to fall victim to credit card debt. Although it can be advantageous to have a large available credit line, there are additional responsibilities that come with the freedom of having multiple credit cards, larger credit lines and a continuous temptation to charge large amounts of money on credit accounts. Studies have shown that individuals with larger credit limits are statistically more likely to succumb to the temptation of making excessive purchases. Thus, it is imperative to find a comfortable medium between having a large credit line and a modest one. The following tips should help anyone determine a suitable credit line based on credit needs, repayment capabilities, and the cardholder’s current utilization rate.

Assessing Card Needs and Repayment Capabilities

Firstly, it is advisable to consider credit card needs and monthly income. Ideally, one should start by compiling the total of their current monthly expenses, and then comparing that amount to their total monthly income to create a sustainable budget. A

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Tags: Credit, Credit Line