NationalCreditReport.com, a leader in credit report, credit score and credit monitoring services, reminds consumers that there are many things that might seem like a good idea when working to get a good credit score, but consumers should do their research before taking any steps that might cause credit report damage.

“There are some common mistakes that people make when they are working to repair or raise their credit scores,” said Samuel S. Ambrose, Vice President of Marketing and Operations of NationalCreditReport.com. “Things that seem harmless like closing credit card accounts can actually lower your score with the 3 major credit bureaus and affect lending decisions by the financial institutions that obtain your credit report for review.”

The 3 major credit bureaus (Experian™, Equifax™, and TransUnion™) collect information such as bill payment trends, outstanding debt and number of open accounts and use that information to calculate your credit score.

“This seemingly smart move could really cause credit report damage,” said Ambrose.

According to Ambrose, many people attempting to clean up their credit report close longer-standing credit card accounts that they no longer use. Since the 3 major credit bureaus give you points for the length of your credit history, closing a long-standing card could actually hurt you. A better move is to keep that card and use it sparingly to keep it active. Attempt to pay it off in full each month.

Charging too much on one credit card can also make it harder for you to get a good credit score because you’re using a larger portion of the credit granted to you. You don’t want to come close to your limits on your cards. Spread your charges among a few different cards to avoid credit report damage. Set up automatic bill pay if you think you might have trouble remembering to make payments on time.

Another mistake that can cause credit report damage is applying for more credit than you really need. Having many inquiries by creditors can cause your credit score to drop slightly.

Finally, it is not just negative information that can hurt your credit score. Many people make the mistake of not having any or enough credit history. In order to be viewed as a good credit risk by potential lenders, you have to have some proof that you are good at paying your debt on time.

At the company’s website, www.nationalcreditreport.com, consumers can sign-up for a free credit score and a free, seven-day trial of its Triple Safeguard Credit Monitoring™ service. The company also offers consumers the opportunity to purchase their credit report and score for one low price with “no strings attached.” Interested customers can visit www.nationalcreditreport.com/nostringsoffer to buy their credit report and score without being enrolled in a credit monitoring service.

About NationalCreditReport.com
Since 2004, NationalCreditReport.com has specialized in providing credit information and credit monitoring services to consumers to help them understand their credit report and score. NationalCreditReport.com encourages consumers to check their credit report on a regular basis.

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“Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders. It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use,” according to the AP. Historically, just 15 percent of the 170 million consumers with active credit accounts, or 25.5 million people, fell below 599, according to data posted on Myfico.com.The recession, tight lending practices by banks, and unemployment have caught up to the consumer credit market, and the trend is likely to worsen.

Banks, particularly regional and community financial firms, are struggling with defaults on both residential and commercial mortgages. To stay out of the clutches of the FDIC, they have become remarkably cautious about lending, even to people with good credit scores.

The number of people who have been unemployed for over six months is now in the millions and nearly 25 million Americans are out of work. This population is not likely to see their credit scores repaired for years.

The young, for years targets for credit card companies, are unemployed at higher rates than people over 25. That means that this “feeder” population for credit cards is falling and some of these people noe have no credit scores at all.

Another trend that has hurt credit scores immensely is the disappearance of home equity loans which were once taken out by huge numbers of Americans who had houses worth more than their mortgages. Now, more than 11 million mortgages in the US are underwater. People are abandoning homes that are being foreclosed upon. Either of those actions severely damages credit ratings.

One of the long-term effects of low credit scores is a likely long-term drop in consumer spending. People often cannot afford to buy things by paying cash. And austerity is the rule of the day.

Douglas A. McIntyre

You’ll notice that there are many people who have mixed feelings about credit cards. For some of them are horrible and something they want to and never had another love them because of all the benefits and perks I’has received in recent years. If you’a student who is looking for your first or another credit card, here are some things you might want to look.

Interest rate: First you want to find a credit card that has low interest rates. Anything less than 15% is pretty good, especially for card student loans. What is more, it can be a problem if you do not plan’to repay your bills in full each month. So, just to be on the safe side, compare the interest rates and go to one that is best.

Fees: You will find that there are more fees for some cards. There are late fees to pay annual fees and fees for almost everything. Watch this and make sure you re’does not get involved in obtaining a fee mess sound card.

Prizes: There is a credit card there with some great prizes. Did you get the money back for every purchase you will, or you’ll get points for each dollar you spend, that is what you want to look out for. Don’t get a credit card unless it is something to reward you. I have found that with my card I get points for every dollar I spend, which means that I can redeem for gift cards at a later date, or even money to my monthly statement. This is something I always look forward to when you have enough to redeem!

Reviews: It’s always a good idea to get advice from other people. Find a credit card to another people like and recommend. When people talk bad about it and tell you why you should avoid listening to them. Instead of going with a card that is rewarding, low interest rates and those who people recommend. Reviews can be helpful when it comes to looking at almost everything.

There are several cards out there for students. Although it’s important to identify what are the best and which ones are the worst. Be sure you use your smart card future and to consider all that we’spoke of above, before you ask for it!

Settlement of the debt or otherwise called debt negotiation is an attempt to reduce outstanding debt when the creditor agrees to receive a payment of subsidies that would be considered full payment. Debt negotiation is a great way to pay for any type of credit card debt, but many are not aware of this option. In this way, you can contact the creditor and negotiate a settlement of debts of credit card an amount affordable to the assistance of counsel, a settlement of the debt or May you do it yourself .

When you negotiate a settlement of debts of credit card in order to reduce the capital, in May it hurt from your credit card. But there is still a much better option than not paying a penny or bankruptcy. The last two options, it can be doubly difficult for you to get decent rates on any future loans. And even if the interest was debited from your account and balance, you need not worry as you can negotiate successfully with the credit card company.

Many people prefer to hire a debt settlement company to help in the negotiation process, but you May be able to negotiate for you. The success of a negotiation and not only saves money but also frees you from worries associated with a new credit card to transfer capital.

May you be able to negotiate debt on your credit card without hiring professionals. Some things to keep in mind if you negotiate a settlement of debts of credit card:

• You will need to find a good address for the company from the correspondence of all. Refrain from using the address on the bill that is only for making payments. Once you find the address, post all correspondence with the information about your negotiations.

• It is wise to use the mail along with receipts. This forces the creditor to honor all that you verify via email as opposed to telephone conversations.

• Also, it is essential to stay calm and remain professional during the negotiation. Do not fall for any old things and make sure not to include personal information when negotiating the amount. The simple fact of expressing your desire to pay your debt, nothing more or less.

• Keep in mind that you can negotiate your interest rate when the interest rate is more than ten percent.

So if you’re in a situation of debt credit card, know that there is a way out. Remember that at the end of the day, the credit card companies want their money and they might be willing to negotiate debt credit card in an effort to get paid.

Identity thieves others to use personal information for many things. The most common use is the credit card fraud. After obtaining a target of personal details, thieves can open new lines of credit, to divert the credit card accounts available, and go on spending sprees with other people’s money. Here is an overview of the many tactics thieves use to commit identity fraud by credit card.

The opening of new accounts
Armed with personal information such as name, date of birth and social security number, thieves can impersonate someone else to open new lines of credit. They can apply for credit cards on behalf of the victim, or steal prequalified credit offers from the target, the mailbox or trash. These sometimes contain preselected credit cards that thieves can activate it by calling a toll-free number. Many victims do not know that someone has taken the credit cards in their name until they receive calls from debt collectors or obtain loans fell due to a low credit score.

Misuse of existing accounts
In addition to opening new lines of credit, identity thieves can use them adequate information to make the audit. They are using their personal information from the victim to “verify” the thief of identity as the true account holder. Then the thief changes the account details such as PINs, passwords, billing and mailing address. Once an identity thief has control of any accounts it may be difficult to return to the proper owner before the thief wreaks financial havoc.

Skimming
Through the use of palm-sized devices for reading cards, thieves can drag all of their victims’ information card in no time at all. Skimming is a subtle, which typically crime is not detected until the victim notices of fraudulent credit card. Anyone who hands their card to an employee in the stores or restaurants is a potential target for scavengers. Some courses are also located in the gas pump and ATM card reader slots. This information card collection for identity thieves to use, and most devices are impossible for casual observers to detect.

Phishing and Vishing
Phishing is a scam that thieves use to trick victims into providing personal information. Some thieves send e-mails that appear to come from banks or popular websites. They provide a link for the recipient to follow. The link takes the victim to a login page where they enter their information to verify it. What they really do is give their contact information for identity thieves. This scam can also be stored on the phone. This variant is known as vishing. Scammers claim to be representatives of the IRS or the victim’s personal bank. They ask the victim to verify the account information and personal data, or providing a telephone number where information can be entered from a telephone keypad.

Anytime someone uses a credit card without the permission of the cardholder, the fraud was committed. Credit card fraud is very popular and profitable type of identity theft and possibly cause more financial harm to the victim. To protect yourself, never give personal information over the phone. Avoid clicking on links in e-mails. Only pay with a credit card when you have, and stick to reputable companies that you are familiar. Well look at your credit card statements each month. Some crooks are many small charges that do not trigger alerts of fraud. If you see suspicious activity on your monthly bill, contact your card issuer immediately.

The best way to protect against credit card fraud is to take proactive steps to reduce your exposure to theft and possible diligently monitor your credit file. Although these measures may be carried out free of charge, we recommend some type of protection against identity theft including theft insurance. Many of us do not have the time or energy to regularly check our credit history and identity protection services are becoming more affordable. The protection industry of identity theft has really evolved, research, products, services and approaches vary greatly.

Q: I had credit scores around 740, that before I was 30 days late twice in 4 months on three credit cards with different issuers. I am currently settling credit card debt with Bank of America. I had to take a much lower paying position, hence must settle. The deal is quite good, settling $12,000 in credit card debt for $3,800. Wells Fargo and Capital One will be next. My main concern is my credit score, after missing payments and now settling. Where would they be and how long it would take for them to recover?

A: The two 30 day late payments has already shaved close to 130 points, I am pretty sure, so let us suppose you are at 610 to 620 credit score range. Settling the remaining credit card debt with Bank of America will probably knock it down another 25 points or so. Obviously, settling a credit card debt means that the lender agrees to accept less than the amount owed on the account, thus indicating a higher level of risk. Since your credit score lost quite a few points, the debt settlement impact is less severe, since the higher the scores, the lower they fall. Once you are done with Bank of America, settling debt with Wells Fargo and Capital One will take another 40 to 50 points of your credit score.

How long would it takes to get your scores back, say in mid 600s? Probably two, may be three years of impeccable credit history. You will need to use your credit cards regularly while keeping utilization rate low, among few other things..

Q: I have 8 credit cards and have decided to pay them in full to keep them all with zero balances. Want to boost my credit score. I am currently at 652 with TransUnion. I am going with cash only. Do you think, some credit cards can be closed due to inactivity?

A: Depends on a bank a given credit card is from, your overall credit picture and who knows what else. I normally rest my credit cards around 6, may be 7 months. I have not yet had a credit card closed due to inactivity. My wife had Chase cut the credit limit on her business Visa from $18,000 to $6,900 after about a year of total inactivity. Then of course, many other issuers stepped in with their offers, so she is not complaining. I know for a fact that Target Visa gets often closed or credit limit is decreased if kept inactive for 4 to 6 months.

Capital One actually has repeatedly sent us rather nice offers with 0% percent transfer rate for 12 months and only 3% transfer fee, which is more than decent by today transfer offers, with almost everyone else asking at least 4%. Each of us has Capital One credit card that has been inactive for at least 7 months. I started using mine, because I have a feeling that after a few nice offers, the card can be closed or credit limit trimmed severely due to inactivity. I want to keep my $20,000 line of credit in tact, who knows what can happen.