A guest post today from Annie Harrington -

Back in 2003 under a study conducted by the American Bankers Associates, some alarming data was presented. According to the study, check fraud was becoming an epidemic. Information found through the study suggested that more than 1.2 million fraudulent checks were being circulated throughout the United States. These numbers were not over the course of a year, a month or even a week, but instead in one day. Even in 2003 when the advent of the debit card was beginning to take off and check usage began to see its initial decline, fraud was still on the rise. What was worse, it was expected to grow steadily each year by about 2.5%. But now, let’s flash-forward to 2012, last year. For the first time ever that 2.5% was finally culled and instead of growing, it dropped 7.5%.

But, under the tried and true theory of checks and balances (no pun intended), when one thing falls, another must rise and rise it has. As check fraud began to die down, the United States began to notice an upswing in other kinds of fraud, mainly that related to debit and credit card. In another study conducted by the Consumer Sentinel Network (funded by the US Department of Justice) research showed that 17% of Americans have been the subject of either credit or debit card fraud. While the quickly becoming antiquated check fraud was largely tied to the writing of fraudulent checks, debit and credit card fraud has several different pitfalls to which a consumer or business can fall victim to. Here are the top five for 2012.

While the initial 2003 study from AMA was true to a point, check fraud crime made its peak in 2008. In the years leading up to 2012 there was an incremental decline but nothing as large as the 7.5 drop, which marked the biggest turn in the right direction for some time. But, what can we take from these numbers? Can we take the data and make an overarching statement about fraudulent crime as it relates to card and checks?? Have increased security measures and more sophisticated technology deterred would be thieves from taking advantage of check crime or have they simply put their efforts into card related crime? It’s difficult to say.

The use of personal checks has been declining each year. More and more people are opting to pay their bills online, use a card to pay for their groceries, gas and other items. But this isn’t new, shocking news. Debit and credit cards have been being used for quite some time. Since 2012 was the first year where such a noticeable decline in check fraud was noted, most experts are waiting for the 2013 statistics to see if this will be a trend or an anomaly in fraudulent behavior.

Let’s take a look at total amounts lost across both platforms. Even at its highest peak in 2008, check fraud was nowhere near the estimated amount lost through debit and credit cards during last year’s reporting. In 2008, check fraud accounted for a little over 1.02 billion dollars in lost funds. This number is by no means a small amount, but when put up next to the amount of money lost through debit or credit card fraud, an ample $190 billion, it almost seems like chump change.

So to answer the question posed earlier, are the days of accounts being compromised and malicious financial behavior behind us? Sadly, they are not. So, for the consumer who is looking for an immediate answer with the data on their sides, it appears that checks, while quickly becoming a thing of the past, or still the more secure method of payment.

In order to combat these escalating figures card companies have teamed up to make what is referred to as the EMV initiative Cards using this technology will incorporate a small chip that will step up authentication measures, hopefully ensuring that the right person is using the right card for the right reasons. While there has been a bit of backlash among some on account of these chips violating personal freedoms the EMV movement is instead focusing on the immediate benefit that would see that 190 billion dollar black hole become just a bit smaller.

In order to entice companies over the system, the EMV initiative will cover and financial losses for the companies when a card is put into the wrong hands, a deal that is becoming very attractive to the likes of Visa and Mastercard. This protection from losses officially goes into effect in October of 2015.

Annie Harrington is a small business owner and freelance writer. She is also keenly interested in all aspects of design and the design process. She currently works with Vista Print a personal check supplier.

written by Joe \\ tags: check, Credit, fraud

We all know what a credit score is this day in age. It follows us around our entire lives and is used for the purpose of judging the amount of risk we impose on lenders that decide to loan us money. With so much lending capital and, the desire for bigger and better that we’ve always had, your credit score is more important today than ever before. Of course, as with anything that is important to consumers, credit scores have generated quite the conversation and several questions. Here are the answers to some of the most commonly asked credit score questions.

Is It Possible To Build My Credit Score Faster Than A Year?

The truth is, I would love to tell you that it’s possible but, in that case, I would be lying to you. When we think about the importance of credit scores and what they portray, it’s simple to understand why it can take a year or longer to build your scores. Imaging being the lender that is issuing you a loan. Think about what it would take for you to give some person you don’t know hundreds or even thousands of dollars on a promise of a small profit. You would want to know that this person has paid their loans on time in the past. At least for the last year, if not two! The simple fact is, only consistency in payments alleviate risks imposed on lenders. The only way to show consistency in your payment habits is to show that you are capable of making payments over a long period of time!

How Accurate Are Most Credit Reports?

If you watch T.V., listen to the radio, read the newspaper or magazines, chances are, you’ve seen some ad for a credit protection service that claims that many credit reports are inaccurate. So, exactly how accurate are most credit reports and, should you be concerned about yours? The truth is, most credit reports are incredibly accurate. If they weren’t well, they just wouldn’t be credible! With that said, the ads you’ve read about, seen and heard aren’t lying either. Everyone has a credit report, with that said, there are bound to be some mistakes! You should always keep tabs on your report. You can do so for free at www.annualcreditreport.com!

Why Will Closing A Credit Card Account Damage My Credit Score?

If you talk to most financial professionals about closing a credit card, you will find out that it will most likely damage your credit score to do. That said, this has spread through the masses and the common thought is that no matter the case, closing a credit card will always harm your credit score. That’s not exactly the truth either. When it comes down to it, one of the factors included in the calculation of your credit score is the amount of time your accounts have been opened on average. The longer the average, the better. Therefore, if you do close a credit card that you have had for a long time, chances are, it may harm your credit score. However, let’s say you just opened a store credit card to get a bit of savings at the register. You earn the savings and now, you will never want to use the card again. This new card reduces the average amount of time that your accounts have been opened. Therefore, by closing this account, you will increase your average back to where it was and you will probably notice a positive change.

Final Thoughts

I hope that you’ve enjoyed my article. More importantly, I hope that I’ve given you the answers you’ve been looking for! If you have any other questions about credit scores, please feel free to ask them by leaving a comment below. I will respond, I promise!

About The Author – Joshua Rodriguez – This article was written by Joshua Rodriguez, proud owner of CNA Finance and avid personal finance journalist! Join the conversation about credit scores or any topic of your choice on Google+!

written by Joe \\ tags: annualcreditreport.com, Credit, Debt

It’s been nearly four years since I wrote about the CARD Act of 2009. One part of this ‘consumer protection’ law permitted merchants to charge an adder for a purchase made with a credit card. Fortunately, I live in a state that has its own rules, and an adder isn’t permitted.

As you can see, however, rules are meant to be manipulated, if not ignored. You see, the distinction between the cash and credit cost for gas isn’t an adder for credit, it’s a discount for cash. Got that? My Amex card happens to offer a cash rebate of 3% or 10.5 cents on the credit price above, vs the 8 cent discount for cash. 2-1/2 cents per gallon rebate wont make me rich, but at $50 a tank of gas, it’s a convenience I’d rather not give us, so long as it’s not a cost to me. Push that discount to 11 cents, and I’ll start carrying a few $50s.

Are you starting to see more gas stations offer a cash discount? Any stores starting to charge extra to use your card?

written by Joe \\ tags: annualcreditreport.com, CARD, Credit

Today, a Guest Post from Dona Collins -

You may not believe this, but not all debts are bad. If you never take on any debt, then how can you build hope to build a positive credit history? If you want to find a place to live or a buy a car, it helps tremendously if you have already established good credit. Debt, when managed properly, can help you get the things you need in life. For that reason, and many more, personal loans are a type of debt that can be beneficial as long as you spend the money wisely.

Finance Home Improvements

Investing in your home is rarely a bad idea. If you have a project in mind that will add value to your home, a personal loan can be a great way to finance it without tapping into your equity. Some websites like prosper.com or creditloan.com offer loan rates under 7%, if you qualify, so you can afford to borrow the money for your project without racking up high-interest credit card debt. The right home improvements can provide a great return on your investment.

Improve Your Credit

When the credit bureaus calculate your credit scores, they look for a mixture of revolving credit lines like credit cards and installment loans. Taking out a small personal loan and paying it off on time will help boost your scores. You have to establish a payment history though; you cannot just borrow the money and then pay it right back. Make monthly payments for at least six months to a year before you fully repay the loan.

Create an Emergency Fund

In some cases, it actually does make sense to borrow money just to have it for a rainy day. It is good to have a sizeable lump sum of cash you can access when you need to. Instead of waiting until an emergency expense smacks you in the face and you are desperate, considering getting a personal loan that you can pay back over time to establish your savings. You can get a better deal if you take time to shop around beforehand, rather than wait until you are pressed for time.

Pay Less Interest

Personal loans are unsecured, so they do come with a higher interest rate than a secured loan, but the rates are still lower than most credit cards. If you have high credit card balances, taking out a personal loan to pay them off will save you money. You may even want to consider getting a specific debt consolidation loan or lower interest personal loan. This does require that you have to stop using your credit cards if you want to keep your debts low.

Start a Side Hustle

While the term might remind you of playing pool, a side hustle is simply another term for starting a part-time business from home. Many people take their favorite hobbies and turn them into a side business that helps bring in some extra income. After you receive the loan funds, take the additional income from your new business and use it to pay off the loan faster so that you can enjoy 100% of your profits.

Buy a Used Car

Usually car loans are a better way to buy a vehicle. However, lenders tend to be more reluctant to loan money for used cars than they are for new cars. Additionally, if you already have an existing car loan then you might not be able to qualify for a second one. Whether you are purchasing a vehicle for yourself, or helping someone else buy one, a personal loan is an alternative worth contemplating if you cannot qualify for a good car loan.

Medical Expenses

Putting off medical procedures because you cannot afford them is never a good idea. There are many expenses that traditional health insurance does not cover like dental problems that can create major health complications if you do not get treatment. It does not matter if you apply for a loan online or go to a traditional bank like Wells Fargo, it is better to borrow the money you need than put your health at risk.

Start an Investment

If want to try buying stocks or start a Roth IRA for your retirement, a personal loan can be a good way to jump-start your plans. In order to get the best value for your loan dollars, you should pay your loan off before you start investing. Otherwise, the interest you will pay on the loan will offset your gains. If you are planning to use the money to start a retirement fund, keep in mind that you will not be able to access those funds early without paying penalties.

Purchase a Computer

These days, for many people, a computer is not a frivolous purchase. An increasing number of companies are increasing telecommuting opportunities for their employees. You also may be one of the many people who brings work home with you too. Investing in a faster computer will make your life easier and help you be more productive. A personal loan when you do not have the cash is a much less expensive way to buy a computer than in-store financing.

Buffer Your Checking Account

Unfortunately, many people cut their checking accounts too close and end up paying fees for not maintaining the minimum balance requirement, or even worse, get hit with overdraft fees. As long as you can work the loan payment into your budget, a personal loan can be a great way to add some extra money to your account so you avoid bank fees. However, this only works as long as you leave the money in the account.

It a good idea to avoid getting a personal loan for thing you do not really need like vacations or unnecessary purchases. That being said, there are times where getting a personal loan is a wise decision. Before you borrow money, consider your motivations and make certain that you will be able to repay your loan on time. If you can make your payments without fail, a personal loan can be a quick, efficient solution to some of your problems.

About the Author: Dona Collins is a personal finance specialist who loves to help others find creative ways to manage their finances, eliminate debt, and live healthy financial lives.

written by Joe \\ tags: Credit, Debt, loan

 A Guest Post from my friends at Consumer Law QA -

If you have ever been asked to pay for a credit report, then you probably didn’t realize that the Fair Credit Reporting Act (FCRA) demands that all of the 3 nationwide consumer reporting companies, which are Experian, Equifax and Trans Union, are obliged to provide you with a copy of your credit report free of charge. You can request your free credit report at Annualcreditreport.com.

This report is only issued if you request it and it should be provided once in a 12-month period. If you require further credit reports within the same 12-month period then you will be asked to pay. The FCRA prioritizes the privacy and accuracy of any information held by the consumer reporting companies. The Federal Trade Commission (FTC) has the job of enforcing the FCRA requirements. If you have a credit dispute leveled at one of these companies, then you should compile a credit dispute letter, which is your legal right. You may download a credit dispute letter sample here.

A credit report should include personal information about yourself, such as your place of residence, the method you use to pay your bills, if you have ever been sued and if you have ever filed for bankruptcy. Your credit worthiness is also included in the report, through providing information about how much available credit you have and your present debt situation. The approved reporting companies are allowed to sell the information provided in your report to insurers, creditors, employers, and any other businesses that may use it to assess any applications you have made for credit, employment, or, for example, renting a house.

It is vital to you that all information is correct, particularly if a potential employer, an insurance provider or the owner of a property you wish to rent requests the information. If some information is incorrect then you are entitled to lodge a credit report dispute to the reporting company concerned by using a credit dispute letter. Sometimes, there are old debts remaining on your credit report.

Usually, there is no need to do anything to erase repaid debts from your credit report, as these should be deleted automatically from the credit report. However, if outdated accounts still remain, you can make use of the credit report dispute process to ensure they are removed.

In the credit dispute letter you should write down what information you have found to be inaccurate in the report and why it is not accurate. You should then ask the credit reporting agencies to investigate the matter and delete or amend the disputed information as soon as possible. If you have any documents to prove your situation, then you should make copies and include them with the letter. A list of these should be written at the bottom of the letter, so the person who opens it will be able to account for the enclosures. Never send originals, as it is far too stressful worrying if they will ever be returned.

You can also include a copy of the credit report, ticking or circling the items that have been reported incorrectly. Don’t forget to send the letter by using certified mail. Also, ask for a return receipt, so that you will know that the reporting company actually received your letter and any additional enclosures. Before mailing the credit dispute letter, make sure you have made a photocopy, so that you have a complete record of the correspondence at hand, if required.

If the furnisher (debt collector or creditor) of the information does not respond to the investigation, the item must be deleted.  But the time frame is not necessarily 30 days because the CRA may request an additional 15-days if it receives information from the consumer relevant to the investigation.

If the furnisher does not respond, the CRA must treat the information as “unverifiable,” which means that it must promptly delete the information and notify the furnisher of the deletion.  If the furnisher wants to reinsert that information, the furnisher must certify that the information is complete and accurate.  Then the CRA must notify the consumer in writing within five business days after the reinsertion. If you find it difficult to file a credit dispute on your own you should contact a consumer law lawyer to help you with it.

written by Joe \\ tags: Credit, Debt, Finance