You can afford your mortgage, you have a high credit score and you pay your bills on time every month. So why did American Express just slash your credit limit? Could be because of where you shop?
A combination of the credit crisis and the increasing use of predictive analytic models for determining credit limits mean that it is no longer enough just to maintain a good credit rating. With credit card companies analyzing spending patterns, you have to pay more attention than ever to both where and how you shop.
Here are a few examples of some of the ways that good credit may get cut off.
Traveling Overseas
The internet has helped to create an environment where fraudulent transactions are so widespread and so expensive to prosecute, that most companies write off these transactions as a loss – or pass them on to the merchants who are victimized. As a result, credit card companies try to offer extra protection to their customers if a series of suspicious charges post to any individuals account, as a form of loss mitigation. The problem this poses for many travelers, is that the term ’suspicious charges’ is very subjective. Say for example, you are from Des Moines, Iowa and your monthly credit card transactions consist of weekly trips to Ralph’s and your neighborhood gas station. In this case, your spending habits will be scrutinized if you finance a backpacking trip through Southeast Asia. Therefore, it is very important that travel isn’t funded solely on a credit card, because you might find yourself in a foreign country without funds when the available credit is slashed.
Spending in stores that have high-risk customers
Many customers do not realize that their credit limits may be reduced due to where they shop. American Express is on the forefront of this movement, wherein banks would include where customers spend as part of their credit-limiting decisions. the cards are used at places like casinos and bars. To the bank, these are improper or unsustainable use of credit, that has a higher repayment risk.
Don’t Go Near Your Credit Limit, or Over It
One of the most important factors of your credit score is your average ratio of balance to credit line you keep. Keep the balance below 20 percent of the credit limit ideally, and definitely below 50 percent, as this is viewed by banks as more responsible borrowing and not quite a warning sign that you are dependent on the credit. The larger the percentage of your credit limit occupied by balance, the more you are viewed by the bank as being incapable of repaying a debt owed.
Banks often change their terms of your lenders agreement via mail, and a letter regarding a credit line reduction can actually be sent to you after your line has already been reduced. With that said, if you have the propensity to continually keep a higher balance on a credit card, you are more likely to have a credit line reduction. But even someone who keeps a high available balance isn’t safe from this move by the banks. As a result, a credit line reduction could change your balance-to-limit ratio dramatically, further worsening your credit score.
Any bank may reduce a credit line in any way they see fit, and for example a $10,000 credit line with a $3,000 balance could be reduced to a $5,000 credit line with the same balance. This would mean that your balance-to-limit ratio would be doubled, an experience that is increasingly likely to happen to any individual, irrespective of their repayment history. In some extreme cases, a credit line reduction could even be instigated by a bank to a level that is right at the current balance, thus leaving the borrower in a position of potentially going over his/her new credit line when finance charges are assessed. This can have a ripple effect on other accounts, in that, other lenders may see this as a red flag, and consequently reduce your credit line as well. For credit cards, it is good to try and pay off your balance every single month, but if you can’t or if you are already in trouble, make sure to call as credit companies are very willing to renegotiate delinquent balances and interest rates, often reducing 27% rates all the way down to 10%.
Are you paying attention to your credit report?
Most people don’t properly manage or monitor their credit report. And given the current financial climate, banks are consistently looking at ways to stave off risk. Many banks realize that one way to do this is to increase the interest rates of individuals that are paying their bills on time. Interest rate increases typically occur as a footnote that is easy to overlook on a monthly credit card statement, or may be a letter written to you as a “Dear Valued Customer” letter on corporate letter telling you that after years of valued business, you are now being rewarded with a higher interest rate. These letters of course offer the customer an opportunity to opt out or not agree with the change of terms. The consequence is that your account will likely be closed after a certain grace period.
This means that, for those willing to stand up to the credit card companies to say, “I will not stand for this!” there will be an ‘Account Closed’ notation on your credit card. In addition to the account closing phenomenon, not monitoring your credit report can lead to other potentially harmful notations – erroneous or not – staying on your report and affecting your credit. And of course, if your credit report declines, your credit lines are likely to decrease in tandem. Many consumers are unaware of these potentially negative marks on their credit report, or are unaware of ways to get them cleared from their record.
Make sure that if there are any notations on your account, that you process a claim with your bank and with the credit reporting agencies to get these removed. Even if you have made mistakes, you can request an explanation of your errors in writing. If a bank fails to provide this evidence, then the law says it will be removed from your report.

Erica Sandberg is a credit expert and columnist for Creditcards.com. She is also the author of “Expecting Money: The Essential Financial Plan for New and Growing Families.”

To read the original article click here.

Question,
After a couple of years, I just checked my credit report and found out that my husband has been charging on our credit cards and even on cards I didn’t know existed. We are $18,000 in debt when I thought we only had a balance of $400. How is this possible? I’m so upset I’m shaking. What can I do? — Jennifer

Answer

Dear Jennifer,
I’m truly sorry. It sounds like you’ve been a victim of financial infidelity. Your husband may be a great guy in every other way, but he’s cheated on you in the money department, and that’s an extremely painful revelation.

As part of a married couple, it is your responsibility to treat the other person with respect. This means telling the truth, however hard it may be. So if your husband was having financial problems, he should have revealed them long before running up such a balance. And opening accounts in secret? The moment he considered applying for new lines of credit without your knowledge or consent should have been his cue to initiate a heart-to-heart with you about his money issues. But even after accumulating those bills, he still should have eventually come clean, instead of leaving you to discover his indiscretions the hard way.

These are just a few of the “should haves” in this situation, and though it’s easy to dwell on them, it’s not productive. So what do you do now? Well, you and your husband must first dissect the past, and then you can work toward building a better future. Here’s my recommended plan:

1. Access and review all credit card statements. Of course, you could just ask your husband what he spent all that money on, but as he hasn’t been truthful in the past, there is no guarantee that he will be now. Therefore, either pull up the statements online or get on the phone with each credit card company and request they be sent or emailed to you. Then the two of you need to sit down and evaluate the statements carefully. What you discover may be hard to take, but it’s vital that you get to the bottom of those charges. This is his chance to come clean by explaining what’s been going on.
2. Get professional help. If you’re angry, it’s justified. If he’s uncomfortable or resistant, it’s normal. To get to the root of the matter and stay on track, consider scheduling an appointment with a professional. Whether you see a marriage therapist (for all issues, though they can be expensive) or a credit counselor (for budgeting and debt resolution, but free), an objective third party can be extremely helpful.
3. Concentrate on debt repayment. As a duo, you need to develop a plan to repay the balance in full, in as short a time as possible. Contact the credit card companies and explain that you want to pay them off ASAP. Develop a budget, reduce spending, apply all excess funds to the debt and suspend charging privileges until the balance is at zero. Also, I don’t think it’s out of line to have your husband relinquish and sell whatever stuff he bought on the cards and apply the proceeds to the balance. While you’re at it, propose he work overtime or get a part-time job to expedite the process.
4. Take the reins of money and credit management routine. You said you hadn’t checked your credit reports in years, and that’s way too long to wait. For most people, an annual check-up is suggested, but because you want to be sure he doesn’t fall into the same pattern of charging on the sly or opening up accounts behind your back, stagger your reports. Get one in January, one in May, and one in September. This way, you can monitor what’s going on throughout the year and still get your reports for free. Take on bill paying as well. While you may not be eager to add this task to your life, it’s the best way to know how much, and in what ways, both of you are using the credit cards.
5. Communicate regularly. Finally, begin to talk about money on a regular basis. What he does with his financial affairs affects you and vice-versa. Make time in your marriage for consistent and frank financial discussions.

Neither of you can afford to be passive about your credit, Jennifer. As the great Russian writer and philosopher Leo Tolstoy once wrote, “What counts in making a happy marriage is not so much how compatible you are, but how you deal with incompatibility.” Or as “Project Runway” star and American fashion guru Tim Gunn always says, “Make it work!”

See related: 10 things you must know about credit reports and scores, 8 legitimate ways to improve your credit score now, How to read, understand your credit report, Free credit reports: How to get the one that’s actually free, 8 key steps to picking a credit counselor, Video: How to pick the right credit counselor, Let’s talk credit: 8 must-have couple conversations, Tips for uncovering hidden credit card debt

Erica Sandberg’s articles and insight are featured in such publications as the Wall Street Journal, Pregnancy, Babytalk, Redbook, Bank Investment Consultant, Prosper.com, MSNMoney.com, and Smartmoney.com. An active television and radio commentator, Erica is the credit and money management expert for San Francisco’s KRON-TV.

Avoid getting into debt and understand how you can actually save money going to college!
Learn about how much how you can save on college. Watch this video below:

Well, here is the deal. Did you know that in this economy you can get to work out at a lot of GYMS without signing up for their membership.

Here is how you would go about it. Go by a gym, find out what they are offering and whether or not you can try out their gym for a week.

You would be surprised that you can indeed get to use the gym for free for a week. Just be sure to ask nicely.

Well we are back in 2010! Our first post for 2010 explains how to send  a free fax! Yes send faxes for free. There are two companies currently doing this/

The first one being Qipit and the second is FaxZero

Both services allow you send a limited number of free faxes.

Whats the catch?

The catch is you have to advertise for them. How do you do that?  Well,  the fax cover sheet has the name of the service on it.  Efax Free, a similar alternative, will let you receive  (but not send) a limited number of faxes.

So there you have it. If you have any money saving tips. Feel free to comment and send the information our way!

We have all heard the question as we are about to check out at a store.

“Credit or Debit?” Well a lot of folks might choose debit. I tend to choose credit and here is my reason for doing so. Did you know that both transactions while they would eventually be deducted from your checking account follow a different method in the process making use of different networks.

So you choose credit over debit on your debit visa card. Your signature is then required and this transaction will be passed though the Visa Network, which will come with extra security provided by the credit card company. This includes protection and Visa’s zero Liability. plus if you are trying to reestablish credit. Using your card as a credit card also helps out.

Stores are not seriously fond of you using your card as a credit; the reason? They have to pay a higher percentage fee as opposed to when you choose to debit. The stores prefer the debit option because they would not incur this hefty fee but you will not have the same level of protection choosing credit offers.

The debit transaction also automatically debits your account through the electronic fund transfer (STAR OR NYCE); you will not receive visa’s protection, plus there are other bank incentives you would also not receive.

Which would I choose? I will opt for credit each time; however if I really need cash back I might opt for the debit. That rarely occurs though. I personally prefer the liability protection offered by choosing credit. Which would you choose?

10 ‘Black Friday’ Deals to Watch For

by Chris Morris

Traditionalists might balk, but the holiday shopping season is already underway. Skeptical? Head to your local department store and you’ll be inundated with Christmas trees and holiday ornaments. Bargain hunters, though, know that the real deals are over a month away.

Traditionally, Black Friday (the day after Thanksgiving for the uninitiated) is when retailers truly slash prices. Early birds can shave hundreds, if not thousands, of dollars off their holiday bills. We checked with a few elves, who gave us a sneak peek at what you can expect deal-wise this year.

1. Laptops
With the proliferation of netbooks this year, it’s never been easier to find affordable portable computing, but Dan de Grandpre, CEO of DealNews.com, says it will get even cheaper on Black Friday. Look for well-equipped netbooks to sell for $199 – and basic 15-inch laptops to go for as little as $249.

2. Blu-ray Players and Blu-ray Discs
Blu-ray is shaping up to be the biggest door buster of this year’s Black Friday. De Grandpre expects at least one retailer will offer a Blu-ray player for just $49. Look for bargains on Blu-ray films, as well, with last year’s hit titles (such as ‘Iron Man’) to fall as low as $5.

3. HDTVs (Big)
The holidays are typically the best time to buy a new TV – and Black Friday is the time to do it. If you’re looking for a normal-sized set, you’re in luck. Piper Jaffrey analyst Mitch Kaiser says he expects to see 32-inch LCD sets for as low as $299. GottaDeal.com is estimating 37-inch plasma and LCD sets will fall to $399 or less.

4. HDTVs (Really big):
Need something bigger? How about a 46- to 47-inch LCD set for $599 – a 25-percent savings? Or a 52-inch LCD for $999? Dealnews says you can expect both. Plasma deals will be a little harder to come by, but a 50-inch set should run roughly $899.

5. HD Camcorders
You’ve wanted to shoot your child’s school play in HD for a while, but haven’t been able to spring for the pricey camcorder. This might be the year. Low-end, flash-based 720p models could drop as low as $60 (though you won’t be able to zoom with those). Expect a high-quality 1080p HD camcorder for $349.

6. GPS
While navigation systems have dramatically expanded their reach this year – even making it onto the iPhone – there’s still a market for car-based systems. Dealnews predicts you’ll be able to find a no-name, entry-level system for $49, and a Garmin or TomTom unit for as low as $69.

7. Digital Picture Frames:
Showcasing your digital pictures consistently gets cheaper. This year, skip the 7-inch screens and focus on the 8- or 9-inch ones, which should be available on Black Friday for as little as $30.

8. Computer Monitors:
Computer monitors might not be the sexiest of gifts, but they’re usually welcomed with open arms – and they’ll be cheap this year. Name-brand, 22-inch LCD models may go for as low as $99, while 24-inch models will drop below $150.

9. Memory
Don’t know anyone who needs a monitor? External hard drives are always popular, since they’re an easy way to back up data. Dealnews expects a 1-terabyte (TB) drive to fall as low as $49 this year. Gottadeal is looking for 8-gigabyte (GB) flash drives to hit $15.

10. Freebies
If you’re willing to jump through a few hoops, there are plenty of tech goodies that should be available for free this year. Expect everything — from 802.11n wireless routers, to PC cases, to anti-virus software — to be available free after rebate. Secure Digital (SD) cards and USB flash drives should be, as well. Just be sure to carefully follow the rebate instructions – and read close to see if you’ll be getting a check or a debit card for the amount.

SOURCE

Whether you have an iPhone, a Blackberry, or a Nokia phone, various brands and models of cell phones these days are already capable of running all sorts of cell phone apps.

From gaming applications to apps for instant messaging and even social networking, various software applications definitely make it easier for people on the go to stay connected. As one of the more popular social networking sites today, Facebook actually has its own downloadable cell phone application already. Now you can easily access your Facebook page as well as your contacts even without using a computer.

Are you now interested in installing cell phone apps for your phone? Read on and follow these simple steps:

Do a quick search for free cell phone applications on the internet. Don’t worry because there are loads of websites that carry this kind of download. In order to download such applications though, sometimes you have to supply your cell phone number to the website as well as the brand and model of your cell phone. The website needs this to be able to send you the application in its compatible format so it can be installed to your phone. Make sure that you also know your country and area code as these are also important information that you need to supply to the website.

Once that’s done, all you need to do is to wait for the application to be sent to your phone and you’re all set.

Another way to download cell phone apps for your phone is to get it through peer sharing sites and download it directly to your computer. Now you will need your phone’s USB cable to connect to your computer. Open your cell phone’s file folder and drag the cell phone application to it. After that, you can now start using the application on your phone.

However, with whatever kind of download that you end up with, make sure to always have your antivirus program updated daily. This way you would not have to worry about your computer or your cell phone getting infected with a software virus. Scan your downloads first before opening it just to be safe.

So you see, downloading as well as installing software applications to your cell phone is not really that hard. Aside from checking the quality of your downloads, make sure that you also have sufficient memory for all the applications that you are transferring to your cell phone. If you cell phone also makes use of an external memory card, try to get one which has at least a 2GB capacity so that your cell phone won’t suddenly crash because you have already used up its memory.

About the Author

Monica R. Hunt is an affiliate marketer. She operates a successful online business. You can obtain secure unlimited cell phone apps at, http:// http://www.phoneappsdownloads.com/

This post has probably been written time and time again but it is essential for your financial health to get your annual credit report. Why? you may ask. You need to check for errors in order to have them removed from your credit report.

Believe it or not you can check your credit report annually through a government approved website called www.AnnualCreditReport.com . You do not have to sign up for annual monitoring as seen in the television commercials.

By law, you are allowed to receive one credit report annually from all three credit reporting bureaus.

Here is a Tip:

Rather than requesting all three at the same time. You should request one from each bureau every four months. That way you can check your credit report all year round. Be sure to dispute any items with the credit agency which you find incorrect.

You probably know that by now it makes no sense to rent movies for $4 to $5 from either Blockbuster or Hollywood. Unless of course you have money to burn. You have probably heard of DVD vending machines that can easily be found in grocery stores. One of such machines is Redbox.

Photo source sptimes

You can rent a dvd for $1 daily! Sounds like a good way to save money right?

Well how about I tell you that there is actually a way to rent these movies for free!

Yes, well here is how it works. You see Red box will give you a code which can be used at any of their vending machine locations providing of course that you sign up HERE.

You will be provided with a code each Monday to use at the machine. All you have to do is select your movie, punch in your code and then swipe you credit/debit card. Voila, the movie  is all yours!

But wait there is more! Would you believe there are code sharing sites out there, where you can get these codes and rent movies through the week? Print out your code and visit your favorite Red box.

Check out our favorites sites listed below:

• INSIDE REDBOX
• REDBOXCODES
• RED BOX OFFICIAL SIGN UP LIST

Here is something else that you must note. You can use your code multiple times provided you have a different credit or debit card. Your credit card is required just in the instance you forget to return the movie by 9PM the following day. Word of advice: Never forget to return your movie. If you return the movie at the right time the movie is free for you.

You can use the code multiple times provided you use a different credit card as you rent the movie. Now that wasn’t so bad was it? Enjoy your movie. Thanks for reading and thanks for being part of the digeratimind family.