Cheap Credit Cards Disappearing
Once one of the easiest and cheapest ways to borrow money over the short term, credit cards are now becoming increasingly expensive and a lot more difficult to obtain, yet millions of us still rely on them for our day to day budgeting.
Due to the credit crunch many credit card issuers have tightened their lending criteria and in effect have seen a huge reduction in the credit card market. However this still wasn’t enough to stop a record number of Brits applying for a card this year.
Recent figures show that even though the nation is currently in the middle of a credit crunch, general spending was up by more than 9% in September, also from a survey that was recently taken out apparently one in five adults are planning on paying for their Christmas this year on their credit cards.
Experts are now warning that if you are one of those people planning on paying for Christmas on your card you must be careful. Many years ago it would have been ok but these days easy credit and cheap borrowing are a thing of the past. Most credit cards currently out have high interest rates attached to them and most deals are starting to disappear. Many interest-free deals are also disappearing and lenders have started to be pickier about who they lend to. According to the latest figures, 16 of the top card providers raised their interest rates in the past year alone.
If you do decide to pay for Christmas on your card this year, be careful on the amount you spend and the amount of time you take to pay the funds back. There’s nothing worse than starting the New Year in a lot of debt.
Even though a lot of the cheap deals on most <a href=”http://www.moneysupermarket.com/cards/” title=”compare credit cards”>cards</a> have disappeared, there are still occasionally some really good deals on <a href=”http://www.moneysupermarket.com/cards/” title=”compare credit cards”>credit cards</a> and <a href=”http://www.moneysupermarket.com/cards/” title=”compare interest free credit cards”>interest free credit cards</a> so keep your eye out for them.
Dan Collins
http://www.articlesbase.com/credit-articles/cheap-credit-cards-disappearing-687593.html
6 Comments to Cheap Credit Cards Disappearing
Search
Guaranteed Cash
Articles
- Credit Cards (392)
- Debt (403)
- Get Cash Now (484)
- Loans (419)
- Money (246)
Husband has a 360 credit score due to 8 year old credit card debt, and no other activity. How to fix credit?
I thought we needed to consolidate his debt and start paying it off, but people are saying not to, that in a couple years it will disappear from his credit score? We don’t have lots of money for this, so don’t start saying "pay over the minimums" etc. That money is going towards MY debt. I just want to increase his credit score as cheaply as possible. I’d like it to be around 650 in the next 5 – 10 years.
Will his old debt disappear on its own in a couple years if we do nothing? Or do we need to somehow make a deal with these people? Should we write each company he owes individually and offer them cash settlements at say $0.50 on the dollar? Let me know the best way to eventually remedy the bad credit situation.
We are not in a hurry to pay them off. I just want to raise his credit score in an affordable manner. He owes about $15,000 and we have $5,000 now and could apply another $100 a month to paying it off. We could spend the $5000 all in one shot to pay it off, or we could use it slowly to pay it off.
Please no "learn how to budget" etc. lectures. We do that, this is very old debt. We can’t live any cheaper than we do and provide a safe home for our children.
Ah, they did stop calling us a few months ago! It must be off his record. But his credit score is still low, how do we build it back up now? I could put him on one of my cards…
This doesn’t sound right…please elaborate on when he defaulted on this debt. 7 years is the max. amount of time that charged-off credit card debt can stay on a credit report. If he defaulted 8 years ago then this debt should be off his credit report by now and his credit score should not be in atrocious 300-level…Are you sure that he has not had recent defaults/charge-offs? Start by requesting validation that this debt is being reported within the 7 year allowable time frame:
Send the credit bureaus (Equifax, TransUnion and Experian) a letter via Certified Mail. Include a photocopy of your driver’s license and social security card…If you don’t include these, they may write back requesting them, which would slow the process down by several weeks. In the letter, state:
Per the Fair Credit Reporting Act, I am requesting validation that this debt is being reported within the 7-year time frame as allowed under the Fair Credit Reporting Act. I am requesting validation of the original Date of First Delinquency for this debt
==============
Note: If you send the long validation letter mentioned below with all the demands, it will simply get thrown away. Keep it short and simple as stated above.
References :
You cannot even begin to increase his score till that debt is paid.
To increase his score means he applies for a credit card, uses it and pays promptly. That is the only way to raise a score.
With that debt still on the books no company will extend him credit.
References :
Have him dispute it with all three credit bureaus and/or send a validation letter to clear it up. To me it sound like the statute of limitations on this debt has past.
Sample of validation letter…
Attempt to Validate Debt.
Under the Federal Debt Collection Practices Act, you are allowed to challenge the validity of a debt that a collection agency states you owe to them. Use this letter and the following form to make the agency verify that the debt is actually yours and owed by you. Keep a copy for your files and send the letter registered mail.
Your Name
123 Your Street Address
Your City, ST 01234
ABC Collections
123 NotOnYourLife Ave
Chicago, IL
Date:
Re: Acct # XXXX-XXXX-XXXX-XXXX
To Whom It May Concern:
This letter is being sent to you in response to a notice sent to me on September 30, 2002). Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested.
This is NOT a request for “verification” or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.
Please provide me with the following:
What the money you say I owe is for;
Explain and show me how you calculated what you say I owe;
Provide me with copies of any papers that show I agreed to pay what you say I owe;
Provide a verification or copy of any judgment if applicable;
Identify the original creditor;
Prove the Statute of Limitations has not expired on this account
Show me that you are licensed to collect in my state
Provide me with your license numbers and Registered Agent
At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or TransUnion) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following:
Violation of the Fair Credit Reporting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character
If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist.
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is.
If your offices fail to respond to this validation request within 30 days from the date of your receipt, all references to this account must be deleted and completely removed from my credit file and a copy of such deletion request shall be sent to me immediately.
I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS.
It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose.
Best Regards,
Your Signature
Your Name
References :
http://www.creditinfocenter.com/forms/sampleletter9.shtml
Some of the answers given here just blow me away…
I do feel like I need a bit more info to really answer but I’ll do my best. I agree with the person who said the 360 is an atrocious score and something doesn’t seem right. I don’t think I’ve ever seen one that low.
You mention the debt is from an 8 y r old credit card.. when did he default on the credit card (s)? That is so important to answering this question right. You do say ‘very old debt’ too so I just don’t know how to address this.
Negative information can only stay on a credit report for 7 years so this leads me to believe the debt is not that old OR it hasn’t come off and if so, you can simply dispute the account and it will come right off.
Now you also really need to check your states statute of limitations. Most states only consider a credit card account legally collectible for 3 or 4 years (most 3). That means that if it is older that 3 yrs (or whatever your state SOL is) they can not force you to pay. Period. They can try to collect the money, they can even try to sue you but all you have to do is defend yourself and show you know the law. Simply state, ‘this is a credit card and in xyz state, the statute of limitations is 3 yrs, this debt is 5 yrs and is therefore legally uncollectible.’ If you were sued, you just show up in court, show the statute and the judge dismisses the case.
You can check your states by going to the link in the resource box.
There is also an article there about should you even pay charged off accounts. The person who answered that you must pay the debt is dead wrong. That is SO not true. If the debt is out of SOL, you do not have to pay as it is considered non collectible. You should also realize that paying this debt off is not goign to help your score one single ounce even if it is still within the SOL. If you check your state and the credit card debt is still within your states SOL, just sit tight. Do not contact them, just sit and wait it out. Starting to make payments, at this point is not the smart thing to do at all. If you are still within the SOL and they are going to sue you, then you can work out a payment arrangement but it sounds like you will be out of it.
You would be MUCH better off using that money and getting a couple of thousand dollar secured cards. This is where you will see a huge improvement in his score. Assuming the debt is older than 7 yrs or within a year of 7 yrs, they will fall off the report and when you start to add positive credit, you will see his score up in the 650 range a lot quicker than 5-10 yrs.
There is also a link below that tells you more about what a secured card is and shows you 3 places that don’t have any annual fees and low or zero % interest.
I also suggest you leave a comment on one of those posts and she will answer you personally and help you out. She is wonderful and so smart about all of this.
http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score
http://www.comebackcredit.com/statute-of-limitations-on-debts/
http://www.comebackcredit.com/what-is-a-secured-credit-card/
References :
http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score
http://www.comebackcredit.com/statute-of-limitations-on-debts/
http://www.comebackcredit.com/what-is-a-secured-credit-card/
I had my fair share of credit problems, no bank or company was willing to give me a loan. I honestly examined the reasons for my financial troubles and had tried my best to solve them. In my searches I got on-line and I found this great article about credit repair:
Good luck fixing your credit problems.
http://credit-fix.bestof-the-net.com/
it has changed my life for good. Now my family and I are living in the house we’ve always dreamed about
Good Luck!
Matthew.
References :
http://credit-fix.bestof-the-net.com/