I’ve only checked my credit report and credit score once in my lifetime. That’s not good. It is advised to check your credit report regularly to check for inaccuracies and avoid identity theft.

For those who don’t care to check their credit report, you might care now if you learn that you are entitled to free credit reports every year. Take note that credit report is different from credit score. Credit report includes your accounts, payment history, payment behavior, and balances.

Below is how you can get free credit reports:

• denied an application (i.e. loan, insurance policy, unemployment) due to your credit history
• you live in a state that already offers free credit reports from each credit-reporting agency (Colorado, Georgia, Maine, Massachusetts, Maryland, New Jersey and Vermont)
• go to AnnualCreditReport.com, the ONLY authorized source for free credit reports
• call (877) 322-8228
• download a brochure from Federal Trade Commission and fill out the request form

(source: MSN Money)

UPDATE:

08/06/08: There are three more situations in addition to the above, that you may be able to get a free credit report:

• Identity Theft
• Unemployment
• Welfare

For more info, click here.

(source: MSN) 

Believe it or not, this week was the first time I’ve had a glimpse of my credit report and score.  Don’t be like me.  It’s advisable to check your credit report regularly especially now that identity theft is prevalent.

When I saw my credit score, the first question that came to mind was what is considered a good credit score.  After a few searches, I found out I have an excellent credit score.  What a relief.

I don’t know much about credit, so I’m posting here my questions, some answers I found and links to articles that I found helpful…

Read on…

A lot of people blame credit cards for their growing debt.  These plastic things may very well be to blame.  But if you exert a little more discipline, credit cards can be a friend.

I charge everything that can be charged to my credit cards.  But I make sure that I pay the full balance when they’re due.  I do not enroll in automatic payment.  But for those who don’t have the time to go pay, automatic payment is beneficial and important.  Most, if not all, credit card companies offer this anyway.  Why do I do this?  It’s the rewards honey.

My last bill from Discover earned me more then $60.  I didn’t spend that much, but this quarter, Discover is offering 5% cashback on travel-related expenses.  And I just went to Cayman this January.

My tips if you decide to follow suit and leave it all to plastic:

• Make sure you know your limit.  I usually give myself a weekly allowance and that’s my limit.  For those who don’t have an allowance, know how much is in your checking account.  A lot of banks give you the option to be notified about your balances regularly.  Set a percentage of your balance as a limit.  For example, I have $1000 in my checking account and I set a limit of 20% then I will only allow myself to spend more or less $200 for the month.  Just make sure that your limit still allows you to have extra money in your checking account after all monthly bills, expenses and allotted savings are deducted.
• Set up automatic payment or monthly alarm.  If you can set up an automatic payment, that is great.  But if you can’t, set up a monthly alarm.  I usually use my Inbox email to give me monthly notifications for paying my credit card bills.
• Don’t think about the rewards.  People sometimes get obsessed with earning rewards that they overspend.
• Don’t use too many credit cards.  It will just complicate your life.  Stick to a couple that offers the best rewards based on your lifestyle.

Read on…

It’s that time again for gift-giving… huge expenses. I have a friend who is planning to apply for a new credit card to use for the holidays.  The reason… probably to have additional credit or take advantage of the introductory rates or rewards or cash back?  Regardless, I showed her a credit card search engine that she may find useful.  Credit cards are listed by categories: low interest, cash back, gas, rewards, student, etc.  The search engine also allows you to compare the credit cards and apply for them right there.

Out of curiosity, I asked my friend how much she spends for gifts this time of year. She said about $1000 for gifts alone.  Another friend says she spends about $2000 total for the holidays.  How much do you spend?

I couldn’t believe people donated $20,000 (yup you heard that right!) to help this girl pay her credit card debt.  Her name is Karyn and she had a website set up with information on how to help her out financially. 

 

HERE’S THE DEAL…
[...] Over the last few years I’ve run up quite a credit card bill… let me tell YOU! $20,221.40 to be exact. OUCH! Maybe it was too many morning lattes that pushed me over the edge, maybe it was the Prada pumps that I bought on eBay (They were only $100 – a STEAL!) [...]

Are you kidding me?  I don’t earn much, but I save… maybe enough to buy some designer items, but I don’t. 

TOGETHER WE CAN MAKE A DIFFERENCE!
You see, I’m done with my frivolous ways. I’ve stopped buying designer clothes [...] I’ve done my part, now I need you to do yours. I believe that this world is a good place, and if someone needs help, then they should ask for it.

Do our part?  We have no part in this.  One’s credit card debt is his/her own responsibility, not anyone else’s.

WHAT’S IN IT FOR YOU, YOU ASK?
It’s normal that one should ask this question. I’ll be honest… nothing is really in it for you. But I do believe in Karma. If you help me, then someday someone might help you when you need it. SO HELP ME, and maybe someday, I’ll be able to help you.

I too believe in karma, but here’s all I can say to this… Karma my *bleep*!

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