My Credit Specialists

Judge Rules Swipe Fees “Inappropriately” High

2013-08-01T17:04:00.003-04:00

Retailers and credit card companies have been battling over swipe fees for years now with consumers unfortunately caught in the middle. On the one side, banks claim that retailers are violating consumers’ rights by charging more to pay with credit card than cash. On the other side, retailers claim that swipe fees are cutting into small business’ profits and driving up costs.

This week, however, a federal judge ruled in favor of retailers, saying that swipe fees were “inappropriately” high. Judge Richard J. Leon had some strong words for the banks and credit card companies as well as the Federal Reserve Board which had allowed swipe fees to rise up to as much as 24 cents per transaction.

In a prepared statement, the top lawyer for the National Retail Federation praised the ruling and chastised the Federal Reserve Board for “fail[ing] to heed Congress’ call to see fee standards that were ‘reasonable’ and ‘proportional’ to the actual cost of a transaction.” The Retail Industry Leaders Association also welcomed the ruling as an “opportunity to ensure the law is finally implemented as intented,” going on to say that the Federal Reserve had “muted the law’s intended benefits.”

At My Credit Specialist, we want our readers to be financially healthy, which includes having the best credit score possible. Getting that prime credit score is tough, but we help you along the way with credit tips, consumer alerts, and our credit restoration services. To get the most out of My Credit Specialist’s services, be sure to like My Credit Specialist on Facebook, following My Credit Specialist on Twitter, and subscribing to My Credit Specialist on YouTube! If you want to learn more about our credit restoration services, go to http://www.mycreditspecialist.com and find out if it is the right choice for you!

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Credit Card Skimmers: How to Spot and Avoid Them

2013-05-17T16:14:00.000-04:00

Credit card skimmers are becoming easier to install and harder to spot, creating a real problem for consumers and law enforcement alike. A recent news story from CBS affiliate KESQ, however, offers a few tips for consumers who want to protect themselves from credit card thieves.

For readers unfamiliar with credit card skimming, a criminal places a device over top of an ATM, a credit card reader at a gas pump, or another publicly accessible credit card reader. As customers swipe their credit or debit card, the skimmer grabs and saves the card’s information. The criminal will usually find a spot to watch the scanner and write down PIN numbers for debit card users.

How do you avoid being a victim of this scam? First off, always use your credit card for these types of transactions. Credit cards typically have more safeguards in place so that even if someone steals the card, the cardholder will not be held liable for purchases. Debit cards typically don’t have these protections. Once the money is gone, it’s gone.

Second, check the card reader for anything unusual. If it looks like it has been tampered with, you might not want to use your card. Also, these skimming devices are built to be quickly installed and uninstalled, so if the card scanner itself is loose, contact the vendor and the proper authorities.

Finally, keep a close eye on your credit card transactions. Take 5 minutes every day to review any card charges online, and report anything that you do not recognize. Also, most credit card companies have alert systems available for cardholders. If there is an unusual charge, they will call or text you to verify the charge. Contact your credit card company and ask if you are currently enrolled for this service.

Want more spending and credit tips? Be sure to like My Credit Specialist on Facebook, follow My Credit Specialist on Twitter, and subscribe to My Credit Specialist on YouTube! Also, go to http://www.mycreditspecialist.com and find out if credit restoration is the right choice for you!

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Is Poor Credit Affecting Your Insurance Rates?

2013-03-22T11:28:00.000-04:00

If you are planning to renew your insurance policy anytime soon, it might be a good idea to check your credit report first.

In the United States, 47 out of the 50 states have allowed insurance companies to review a customer’s credit when they first apply for a new auto, renter’s, or homeowner’s policy. All 47 states except Alaska also allow the insurance companies to review the customer’s credit when they renew the policy, but that might change soon. Alaska’s Senate Labor and Commerce Committee have advanced a bill that would allow insurance companies to review credit when renewing a policy.

Should insurance companies be allowed to check a customer’s credit? It is certainly a debate worth having. For now, however, the law in most states allows them to do it, so consumers need to be aware of what is on their credit report and pro-active in correcting any mistakes. Credit report errors could result in a higher insurance premium rate, and consumers could be paying more than they need to.

Do you know what’s on your credit report? Call My Credit Specialist today at 1-866-565-6500 or go to http://www.mycreditspecialist.com to learn more about credit restoration and if it is the right choice for you. You can also get daily credit tips and consumer alerts by liking My CreditSpecialist on Facebook, following My Credit Specialist on Twitter, or subscribing to My Credit Specialist on YouTube!

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My Credit Specialist – Now On Google+ Communities!

2013-01-08T16:35:00.000-05:00

We are excited to announce that My Credit Specialist is now on Google+ Communities! When you join our community, you can get the latest news and tips from My Credit Specialist, give us feedback, and connect with other My Credit Specialist fans and customers!

Click here to check out our Google+ Community!

3 Steps to Protecting Your Online Shopping Sprees

2012-11-16T16:38:00.000-05:00

The holiday season is here with Thanksgiving next week and Christmas just around the corner, which means one thing: Black Friday sales. Many stores are now offering exclusive deals online as well as in their physical stores, and consumers will be spending big bucks from online stores which brings up questions of keeping personal information safe. What can you do to keep your credit card information out of the hands of hackers and criminals?

Firstly, make sure to always shop from trusted online vendors. If you haven’t shopped from a website before, do a little research. Read reviews for the website, and if anything seems sketchy, don’t give out your credit card information.

Second, be vigilant. We encourage our readers to always review their bank and credit card statements for anything that looks out of place, but during the holidays, this simple step is even more important. Dispute any suspicious charges right away, and if you believe someone has stolen your credit or debit card information, contact your bank or credit card company immediately.

Finally, do not save your credit card information on websites. Most websites let you set up a profile and save credit cards on your account to make purchases more convenient, but when you can, don’t save any credit card information. Not only will you protect your credit card information from hackers but you will also cut down on impulse buys. In the time it will take you to pull out your credit card and type in the information, you will have thought about whether this is a good purchase or not.

Want more spending tips this holiday season? Check out My Credit Specialist on Facebook, Twitter, and YouTube! Also, go to http://www.mycreditspecialist to learn more about credit restoration and whether it is the right choice for you!

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Cordray: Change Credit Card Rules for Stay-at-Home Parents

2012-09-24T15:24:00.000-04:00

For years, credit card restrictions have discriminated against stay-at-home parents who do not bring in enough income to get approved, even if their spouse has sufficient income. The Consumer Financial Protection Bureau is hoping to change that.

CFPB Director Richard Cordray announced last week that they would be proposing a new rule where credit card eligibility would be based on household income instead of individual income. If the rule is put into place, more stay-at-home parents with strong credit would be eligible for credit cards.

At My Credit Specialist, we are very excited about this change. It is unfair for a stay-at-home spouse to be denied for a credit card, even if they have stellar credit and their spouse brings in enough income. Besides, it is important for both spouses to have a strong credit history if they ever need a loan of any kind in the future. Using a credit card responsibly and paying it off is the easiest way to build a credit history. Hopefully this rule will be put into place and more Americans will have access to credit.

Credit Card Processors Halt Processing for Medicinal Marijuana

2012-07-06T14:36:00.001-04:00

At My Credit Specialist, we are not anti-credit card. Some financial experts want everyone to cut up their credit cards, but we encourage responsible credit card usage. Buy a cup of coffee, buy lunch, or pick up another expense that you can afford to pay back right away.

There are few times when we are reporting on places where you cannot use your credit card, but as it so happens, credit card processors are cutting off their services to California medical marijuana dispensaries. They have been under pressure from the federal government for awhile, but they officially stopped processing payments after Sunday, July 1.

Before going further, My Credit Specialist does not take an official stance on medical marijuana. Our interest in this story is merely how it affects the American consumer and credit card usage. That being said, what does this mean for people who use medicinal marijuana? Well, they will have to pay for their cannabis entirely in cash which activists claim will make patients a target for thieves. Besides that, the federal government is interfering in statewide laws, making it clear that medicinal marijuana will not be respected as a state's issue. The biggest problem is that this action sets a precedent that the federal government can kill a good or service by putting pressure on the credit card processors. An overly zealous federal government could bring about a second prohibition or discourage consumers from purchasing a good or service by making it cash-only.

We are curious what our readers think about this issue. Do you think the federal government is right to discourage marijuana usage, or are they infringing on state's rights and credit card processors' freedoms? Leave a comment below and tell us what you think! You can keep up with the latest news from My Credit Specialist by liking My Credit Specialist on Facebook and following My Credit Specialist on Twitter. Also, go to http://www.mycreditspecialist.com to learn more about the credit restoration process and whether it is the right choice for you!

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I Love You, Phillip Morris-esque Credit Card Thief Uses Company Card for Fertility Treatments

2012-05-18T14:22:00.000-04:00

In the 2009 film I Love You, Phillip Morris, Jim Carrey's character Steven does some creative accounting to steal from his company and support his extravagant lifestyle. Though the film is based on a true story, it is hard to believe that someone like Steven could pull off a similar scheme in today's business world, but Ligia Baciu of Orange County in California did just that.

Baciu worked at Sweet Life Enterprises from 2005 to 2009 in the accounting department overseeing the company's credit card accounts. During that time, she took out numerous company credit cards for her own use. Up until January 2010, Baciu spent over $236,000 on an engagement ring, hotel suites, designer clothing, and a new Audi. She even used a company card to pay for her domestic partner's fertility treatments.

The surprising part of the story is how long it took Sweet Life Enterprises to catch onto her credit card fraud after she left. Accountants at the company only discovered what Baciu was doing when they reviewed the company's credit card statements, and police just arrested her this week. She was charged with 21 felony counts of computer access and fraud and three felony counts of fraudulently using access cards, but still, she allegedly committed fraud for 5 years without getting caught. It took two years after she got caught for her to be arrested. Why has it taken this long?

Credit card fraud can happen to anyone, so check your credit card statements every month for suspicious charges. Also, make sure to keep your balance under 30 percent of your card's limit to get the best credit score possible. To get more tips for improving your credit health, follow My Credit Specialist on Twitter and like My Credit Specialiston Facebook. If you are struggling with bad credit, go to http://www.mycreditspecialist.com to find out if credit restoration is the right choice for you.

“Dead” Bank of America Customer is Not Dead, Seeks Compensation

2012-03-15T16:50:00.002-04:00

America's big banks have taken a lot of hits in the past few years. JPMorgan Chase is in hot water over collection practices, HSBC and U.S. Bank were caught forging lost mortgage documents, and Bank of America has sped up its foreclosures. Chase Bank even got in trouble for erroneously reporting that customers were dead.

Well, Bank of America is back in the spotlight again for reporting that Arthur Livingston, a Bank of America customer for 19 years, was deceased. Livingston has been listed as deceased by Equifax, Experian, and TransUnion since May 2009, and he only found out when he applied for a loan in October last year. After months of hassle, he will be paying thousands of dollars more than he would have been if he had gotten the loan when he applied, mainly because the numerous credit inquiries have messed up his credit score. Additionally, he is currently living in a rental house with his family, and by the time their new home is ready, they will have spent around $12,000 in rent.

Arthur Livingston's situation is understandably frustrating, and I can't blame him for wanting Bank of America to compensate him for all the troubles he has run into for their mistake. Unfortunately, these situations have happened before, and they will probably happen again. The lesson that consumers can take away from Arthur Livingston's story is to regularly check their Equifax, Experian, and TransUnion credit reports, especially before applying for a loan. Then if an error occurs, you can catch it right away.

Do you know what's on your credit report? Is credit restoration right for you? Learn more about My Credit Specialist's credit restoration services here, and keep up to date on the latest credit and personal finance news on Facebook and Twitter.

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Bank of America, Wells Fargo Cash In On Move to Debit Cards

2011-10-12T17:11:00.003-04:00

Since the recession, Americans have been wary of getting into any debt. Credit card use has gone down, and consumers are focusing their attention on saving as much as they can.

Bank of America and Wells Fargo have noticed this trend and found a new way to make some money off of their frugal customers. Debit card customers with Bank of America will have to pay a $5 monthly card usage fee, and Wells Fargo's customers will have to pay an extra $3 every month to keep using their debit card. These new fees have already been slammed by many consumer advocates, and even President Obama weighed in on the issue, saying, “Banks can make money. They can succeed, the old-fashioned way, by earning it.” Ouch.

Here is my biggest problem with Bank of America and Wells Fargo implementing these fees. Usually when a company adds a fee to their service, the customer knows what this money is going towards. Even in the case of the Netflix price hike, I understood that they were trying to get the streaming rights to more movies and keep Starz while attracting other networks to give them exclusive streaming. If Bank of America and Wells Fargo are going to add on new fees, then they should tell the customer where this money is going. Will they waive ATM transaction fees? Will there be more Bank of America ATMs across the country? What advantage will Bank of America and Wells Fargo customers have that they didn't have before?

Bank of America has made headlines in this blog numerous times because of their poor customer relations and notoriously bad business practices. This is yet another reason why Bank of America customers should switch to another bank, and Wells Fargo customers should consider switching as well. After all, what are Bank of America or Wells Fargo doing that another bank or credit union couldn't do just as well and without the fees?

To learn more about protecting yourself as a consumer, check out more of our articles at http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to learn more about My Credit Specialist and sign up today.

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Anti-Foreclosure Protests to Sweep Country from September Thru November

2011-09-21T17:21:00.003-04:00

As protestors settle in for the long-haul down at Wall Street, more protests are currently being planned across the country in response to continued foreclosures (or in Bank of America's case, upping the foreclosures).

The protests are being organized by the New Bottom Line, a coalition of human rights and faith-based groups across the country including Alliance for a Just Society, Federation of Congregations United to Serve, and Main Street Alliance among others. From September 20 thru November 7, there will be protests in Seattle, San Francisco, Boston, Los Angeles, Chicago, New York City, Minneapolis, Denver, and Honolulu. Their message covers Wall Street greed and financial reform, and many of the people participating are personally affected by the surge of foreclosures.

Dixie Mitchell will be participating in the protests in Seattle. She is a truly incredible woman. Not only did she raise eight biological and fifty foster children but she also survived cancer and now is caring for her husband who is paralyzed from a stroke in 2008. In recent years, the expenses and loss of her husband's income became too much, and now their home will be auctioned off on October 28. You can watch an interview with Dixie Mitchell below, uploaded by 1WorkingWA.

Dixie Mitchell said she will be participating in the Seattle protests because she wants the bank to look her “in the eye.” “They haven't done their share to help,” she insists. “They don't even give you a chance...all they do is lose your paperwork and make you send it over and over again.”

To learn more about events sponsored by The New Bottom Line in your area, go to http://www.newbottomline.com/americans_to_wall_street_pay_us_back, and go to http://www.mycreditspecialist.com to sign up today with My Credit Specialist and start getting your financial situation on the right track.

Federal Reserve Fines Wells Fargo for Doctoring Mortgage Documents

2011-08-08T11:55:00.002-04:00

Many American have a tough time getting a good deal with their mortgage, and shopping around for the best deal requires a great deal of work. For 10,000 Wells Fargo customers, however, they were blatantly cheated out of a better interest rate by Wells Fargo itself.

According to the Federal Reserve, Wells Fargo was altering customer's information on documentation applying for a mortgage. They changed customers' incomes and other financial information, and they would offer the customers higher interest rates even though they qualified for a lower rate. Wells Fargo is continuing to deny any wrongdoing, but the Federal Reserve has ordered that Wells Fargo pay an $85 million fine and give further compensation to the thousands of Wells Fargo affected.

This is greed at its ugliest. Thousands of homeowners could have had a lower interest rate on their mortgage, and instead, Wells Fargo allegedly encouraged them to take subprime loans that cost their customers substantially more. If the Federal Reserve's allegations are true, then consumers cannot know whether to trust anything their bank tells them. Consumers trust their banks when they apply for a loan, and they believe that their bank will give them a fair rate. The rate might vary slightly from lender to lender, but their bank won't work actively against the customer's best interests. Even if the allegations turn out to be false, many customers will have lost trust in their bank (if they haven't already) and will be more reluctantly to believe anything their bank tells them.

To learn more about protecting yourself as a consumer and getting the best credit possible, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Equifax Moves Credit Scores to Smart Phones

2011-05-19T10:15:00.003-04:00

Smart phones can tell you where you are (Google Maps), which bars and restaurants you frequent most (Four Square), and what your friends are up to (Facebook and Twitter), and now, Equifax is offering a smart phone application for credit-conscious consumers.

Equifax mobile, now available on the Android, allows consumers to check their credit ranking compared to other consumers in their area and find out how susceptible their region is to identity theft and credit card fraud. If they are signed up for other credit monitoring services through Equifax, they can also check out their Equifax credit report, set up alerts, and view their Equifax credit score, all from their phone. If you are a victim of identity theft or credit card theft, you can also lock your credit report from your phone.

After looking over the app's features, I think the Equifax mobile app will only really appeal to consumers already signed up for credit monitoring service. Sure, I can check to see how prevalent identity theft is in my neighborhood, but the best features are tied to credit monitoring like credit alerts and viewing your Equifax score on the go. For Equifax customers who have smart phones, I recommend downloading the app, but I don't think anyone else will get much out of it.

You can download the Equifax mobile app on the Android Market. To learn more about improving your credit, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Avoid Currency Fees Traveling Overseas This Summer

2011-04-04T11:00:00.004-04:00

I am extremely fortunate in that I have had the chance to travel overseas numerous times already in my life. One of the biggest dilemmas in traveling overseas is exchanging currency, particularly if I am planning to visit several different countries with different currencies. Instead of going through the trouble of exchanging cash every time I get to a new country, I usually just pay with my credit or debit card the whole time. According to USA Today, however, my credit card company could be charging me extra for my international credit card charges.

Many banks charge travelers what is called a currency transaction fee which is usually about 3 percent of the purchase. 3 percent might not sound like a lot, but when you consider how much a traveler spends on eating out, transportation around a city, sightseeing attractions, and gifts for friends and family back home, that little 3 percent adds up very quickly. By the end of your trip, you could end up with hundreds of dollars wasted in currency transaction fees.

Of course, the alternative of cash-only isn't much better. Traveling with large amounts of cash makes you more vulnerable to pick-pockets. Credit cards can be canceled, but if your wallet is lost or stolen with cash in it, the cash is gone. Besides that, currency exchange places usually charge fees of their own, so you will lose some value exchanging your money.

What options are available to the money-savvy traveler? Well, there are some credit card companies and banks that are ending their currency transaction fees. Capital One has not charged currency transaction fees in years, and American Express recently announced that they would be doing away with currency transaction fees for U.S. customers. Before traveling overseas, I would recommend checking with your credit card company and find out if they have a currency transaction fee. If they do not, I recommend using your card rather than bothering with cash. Also, check with your bank and find out what sort of ATM fees they charge for customers withdrawing money overseas. You will probably need or want cash at some point during the trip, and you don't want to be surprised by the high ATM transaction fees.

To learn more about responsible credit card use, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Slurpees, Sans Swipe Fees

2011-03-14T15:32:00.003-04:00

I am a huge fan of 7-Eleven. For the first few months after our wedding, my husband and I had a nightly ritual of taking a walk together and stopping by 7-Eleven for Slurpees. It was a simple and fairly inexpensive way to get out of the house, have some good conversation, and connect at the end of our busy days.

Now, usually my husband has enough cash on him for the $3 and change that two Slurpees cost, but on occasion, he had to use his card to cover our drinks. That's why I was so happy to hear last week that the National Coalition of Associations of 7-Eleven Franchisees had successfully petitioned the government to pass swipe fee reform.

Every year, retailers are charged about $12 billion in swipe fees by credit card companies, which means that all the times we had to use a credit card to buy our Slurpees, it was costing 7-Eleven extra to process the transaction. They had to bump up prices in order to cover the extra cost of credit card transactions which meant that 7-Eleven customers were paying a little more on drinks, snacks, and groceries. Now that swipe fee reform has gone through, 7-Eleven won't have to pass along that expense to customers like me.

If you want to learn more about swipe fee reform, you can check out their website at http://www.unfaircreditcardfees.com. Also, you can learn more about responsible credit card use at http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com for a free credit evaluation today.

Consumer Alert: iPad 2

2011-03-09T11:09:00.005-05:00

The iPad 2 is scheduled to hit retail stores in only a few days. The official release date is set for March 11, this upcoming Friday, and the popular Apple product is bound to be in high-demand with its dual webcams, WiFi capabilities, longer battery life, and new applications.

Consumers need to keep in mind while they are shopping around to make sure they stick to trusted retailers. Not that long ago, the Brooklyn crime ring S3 was buying and reselling iPods, MacBooks, and iPads using stolen credit card information, and there are plenty more similar crime rings currently out there. The iPad you see being sold on the street for much lower than market price might work just fine, but if you buy it, you are financing criminal activity.

If you're looking to buy an iPad 2 this Friday, we recommend checking out your local Apple Store, Target, or Best Buy who will all be stocking the iPad 2 that day. Don't be suckered in by deep discounts from street dealers. Keep in mind that if it sounds too good to be true, it probably isn't.

To learn more about responsible credit card use and protecting your identity, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Over Two-Thirds of Americans Can't Name Big 3 Credit Bureaus

2011-03-07T11:26:00.005-05:00

Credit scores can affect your ability to get a car, house, or job, but a recent survey shows that less than one-third of Americans can name all three credit bureaus.

The three major credit bureaus are Experian, Equifax, and Transunion, and they are independent entities which all compile their own credit reports and credit scores. When survey subjects were asked to name the credit bureaus, sixty-nine percent could name one bureau, forty-eight percent could name two bureaus, and thirty percent could name all three bureaus. The survey results showed that education was the most significant factor in whether people knew all three credit bureaus, but among those who had completed college education or more higher education, only thirty-two percent knew all three credit bureaus.

G.I. Joe said that knowing is half the battle, and in this case, they were completely right. How can you have a healthy credit history or credit score if you don't even know the companies that are compiling your credit report? Have these consumers ever taken a look at their credit reports, making sure to get one from each credit bureau? Considering that many consumers can't name all three credit bureaus, I seriously doubt it.

Understanding how the credit bureaus work and improving your credit score does not have to be difficult. You can learn more about the credit bureaus and how they calculate your credit score at http://mycreditspecialist.com/educate.html and learn tips for improving your credit score at http://blog.mycreditspecialist.com. My Credit Specialist is even on YouTube, and you can view their on-going series “Debunking Credit Myths” at http://www.youtube.com/mycreditspecialist.

Educate yourself with My Credit Specialist, and put yourself on the road to better credit health!

Keeping Up with Credit Scores: 2010's Big Winners and Losers

2011-02-21T11:25:00.005-05:00

Despite a heightened awareness in the past year, American consumers are still rather apathetic about checking their credit score. According to a recent survey by Credit.com, only half of the survey subjects had checked their credit score in the past year. The survey also gave a breakdown of who was most likely to check their credit report based on age, income, and gender. Who were credit savvy in 2010? The results might surprise you.

AGE

Young people won out this year, though they certainly could have pulled better numbers. About 60 percent of people ages 25 to 49 took a look at their credit score compared to 51 percent of people ages 50 to 64. My guess is that young people are thinking more about buying a new car, getting a good interest rate on their credit card, or buying a home if they are married and thinking about having kids.

It is important for people of all ages to check their credit score. At age 50, your needs and dreams are different from when you are 30, but you still need good credit if you are thinking of retirement. A problem on your credit report or a few points on your credit score can keep you from buying that beautiful dream home on a lake.

GENDER

Women were the winners this year with 50.6 percent, inching out ahead of the men at 49.6 percent. Those are still pretty poor numbers, though, hovering just over and under a half of respondents. This might be a victory for the ladies, but it is a poor showing for both genders.

INCOME

Income came out pretty evenly. 64 percent of respondents with incomes between $30,000 and $39,999 per year had checked their credit report, and the results were the same for respondents with incomes of $50,000 and more per year.

This was kind of a surprise for me. I expected that consumers with incomes of $50,000 or more would have been more likely to check their credit report, and I'm glad to see that even though the numbers could be better, at least it is the same across the board for different income levels.

THE LOSERS

Yes, there were winners and losers in each category, but the biggest losers of Credit.com's survey were the 22 percent of respondents who said that they had never checked their credit score. They hadn't simply forgotten this year, they had just never checked their credit, ever. These 22 percent are the real credit losers of 2010.

When was the last time you looked over your credit report or checked on your credit score? Do you know how your credit score is calculated? If you aren't sure, check out My Credit Specialist's Credit Classroom at http://mycreditspecialist.com/educate.html, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Pastor Steals Church Elder's Identity, Charges $21 Thousand

2011-02-08T11:17:00.003-05:00

There are very few people that I fully trust. My husband, my immediate family, and some of my closest friends are among them. One entity that people still trust, no matter what their religious beliefs, are people who have dedicated their lives to worship and serving their congregation. When someone betrays that trust, it can destroy that person's religious faith and make it more difficult for them to believe anyone again. I think that is why the story of former pastor Bruce Stutzman has shocked people both in the Christian community and beyond.

In 2009, Pastor Bruce Stutzman opened a MasterCard account under the name of Donald Ewan, an elder at New Hope Alliance Church, and he quickly started using the card to pay his bills and get large cash advances. In the first week Stutzman had the card, he took out $12,000, eventually racking up $21,816 by the time he was caught.

What Bruce Stutzman did was unbelievably hypocritical from someone who is meant to be held up as a leader and an example in morality, and it really proves that you need to be on your guard. A surprising percentage of identity thefts are done by people that the victim knows, so just because you know this person and think they are trustworthy or they are in a position of power or moral authority, you should still be careful who you share your personal information with.

I have two lessons that I want people to take away from the story of Bruce Stutzman. First, for all the concerned consumers out there, remember that it is not stupid to place your trust in people. You cannot live your life constantly being paranoid and believing that everyone is going to betray you. The best advice I can give is to be smart and let people earn your trust. My second lesson is for priests, parents, rabbis, and other religious leaders. You need to earn your congregation's respect through honesty and living what you preach. The last thing people need is to suspect their religious leaders of wrongdoing. Do you want your congregation thinking twice before putting their tithe in the offering plate?

To learn more about responsible credit card use and protecting your identity, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Cash-Back Reward Cards Lead to More Debt

2011-01-17T12:13:00.003-05:00

A new study by the Federal Reserve Bank of Chicago shows that cash-back reward incentives on credit cards usually cause more spending, more debt, and very little reward.

The study found that a one percent cash-back program on average increased spending by $68 per month, debt by $115 per month, and only yielded a reward of $25. They might save a little bit of money, but on average, they end up with much more debt than reward out of the deal.

Does this mean that cash-back credit cards are bad? No, cash-back rewards shouldn’t solely be blamed for increased spending and debt. The trick is to use the credit card as you normally would, stay within your budget, and not spend more just because you have a rewards program. After all, what is the point of getting cash back if you never even get to see that money?

To learn more about responsible credit card usage, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com for a free credit evaluation.

Medical Bills Top Collection Agencies' Actions

2011-01-12T11:06:00.005-05:00

When you or someone you love is going through a medical emergency, your first concern is their well-being and the last thing you are worrying about is paying your bills. According to a study by the Federal Reserve, however, people at their most vulnerable physically are also the most vulnerable financially. Over half of collection actions reported by collection agencies are medical, far and above any other category. (Second place is utilities, coming in at a mere 22.7 percent.)

Last month, the New York Times told the story of Darryle Watson, an automotive service advisor who ran into some problems refinancing his mortgage due to four unpaid medical bills. The bills had been sent to a collection agency, and Darryle and his wife A.J. had no idea that they owed any money. According to the New York Times, their biggest medical bill was less than $400 and the smallest was about $15, and yet these bills would have cost them over $9,000 in closing costs.

The Watsons are hardly unique in their situation. Of all the medical bills sent to collection agencies, 82 percent were $500 or less, and 34 percent were for $100 or less. These are relatively small bills and yet these bills end up costing people points on their credit score and thousands of dollars down the road. What is worse is that many people don’t know about their unpaid bills passed onto these collection agencies until they need credit.

How can you make sure that what happened to Darryle Watson doesn’t happen to you? Keep up with your medical bills and if you know that you won’t be able to make a payment, let them know and try to work out a payment plan. Make sure they don’t sell your bill to a collection agency, and pay them off as quickly as possible. Also, take a look at your credit report on a regular basis or sign up for credit monitoring and repair through My Credit Specialist. Our credit specialists know what to look for, and they can get false or outdated items removed from your credit report, including late medical bills.

To learn more about improving your credit score, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation.

Stephen Colbert Gets Goldman Sachs Credit Card, Hilarity Ensues

2010-12-17T15:19:00.005-05:00

Stephen Colbert: fake news personality, Emmy-winner, and credit card thief?

No, Colbert did not steal a credit card, but for a short time this week on The Colbert Report, Colbert did show off a credit card belonging to Buckley T. Ratchford. Ratchford is a partner at Goldman Sachs, and when his lost credit card was found by a writer at The Colbert Report, they decided to have a little fun with it. Colbert said that he would return the lost credit card if Ratchford would come on his show and defend Wall Street bonuses. If Ratchford refused, Colbert would reveal a new digit in Ratchford’s credit card number each night.

Unfortunately, Goldman Sachs’ lawyers were not laughing at Colbert’s prank and sent him a letter demanding that Colbert return the credit card by the end of the day. Before he sent the card back, however, Colbert managed to get in one more jab. On his show that night, he used a carbon paper credit card copier to make himself a copy of the card, and smiling at the camera, he said he would be happy to send it back because, “I don’t really need it anymore.”

Even though Goldman Sachs lawyered up, I think Colbert ultimately comes out as the winner. There is very little sympathy amongst the general public for Goldman Sachs, and though we cannot undo the damage Goldman Sachs has done, Colbert did exactly what we all want to do to Goldman Sachs which is irritate them to no end and mock them publicly.

To learn about responsible credit card use, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation.

MYPLASH Targets Young'Uns with New Pre-Paid Card

2010-12-14T14:45:00.004-05:00

Since the Kardashian Kard went down in flames, pre-paid debit cards have been under higher scrutiny from industry experts and consumers alike. Parents are on the look-out for predatory fees and advertising aimed at teenagers. One of the newer pre-paid cards, the MYPLASH Teen MasterCard, is promoting itself as a positive way to “provide teens and young adults a sensible (yet fun) way to manage their money” and refers to customers as “family.” Is the MYPLASH card another Kardashian Kard in disguise, or should parents consider getting the MYPLASH card for their kids?

The good news is that the MYPLASH card doesn’t have as many fees as the Kardashian Kard. There is a $6.95 activation fee, but they are waiving the fee for a limited time. Monthly membership is $4.95 which comes to about $59.40 per year as opposed to $99.95 for the Kardashian Kard. ATM withdrawals cost $1.50 per instance, and checking the account balance is $0.75 per instance. Reloading the card costs $4.95, and there are other odd fees like $2 per month to have a paper statement delivered and $1.50 to send a customer service request by e-mail.

Is the MYPLASH card as bad as the Kardashian Kard? No, but that isn’t saying much. It is kind of like saying that the flu isn’t as bad as the plague. They are both bad, just to varying degrees. The part that worries me about the MYPLASH card is how they are marketing themselves. Besides slapping cartoons, rock stars, and characters from Twilight on the cards, they are claiming on their website that they “don’t charge silly fees” and marketing their product as the alternative to expensive pre-paid cards like the Kardashian Kard. Meanwhile, their full terms and conditions are buried at the bottom of the page, something that people might disregard after being assured that they will be treated like “family.”

In the end, I think that teenagers would benefit more from just having their own debit account. They will learn just as much about money management, and most banks offer free transactions at their sponsored ATMs which eliminates the money wasted on withdrawals and balance checks with pre-paid cards. If pre-paid cards still seem like the best option, make sure to read the fine print. Do not get suckered in by celebrities, sparkly vampires, or promises of fewer fees. No matter what, always check out the Terms and Conditions and make sure you understand what you’re signing up for.

To learn more about responsible credit card usage, check out our YouTube channel at http://www.youtube.com/mycreditspecialist, and sign up for a free credit evaluation at http://www.mycreditspecialist.com.

American Express Supports Small Businesses with Shopper Reward

2010-12-08T17:01:00.003-05:00

American Express card holders will get a little something extra back for supporting small businesses this holiday season.

Many shoppers might be immediately drawn into the big department stores and discount stores by advertising and special sales, but American Express shoppers who spend $25 or more at eligible small businesses between now and December 31 will get $25 back on their statement.

I for one think that this is a fantastic idea. People who shop at the big chain stores usually give the reason that they can get better prices than smaller businesses can offer. The $25 credit is a great incentive to buy a couple of gifts at a local shop, and shoppers across the country will be pumping money into their local economy.

If you want to participate in American Express’ “Think Big, Shop Small” program, register at https://enroll.amexnetwork.com/US/sbs, and comment below and tell us where you will be shopping this holiday season!

To learn more about responsible credit card usage, go to http://blog.mycreditspecialist.com, and sign up for a free credit evaluation at http://www.mycreditspecialist.com.

Zynga and American Express: Trading Real Points for Virtual Livestock

2010-12-03T11:00:00.003-05:00

A little over a week ago, I heard about how Facebook would be offering virtual credit for Zynga games including Farmville, Frontierville, and PetVille. Since then, however, there has been another huge development for Zynga. American Express has announced that card holders can use their rewards points to buy exclusive virtual items on Zynga games that are not available to non-card holders.

Rewards points, usually used to redeem gift cards, airline tickets, and electronics, can now buy an Amex Lightning Stove in Zynga’s Café World or a Purple Cow in Farmville. Card holders earn 1 point for every dollar spent, and a $100 gift card at Bloomingdale’s, Tiffany & Co., and Amazon can be earned with 18,000 points, approximately 180 points per dollar. Zynga gift cards are $25 for 2,500 points, or 100 points per dollar. Considering that the Farmville Purple Cow is 540 points, the Purple Cow is about $5.40, and the Amex Lightning Stove is 1,945 points or $19.45.

I know that people really enjoy Zynga games. As I said in my previous blog, I am addicted to Frontierville. I understand, however, that Frontierville is just a game. Whether it is 500 points or 2000 points, I am not using my rewards points on virtual livestock or decorations when I could save them up for stuff I could use in real life. It is too early to tell how successful the American Express-Zynga partnership will become, but I hope that people have the good sense not to spend their points on a purple cow. Is it a cute cow? Sure. Is it worth any points, much less 540 of them? No.

To learn more about responsible credit card use, go to http://blog.mycreditspecialist.com, and sign up for a free credit evaluation at http://www.mycreditspecialist.com.