Can Someone Explain Credit Reporting?

[AprilT]

Yep Nancy, that's a big problem today, without a credit history these days, its difficult to get utilities and other important things, they don't care who you are. I thought getting rid of all my cards was doing myself a big plus till I found out about that little glitch against you. Not having some line of credit still open on your credit history can be a hindrance to a degree. Not so much does it have to be a credit card, but even a loan you are still paying down of sorts would be helpful for showing credit worthiness. I wanted nothing, no more credit cards, so I carried no cards, paid all off rid myself, not knowing this would cause problems and boy has it. Something I only very recently discovered how negative not carrying any cards would affect me. It even effects your insurance rates. To me its a big scam, but, one that's hard to by pass unless you live off the grid.

 

[imp]

It's a credit card that you secure with a cash deposit into an account the credit establishment holds in case you default on the account. Sometimes the deposit is equal to the amount of the credit the company makes available to you sometimes not.

The bank may ask you to deposit $100 and issue a credit amount for anywhere from $100 to $1000. depending on how they might view the risk. There will be yearly fees as with most credit cards, but, you want to pay off your balances or at the very least more than half the minimum payment required well before payment is due each and every month also best to try not to use the card every month as one should remember this card isn't for the purpose of going all out to make foolish purchases it is to establish or reestablish a good credit history.

Thank you for explaining that! I am attempting to correlate this with the fact that two of my credit cards have been somehow DUPLICATED, in real plastic, elsewhere in the country, and are being used to make menial everyday purchases, gasoline, hamburgers, etc. The issuers won't talk at length, but the last conversation confirmed fraudulent card makers are selling credit cards to unfortunates on line, who use them disregarding the names on the cards, until they fail to be useable.

One would think using a card with someone else's name on it is illegal, but how are they to be caught? I have gotten spams in email offering credit cards at a price: this may be the sourcing. But, how in the hell, have the duplicators succeeded in copying the information contained on MY cards? The cards are only used in reputable establishments, Safeway for example, never used on-line (which would not allow mag-strip duplication anyway). Thievery has reached new heights of effectiveness, for these bastards! imp

 

[Butterfly]

I use a few credit cards on a regular basis and pay them off when the bill comes, just to keep them active.

Recently, the card I keep as an "emergency" card wrote to me and told me that if I didn't charge something by such a date, it would be closed for inactivity. So I called 'em up and they said just go charge anything, $20 worth or groceries or something, and it would stay active. So I did, and paid it off right away and my card renewed. It's a can of worms.

Imp, there are all kinds of ways they can hack into your life. If you don't shred your mail (like credit card offers or those balance transfer checks they send you unsolicited) and the bad guys get 'em, they're in. Or if you don't have good passwords or firewalls, they're in. I'd do something about those duplicate cards -- like close them and get new accounts -- before they screw up your credit. Hamburgers today, a cruise to the bahamas tomorrow. And CHANGE YOUR PASSWORDS. Bad guys make a practice of knowing what people will probably use as passwords -- their DOB, last 4 of their social, coupled with letters like their initials, etc. -- and they just sit down and trial and error it till they get in. They are VERY good at it.

Sometimes they just hack into a store's information or even a bank's, like they did with the Home Depot accounts.

 

[Ina]

AprilT, I did buy a car last year. After the salesman and I haggled until I felt I had the best deal he was going to give me, I put $22,000. down and arranged for a $200 a month pay out. But the pay off is already in my savings. I also keep a running loan with my credit union. I never spend the money, it sits in my savings as well to make the notes. I have two bank cards with credit card access, one for bills, one for food and clothing. I like many am on a set income, but I make myself save a little extra each month. And I am still down sizing by selling my large home so I can build something smaller that will lessen the costs of maintenance, insurance, taxes, and utilities. At least that's the plan. :wave: