Being denied for a new credit card is not a good feeling to say the least. More than likely if you’re like the rest of us, you’ll probably be looking for somewhere to lay the blame for that nasty feeling of rejection. You’re first reaction may be to blame your credit score, but not so fast! Banks and lenders definitely weigh a credit score heavily in their decision as to whether or not to grant a credit line but the scrutiny doesn’t stop there.

In recent years it has become fairly difficult to become approved for a credit card especially cards with reasonable terms. If you already know that you may not have the best credit history and have your fingers crossed during the application process it’s important to remember that lenders are being particularly picky these days. Rather than take it too personally take the opportunity to turn your credit history around and proactively make some changes so that down the road you’ll be the consumer banks drool over.

2012 is likely to be a year of credit recovery thanks to the legislation of 2011 as well as the evolution of consumer outlook on their financial needs versus wants list. It of course can’t be set into stone that 2012 will bring about an even better economic and credit climate than last year, but there are six factors which forecasters consider positive indications.

1. Higher Credit Scores – Overall economic stability likely means higher credit scores across the board. National unemployment dropped from 2010 to 2011 and has indications of further dropping in 2012. How does this mean higher credit scores? Typically consistent income and jobs is a direct indicator that consumers will be able to pay their bills on time and therefore be able to maintain a healthy credit score.

2. What Frank-Dodd did Part 1 - The Frank-Dodd act of 2010 put into effect as of October 1^st, 2011 a multitude of financial policies to benefit and protect consumers. One of the many changes under this law changed transaction fees banks are allowed to charge on debit card transactions. Since October we’ve seen a bit of flip-flopping of banks attempting to enact a monthly debit card fee. It’s hard to say where this will land but its more than likely that we will see less debit card use and a rise in pre-paid “debit” cards as well as rewards credit cards. An increase in credit card use should help boost the credit economy.

 Identity theft has become one of the United States top crimes. It is estimated that on a yearly basis, this crime costs the government an alarming $1.3 Billion. Identity theft works so well because the swindlers are easily able to get all the information and documentation about their victim that they need. Another very alarming fact is that theft of an identity can go completely unnoticed for many months prior to the realization that the crime has occurred. In 2007, the United States will implement a new Type of identification card. This card will have biometrical information on the individual.

Liens are serious business. Not only do liens of all kinds affect your credit score for years and years, but they also have a lasting impact on all aspects of your financial life. Here is the basic lay out of the types of liens:

It goes without saying but a short sale will no doubt damage even the highest credit score.It is fair to ask, what is a reasonable expectation for your credit to be after a short sale has concluded? It is impossible to say conclusively, but first and foremost it is important to understand how a credit report is scored.

Any new negative claim against your credit is going to hurt your credit score. Those are the simple facts. Judgments are considered a bit more severe than late payments and collection accounts; they are viewed more similarly to a bankruptcy or foreclosure. This means you can count on a hit of somewhere between 120 to 200 points. It’s not pretty so if there is any possibility or opportunity to avoid a judgment you’ll definitely want to take them up on their offer.

Facing the reality of the possibility of a short sale leads each and every homeowner to question what a short sale will mean for them and wondering what to really expect.>

The Fair Debt Collections Practices Act, also known as the FDCPA, is the consumer’s best safeguard against the harassing pastime of collection agencies. This act was passed by Congress to outline just how collection companies are allowed to treat their clients and holds them responsible if these guidelines are broken. Collection agencies have no right to make harassing phone calls or act like a mobsters loan shark; as a consumer in the United States you have rights.

What are the limitations of creditors under the FDCPA?

• Creditors are not allowed to call at inappropriate hours. They may only make calls to you between the hours of 8:00 AM and 9:00 PM in your time zone.
• They are not allowed to call your workplace if your workplace does not allow personal phone calls. Creditors do not have the right to put your job in jeopardy.
• They may not send deceptive letters to you that appear to be a court document or any other official document.
• Using offensive or inappropriate language is absolutely forbidden; doing so may be considered harassment.
• They must file documents in courts within your vicinity. They are not allowed to force you to travel to handle this ordeal
• Absolutely no threats are permitted. They are not allowed to lead you to believe you will be arrested, or charged exorbitant interest rates you did not previously agree to.

What can I do if a Creditor breaks one of these rules?
Take action! You may owe these creditors money but they have absolutely no right to treat you like a villain. If any one or more of these rules are broken you should report the company and employee if you are able to get a name. You have the right to file a lawsuit against these companies and have the right to sue for damages related to these violations as well as an additional $1000.00, as well as lawyer and court fees if the court finds in your favor.

Who do I contact?
There are a few different agencies that you may contact. Start with the Attorney Generals office in your state. You may also have luck with the Federal Trade Commission (FTC). There is also a newly formed Consumer Protection Bureau that has jurisdiction over these sorts of cases as well. 

There are a few different agencies that you may contact. Start with the Attorney Generals office in your state. You may also have luck with the Federal Trade Commission (FTC). There is also a newly formed Consumer Protection Bureau that has jurisdiction over these sorts of cases as well.

Times are tough across the country forcing tens of thousands of people into foreclosure or facing the very real possibility of losing their homes.With so many people in the same boat many are left wondering how foreclosure will affect their credit scores.Restoring credit scores are extremely important as soon as possible for so many Americans in order to acquire a rental home and restore a tinge of normalcy to their everyday lives.

Experian is beginning to assist renters build credit scores with the recent purchase of RentBureau. RentBureau is a company that collects information from landlords on renter payments. Their goal is to incorporate the rental payment history as an active trade line to generate part of the historical information.

This will help with multiple groups:

College no more free credit cards to pay for beer LOL!

helps in getting jobs, since more companies are using credit reports to screen applications.

will help create a stable payment history.

Do I really have to wait another ten years before I can get a loan again?

No. As a matter of fact it is possible to get credit again. However, it will be a bit more difficult. One possibility is to get a protected or pre-paid Credit Card which can be used by depositing money into it, like a bank debit card. This can help you rebuild your credit again, and establish yourself. After a while it can help you start to get loans and credit again before the ten years is up.

What about my debts?

One good thing about filing is that it gets rid of the creditors once and for all. They won't be bothering you anymore. Once all the paperwork is in and processed, it is illegal for them to keep harassing you. You have the law on your side!

Will everybody know that I filed?

No. Very few will actually know about it. However, since the file is accessible to the public it will be visible on your credit rating, and will be kept on file for ten years.

What are the changes I've been hearing about?

The original laws were passed in 1978, and were revised in 2005. The general idea of the new legislation is to make people who CAN pay some of their debts pay. The laws were being abused by those who could have paid. Here are the major changes that went into effect last year:

• You have to meet certain requirements in order to be able to file bankruptcy. Your family income will be checked to ensure that it is below the state average. They also want to make sure that your family is able to make the regular payments.
• You are required to submit your last year's tax return, in addition to all the other paperwork.
• They also require that you have lived in the state in which you file for at least two years. The reason for this is that some states have more or less lenient laws.
• Child support and alimony and are the debts that have to be paid first.

Next Step

2010 brought about a flood of new consumer protection acts complete with the Fair Credit Billing Act. Have you ever taken a look at your credit card bill and been shocked at your balance only to find out you were billed twice or three times for an item or transaction? Well this is where this Act comes into place. Before this act you were at the mercy of the credit company to take your word that you were overbilled and hoped that they would fix the problem. Now there are official steps you can take to ensure you aren’t overbilled at the mercy of these companies. 

When we think of identity theft, children are probably not the first victims we might imagine. Unfortunately, more and more kids are being targeted for this crime, and the culprits may not be who you think. Right now, approximately 4% of all identity theft cases involve children, which means roughly 400,000 kids a year are having their futures ruined without their knowledge. * In an article on MSNBC.com, a 24-year old man explained that by the age of 10, his identity had been used to accumulate almost $250,000 in debt and to commit a felony. Another victim, a 9-year old boy, received a collection notice for a $2,000 debt.

It’s almost hard to believe, but the elderly are by far the number one targets and victims in the United States for identity theft and credit card fraud.The elderly are typically selected because of their established credit histories, a lack of education about credit as well as an increased dependence upon family members. Elderly financial abuse is unfortunately on the rise. The 2011 MetLife Study of Elder Financial Abuse reported that victims lose an estimated $2.9 billion dollars annually which is up 12 % from 2008. Strangers are responsible for 51% of the elderly abuse crimes, but unbelievably friends or family members commit 34% of these crimes. The Most Common Victims

A common problem with short sales is that the seller doesn’t know precisely what he or she owes after the sale is final. That’s because short sales are complex contracts and are usually only drawn up in situations that are unfavorable for the seller. Unfortunately, that’s the reality of the post-2008 market, and it’s usually the lesser of two evils (the other being the “f-word”: foreclosure).

In many short sales, the bank agrees to discount the repayment of the seller’s home loan. That is, if they bought the house for $120,000 and the sale price is $80,000, the bank will only demand $80,000 in repayment for the $120,000 loan. This sounds like a great deal—and usually it’s the only deal—but there are a couple of things to watch out for.

The first is that $40,000 you made on the loan will probably be counted as income, and the bank will issue a Form 1099 which means that you’ll be on the hook for tax on that income. If you’re really out of money, this is unlikely to cause a real problem, but if you have a little more than most short-sellers, you may be in trouble.

The other issue is that banks will sometimes seek a “deficiency judgment” against sellers. That means that the bank would like to recoup the money you owe them but are unable to pay because of the value of your home. If the seller has not requested that the bank waive its right to seek a deficiency judgment, it’s still on the table. Being unable to pay a judgment can further damage your credit.