Credit Reports -- Your Free Report Could Cost You

Author: Charles Essmeier

The growing prevalence of identity theft and increased concern about good financial health has led many consumers to seek copies of their credit reports online. Doing so is certainly laudable; the more you know about how potential creditors and lenders see you, the more prepared you can be when it comes time to apply for a loan or credit. An added bonus is that consumers can obtain one copy of their credit report from each of the three main credit bureaus once a year through the official Web site set up for such purposes at AnnualCreditReport.com.

Unfortunately, there are still many Web sites that exist for the sole purpose of tricking consumers who are seeking copies of their free reports. A quick Google search for the term "free credit report" today turned up no fewer than twenty four million sites in the search results.

There certainly are not twenty four million Web sites that are going to provide copies of credit reports for free, so what is this all about?

It's about money. Aside from the "official" site, the others are there to profit, and they can profit in one of two different ways:

Sell you something - Some of these sites actually belong to the credit bureaus; they have set them up to give you the credit report while selling something else to you in the meantime. These sites will offer the "free" report in large letters, while telling you in smaller ones that by accepting the free report you are agreeing to buy a credit monitoring service, which can cost you $10-15 per month. The credit bureau-owned sites will also tell you that you can get your report for free at the "official" site. That is usually stated in fairly small print near the bottom of the page.

Steal something from you - Unfortunately, there are still many unscrupulous crooks out there on the Internet who see the interest in credit reports as the ideal way to steal personal information from people. Their sites will offer a "free" report, and perhaps some other services for which you can pay. But when you fill out the application and provide your name, Social
Security number and credit card, you get nothing in return. Instead, the operators of these sites use the personal information to borrow money and take out credit in your name, leaving you to pay the bills.

If all you want is a free credit report, the best way to avoid this problem is to obtain it from the official Web site at AnnualCreditReport.com. Alternatively, you can call 1-877-322-8228 to receive your report by mail. That way, you can avoid being victimized by the thousands of Web sites that might cause you to pay dearly for your "free" credit report.

About the Author: Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.end-your-debt.com/, a site devoted to debt consolidation, credit counseling, payday loans and personal bankruptcy.

©Copyright 2006 by Retro Marketing.

How Much Credit Can You Afford?

Author: Cindy S. Morus

Before making the decision to add more debt, you need to make sure that you:Allocate sufficient money for your essentials.Borrow only for items that you need and can afford.Borrow only if you're spending less each month than you take home.1. Start with your monthly take-home pay.This is the amount you have left after taxes and other deductions have been made.2. Subtract the amount you need for necessities and fixed expenses.This includes savings, your mortgage or rent payment, utilities, food, transportation, child care, medical care, clothing, and recreation. Include payments made on a quarterly, semi-annual, or annual basis, such insurance and taxes.3. Subtract monthly payments for existing loans and credit cards.4. The balance is the amount you can safely apply to debt repayment.Avoid thinking you can spend all this amount, since emergencies do occur, and you may not wish to use your regular savings account to cover small, unexpected expenses.Monthly Take Home $ _______________Fixed Expenses ---- $ _______________Loans/Credit Cards ---- $ _______________Amount Available For Additional Debt $ _______________

HOW TO MANAGE CREDIT CARD USE

Many people find themselves with credit problems because they don't keep track of purchases they make with their credit cards. A simple method of keeping track of monthly credit card charges is to:Determine the total amount you can responsibly charge on all your credit card accounts during that month.Keep track of your credit spending in the same way you maintain a running balance of your checking account.Subtract each amount charged from the monthly charge limit you set.Stop using your credit cards if you draw this balance down to zero.

(c) Phelps Creek Financial Coaching - All Rights Reserved

About the Author: Cindy S. Morus (http://www.phelps-creek.com/) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer and Get Clients NOW!™ licensee. Contact her at 541-387-2995 or cmorus@phelps-creek.com. She is also the publisher and editor of "Financial Fitness", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past.