Category: Credit

Opting for a new credit card is a decision that will impact your financial health in one way or another, so it should come with a careful analysis of your personal financial spending habits and goals.  Credit cards can be useful when they are used responsibly, but they can also be harmful if proper care is not taken to use them only when it would make sense to do so.

When does getting a credit card make sense?

• If you want to build or rebuild credit history.  Without sufficient credit history, lenders will likely see you as a higher risk.  If you have limited or no credit, consider a secured card.  To build or rebuild credit with a credit card, it’s important to make 100% of your payments on time 100% of the time, and to keep your credit utilization ratio low.  The general recommendation is under around 30%, but people with high credit scores tend to keep it closer to around 10%.
• If you need help financing a purchase or paying off debt.  Some credit cards offer introductory periods of 0% interest on purchases and balance transfers.  If you are able to pay the debt or major purchase during the promotional period, you will have essentially gotten an interest-free loan.
• If you want to reward your spending.  Using a cash back or travel rewards card responsibly can help you save money by being rewarded for the things you purchase the most (think: gas or groceries).
• If you want added payment security.  Credit card issuers typically offer a zero liability policy on fraudulent credit card charges, whereas if you use a debit card attached to your checking account, there aren’t as many protections.  Banks or credit unions may require written confirmation of the error and investigations can take much longer, which means your own funds may be tied up for a longer period of time.

In September 2017, Equifax announced a data breach that exposed the personal information of 147 million people.  A settlement has now been reached and finalized, which will include up to $425 million to help affected individuals to receive free credit monitoring services, help recovering from identity theft that may have occurred, and even cash reimbursements for certain situations.

If you were affected by the breach, you are eligible for at least 4 years of FREE credit monitoring from all three credit bureaus – Equifax, Experian, and TransUnion – and up to 6 more years from Equifax, for a total of 10 years.  The settlement administrator recently began sending emails and letters to people who filed a valid claim requesting these monitoring services.

*ACTION IS REQUIRED!*

• Eligible claimants will get free membership in Experian IdentityWorks℠ for four years.
• This service is free for you. You do not need to provide any payment information to enroll, and you do not need to cancel the service when it ends.
• To enroll, visit the Experian IdentityWorks website: www.experianidworks.com, and enter the Activation Code from the email or letter you received.  You can also call 1-877-251-5822.
• You must use the Activation Code by June 27, 2022. Your activation code will not work after this date.
• Legitimate emails about this settlement will come from Equifax Breach Settlement Administrator info@equifaxbreachsettlement.com.  The administrator will NOT call you about the settlement, but you can reach the administrator by phone at 1-833-759-2982.

Unsure if you were affected, or if you are eligible for the free credit monitoring provided by the Equifax Data Breach Settlement? 

CCCS of Buffalo offers Credit Report Review sessions, where you would speak one on one with one of our certified counselors who will pull all three of your credit reports from Equifax, Experian, and TransUnion, review everything that appears on your reports with you, go over ways to build on and improve your credit, and show you how to dispute anything if necessary.  Please call us at (716) 712-2060 to schedule an appointment!

During the past year, many of us have been facing unprecedented challenges and financial uncertainty. It is important, for some now more than ever, to ensure that you are in good financial health and that the information on your credit reports is accurate.

Many people are familiar with www.annualcreditreport.com which is the only authorized site to get a completely free copy of each of your three credit reports once per year. The site is authorized by Federal Law. Because of these unprecedented times, everyone can now get free weekly credit reports.

There are three different credit bureaus that report our credit history: Equifax, TransUnion, and Experian. It is important to check all three for accuracy, as some lenders may only report to one or two credit bureaus.

This is a wonderful way to be able to stay on top of your credit reports, and gives you more opportunities to check in, especially if you are working to pay things down, or take care of older collections accounts.

If you are unable to request your reports online, you may call 1-877-322-8228 to go through an automated system to verify your identity and request your free credit reports be mailed to you.

Here at Consumer Credit Counseling Service of Buffalo, we encourage everyone to take advantage of the increased availability of our credit reports. If you or someone you know needs help with accessing or understanding their credit report or needs help to figure out a plan to manage debt, please contact us at www.parachutecreditcounseling.org or call us at 716-712-2060. We specialize in providing financial education and counseling to help with your credit!