CREDIT » Credit Scores & Reports

This is a guest post by Mr Credit Cards from www.askmrcreditcard.com.

We all know that your credit score is used to determine if you get accepted for a credit card. Did you know that it has ramifications far beyond mere credit cards?

Under law, you are allowed to dispute any inaccurate information with the credit bureau and get it removed from your credit report. If you dispute the error, both the credit bureau and the information provider are responsible for correcting any inaccurate information, and must investigate any disputes within 30 days and notify you of a resolution.

What Happens If There is Inaccurate Information on Your Credit Report

Credit card companies are known to charge numerous types of fees and penalties to delinquent consumers. However in certain times of hardship, cardholders can ask for credit card forbearance to help deal with the debt.

Sometimes banks will actually work with customers in exceptionally difficult circumstances to modify their credit card debt repayment schedules to something they can handle. The relief they’re offering is forbearance, which is not to be confused with credit card debt forgiveness.

Maybe you are usually quite good at balancing the payments for your credit card with your paycheck, but the holidays created a big gap between your bill and available income. Now you’re fearful that there is too much debt in too many places for you to manage properly. A balance transfer credit card with a low introductory offer is just the tool you may need to help get your budget into shape.

A credit card is a typical example of a revolving credit account. In contrast to installment credit, revolving credit is a type of credit that doesn’t have a set number of payments due.

For example, an installment plan loan, such as a car loan or home mortgage, has a set principal balance that will eventually be paid off. Revolving credit accounts are more open-ended and don’t have a time limit associated with them.

One of the debates raging in the personal finance world is between those who believe it is possible to live without credit, and those who think that credit is necessary–especially if you want to make major purchases (like a home). Some figure that if you could just make enough money, then credit would be completely unnecessary; you could pay cash for everything.

For now, let’s lay aside the debate over what constitutes “rich.” Plenty of leaders feel that an annual income $250,000 makes someone “rich.” Whether or not you agree with that number, it makes an interesting starting point since most people in the U.S. make significantly less than $250,000 a year. And chances are that someone who fits that definition of rich does need credit, if only to buy a home.

Think money isn’t a romantic subject? It can be. After all, consider what can happen to the love when you don’t come together on vital financial issues. Confusion, anger, resentment–even divorce can take its place. Here are my top eight topics to tackle and resolve before saying “I do.”

1. Your financial and lifestyle dreams: You may want to save for penthouse living and a home in the Hamptons, but your partner could be aspiring for a more austere existence. Discuss what each of you wants to do with the money you make and accumulate together. This information will be integral to avoiding serious conflict later.

Personal loans are a great tool for consumers to finance unexpected expenses like car repairs or large tax bills. However, your credit history isn’t great, but you need a personal loan and you’re afraid you’re going to get rejected when you apply for one. Years ago you made a poor business decision that resulted in having to declare bankruptcy, and although you have been working diligently to regain ground, you still have bad credit.

Although your bad credit is against you, don’t fret. There is a possibility of securing a personal loan even with a bad credit history. Many personal loans are offered on an unsecured basis. With unsecured loans borrowers do not need to offer collateral to secure the loan. In theory, lenders are providing the borrowers with money in good faith. Since these loans don’t always check the borrower’s full credit history, you may be able to secure a small amount. Unsecured loans charge higher than average interest rates since they are a bigger risk to the lender.

The debate has been going on for some time with no clear answer yet: Which is better, cash or credit cards? There are valid arguments presented by both sides, though the answer may be subjective. Here’s a look at why some people prefer to stick with cash while others are all about credit.

The Case for Cash

Have you ever applied for a job only to discover later that the company ran a credit check on you, which may or may not have affected you being hired? If this has happened to you, you are not alone. Many companies are now taking it upon themselves to check your credit as a screening tool to determine whether you’re a desirable employee. But how in the world are they doing it?

How Employers Are Checking Your Credit