The Latest on Credit Reports and Debit Cards
One essential part of recovering from a personal bankruptcy filing is making sure you regularly check your credit report to verify that all your finance-rebuilding efforts are being duly noted by the proper authorities and are helping to improve your profile as a potential borrower.
Luckily, the Federal Trade Commission has, since 2004, been in the process of evaluating and improving the accuracy of the information that appears in credit reports. Here’s the latest.
FTC Project Will Pair Consumers with Analysts
In the next few months, the FTC has announced, it will undertake a project to determine the accuracy of credit reports. The plan works like this:
- 1,000 consumers from around the country were randomly selected to participate.
- Each consumer will review his or her credit report with help from a professional analyst to detect any errors or incorrectly reported information.
- Analysts will contact the Fair Isaac Corporation (FICO), the company that developed the most widely used formula for calculating credit scores, and find out what each consumer’s score is, taking into account any corrected information.
The overall goal, it seems, is to determine what types of errors are likely to occur, both at the level of groups that report information (including credit card companies and lenders) and of the credit bureaus themselves. Ideally, this will permit the FTC to make any changes that might be necessary to streamline the credit reporting and scoring process.
What this means for you: In the next three years (the review of credit reports will end in 2014), consumers should have a better idea of what kinds of errors they should look for when reviewing their credit reports. Down the road further, such errors might occur less often.
The Future of Free Checking Accounts and Debit Cards
Another important part of recovering from bankruptcy is taking a proactive approach to maintaining your finances. A recent post on WalletPop.com warns that bank fees connected to debit cards and/or checking accounts could go up in 2011.
How can you stay ahead of the game and make sure you aren’t hit with any unexpected fees? The blog recommends taking these steps:
- Whittle down your accounts. If you currently have accounts at several banks, close some so that you have money in only one or two. This should help you meet any minimum balance levels required to keep certain privileges and save you on fees.
- Pay attention. Banks often send important notices of changed account terms through paper mail or email, depending on how you’ve chosen to receive communications. Be sure to read anything your bank sends you, with an eye out for new terms.
- Do your homework. Remember to figure in all costs if you decide to switch banks because of new or increased fees. A more convenient bank that charges account fees might ultimately cost you less money than a “free” account with inconvenient ATMs that lead you to racking up fees elsewhere.
Similar Posts:
- What a Change to Debit Card Fees Could Mean for You
- Is Your Renting History on Your Credit Report?
- The Impact of Your Credit Score
- Dealing with Debt Collectors: What Not to Do
- How Do I Fix My Credit A Simple Method Using Personal Credit Repair Software
