Slurpees, Sans Swipe Fees

I am a huge fan of 7-Eleven. For the first few months after our wedding, my husband and I had a nightly ritual of taking a walk together and stopping by 7-Eleven for Slurpees. It was a simple and fairly inexpensive way to get out of the house, have some good conversation, and connect at the end of our busy days.

Now, usually my husband has enough cash on him for the $3 and change that two Slurpees cost, but on occasion, he had to use his card to cover our drinks. That's why I was so happy to hear last week that the National Coalition of Associations of 7-Eleven Franchisees had successfully petitioned the government to pass swipe fee reform.

Every year, retailers are charged about $12 billion in swipe fees by credit card companies, which means that all the times we had to use a credit card to buy our Slurpees, it was costing 7-Eleven extra to process the transaction. They had to bump up prices in order to cover the extra cost of credit card transactions which meant that 7-Eleven customers were paying a little more on drinks, snacks, and groceries. Now that swipe fee reform has gone through, 7-Eleven won't have to pass along that expense to customers like me.

If you want to learn more about swipe fee reform, you can check out their website at http://www.unfaircreditcardfees.com. Also, you can learn more about responsible credit card use at http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com for a free credit evaluation today.

Consumer Alert: iPad 2

The iPad 2 is scheduled to hit retail stores in only a few days. The official release date is set for March 11, this upcoming Friday, and the popular Apple product is bound to be in high-demand with its dual webcams, WiFi capabilities, longer battery life, and new applications.

Consumers need to keep in mind while they are shopping around to make sure they stick to trusted retailers. Not that long ago, the Brooklyn crime ring S3 was buying and reselling iPods, MacBooks, and iPads using stolen credit card information, and there are plenty more similar crime rings currently out there. The iPad you see being sold on the street for much lower than market price might work just fine, but if you buy it, you are financing criminal activity.

If you're looking to buy an iPad 2 this Friday, we recommend checking out your local Apple Store, Target, or Best Buy who will all be stocking the iPad 2 that day. Don't be suckered in by deep discounts from street dealers. Keep in mind that if it sounds too good to be true, it probably isn't.

To learn more about responsible credit card use and protecting your identity, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Over Two-Thirds of Americans Can't Name Big 3 Credit Bureaus

Credit scores can affect your ability to get a car, house, or job, but a recent survey shows that less than one-third of Americans can name all three credit bureaus.

The three major credit bureaus are Experian, Equifax, and Transunion, and they are independent entities which all compile their own credit reports and credit scores. When survey subjects were asked to name the credit bureaus, sixty-nine percent could name one bureau, forty-eight percent could name two bureaus, and thirty percent could name all three bureaus. The survey results showed that education was the most significant factor in whether people knew all three credit bureaus, but among those who had completed college education or more higher education, only thirty-two percent knew all three credit bureaus.

G.I. Joe said that knowing is half the battle, and in this case, they were completely right. How can you have a healthy credit history or credit score if you don't even know the companies that are compiling your credit report? Have these consumers ever taken a look at their credit reports, making sure to get one from each credit bureau? Considering that many consumers can't name all three credit bureaus, I seriously doubt it.

Understanding how the credit bureaus work and improving your credit score does not have to be difficult. You can learn more about the credit bureaus and how they calculate your credit score at http://mycreditspecialist.com/educate.html and learn tips for improving your credit score at http://blog.mycreditspecialist.com. My Credit Specialist is even on YouTube, and you can view their on-going series “Debunking Credit Myths” at http://www.youtube.com/mycreditspecialist.

Educate yourself with My Credit Specialist, and put yourself on the road to better credit health!

Keeping Up with Credit Scores: 2010's Big Winners and Losers

Despite a heightened awareness in the past year, American consumers are still rather apathetic about checking their credit score. According to a recent survey by Credit.com, only half of the survey subjects had checked their credit score in the past year. The survey also gave a breakdown of who was most likely to check their credit report based on age, income, and gender. Who were credit savvy in 2010? The results might surprise you.

AGE

Young people won out this year, though they certainly could have pulled better numbers. About 60 percent of people ages 25 to 49 took a look at their credit score compared to 51 percent of people ages 50 to 64. My guess is that young people are thinking more about buying a new car, getting a good interest rate on their credit card, or buying a home if they are married and thinking about having kids.

It is important for people of all ages to check their credit score. At age 50, your needs and dreams are different from when you are 30, but you still need good credit if you are thinking of retirement. A problem on your credit report or a few points on your credit score can keep you from buying that beautiful dream home on a lake.

GENDER

Women were the winners this year with 50.6 percent, inching out ahead of the men at 49.6 percent. Those are still pretty poor numbers, though, hovering just over and under a half of respondents. This might be a victory for the ladies, but it is a poor showing for both genders.

INCOME

Income came out pretty evenly. 64 percent of respondents with incomes between $30,000 and $39,999 per year had checked their credit report, and the results were the same for respondents with incomes of $50,000 and more per year.

This was kind of a surprise for me. I expected that consumers with incomes of $50,000 or more would have been more likely to check their credit report, and I'm glad to see that even though the numbers could be better, at least it is the same across the board for different income levels.

THE LOSERS

Yes, there were winners and losers in each category, but the biggest losers of Credit.com's survey were the 22 percent of respondents who said that they had never checked their credit score. They hadn't simply forgotten this year, they had just never checked their credit, ever. These 22 percent are the real credit losers of 2010.

When was the last time you looked over your credit report or checked on your credit score? Do you know how your credit score is calculated? If you aren't sure, check out My Credit Specialist's Credit Classroom at http://mycreditspecialist.com/educate.html, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Pastor Steals Church Elder's Identity, Charges $21 Thousand

There are very few people that I fully trust. My husband, my immediate family, and some of my closest friends are among them. One entity that people still trust, no matter what their religious beliefs, are people who have dedicated their lives to worship and serving their congregation. When someone betrays that trust, it can destroy that person's religious faith and make it more difficult for them to believe anyone again. I think that is why the story of former pastor Bruce Stutzman has shocked people both in the Christian community and beyond.

In 2009, Pastor Bruce Stutzman opened a MasterCard account under the name of Donald Ewan, an elder at New Hope Alliance Church, and he quickly started using the card to pay his bills and get large cash advances. In the first week Stutzman had the card, he took out $12,000, eventually racking up $21,816 by the time he was caught.

What Bruce Stutzman did was unbelievably hypocritical from someone who is meant to be held up as a leader and an example in morality, and it really proves that you need to be on your guard. A surprising percentage of identity thefts are done by people that the victim knows, so just because you know this person and think they are trustworthy or they are in a position of power or moral authority, you should still be careful who you share your personal information with.

I have two lessons that I want people to take away from the story of Bruce Stutzman. First, for all the concerned consumers out there, remember that it is not stupid to place your trust in people. You cannot live your life constantly being paranoid and believing that everyone is going to betray you. The best advice I can give is to be smart and let people earn your trust. My second lesson is for priests, parents, rabbis, and other religious leaders. You need to earn your congregation's respect through honesty and living what you preach. The last thing people need is to suspect their religious leaders of wrongdoing. Do you want your congregation thinking twice before putting their tithe in the offering plate?

To learn more about responsible credit card use and protecting your identity, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Cash-Back Reward Cards Lead to More Debt

A new study by the Federal Reserve Bank of Chicago shows that cash-back reward incentives on credit cards usually cause more spending, more debt, and very little reward.

The study found that a one percent cash-back program on average increased spending by $68 per month, debt by $115 per month, and only yielded a reward of $25. They might save a little bit of money, but on average, they end up with much more debt than reward out of the deal.

Does this mean that cash-back credit cards are bad? No, cash-back rewards shouldn’t solely be blamed for increased spending and debt. The trick is to use the credit card as you normally would, stay within your budget, and not spend more just because you have a rewards program. After all, what is the point of getting cash back if you never even get to see that money?

To learn more about responsible credit card usage, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com for a free credit evaluation.

Medical Bills Top Collection Agencies' Actions

When you or someone you love is going through a medical emergency, your first concern is their well-being and the last thing you are worrying about is paying your bills. According to a study by the Federal Reserve, however, people at their most vulnerable physically are also the most vulnerable financially. Over half of collection actions reported by collection agencies are medical, far and above any other category. (Second place is utilities, coming in at a mere 22.7 percent.)

Last month, the New York Times told the story of Darryle Watson, an automotive service advisor who ran into some problems refinancing his mortgage due to four unpaid medical bills. The bills had been sent to a collection agency, and Darryle and his wife A.J. had no idea that they owed any money. According to the New York Times, their biggest medical bill was less than $400 and the smallest was about $15, and yet these bills would have cost them over $9,000 in closing costs.

The Watsons are hardly unique in their situation. Of all the medical bills sent to collection agencies, 82 percent were $500 or less, and 34 percent were for $100 or less. These are relatively small bills and yet these bills end up costing people points on their credit score and thousands of dollars down the road. What is worse is that many people don’t know about their unpaid bills passed onto these collection agencies until they need credit.

How can you make sure that what happened to Darryle Watson doesn’t happen to you? Keep up with your medical bills and if you know that you won’t be able to make a payment, let them know and try to work out a payment plan. Make sure they don’t sell your bill to a collection agency, and pay them off as quickly as possible. Also, take a look at your credit report on a regular basis or sign up for credit monitoring and repair through My Credit Specialist. Our credit specialists know what to look for, and they can get false or outdated items removed from your credit report, including late medical bills.

To learn more about improving your credit score, go to http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation.