Federal Reserve Fines Wells Fargo for Doctoring Mortgage Documents

Many American have a tough time getting a good deal with their mortgage, and shopping around for the best deal requires a great deal of work. For 10,000 Wells Fargo customers, however, they were blatantly cheated out of a better interest rate by Wells Fargo itself.

According to the Federal Reserve, Wells Fargo was altering customer's information on documentation applying for a mortgage. They changed customers' incomes and other financial information, and they would offer the customers higher interest rates even though they qualified for a lower rate. Wells Fargo is continuing to deny any wrongdoing, but the Federal Reserve has ordered that Wells Fargo pay an $85 million fine and give further compensation to the thousands of Wells Fargo affected.

This is greed at its ugliest. Thousands of homeowners could have had a lower interest rate on their mortgage, and instead, Wells Fargo allegedly encouraged them to take subprime loans that cost their customers substantially more. If the Federal Reserve's allegations are true, then consumers cannot know whether to trust anything their bank tells them. Consumers trust their banks when they apply for a loan, and they believe that their bank will give them a fair rate. The rate might vary slightly from lender to lender, but their bank won't work actively against the customer's best interests. Even if the allegations turn out to be false, many customers will have lost trust in their bank (if they haven't already) and will be more reluctantly to believe anything their bank tells them.

To learn more about protecting yourself as a consumer and getting the best credit possible, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Equifax Moves Credit Scores to Smart Phones

Smart phones can tell you where you are (Google Maps), which bars and restaurants you frequent most (Four Square), and what your friends are up to (Facebook and Twitter), and now, Equifax is offering a smart phone application for credit-conscious consumers.

Equifax mobile, now available on the Android, allows consumers to check their credit ranking compared to other consumers in their area and find out how susceptible their region is to identity theft and credit card fraud. If they are signed up for other credit monitoring services through Equifax, they can also check out their Equifax credit report, set up alerts, and view their Equifax credit score, all from their phone. If you are a victim of identity theft or credit card theft, you can also lock your credit report from your phone.

After looking over the app's features, I think the Equifax mobile app will only really appeal to consumers already signed up for credit monitoring service. Sure, I can check to see how prevalent identity theft is in my neighborhood, but the best features are tied to credit monitoring like credit alerts and viewing your Equifax score on the go. For Equifax customers who have smart phones, I recommend downloading the app, but I don't think anyone else will get much out of it.

You can download the Equifax mobile app on the Android Market. To learn more about improving your credit, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.

Avoid Currency Fees Traveling Overseas This Summer

I am extremely fortunate in that I have had the chance to travel overseas numerous times already in my life. One of the biggest dilemmas in traveling overseas is exchanging currency, particularly if I am planning to visit several different countries with different currencies. Instead of going through the trouble of exchanging cash every time I get to a new country, I usually just pay with my credit or debit card the whole time. According to USA Today, however, my credit card company could be charging me extra for my international credit card charges.

Many banks charge travelers what is called a currency transaction fee which is usually about 3 percent of the purchase. 3 percent might not sound like a lot, but when you consider how much a traveler spends on eating out, transportation around a city, sightseeing attractions, and gifts for friends and family back home, that little 3 percent adds up very quickly. By the end of your trip, you could end up with hundreds of dollars wasted in currency transaction fees.

Of course, the alternative of cash-only isn't much better. Traveling with large amounts of cash makes you more vulnerable to pick-pockets. Credit cards can be canceled, but if your wallet is lost or stolen with cash in it, the cash is gone. Besides that, currency exchange places usually charge fees of their own, so you will lose some value exchanging your money.

What options are available to the money-savvy traveler? Well, there are some credit card companies and banks that are ending their currency transaction fees. Capital One has not charged currency transaction fees in years, and American Express recently announced that they would be doing away with currency transaction fees for U.S. customers. Before traveling overseas, I would recommend checking with your credit card company and find out if they have a currency transaction fee. If they do not, I recommend using your card rather than bothering with cash. Also, check with your bank and find out what sort of ATM fees they charge for customers withdrawing money overseas. You will probably need or want cash at some point during the trip, and you don't want to be surprised by the high ATM transaction fees.

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

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.