TransUnion Corp May Soon Reach a Settlement for Class Action Suit

In an interesting turn of events, the credit reporting bureau TransUnion Corp has settled a $10 billion class action suit. As a result of the settlement, millions of people may be able to access their credit scores for free while receiving some additional benefits that will help them keep their credit safe.

Why the Lawsuit?

For quite some time now, TransUnion Corp has been battling charges that were filed in U.S. District Court in Chicago. According to the suit, the company sold information about its consumers to a variety of retailers and lenders. The suit alleges that the information was customized to suit the needs of these lenders and retailers, who then used the information for marketing purposes. According to Federal law, the private credit information of consumers cannot be sold unless special circumstances have taken place, such as when a consumer applies for a loan. Therefore, selling this information to lenders and retailers is a direct violation of the law.

What Will Consumers Receive?

If the settlement, which still has to be reviewed in Federal court, is finalized, approximately 160 million people throughout the United States will be affected. Those that are included in the class action suit, which is thought to have the largest number of plaintiffs ever included in one class action suit, will receive free access to their credit scores. Although Federal law currently allows consumers to receive a free copy of their credit reports each year, it does not call for providing consumers with their actual scores.

In addition to receiving free access to their credit scores, the plaintiffs in the case will also receive either six months of the basic credit reporting services and a cash payment or they can choose to receive nine months of enhanced services. The basic service normally sells for $59.75, while the enhanced service includes more detailed information such as an insurance score and a mortgage rate simulator.

How Will Consumers Benefit?

All consumers can benefit from receiving free access to their credit scores and from the credit reporting service. Those that are in financial trouble because of the mortgage collapse or those facing other financial economic problems, however, will particularly benefit from the service. This is because the service provides them will immediate access to their credit information and they can find out their credit scores at any time, which means they can make wiser financial decisions. The service is also set up to notify consumers when changes take place in their files, such as when an new account is opened in their name, which is beneficial when it comes to fending off identity thieves.

Experts in the field are astounded by what TransUnion Corp is offering in the class action suit. Ken McEldowney, who is the executive director of Consumer Action, has referred to the settlement as being “mind-boggling” and “astonishing.” He went on to say, “It’s everything we tell consumers that they need to find out if they have problems with their credit. They are getting information on how to improve it and information about whether they are credit worthy.”

About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Should You Get a Credit Card?

If you don’t have a credit card, you may be wondering if getting one is the right move for you. After all, we have all heard the horror stories involved with credit card usage – it is certainly very easy to let spending get out of control and to find yourself buried in debt. At the same time, there are many benefits associated with using a credit card as well. Therefore, in order to determine if getting a credit card is a good move for you, you should explore the pros and cons of credit card ownership.

Benefit #1 of Credit Card Ownership: Convenience

One of the greatest benefits of having a credit card is the fact that they are so convenient to use. Credit cards are accepted almost everywhere and are much easier to keep track of than cash and checkbooks. When it comes to pumping gas, you don’t even have to go inside when you have a credit card!

Drawback #1 of Credit Card Ownership: Debt

If you aren’t careful about your spending, it is easy to get yourself buried in debt. Once you add finance charges to your debt, you can find yourself paying hundreds of dollars each month for the convenience of credit card usage. Research has proven that people spend more when they use credit cards – so be careful and monitor your spending if you decide to get a credit card.

Benefit #2 to Credit Card Ownership: Protection

Having a credit card provides you with extra protection that you don’t get when you make purchases with cash, checks, or even debit cards. In fact, you are legally obligated to pay only $50 if someone takes your credit card and makes purchases with it. In many cases, the credit card company will waive the $50 as well. In addition, several credit cards offer purchase protection, extended warranty coverage, and even insurance coverage when you rent vehicles or when you travel.

Drawback #2 to Credit Card Ownership: Taxes

When it comes to taking out a loan, using a credit card isn’t necessarily your best option when it comes to saving money. Even if you happen to get a pretty good interest rate on your credit card, you may be better off using a home equity loan if you are taking out a big loan. This way, you can deduct the interest fees on your taxes. The finance charges you pay through a credit card are not deductible.

Benefit #3 to Credit Card Ownership: Rewards

Most credit cards offer some sort of rewards program. If you pay your credit card bill off at the end of the billing cycle, you can completely avoid finance charges while earning rewards with your credit card. Depending upon how much you spend, you could potentially earn hundreds of dollars each year with rewards credit cards.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Tips for Increasing Your Credit Score

Are you planning to apply for a loan or new credit card any time soon? If so, you might want to check out your current credit rating before you complete that application. After all, if your credit rating is poor, you may find yourself spending a huge amount of money on finance charges and interest payments. In order to avoid tossing your money away because of a low credit score, you should put off the loan for a little longer and build up your credit score. By following these simple tips, you can build up your credit score faster than you may have thought possible.

Tip #1: Pay Your Bills on Time

The single most important thing you can do in order to increase your credit score is to simply pay your bills on time. Just one late payment can truly wreak havoc on your credit score. Even unusual bills, such as late fees to your library for books you returned late, need to paid. Otherwise, your failure to pay may be reported to the credit reporting bureaus and your credit score will be negatively impacted.

Tip #2: Check Your Credit Report

The federal government has determined that everyone is entitled to receive free copies of their credit reports. You can order yours by going to AnnualCreditReport.com. After you receive your free credit report, look it over for errors. Even a seemingly small error, such as showing a lower credit limit than you really have on your credit score, can have a negative impact on your credit score. Be certain to report any errors you find to the credit reporting agency as soon as possible. That way, the bureau can look into the error and make any necessary changes.

Tip #3: Pay Down Your Credit Cards

Your credit score is partially determined by your debt to credit limit ration. The more debt you have as compared to your available credit, the greater risk you become. For example, if you have a credit card with a $2,000 limit and you are carrying a debt of $1,800, this will actually hurt your credit score more than if you had a credit limit of $6,000 and you were carrying the same balance. Similarly, it is usually better to have $1,000 of debt spread over two credit cards than to have $1,000 in debt on one credit card.

Tip #4: Don’t Cancel Credit Cards

Although we all know that having too many credit cards in your wallet can be financially dangerous, it is a bad idea to cancel the credit cards that you already have. When you cancel your credit card, you lose all of the credit history you have acquired through the card. As a result, your credit rating will take a downward spiral.

Tip #5: Don’t Open New Credit Card Accounts

It is important to resist the temptation to open up several new credit card accounts. The more your credit report is accessed by lending institutions, the more your credit score is damaged. It is easy to get caught up in the thrill of applying for department store credit cards – particularly since they often provide very attractive benefits to new applicants – but the inquiries into your report makes it look as if you are trying to gather as much credit as possible. This makes you an increased credit risk to potential lenders. Therefore, you should hold off on these applications until after you have received the loan you are really wanting to acquire.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

How much does your credit score drop when a foreclosure is added?

Information about the specifics of credit scoring is largely emphirical and based on trial and error. The Fair-Isaac company, who pioneered credit scoring, is very secretive about the exact working of their software.

In addition, credit scores compute ALL the information showing in your credit report each time it is calculated. Changes in your debt to available credit, other derogatory information (like late payments and collection accounts) and when these things occured are taken into account.

History, specifically what has taken place in the last twelve months, is factored a full 35%. So if the foreclosure was within that time period and was removed, your score would recover a significant amount of points. If the foreclosure was older, it would not impact your credit score nearly as much.

For more info and to order your credit report with FREE credit score please visit http://www.reliacredit.com/