Credit card junk mail - How to stop credit card mail offers.

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Stop credit card offers...

• Reduce the number of credit card mail offers, insurance and other financial products you are receiving by calling toll-free 888-5-OPTOUT (1-888-567-8688) to remove your name from mailing lists used by national major credit card issuers and other institutions.

• By taking advantage of services offered by the Direct Marketing Association, you can further reduce or stop credit card mail offers as well as phone calls from national advertisers. For more information, write to DMA Consumer Affairs, 1111 19th Street, NW, Washington, DC 20036, or go to dmaconsumers.org. To be removed from marketing lists at local businesses, contact them directly.

• Don't give out personal details (such as your income or buying habits) to people or businesses who ask for it unless you know and approve of how that information will be used.

• Be watchful of free offers such as contest drawings. Many will place your mailing address on credit card mail lists or other types of marketing.

Your Financial Privacy Rights
You can limit the personal information that banks and other financial institutions provide to other companies. Here's help for you in deciding what's best.

The federal Gramm-Leach-Bliley Act of 1999 created a new opportunity for you to limit the transfer of your personal financial information. The law attempts to balance your right to privacy with financial institutions' need to share information for normal business purposes. Some consumers don't object to information sharing, they want their names on mailing and telephone lists so they can easily find out about new products and services. But other consumers want fewer solicitations and more privacy. If you're in the latter category, you have some important new responsibilities if you want to take advantage of your new rights.

It's important that you read the mail you receive from your bank and other financial institutions. The law requires these companies to explain how they use and share your personal information. The law also allow you to stop or 'opt out' of certain information sharing. "You need to be observant," says Ken Baebel, Assistant Director of the FDIC's Division of Compliance and Consumer Affairs. "You need to look for the privacy notices from your financial institutions, which may come as part of a monthly statement or as a separate mailing. You also need to understand whether an institution intends to share personal information with other companies and, if so, what you can do to prevent information sharing, if that's what you want. Otherwise, it will be up to the institution to decide who gets details about you and your finances."

The new law applies to many types of financial institutions. The law covers banks, savings and loans, credit unions, insurance companies and securities firms. It even includes some retailers and automobile dealers that collect and share personal information about consumers to whom they extend or arrange credit. Also, while the rules from the FDIC and other federal agencies say these notices to consumers must be accurate, clear and conspicuous, we know there's a lot to consider before you decide what's best for you. That's why FDIC Consumer News has developed the following question-and-answer format to help you understand your new rights to financial privacy and what you need to do to exercise those rights.

Personal information financial institutions collect and share:
Many financial institutions collect information about their customers as a regular part of their business of providing products or services. Examples: When you apply for a loan, you provide your name, phone number, address, income, and details about your assets. When the institution is considering your application, it may collect additional details from other sources, such as credit reports prepared by credit bureaus. And as you use a financial product—a credit card, for example—your institution will have a record of how much you buy and borrow, where you like to shop, and whether you repay your balance on time. Some (but not all) financial institutions share this information with other entities—including completely unaffiliated companies such as retailers, telemarketers, airlines and non-profit organizations—to help them target consumers who might be interested in their products or programs.

How the Gramm-Leach-Bliley Act protects financial privacy:
First, the law requires each financial institution to tell its customers about the kinds of information it collects and the types of businesses that may be provided that information. This disclosure, called the privacy notice, is intended to help you decide whether you are comfortable with that information-sharing arrangement. The law went into effect July 1, 2001, and you should have received a privacy notice from any financial institution where you already had an account. Anytime you open a new account with a different financial institution you must be given a copy of the privacy notice at that time. Financial institutions also are required to send a privacy notice to their customers once a year.

Second, the law says that if your financial institution intends to share your information with anyone outside its corporate family, it also must give you the chance to "opt out" or say "no" to information sharing under certain circumstances. Even consumers who are not technically customers of a financial institution—such as former customers or people who unsuccessfully applied for a loan or credit card—will have the right to opt out of information sharing with outside companies.

Third, the law requires that financial institutions describe how they will protect the confidentiality and security of your information.

What to look for when you receive a privacy notice:
We encourage you to read the entire notice carefully. You may, though, want to focus on your financial institution's descriptions of the following:

• The kind of information it shares with other parts of the same company, likely to be described as "members of our corporate family" or "our affiliates";

• The information it shares with other companies or organizations that are not part of the same corporate group as your financial institution, perhaps called "nonaffiliated third parties";

• What information you can prevent your financial institution from sharing with other companies or organizations; and

• How you go about opting out, if that's what you want to do.

Does the privacy notice list exactly what information the financial institution wants to share, and with whom?
No. The regulations say the privacy notice must describe the basic categories of information a financial institution collects and shares with other entities, and give examples. But a financial institution is not required to list every type of information it may gather or share, or tell you the names of specific companies or organizations that may buy or receive your information. If you have questions or concerns, contact your financial institution at the address or phone number listed in its privacy notice.

Information you can stop an institution from sharing:
You have a general right to block the sharing of non-public personal information with outside companies and organizations, but there are exceptions (as explained in the next question and answer). Also, your institution may remind you that a law passed several years ago, the Fair Credit Reporting Act, gives you limited rights to stop selected information-sharing with affiliates.

Information you can't prevent from being shared, even if you opt out:
Under the new law, you cannot bar an institution from providing personal information to outside companies and organizations if, for instance:

• The information is needed to help conduct normal business. Example: Your bank can send personal information to outside firms that help market the institution's products, handle its data processing (for your loan payments, checking account statements, electronic banking transactions or credit card purchases), or mail account statements.

• The information is needed to protect against fraud or unauthorized transactions, or is provided in response to a court order.

• The institution reasonably believes the information is "publicly available." Robert Patrick, an FDIC consumer law attorney in Washington, explains that publicly available information "includes your name, address, and telephone number as they appear in the telephone book, information about your home mortgage recorded in county records, or information that would be found on your driver's license if that information is available from your state's department of motor vehicles."

• The information is used as part of a "joint marketing agreement." That's a situation in which two or more financial institutions—say, a bank and insurance company—agree to jointly offer, endorse or sponsor the same products or services.

In addition, the Fair Credit Reporting Act says an institution has a right to give an affiliate any information obtained from your transactions with that institution. Example: Your bank can give an affiliated insurance company details about your deposit accounts. This could be useful information if, say, the insurer wants to offer you an annuity as an investment when one of your CDs is about to mature. Even though you cannot prevent this information from being shared, the bank still must tell you about these practices in its privacy notice.

How to decide if you should opt out:
It depends on how the information is shared... and it depends on your viewpoint. If a financial institution widely shares your personal information with other businesses, you'll get more mail, phone calls or other unsolicited promotions than if you decide to opt out. Some consumers see information sharing as a plus because it helps them shop from home or find out about new products and services, including potentially good deals on a new loan, insurance policy or investment. Other consumers say they don't want so many solicitations from telemarketers and mail advertisers, and they don't want a lot of other businesses and people knowing about their finances or spending habits. You must decide what's best for you.

"If you opt out, your bank will still be able to share personal information about you with outside entities in certain circumstances, but you will be putting a limit on at least some information sharing," adds the FDIC's Patrick. "If you don't opt out, your bank can sell information about you to any business or person, and there are few restrictions on how that information might be used."

The FDIC's Baebel suggests that you review your institution's privacy notice and "ask yourself if you're comfortable with the types of businesses receiving your personal information, and with what they are likely to do with the information." If you have questions or concerns, he says, contact your institution. "Banks and other financial institutions are interested in maintaining good customer relations," Baebel adds. "They should be more than willing to explain how they use your information, how they protect that information, and the circumstances in which they share information with other businesses or people."

Copies and ability to correct information errors prior to optout
The Gramm-Leach-Bliley Act doesn't require your bank to give you access to the information it collects or a chance to make changes. However, if you have concerns, you can ask your bank if it will voluntarily let you see your personal records and comment on their accuracy. Banks do let customers review their personal information under certain circumstances.

Do you have to notify an institution in a certain way?
Yes, most likely. That's because the institution can establish a procedure that everyone must use to opt out, provided that it is reasonable. So, be sure to check the instructions that come with your privacy notice. For example, your bank may require you to call a certain telephone number, not just any number at the bank. Or, it may require you to complete a form and mail it to a specific address. Patrick adds that "even if you call the bank to opt out, it's a good idea to also notify it in writing and to keep a copy of your written notice for your records."

If you opt out later:
You can always opt out, even months or years from now. But, be aware that any opt-out request only covers the sharing of information in the future. There is no requirement that a financial institution contact the organizations it has already shared your information with and tell them they cannot use that information any more.

Joint account opt outs:
If the bank sends separate notices to each account holder, each person can choose for himself or herself. However, because the rules allow banks to provide a single opt-out notice when two or more customers have a joint account, it's important to pay attention to what the bank says about opt-out requests. If, for example, the bank sends separate notices to two owners of a joint account and only one of them responds, the bank may continue sharing the other person's information. "If you receive an opt-out notice from a bank where you have a joint account, be sure to discuss that information with the other people who share that account with you," Patrick says. "That way, if any of you decide to opt out, you can do so properly."

Your right to financial privacy is important. And thanks to the privacy law, you now have more of a say in how much of your information financial institutions may share with other companies. It's up to you to take advantage of these protections. Watch for the privacy notices from your financial institutions, read them carefully and follow the instructions if you decide to exercise your right to opt out.

Personal Credit

Personal credit scores are based on standards of the major credit rating bureaus: Experian, Equifax, and TransUnion. Lenders average the fixed score from each of these to determine a borrower’s eligibility and terms of financing. The rating system looks at several factors and gives a points rating to each one. Positive and negative factors can affect the score.

Factors that can affect credit scores:

* Payment history accounts for about 35% and the way debts are paid, for example if they are paid in a timely manner or paid late. It reflects the number of past due items and how long they were

  delinquent, or if there was any collection activity. Another factor is any public records like bankruptcies, liens, and wage garnishments.

* Current total debts accounts for around 30% and considers the total amount of debts owed. This is the number of accounts and each balance owed and it influences FICO scores. Credit bureaus will

   look at outstanding debts in relation to the available credit. Getting out of debt by paying down debts can help raise scores over time.

* The length of credit history is a factor concerning the amount of time accounts have been open and the account activity.

* New credit is any recent accounts established. This also includes any credit inquiries indicating attempts to get new lines of credit.

* Types of credit considered is the total number of the types of credit that has been secured. This includes revolving debt on credit cards and retail accounts.

Some lenders may not view past performance as a guarantee of future performance. This is not always true as a credit rating is an indicator of past borrowing and repayment performance.

This can give lenders an idea of how likely it will be for a borrower to repay a new loan in full, on time. They use a consumer's credit rating to determine their risk in loaning money.

A person who has a good credit rating may not have to pay high interest fees or may not have to give a large down payment. Personal credit scores are used to determine whether to loan money to small businesses and corporations. Factors like age, race, ethnic background, religion, sex, and marital status, do not influence scores. Employment history, current employment, wages, and assets are not taken into consideration as part of FICO scores, yet some lenders may look at these areas when evaluating a person's credit worthiness.

Qualified borrowers have a FICO rating of 750 or better, yet people with a score of 650 may be able to get a loan that has higher interest rates. These scores can change monthly to reflect any changes to the criteria used to determine the score. If a loan is paid off it could improve scores. If a bill is not paid or bankruptcy is filed, it could lower scores. Monitoring scores can help identify any problems that may need correcting. AnnualCreditReport.com is the site to visit to request a free credit report, and get credit information almost immediately, but it can take longer when not using the Internet. Credit services can help monitor FICO scores but it usually requires a monthly fee.

Debt

People are seeking debt advice every day as they are buried in bills. There are some tried and true methods to get out of debt, yet deciding on the one that is right, can be difficult. The most important thing is to stick with a plan and keep track of goals. Getting out of debt requires dedication once a plan is implemented.

It is so easy to become burdened with debts, yet almost impossible to escape from it when thousands of dollars are owed. Unfortunately, some may wait too long to try to tackle it. To be able to get control of it, it is necessary to understand the types of debt. Some debts are unsecured, which means the debt is not attached to a piece of property, like credit card debt. A mortgage payment is a secured debt, and if the loan is not paid, there is a risk of losing the home.

Getting control of bills needs to begin with a carefully prepared, written budget, and keeping track of every dollar. It is a guide and may need adjusting from time to time. That is ok, it helps to review it, adjust it, and, stick with what is written down.

Organize all required monthly expenses. Begin with food expenses, the mortgage payment, and utility bills. Consider looking over last years bills to get an estimate of the total expenses for the year. For example, a utility bill may be higher during hot months or cold months, and it may be necessary to set aside money to prepare. Reviewing last years income and expenses can help you discover any extra payments for insurances, taxes, etc.

Example of Expenses Listed on a Budget:

* Mortgage Payments

* Utility bills

* Phone bills

* Child Care

* Gifts, Birthdays, etc.

* Gas, auto payments, repairs

* Food, cook more, eat out less

* Money deposited into a savings account. 

The list above is an example, make your own list and write a dollar amount by each item. Consider things on the list that could be eliminated. For example, cell phone plans could be reduced or home phones may not be needed. Notice that entertainment is not on the list. By eliminating this expense, there could be more money to use to pay down bills. If it is put on the budget, make sure to set an amount that is reasonable and set limits. Entertainment expenses can take a big bite out of the monthly income. Try to do more home activities for a while.

First time budgets can be a success, and it takes time for it to become a habit and refined. It is a starting point, as many people never follow one, and later wonder how they got into debt. The more it becomes a habit, the more you know your expenses, and what you must plan to spend out of each paycheck. Keeping bills paid on time can be huge stress relief.

Target debts to pay every time a paycheck is received, spread it around to what is necessary to pay first. After some weeks, you may find your finances in better shape and feel some pride in getting debts well under control. Paying debts must become a weekly target, to make progress and get bills paid. This also helps to avoid any added expenses. Using a calendar as a reminder is a good tool to use. When getting out of debt is not working, consider a free quote from a debt counselor.

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