In Tarpon Spring, Florida a Port Richey couple has been accused of stealing approximately 8,000 credit card numbers. Jail records show 30-year-old Angel Toland and 23-year-old Gary Blair were being detained Thursday at Pinellas County Jail on $5,000 bonds—it is not known if either will hire an attorney for their credit card trafficking charges.

A sheriff’s office report claims the pair attempted to sell undercover officers the credit card numbers and personal information of approximately 200 people for $1,500. Subsequent investigations revleaed the couple had roughly 8,000 credit card numbers—the information was secured on lead sheets from a telemarketing agency. 

 Detectives say the suspects may have stolen the paperwork when they helped the company with an office move; once the investigation concludes, the lead sheets will be destroyed. 

Layaway, a payment plan established by some retailers which allows purchasers to put items aside until they are fully paid off, is making a comeback from many larger retailers, especially for the holiday season. 

Layaway was a popular method before credit cards became easily obtainable and commonplace.  Now consumers, armed with the knowledge of the dangers of credit cards, can practice financial discipline with the help of retailers such as WalMart, Toys R Us, and Sears, which have all put layaway payment programs in place.  

While the practice of layaway does have costs for the retailer, as they must keep track of payments and hold the items within the store until they are paid off, a small fee is charged in order to make up for any losses.  Likewise, consumers may cancel their payments, however they will be subject to fees.  

Many of us have become familiar with the all too common “help” of a retail store employee informing us that we can save 15% on our purchase if we sign up with the store’s credit card.  However, while they may provide savings, many find that the percentage they save now may come at the expense of damaged credit and inflated rates later.  

Store credit cards are very similar to standard issued Visa or Discover cards, except that they are often attached with special offers and the promises of future discounts and rewards.  However, they also come with the same risks, as interest rates are often very large and spending limits tempting.  

Younger consumers, who may not understand the implications of credit card debt, are at risk of damaging their credit and becoming indebted for purchases that seem like a bargain.  Most, if not all financial experts, advise that younger consumers should stay away from such credit cards and focus on building their credit in much less riskier methods.  

The Credit Card Act of 2009 provided much needed reform to consumer credit cards which had subjected cardholders to unreasonable fees, soaring interest rates and arbitrary rules.  These rules took effect on February 22, 2010.

Minimum payments – credit card companies must display on their bill how long it will take for the consumer to pay off the balance is only the minimum payment is made every month.  Whenever the consumer pays more than the minimum balance, the leftover amount will go towards paying the next balance with the highest interest.  

Billing cycles – credit card companies may no longer charge retroactive fees for the previous billing cycle if there is not a valid reason such as disputed purchases or payments for insufficient funds.

Due dates – the new credit card rules dictate that the due date for monthly payments must be consistent every month and if the date falls on a holiday or weekend, the payment is due on the next business day, without penalty.

Change of Address – a credit card company changes its mailing address which in turn, leads to delays in processing cardholder’s payments, the card company may not charge late fees for sixty days after the change.

Interest rates – the new credit card rules ban retroactive interest rate hikes, with some exceptions.

– An expressed introductory period ends; the law now requires this period to be at least six months.

– The interest rate is variable.

– The cardholder fails to comply with a debt consolidation plan.

– The cardholder misses a payment for 60 days, even then, the rate must return to normal after the cardholder makes six months of on-time payments.

– A military service member leaves active duty which no longer entitles the cardholder to a government mandated cap of 6% APR.

Most importantly, a credit card company cannot raise rates if the cardholder fails to pay balances on other accounts such as utilities or other credit cards.

“Over-limit fees” – usually a credit card is declined when it exceeds its limit.  Over-limit fees cover the balance, often with substantial fees.  The new credit card law lets consumers opt out of over-limit fees and ensures it can only be charged once per billing cycle.  The law also requires those than opt into the fees understand the amount to be charged and retain the right to opt out at any time.

Paying balances – the credit card company is now required by law to not charge additional fees for any methods of payment, unless it is an expedited service to avoid late fees.  Statements must now be mailed to the cardholder at least 21 days in advance.  Fees may not be applied until 21 days after any declared “grace period” has ended.

Subprime cards have been known as “fee harvesters” as the holders typically incur several unforeseen fees which especially victimize individuals with poor credit worthiness.  Credit card companies can no longer charge upfront fees that exceed 25% of the credit limit.

The new credit card laws also contain provisions for gift and prepaid cards as well as gift certificates.  Unless the issuer specifically discloses it, these items cannot expire within five years.  Dormancy, inactivity and service fees are all expressly banned unless it is expressly disclosed and the inactivity exceeds one year.  In this case, only one fee may occur per month.

Issuing credit cards to persons under 21 is now banned unless there is an adult co-signer.  Alternatively, they may show proof that they have the means to pay back the balance.  Credit card companies may no longer solicit persons under 21 with prescreened credit card offers.

Colleges and universities must disclose all marketing and promotional relationships with credit card companies including contracts that disclose student and alumni information to credit card companies.  These disclosures are subject to inspection by the federal government.  

The new credit card laws mandate that credit and debt management courses become part of new student orientation at colleges.  Free offers may not accompany credit card promotions at or near (within 1,000 feet of) college campuses.  Colleges and universities are now required to limit the number and locations of credit card marketing events.

The new credit cards laws ensure that all fees, penalties and terms are disclosed and that there is at least 45 days notice of changes to credit card agreements.  They must also inform the cardholder of how long it will take to pay off their balance when making only the minimum monthly payment.  The Federal Reserve must collect electronic copies of all credit card agreements for public record.  The Federal Reserve also issues guidelines for card issuers to set up toll-free credit counseling and debt management assistance.

Consumers are entitled to one free credit report a year at AnnualCreditReport.com.  Other companies that offer free credit reports must disclose both visually and audibly that their credit report is not the “free one” provided by federal law.  

The right of consumers to opt out of significant change to their account is affirmed by the new credit card law and prevents opting out to be at the discretion of the card company.  Card companies that have account holder close accounts due to radical changes may collect the remaining balance over the next five years, charge a minimum payment amount that is up to twice the percentage charged before the change in terms or hold the former account holder to the same terms of the original agreement.  

Consumers cannot be punished for opting out of rate increases.  However, consumers are not allowed to opt out of minimum balance increases.  Consumers who are more than 60 days late on payments are also not allowed to opt out of rate increases

When applying for credit, lenders can inquire for a copy of an individual’s credit report from one of the major credit bureaus. These inquiries or credit checks can be listed on a credit report. While these inquiries may cause a credit score to drop, it will not change drastically. Sometimes, looking for a new credit line can mean a higher risk, but most credit scores do not get affected by multiple inquiries from mortgage, auto, or student loan lenders.

A credit check can be useful to determine an individual’s credit score, which many businesses, employers, creditors, and insurers use. The best way to go about doing a credit check is by getting a credit report. This provides information on an individual’s location, how the individual pays bills, record of lawsuits and arrests, and any history of bankruptcy. The credit report contains three different reports from the three major credit bureaus.

 A credit check can come in two forms. There is the soft pull which is just a basic credit check to determine a credit score. It is only use for informational purposes in order to find out a score. There is also a hard pull credit check, which results in more complicated reports. Lenders will often use hard pull credit checks for new accounts. These are the credit checks that can affect credit score.

The impression from applying for credit and having a credit check done will vary on a person to person basis based on their unique credit histories. For most people, one additional credit inquiry takes less than five points off. However, inquiries can show a greater impact with less accounts or a shorter credit history.

Large amounts inquiries also imply greater risk. An individual with at least six inquiries on their credit reports statically can be up to eight times more likely to declare bankruptcy in comparison to people with no inquiries. While inquiries can help assess risk, they play a minor part in doing so. How an individual pays bills and his overall debt burden as shown on your credit report is much more influential.

Performing a credit check through a credit report can help improve the chances of getting a job or a loan. Credit reports can show an individual what their credit score is and how it can be improved as opposed to jut a number.

Under the Fair Credit Reporting Act along with the Fair & Accurate Credit Transactions Act, everyone is entitled to free credit report annually from the major credit bureaus. This law was created in order to provide individuals with a free copy annually of their credit report upon request, making them more aware of their financial position. Free credit reports can be obtained by providing a name, date of birth, address, and social security number. 

There is no way to quickly fix credit scores since the process takes time to be successful. The best way to fix credit scores is to take care of it in a responsible way steadily over time in order or to repair credit history. Here are some tips for accomplishing that.

Fix Credit Scores: First Steps

• Check a credit report: Free copies can be requested and will provide information used to calculate a credit score. There can be potential errors such as incorrect late payments or amounts owed. Any errors should be disputed and corrected through the credit bureau as well as the reporting agency.

• Setting up payment reminders in order to prevent late payments, which can have a very harmful effect to a credit score. Banks will often provide this service through the online banking sections of their websites. Automatic payments are another possible way to avoid late payments.

• Reduce owed debt by reducing credit card use, and having more effective payment plans.

• If there are no credit cards associated to an individual, a credit card can help to help show regular payments.

• Showing payments to installment loans such as auto loans, personal loans, mortgages, or student loans can help fix credit scores.

• Paying off credit cards and other revolving credit lines is also an extremely effective way to fix credit scores. It is best to show large gaps credit available and credit used. Typically it is ideal to stay below 30%. Two effective ways of paying off or down credit cards are by either paying the cards with the highest interest rates or those that are closest to their limits.

• Instead of accumulating large balances on credit cards, using less than 30% or especially less than 10%. Balances are reported to credit unions so they should be kept as low as possible.

• Verify limits to be sure the lender is not showing a lower limit. If a lender is doing this, the lender can update this information quickly upon request.

• Keep older cards to maintain an older credit history, but make sure to use them occasionally otherwise the issuer may stop sending updates to credit bureaus, lessening its weight on a credit report.

• If there is just one late payment, a lender may be willing to overlook and erase it from the record. Any requests must be made in writing.

• Don’t lower credit limits because it will lower the gap between available credit and balances, which can lower a credit score.

• Avoid any late payments since they hurt good scores even harder than bad ones. They are not as damaging to an already bad score, but they should still be avoided.

• Consolidating accounts may lead to a big balance on one account as opposed to smaller balances on multiple accounts, which can hurt credit scores.

In order to do a credit fix, it is important to know how to avoid some scams and claims. Many companies will claim to be able to remove judgments, bankruptcies, bad loans, or liens from a credit file. Some companies may even claim to remove bad credit or make a new credit identity. 

According to the Federal trade Commissions, most of these are just scams. Even attorneys from the country’s consumer protection agency have yet to find a legitimate credit fix operation that has followed through on such claims.

Legally, no one is allowed to do a credit fix by removing timely and accurate negative information from a credit report, so it is important not to believe that these credit fixes will really work. The only thing that is allowed is removing negative information that is incomplete or inaccurate.

Here are some credit fixes that will help improve a credit score:

• If the bad information on a credit report is the result from an outstanding debt, work to repay these debts as rapidly as possible. It is ideal to pay off debts that have the highest interest rates before those with lower interest rates.

• If the debts are too overwhelming, a nonprofit credit-counseling organization may be helpful in making a plan to repay debts. A counselor can help consolidate debts and can talk to debtors to try to eliminate or reduce extra finance charges.

• Attempt to maintain a lifestyle that can help with the credit fix. Make sure to make all payments for rent, mortgages, and utilities before they become late, maintain the same job and residence, and keep a savings and checking account. Furthermore, create and follow a budget.

• Punctually paying off monthly credit card balances in order to avoid late fees is an effective credit fix to follow.

• Cut off credit card use to avoid even more debt.

• Setting up payment reminders in order to prevent late payments, which can have a very harmful effect to a credit score. Banks will often provide this service through the online banking sections of their websites. Automatic payments are another possible way to avoid late payments.

• Pay more than just the minimum on the monthly payments.

• Ask for a copy of a credit report and check for any errors. If there are, they should be corrected.

• Avoid large purchases until paying off all the credit card debt.

• Transfer the debt to a lower interest credit card.

• Pay half the minimum twice the month to reduce the monthly average, which will reduce the finance charges that are assessed.

• Close the newest accounts to make the average age of credit history older.

An interest rate refers to the rate at which is interest is required by a borrower for the use of credit. For example, if a consumer opens a credit line via a credit card from a bank, the individual will be given a set amount of credit and in return the lender will receive interest payments at a predetermined rate for deferring the use of funds and instead offering it to the borrower. Interest rates are typically expressed as a percentage rate over the period of one year and are expressed as the annual percentage rate for credit cards. 

All lenders have the legal authority to charge borrowers an additional fee to access a stream of financing or credit. In a general example, if an individual borrows $100 from a lender, the $100 is considered the ‘principal’ amount of the loan. 

In addition to the principal, the lender will require the borrower to pay an interest payment. In this example, the interest attached to the $100 is 10% or $10. Interest rates therefore require the borrower to pay an additional percentage that is attached to the repayment amount, known as the principal of the loan.

Interest rates are calculated as an annual percentage, even if the terms of the specific loan require a monthly or periodic repayment schedule. Interest rates, when expressed as an annual percentage, enable the borrower to determine if a particular loan’s terms are reasonable.

Interest rates can be delivered in a ‘fixed’ or ‘flexible’ form. Fixed interest rates refer to those interest rates that do not fluctuate over the course of the repayment schedule; fixed interest rates remain the same throughout the life of the loan. 

The majority of borrowers prefer loans with fixed interest rates because the repayment terms are more predictable and protected via a formal contract. That being said, because the interest cannot be adjusted, many lenders will charge more for a fixed-interest loan. 

Flexible interest rates, when attached to a loan, will fluctuate based on macro-economic variables such as inflation, the unemployment rate and various borrowing and lending statistics. Lender’s typically tie flexible interest rates with current federal rates, known as the prime lending rate. 

Federal interest rates are those lending rates charged by the federal government to lending institutions, such as banks. The prime lending rate is periodically adjusted by the Federal Reserve Board chairman, based on the previously mentioned economic variables. A lender may charge borrowers an interest rate, which are just a few points above the prime lending rate at the time of the initial loan. If the rate is altered, the interest on the loan may be adjusted. 

Credit cards, when issued, are attached with interest rates labeled as the annual percent return or APR. The APR is delivered as an annual percentage; the average APR for a credit card is roughly 20%. That being said, credit cards require a monthly payment plan, altering the APR to a monthly percentage. As a result, an individual with an annual interest rate of 20% will possess a monthly percentage rate of 1.667%. 

The monthly percentage rate is multiplied to any remaining balance that is not paid from the previous month’s balance. For example, if the individual has $200 outstanding on his or her credit balance, the 1.667% will be multiplied in decimal form (0.0167) to the $200 to yield the additional fees that the borrower owes. In this example, the borrower will be required to pay an additional $3.34 in the following month’s bill.