The Consumer Financial Protection Bureau has launched a brand new study on credit reports that figure out a consumers' ability to get credit. According to the report, how a consumer uses his or her credit card is the most telling aspect in deciding on a score.
Always responsible use of cards
Consumers should certainly focus their spending in an effort to increase credit scores for the next time they need credit. It is not a shock to many people, and responsible card use is always encouraged.
Richard Cordray is the CFPB director. He explained: "Credit cards are given great weight in credit profiles -- a lesson that consumers could end up learning the hard way."
According to the Consumer Financial Protection Bureau report, more than half of the data on the typical credit score report comes from credit card businesses.
As long as you are using credit cards responsibly, there is no problem with having them, according to Cordray. He explained that many consumers will be getting retailer charge cards in order to get gift purchase discounts, but the consumers should always be careful to pay it off each month. If not, there could turn out to be a black mark on their credit history leading to a higher cost on their mortgage down the road.
No more charge card spending
With the economy still not up to speed, there are a ton of issues with cash. There is high unemployment, stagnant wages, increased costs and more. That means many customers are using charge cards for daily expenditures rather than just for emergency situations. American consumers have not been able to stop during the economic depression.
Americans should consider listen to the Consumer Financial Protection Bureau because about 40 percent of low- and middle-income families use credit cards to meet daily needs such as rent and clothing, according to the CRL.
Looking at the Credit card Act
One the other hand, many Americans have managed to cut back high charge card balances in the recession's aftermath. Much of that, however, could be attributed to credit card reforms, say some analysts. The Charge card Accountability Responsibility and Disclosure Act of 2009 eliminated or restricted many predatory lending practices, such as high penalties and fuzzy fee structures.
Stay informed
Less than 20 percent of customers actually get their credit rating regularly, according to the CFPB. Customers can point out errors or fraud more effortlessly and fix any difficulties before it shows up when applying for a large loan if they are keeping track of their credit. Americans are obviously not doing enough when it comes to staying informed.
Always responsible use of cards
Consumers should certainly focus their spending in an effort to increase credit scores for the next time they need credit. It is not a shock to many people, and responsible card use is always encouraged.
Richard Cordray is the CFPB director. He explained: "Credit cards are given great weight in credit profiles -- a lesson that consumers could end up learning the hard way."
According to the Consumer Financial Protection Bureau report, more than half of the data on the typical credit score report comes from credit card businesses.
As long as you are using credit cards responsibly, there is no problem with having them, according to Cordray. He explained that many consumers will be getting retailer charge cards in order to get gift purchase discounts, but the consumers should always be careful to pay it off each month. If not, there could turn out to be a black mark on their credit history leading to a higher cost on their mortgage down the road.
No more charge card spending
With the economy still not up to speed, there are a ton of issues with cash. There is high unemployment, stagnant wages, increased costs and more. That means many customers are using charge cards for daily expenditures rather than just for emergency situations. American consumers have not been able to stop during the economic depression.
Americans should consider listen to the Consumer Financial Protection Bureau because about 40 percent of low- and middle-income families use credit cards to meet daily needs such as rent and clothing, according to the CRL.
Looking at the Credit card Act
One the other hand, many Americans have managed to cut back high charge card balances in the recession's aftermath. Much of that, however, could be attributed to credit card reforms, say some analysts. The Charge card Accountability Responsibility and Disclosure Act of 2009 eliminated or restricted many predatory lending practices, such as high penalties and fuzzy fee structures.
Stay informed
Less than 20 percent of customers actually get their credit rating regularly, according to the CFPB. Customers can point out errors or fraud more effortlessly and fix any difficulties before it shows up when applying for a large loan if they are keeping track of their credit. Americans are obviously not doing enough when it comes to staying informed.
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