Despite the Credit Card Act of 2009 , the credit card industry is the only one that still has the right to change the terms of a contract after it has been signed. Many consumers sign up for a credit card when the interest rate is low, such as 7.9% per year. Then they miss a payment or are even just a few days late on a payment and the credit card issuer raises the rate. The new increased rate now applies for the entire unpaid balance on the card, even though the balance was charged when the old rate was in effect. It is this terrible cycle that keeps consumers in debt forever, because they end up paying interest on interest. Often, items ...
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Patterson Signs Bill Increasing Exemptions in Bankruptcy
Governor David A. Paterson announced on December 23, 2010 that he signed into law S.7034-A/A.8735-A, which will increase the amount of exemptions in bankruptcy proceedings and money judgments and provide a choice between State and Federal exemptions.
"During this time of economic crisis, it is our responsibility as public servants to protect those who are struggling the most," Governor Paterson said. "A reconsideration of the current exemptions, which in some cases have not been changed in decades, is particularly warranted when an increasing number of individuals find themselves in dire financial condition. Though this is not a perfect ...
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The Components of A Credit Score
Many lenders, such as banks and credit card companies use credit scores to evaluate the potential financial risk of giving a specific consumer a line of credit. A good credit score can mean lower interest rates or increased lines of credit. Most lenders start with your FICO score, which is a numerical figure based on previous and ongoing credit transactions. There are many components that can shape the results of your score, but there are five major factors that make a big difference:
Payment History
Creditors want to see that you have a history of paying your bills on time. Late payments will cause a score to drop considerably. In the ...
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