How Do I Know It's Safe to Use My Credit Card Online?

The advent of the Internet and its subsequent popularity has led to a massive increase in online shopping. Many companies now advertise and sell their products on proprietary websites. Using a credit card online is common practice. There are, however, some unethical companies and individuals who will attempt to defraud potential customers and steal identities. Prior to making any purchases online, you must verify the security of a web page.

Instructions

1

Trust your instinct. If you are solicited by a person, marketing advertisement or email and are prompted to enter your personal information (including your credit card), take caution.

2

Review all purchases and online "cart" summaries prior to entering any card information. Many website encryption processes allow only a certain amount of time to review and enter consumer information for online purchases. This is especially true when purchasing airline tickets.

3

Look for the image of a padlock if you are using a Windows operating system. This icon will appear on the far right side of the web address in the URL box. This is the universal symbol for a protected and encrypted web page.

4

Look at the URL itself and verify that it begins with "https" rather than "http." This will appear on all protected sites, regardless of your operating system.

5

Contact the company if you are unsure about the security of your transaction. A representative from the company will be able to direct you to the encryption and security company monitoring the site's safety. You can then contact this company to discuss its safety.

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How to Erase a Credit History

Fixing your credit history is the single best personal finance decision that a consumer can make. In the United States, credit history determines whether an individual can rent or own a home, be issued a non-secured credit card, purchase a new car or even be hired for employment. This step-by-step guide will enable anyone to clear their credit history with moderate effort and learn ways maintain excellent credit.

Instructions

1

Secure a copy of your credit report from all three of the major credit agencies. This will enable you to to determine whether the report you receive is up to date.

2

Determine if the report has errors or other discrepancies, such as incorrect addresses, debt amount or other information that does not belong to you. Write down each error and make a note of the date it was entered on the report, the amount in question and the name of the credit lender. Getting the telephone number of the creditor is also a good idea, however many lenders use the services of collection agencies; therefore finding the original creditors' telephone number could prove tedious.

3

Contact the lenders or collection agencies. The actual act of picking up the phone to call a creditor is hardest part of the credit repair process. Be prepared to withstand any type of conversation. Though debt collections practices have changed drastically, it is not uncommon to come across a collector who is unreasonable and downright ornery. Try to keep the tone of the call light and upbeat without giving away your authority.

4

Gather any information you can from the call. Though debt collectors are trained to seek out identifiable information on you, it is imperative to do your own investigation as well. Since you are the initiator of the call, you are in a better position to negotiate a lower amount on the final debt. Most collection agents are qualified to accept a 50 to 75 percent settlement fee. A settlement fee is the amount you will pay to close out your debt and mark it as paid off. Secure everything in writing before ending any transaction. Be sure to get the name of the agent, any identifying employee ID, extension number and the date of the call.

5

Dispute any erroneous debt information using the postal mail instead of online. While this may seem inconvenient to you, it is also inconvenient for credit bureaus as well. When a paper dispute is sent to a credit bureau, the bureau has up to thirty days to respond. Most agencies use this time to locate the credit file and determine whether the debt is valid. If the response is not received within this time frame, the debt is usually erased. Delays from mail and locating credit files are factored into this time. When using an online dispute system, the bureau is not bothered with paperwork and postal delays. Therefore, disputes submitted online are usually responded to much faster.

6

After all errors are cleared from your report, pay off any valid debts. Start with small amounts and work your way to the larger amounts. This system allows for your credit file to update faster since debts are being paid off, and also gives you the sense of accomplishment. Be sure to use a simple excel sheet or any other tool to track your payoff amounts and notify you of upcoming due dates. Once you have gotten into the habit of paying your bills on time and regularly, your credit score will rise substantially.

7

After your credit file is somewhat clear of negative items, that is the time to start adding positive lines of credit to balance out the report. This can be accomplished by applying for secured loans at your local bank. A small loan of $200 can be obtained using your own funds as the surety. Making timely payments on these loans for a few months will increase your score and enable you to apply for unsecured loans or other financial products.

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Can I Draw Florida Unemployment if I Move out of State?

Moving out of state won't prevent you from drawing Florida unemployment benefits -- if you are eligible to receive them. In fact, Florida offers options for applying for unemployment benefits in Florida even if you are living permanently in another state. Once you become eligible for Florida unemployment benefits, it does not matter where you choose to live while receiving the weekly payments.

Base Period

People working in Florida during a specified "base period" are initially eligible for unemployment compensation, pending a full review by the state's unemployment agency, the Florida Agency for Workplace Innovation. The state describes a base period as the first four quarters of the previous five quarters before filing a claim. The claimant must have earned at least $3,400 working in Florida during the base period. Once a person establishes eligibility she must continue to seek full-time employment and adhere to other guidelines for receiving weekly payments. The claimant can move from the state before or after the final determination of eligibility.

Considerations

After determining initial eligibility through the base period, Florida examines reasons why you left your last, or next-to-last, employer. People who leave their jobs voluntarily by quitting are not eligible for unemployment benefits. That means it is not possible to quit a job to move to Texas and then draw Florida unemployment benefits. People fired from their jobs because they broke company rules are sometimes denied benefits as well. However, a person who was a part of a legitimate layoff could become eligible for benefits and move to another state while still collecting the benefits.

Weekly Pay

The minimum weekly benefit amount in Florida in 2011 is $32 and the maximum is $275, according to the state's website. People applying for benefits can calculate the amount that they would receive by reviewing the quarter in the base period with their highest earnings and dividing that number by 26. The resulting number is the weekly benefit amount, but it cannot exceed the maximum of $275.

Advice

Someone contemplating moving out of Florida and collecting unemployment benefits can check with the state to confirm a clear understanding of the rules. For example, moving out of Florida and taking a job in another state could make a person ineligible for benefits in Florida. It depends on how long the person worked out of state and the most recent work experience in Florida. The Florida Agency for Workplace Innovation is available to answer questions by telephone. Contact the agency at 800-204-2418.

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Format for Mortgage Hardship Letter

A mortgage hardship letter is a communication from a borrower to his mortgage lender asking for a loan modification. The hardship letter supports a loan modification application that the lender often needs to process this request. If necessary, you can write the letter yourself using a standard format, but it's a smart move to hire a lawyer to help you with this and the rest of the loan modification process.

Introduction

The first section of a mortgage hardship letter is the introductory paragraph, where you state your business. State who you are (a borrower) and give a quick summary of why you're writing the request. Explain that you wish to modify your mortgage loan to make it more affordable and that this letter is an attachment to your application for modification. You may also want to provide a little background on your history with the company; for instance, if you've been making on-time payments for years, that shows the lender that you've been a reliable borrower to date.

The Hardship

Next you must expand on the situation that has led you to seek a loan modification. Discuss the specific hardship you've been experiencing in detail, such as a job loss or reduction in hours. List as many details and reasons as you feel comfortable providing. Make sure the lender has a comprehensive view of what caused the problems keeping up with payments. If the issue that causes problems making payments is temporary, be sure to state that in the letter because it could indicate to the lender that you can fully manage the loan once the temporary problem is resolved.

How You Plan to Resolve Situation

After you've explained the hardship, you should then give information on how you plan to fix the problem. For instance, if you've had a reduction in hours at one job but have three upcoming interviews for additional work, you can mention that here. Express your genuine desire to get back on track regarding the mortgage agreement.

Suggested Modification

The last important section to include in your hardship letter is a discussion of a suggested work-out for the loan that you can manage financially. For instance, you might want to roll the past due payments in with the loan balance and start fresh with a new due date, or just receive an overall reduction in your required monthly payment going forward. This does not guarantee that the lender will agree to the suggestion, but it could start you in the right direction toward getting a modification that works for your particular situation. If you have cash saved up to put toward the new plan, state that amount as well. Include a listing of your income and expenses as a support to your request and the other details listed on the hardship letter.

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How Do I Know if My Credit is Good Enough to Apply for a Credit Card?

Managing your credit must be an important part of your financial health. Credit scores and reports can affect the types of mortgages for which you can apply, the type of employment you are qualified for and the type of apartment you can rent. Credit scores largely affect loans, though. While you cannot estimate with 100 percent accuracy whether you'll be approved for a credit card, you can find out how possible it might be.

Instructions

1

Pull a copy of your credit report at Annual Credit Report. This is a free report. You should also pay for your FICO score. This is a three-digit number between 300 and 850. Excellent scores are above 720; poor scores are below 600.

2

Review the report itself. Look for negative marks. These can be any of the following: collection accounts, judgments, charge-offs, over-limit credit cards, delinquent credit cards, bankruptcies and any liens. The most serious problems are any Public Records (such as judgments).

3

Look at your FICO score. If you have a FICO score below 600, your chances at approval are slim. You may qualify for a high-interest, high-fee account, but choosing one of these accounts is risky. If you have a score of at least 620, you have a good chance at approval--so long as you do not have any debt settlements or bankruptcies.

4

Review the payment history on your revolving accounts. Potential credit card lenders want to look at your history with revolving accounts (credit cards). If you show a poor repayment history and poor management with credit (high balances on cards), they are not likely to approve you.

5

Examine all secured debts on your credit report. Secured debts are mortgages and auto loans. If you have poor payment history on these accounts, it will be reflected in your FICO score. The credit bureaus place stiffer FICO penalties on delinquent secured accounts.

6

Look for recurring problems. If you paid off an account with another credit card and then ran up the paid off account again, many creditors likely will deny your application. Responsible lenders look for responsible borrowers.

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What to Do If a Creditor Summons You to Court in Colorado?

One of the most significant steps a creditor can take to collect a debt is to file a civil lawsuit against the debtor. If the creditor is successful in obtaining a judgment, the debtor's wages and bank accounts may be subject to garnishment. If you've been served with a summons by a creditor in the state of Colorado, you need to know what steps to take to deal with the situation.

Answering the Summons

The first and most important thing you must do if you receive a summons from a creditor is to read the complaint carefully. The summons contains all the information relevant to the case, including the creditor's name and address, the amount owed, why they believe you owe the money and the trial date. The summons also contains a section where you must provide your answer to the lawsuit. This is basically an explanation of why you believe you don't owe the debt. You must return the summons with your answer on or before the trial date in order to avoid having a default judgment entered against you.

Prepare Your Case

If you believe you are not liable for the debt in question, you must prepare a defense for court. For example, Colorado state law prohibits debt collectors from filing a civil lawsuit if the debt is more than six years old. If you believe the debt you're being sued for is past the statute of limitations, you will need to provide documentation to the court to support your claim. This could include a copy of your credit report showing the last activity on the account, receipt of your last payment or your last account statement.

Contact the Creditor

If you acknowledge that you owe the debt, you can attempt to avoid court by contacting the creditor directly to try and establish a payment plan or offer a settlement. If you have cash on hand to negotiate with, the creditor may be willing to take less than what is owed and avoid the expense of going to court. If not, you may be able to convince them to allow you to pay over time. Maintain written records of all communications between yourself and the creditor.

Responding to a Default Judgment

If you fail to appear in court on the scheduled date, a default judgment is automatically entered against you. If this happens, you still have the opportunity to file a request with the court to set aside the judgment if you believe you have grounds to do so. You must complete the appropriate forms explaining why you believe the judgment should be set aside. For example, you may request a judgment be set aside if you were never properly notified of the original lawsuit. Once you file your request, the court will schedule a new trial date, when you will have an opportunity to present your evidence.

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How to Accept a Settlement Offer From a Debt Collector

If you fall more than a few months behind on your debt, your original creditor may end up selling your debt to a debt collection agency. Usually, this agency will buy your debt for less than the original value, meaning it may be more willing to accept a partial payment of your debt because it will still make a profit. If you receive a settlement letter from a collection agency, you may be able to negotiate down the first price the agency offers you. When you are ready to accept an offer, you should ensure that the agreement is legally binding.

Instructions

1

Consider the source. The best scenario is if your settlement offer comes directly from the collection agency, and you will be dealing directly with the agency. Some debt settlement companies have been accused of using deceitful practices to entice debtors to settle, while collecting some or even most of the payment as settlement company fees. Whenever possible, accept only a settlement offer directly from the agency holding your debt.

2

Evaluate your budget. No matter how great an offer may seem, if you cannot afford to pay it, don't make the deal.

3

Ask for added benefits, in addition to the reduced payment. If a debt collector is willing to accept a less-than-full payment to satisfy your entire debt, it may be willing to offer you additional enticements to settle. For example, ask the collection agency to remove any negative credit information that the company has reported on your credit report in return for payment on the debt.

4

Ask for all terms of the deal in writing. Before you agree to any settlement offer, have the collection agency spell out in plain English all of the costs, benefits and terms of the deal. Specifically, make sure that the offer specifies the amount you must pay, whether you can pay over time or must pay in a lump sum, and that the agency will report the debt as "paid in full" once you agree to the deal.

5

Write an acceptance letter. Using the agency's offer as a basis, write a letter specifying the exact terms to which you are agreeing. Because the specific wording of the letter could have serious, long-term legal ramifications, you should consider consulting a collection attorney to help you with the terminology in your letter.

6

Follow up. Even if the collection agency agrees to your terms in writing, it may not follow through on its end of the bargain. Verify that your credit report is accurate after the deal concludes, and that no records exist showing that you still owe the debt you just settled.

7

Prepare to pay taxes. Generally, the IRS considers the amount of any debt you may settle to be taxable income. Although you may be able to qualify as insolvent and thereby escape taxation, for the most part you will owe tax on the amount by which the agency reduced your original debt.

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