To transfer the debt into your sister's name and off your account, your sister will need to be able to qualify for a credit card in her name only. My suspicion is that the reason she was added to your account as an authorized user is that she could not get credit on her own. If your sister's credit is not very good, it is unlikely in the current tight credit market that she will qualify for a credit card with a credit limit high enough to transfer the debt.
I would, however, recommend that she apply for a balance transfer credit card to see what happens. If she does qualify for a card, she can transfer as much of the balance that is owed on your card as her new card will allow. That way, at least a portion of the debt will be her financial responsibility.
Unfortunately, if your sister does not qualify for a card in her own name, you will continue to be responsible for her charges and will ultimately have to pay what is owed or further damage your own credit. I would not let her off the hook, however, and would continue to request that she pay what she can on the charges she made.
As far as repairing your credit, time heals all wounds and improves credit. Moving forward, you will need to add positive, paid-on-time and as-agreed account information to your credit report and, with time (two years or more), your credit will improve.
Continue to pay off any balances on your credit card accounts that have been canceled. The fact that the accounts were cancelled is a negative, but not paying the balances that are owed would be much worse for your credit history and score.
Posted by Moishe Alexander. Read more HERE
Monday, June 22, 2009
Thursday, June 18, 2009
A Warning by Moish Alexander
A Warning About “Imposter” Websites
Only one website is authorized to fill orders for the free annual credit report you are entitled to under law — annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information. Read more HERE
Only one website is authorized to fill orders for the free annual credit report you are entitled to under law — annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Some “imposter” sites use terms like “free report” in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these “imposter” sites direct you to other sites that try to sell you something or collect your personal information. Read more HERE
Wednesday, June 17, 2009
Exploiting The Credit Card Law Loophole
The Senate passed a major reform of the credit card industry Tuesday that clamps down on arbitrary fee and interest rate increases. But even after President Barack Obama signs the bill, the law won't fully take effect for nine months.
That's a nine-month loophole, and as CBS News business correspondent Anthony Mason reports, consumer groups are concerned the credit card companies will use the time to hike up interest rates and fees while they can.
At a credit counseling center in Dallas, calls for help are up 40 percent over a year ago. Many come from borrowers buried in credit card debt.
"It's amazing how much of the debt is actually fees and interest instead of principal," said Todd Mark of the Consumer Credit Counseling Service of Greater Dallas.
Comedians may joke about the banks - Stephen Colbert said this week that the card companies "simply change their rules and interest rates based on what the credit rule monkey spins on his rule randomizing wheel" - but they're not laughing on Capitol Hill anymore.
"They will go kicking and screaming into the night on this one," said Adam Levin of Credit.com.
Levin warns that lenders will use the nine months before the law in enacted to raise interest rates and hike fees.
During that time, he said, "We could face the continuing reign of terror."
Interest and fees are lenders' primary sources of profits. So to make up for lost revenue, credit card companies may now have to go after the 45 percent of borrowers who pay their bills on time.
Moishe Alexander Posts more Here
That's a nine-month loophole, and as CBS News business correspondent Anthony Mason reports, consumer groups are concerned the credit card companies will use the time to hike up interest rates and fees while they can.
At a credit counseling center in Dallas, calls for help are up 40 percent over a year ago. Many come from borrowers buried in credit card debt.
"It's amazing how much of the debt is actually fees and interest instead of principal," said Todd Mark of the Consumer Credit Counseling Service of Greater Dallas.
Comedians may joke about the banks - Stephen Colbert said this week that the card companies "simply change their rules and interest rates based on what the credit rule monkey spins on his rule randomizing wheel" - but they're not laughing on Capitol Hill anymore.
"They will go kicking and screaming into the night on this one," said Adam Levin of Credit.com.
Levin warns that lenders will use the nine months before the law in enacted to raise interest rates and hike fees.
During that time, he said, "We could face the continuing reign of terror."
Interest and fees are lenders' primary sources of profits. So to make up for lost revenue, credit card companies may now have to go after the 45 percent of borrowers who pay their bills on time.
Moishe Alexander Posts more Here
New law bans card payment allocation trickery
Moishe Alexander says
Until then, use these strategies to cut down debt
By Amy E. Buttell
If you use your credit cards for balance transfers or cash advances in addition to making purchases, your credit card payments will soon go further, starting in February 2010.
A single credit card can have multiple balances and interest rates -- one rate for purchases, another for balance transfers, yet another for cash advances -- and currently, the credit card company allocates payments as it sees fit. Not surprisingly, credit card companies allocate payments in the most profitable fashion, applying payments first to the balance with the lowest interest rate. That practice lets the high-rate balances linger longer, accumulating interest charges.
more info here
How long does my bankruptcy remain on my credit report?
Your credit report can show your bankruptcy filing for up to 10 years, but many credit reporting agencies will remove it after 7. Having a bankruptcy on your credit record could make it harder to rent an apartment or to obtain a credit card at a favorable rate of interest. It might also make it very difficult to obtain a home mortgage loan or insurance.
"Wiping the slate clean" through bankruptcy also puts all future lenders on notice that you have had difficulty repaying your debts; creditors are more likely to either refuse to extend credit, or to make you pay (through higher interest rates, for example) for the additional risk they are taking in extending you credit.
However, even with a bankruptcy on your credit report, many lenders will do business with you and extend you new credit. This is because the discharge obtained in bankruptcy leaves all future earnings free from the claims of past creditors.
Ask Moishe Alexander or read more here
Tuesday, May 19, 2009
Getting the Most from Your Credit Card by Moishe Alexander
Credit cards can be extremely useful and convenient. They've become part of our lives, and it can be hard to get along in today's world without one. You'll get more out of a credit card if it's the right one for you. You'll also probably save money and manage your finances more effectively if you know how your credit card works. If you're looking for your first card or for a new one, be sure to explore options such as specialized credit cards, student cards and more. While credit cards are indispensable for most people, they do come with potential risks. You can manage these risks better if you know what they are. Here's a quick look at these benefits and risks.
Benefits
A credit card can:
On the other hand, credit cards can:
Benefits
A credit card can:
- help you establish a credit history and earn a credit rating;
- be more convenient to carry than cash;
- offer free use of funds, provided you always pay your balance in full, by the due date;
- give you incentives, such as reward points, that you can redeem for merchandise or services;
- and provide a convenient payment method for purchases made on the Internet and over the telephone.
On the other hand, credit cards can:
- allow you to build up more debt than you can handle;
- damage your credit rating if your payments are late;
- have complicated terms and conditions;
- cost much more than other forms of credit, such as a line of credit or a personal loan.
Wednesday, December 10, 2008
Canadian Funding Corp Review and Comments by Moishe Alexander On The Credit Card Lending Crisis
Canadian Funding Corp Review and Comments by Moishe Alexander On The Credit Card Lending Crisis
As a result of the delinquent credit card crisis in Canada, 3 of the major banks have put in restrictions to existing credit card users and applicant credit card users thereby reducing the buying power of Canadians who bank at these institutions.
The Toronto Star reported on December 5, 2008 that the CIBC, TD Canada Trust and National Bank have placed restrictions on credit card lending as a result of the dismal forecasts for the increase in personal bankruptcies predicted for 2009.
The CIBC, TD Canada Trust and National Bank have now commenced a credit card lending reduction program as the banks are reeling from the credit crunch.
Many analysts speculate that CIBC will continue to be hit by debt-related write-downs as the economy falls further into decline. In a stunning announcement, the bank’s provisions for credit losses jumped a staggering 68% to $222 million in its last quarter. That’s an increase of $132 million over the same period last year.
The CIBC, TD Canada Trust and National Bank blame the escalating losses in their credit card business as the main culprit for reducing or restricting consumer’s credit card limits. In fact, it was reported in the Toronto Star by Sonia Baxendale, the head of the CIBC’s retail bank that, “the credit card market increased by 13% in 2008 but that growth will dip to 7-8% in 2009.”
It is reported in The Toronto Star that Ed Clark, CEO of TD Canada Trust said “as the economy turns down, understandably there is a concern that banks not overreact by unduly restricting credit. We recognize this concern and have emphasized both within the bank and with our customers and clients that we will work prudently with them in these troubled times.”
Moishe Alexander, founder and president of Canadian Funding Corporation, states that, “although Mr. Clark is calling this new emphasis as ‘prudent,’ what it really amounts to is further restrictions on credit card lending which will deeply affect credit card users and the economy as a whole.”
Moishe Alexander also remarked that, “starting today, it will be extremely hard for consumers to obtain credit card loans and small personal loans. And since the value of properties has declined by about 31% in the GTA, these consumers who have maxed out their credit cards will most likely not have the equity to take out a second mortgage to reduce their monthly payments.”
It was reported in The Toronto Star review that, “both consumers and businesses filed 9,468 bankruptcies in October of this year alone.”
That’s an incredible 21.1% increase over the same month last year. Moishe Alexander advised that, “consumers and businesses alike are looking for innovative ways to deflect or defer payments, which makes a consumer proposal a very attractive option.”
He went on to say, “It’s interesting that even though both TD Canada Trust and The National Bank made significant profits ranging from $70 million for The National Bank and $1.01 billion for TD Canada Trust, both these banks are instituting these restrictions and limitations on credit card lending. This will adversely affect the economy.”
The Toronto Star article is listed below or you can read it in its entirety by clicking here http://www.thestar.com/article/548718
CIBC curbs credit card lending
Financial crisis also takes a toll on results of TD, National Bank
Dec 05, 2008 04:30 Am
RITA TRICHUR
BUSINESS REPORTER
Canadian Imperial Bank of Commerce will continue tightening credit card lending and is forecasting "slower demand" for mortgages, noting the fading economy will likely spur a bigger rise in personal bankruptcies in 2009.
Canada's fifth-largest bank – reeling from the credit crunch – provided that outlook yesterday as it posted a 51 per cent decline in its fourth-quarter profit and a big full-year loss.
Fallout from the financial crisis also took a toll on the results of two rivals.
Toronto Dominion Bank's quarterly profit fell 7 per cent due to previously announced writedowns of $350 million.
National Bank of Canada swung back to profitability during the period, but absorbed $237 million in charges.
While some analysts speculated that CIBC would continue to be stung by debt-related writedowns, they said the economic slump is also a serious bugaboo.
CIBC's latest report already reveals how the dimming economy is weighing on its results.
The bank's provisions for credit losses jumped by 68 per cent to $222 million in its latest quarter, up from $132 million in the same period last year.
Escalating losses in its credit card business were the main culprit. CIBC administers Canada's largest credit card portfolio but deliberately chose to "slow growth" in that segment during the second half of fiscal 2008.
Sonia Baxendale, who heads CIBC's retail bank, said the credit card market increased by 13 per cent in 2008 but that growth will dip to 7 to 8 per cent in 2009.
"Throughout much of this year we grew at market rates. However, in the latter part of Q3 and in Q4, we slowed our growth in response to the market environment," Baxendale said. "We anticipate that overall cards growth will be in the mid-single digits given consumer spending sentiment and our risk appetite."
Rising credit card defaults suggest that consumers are already feeling strained, said John Kinsey, a portfolio manager with Caldwell Securities. How bad it gets, depends on the depth of the recession.
"I think that the problem is that even in the good times, a lot of these people have been maxed out for a while," Kinsey said, adding all banks are likely to cut back on credit card lending.
"It is going to be harder to get credit cards and personal loans."
Mortgage growth, meanwhile, is poised to decline to low-to-mid single digits, Baxendale said. CIBC is predicting demand will slow because of the cooling housing market, weaker consumer spending and forecasts for higher unemployment in 2009.
"We expect a rise in personal and small business bankruptcies associated with the weaker economic backdrop," the bank said.
Yesterday, the Office of the Superintendent of Bankruptcy Canada reported that consumers and businesses filed 9,468 bankruptcies in October. It is a 7.2 per cent increase from September and a hefty 21.1 per cent jump from the same month in 2007.
"As the economy turns down, understandably there is concern that banks not overreact by unduly restricting credit,'' said Ed Clark, CEO of TD Bank.
``We recognize this concern and have emphasized, both within the bank and with our customers and our clients, that we will work prudently with them through these troubled times."
Still, TD is also expecting volume growth to slow. It also plans to open fewer branches in 2009 and will add fewer wealth-management advisers.
For its part, CIBC's fourth-quarter profit tumbled to $436 million, or $1.06 per diluted share, from $884 million or $2.53 a share for the same 2007 period. A slew of items, including securities-related writedowns, hurt the results.
For all of 2008, CIBC posted a net loss of $2.1 billion compared with net income of $3.3 billion for 2007.
TD, Canada's No. 2 bank, said its fourth-quarter profits were $1.01 billion, or $1.22 a share, versus year-ago profits of $1.09 billion or $1.50 a share.
National Bank, meanwhile, said it earned $70 million, or 37 cents a share, in the fourth quarter. That was up from the year-earlier loss of $175 million, or $1.14 a share.
Canada's sixth-largest bank preannounced charges related to asset-backed commercial paper, a restructuring and a writedown of tangible assets.
With files from the Star's wire services
As a result of the delinquent credit card crisis in Canada, 3 of the major banks have put in restrictions to existing credit card users and applicant credit card users thereby reducing the buying power of Canadians who bank at these institutions.
The Toronto Star reported on December 5, 2008 that the CIBC, TD Canada Trust and National Bank have placed restrictions on credit card lending as a result of the dismal forecasts for the increase in personal bankruptcies predicted for 2009.
The CIBC, TD Canada Trust and National Bank have now commenced a credit card lending reduction program as the banks are reeling from the credit crunch.
Many analysts speculate that CIBC will continue to be hit by debt-related write-downs as the economy falls further into decline. In a stunning announcement, the bank’s provisions for credit losses jumped a staggering 68% to $222 million in its last quarter. That’s an increase of $132 million over the same period last year.
The CIBC, TD Canada Trust and National Bank blame the escalating losses in their credit card business as the main culprit for reducing or restricting consumer’s credit card limits. In fact, it was reported in the Toronto Star by Sonia Baxendale, the head of the CIBC’s retail bank that, “the credit card market increased by 13% in 2008 but that growth will dip to 7-8% in 2009.”
It is reported in The Toronto Star that Ed Clark, CEO of TD Canada Trust said “as the economy turns down, understandably there is a concern that banks not overreact by unduly restricting credit. We recognize this concern and have emphasized both within the bank and with our customers and clients that we will work prudently with them in these troubled times.”
Moishe Alexander, founder and president of Canadian Funding Corporation, states that, “although Mr. Clark is calling this new emphasis as ‘prudent,’ what it really amounts to is further restrictions on credit card lending which will deeply affect credit card users and the economy as a whole.”
Moishe Alexander also remarked that, “starting today, it will be extremely hard for consumers to obtain credit card loans and small personal loans. And since the value of properties has declined by about 31% in the GTA, these consumers who have maxed out their credit cards will most likely not have the equity to take out a second mortgage to reduce their monthly payments.”
It was reported in The Toronto Star review that, “both consumers and businesses filed 9,468 bankruptcies in October of this year alone.”
That’s an incredible 21.1% increase over the same month last year. Moishe Alexander advised that, “consumers and businesses alike are looking for innovative ways to deflect or defer payments, which makes a consumer proposal a very attractive option.”
He went on to say, “It’s interesting that even though both TD Canada Trust and The National Bank made significant profits ranging from $70 million for The National Bank and $1.01 billion for TD Canada Trust, both these banks are instituting these restrictions and limitations on credit card lending. This will adversely affect the economy.”
The Toronto Star article is listed below or you can read it in its entirety by clicking here http://www.thestar.com/article/548718
CIBC curbs credit card lending
Financial crisis also takes a toll on results of TD, National Bank
Dec 05, 2008 04:30 Am
RITA TRICHUR
BUSINESS REPORTER
Canadian Imperial Bank of Commerce will continue tightening credit card lending and is forecasting "slower demand" for mortgages, noting the fading economy will likely spur a bigger rise in personal bankruptcies in 2009.
Canada's fifth-largest bank – reeling from the credit crunch – provided that outlook yesterday as it posted a 51 per cent decline in its fourth-quarter profit and a big full-year loss.
Fallout from the financial crisis also took a toll on the results of two rivals.
Toronto Dominion Bank's quarterly profit fell 7 per cent due to previously announced writedowns of $350 million.
National Bank of Canada swung back to profitability during the period, but absorbed $237 million in charges.
While some analysts speculated that CIBC would continue to be stung by debt-related writedowns, they said the economic slump is also a serious bugaboo.
CIBC's latest report already reveals how the dimming economy is weighing on its results.
The bank's provisions for credit losses jumped by 68 per cent to $222 million in its latest quarter, up from $132 million in the same period last year.
Escalating losses in its credit card business were the main culprit. CIBC administers Canada's largest credit card portfolio but deliberately chose to "slow growth" in that segment during the second half of fiscal 2008.
Sonia Baxendale, who heads CIBC's retail bank, said the credit card market increased by 13 per cent in 2008 but that growth will dip to 7 to 8 per cent in 2009.
"Throughout much of this year we grew at market rates. However, in the latter part of Q3 and in Q4, we slowed our growth in response to the market environment," Baxendale said. "We anticipate that overall cards growth will be in the mid-single digits given consumer spending sentiment and our risk appetite."
Rising credit card defaults suggest that consumers are already feeling strained, said John Kinsey, a portfolio manager with Caldwell Securities. How bad it gets, depends on the depth of the recession.
"I think that the problem is that even in the good times, a lot of these people have been maxed out for a while," Kinsey said, adding all banks are likely to cut back on credit card lending.
"It is going to be harder to get credit cards and personal loans."
Mortgage growth, meanwhile, is poised to decline to low-to-mid single digits, Baxendale said. CIBC is predicting demand will slow because of the cooling housing market, weaker consumer spending and forecasts for higher unemployment in 2009.
"We expect a rise in personal and small business bankruptcies associated with the weaker economic backdrop," the bank said.
Yesterday, the Office of the Superintendent of Bankruptcy Canada reported that consumers and businesses filed 9,468 bankruptcies in October. It is a 7.2 per cent increase from September and a hefty 21.1 per cent jump from the same month in 2007.
"As the economy turns down, understandably there is concern that banks not overreact by unduly restricting credit,'' said Ed Clark, CEO of TD Bank.
``We recognize this concern and have emphasized, both within the bank and with our customers and our clients, that we will work prudently with them through these troubled times."
Still, TD is also expecting volume growth to slow. It also plans to open fewer branches in 2009 and will add fewer wealth-management advisers.
For its part, CIBC's fourth-quarter profit tumbled to $436 million, or $1.06 per diluted share, from $884 million or $2.53 a share for the same 2007 period. A slew of items, including securities-related writedowns, hurt the results.
For all of 2008, CIBC posted a net loss of $2.1 billion compared with net income of $3.3 billion for 2007.
TD, Canada's No. 2 bank, said its fourth-quarter profits were $1.01 billion, or $1.22 a share, versus year-ago profits of $1.09 billion or $1.50 a share.
National Bank, meanwhile, said it earned $70 million, or 37 cents a share, in the fourth quarter. That was up from the year-earlier loss of $175 million, or $1.14 a share.
Canada's sixth-largest bank preannounced charges related to asset-backed commercial paper, a restructuring and a writedown of tangible assets.
With files from the Star's wire services
Subscribe to:
Posts (Atom)
