We all need and use credit on a monthly basis. There are many credit products on the market, some are helpful and useful while others are often down right scams. While most credit products on the market are legal, some are misleading. Some of these products or services can put you thousands of dollars into debt, others might only cost you a few dollars a month but are totally unnecessary or do not do what they claim to do. As the age old saying goes buyer beware. Some credit products and services can actually damage your credit score and this damage is not easy to undo. We are always on the lookout for lending news and stories and tips to help consumers save money. I will outline some of the more problematic credit products and services below and let you decide.
Most of these services are a downright scam according to the the Federal Trade Commission. Some of these services are simply not worth what you pay for, while others can actually damage your credit score rather than help it. The tactics that these services use do not work, and often times are illegal, meaning you could land in hot water without even knowing it. Some tactics used could land you a free vacation however, and by free vacation I mean an all inclusive stay in prison for using such glamorously illegal tactics like giving you a new social security number which is highly illegal. They also love to perform credit jamming attacks on the credit bureaus, which is illegal and if it does work it is only temporary in most cases. Credit jamming is where the credit repair service sends in dispute letters to every single debt you owe, even the legitimate ones. It is the disputing of the legitimate debts that is shady, unethical and illegal. You can repair your credit yourself using the helpful advice on this website and none of the advice on this website is illegal or unethical.
Store credit cards
These tend to be the worst credit cards on the market. The interest rates tend to be very high for one. They also rope you in with an offer such as a discount on the spot at the store, but you could likely find a true rewards credit card that works everywhere not just that particular store. Some of these cards come with limited financing deals but this can be dangerous since if you do not repay the balance by the end of the financing due date you will get slammed with interest dating back to the original purchase date.
This is the worst line of credit out there. The interest rates are sky high and this line of credit will NOT be reported to your credit report, that is unless you default on payment then you stand the chance of seeing it on your credit report. You do not get rewarded by reporting on your credit report for your good credit behavior such as on time payments. The only way this product would be useful is if you need a short infusion of cash and do not want the credit utilization appearing on your credit report.
Credit score monitoring
You do not need to pay for this service. Many credit cards offer this for free for example, including giving you your FICO score. You can also use Credit Karma for free to track your credit score from TransUnion. Credit Karma will alert you for free should your credit score or credit report change, and it does not cost you a single dime to use this service. At our website we always love free and useful credit products instead of the fancy paid alternative. Why pay on average $20 per month to monitor your credit? That is pretty much flushing that money down the toilet unless you need real time monitoring in the case of identity theft.