A free credit report is available under Federal law at: AnnualCreditReport.com.

Credit cards and debts

One of the biggest contributors in debts is the credit cards. These cards are easily available to consumers through various lenders and banks. Usually they are provided without any balance in the bank account also. Then there are the catch lines like money back offer and zero percent interest rates. But with easy access to multiple cards there usage also increases. It leads to excess expenditures and frivolous shopping habits. The expenses are realized only when the bills arrive at the end of the month. But there are added interest rates charged on the bills which results in consumers paying much more than the principal amount. More than often this excessive usage results in debts and lowered credit scores

 



Other threats with credit cards

Frivolous spending habits and unregulated expenditure leads to excess debts on credit cards but there is also a bigger problem which credit card owners are facing today. This problem is also known as identity thefts. Here the credit card is misused financially and the thieves use these for their own financial gains. The credit card can be stolen and then used or even the credit card number provides plenty of opportunity to buy products. The bill for the same goes to the credit card owner, who may not even be aware of the theft. But the bills result in lowered credit scores for the consumer.

Checking credit reports

By checking the credit reports regularly thefts of the credit cards can be avoided. The credit reports include all details of credit card activities and any strange purchases or similar factors should be immediately reported to the credit card provider and also the credit bureaus. This will help the credit card owner to keep a track on their credit card and also put a check on their expenses.

Protecting your credit scores through regulated credit card usage

The lowered credit scores can be avoided if the expenses on the credit cards are regulated. This implies reducing the frequent usage of credit cards. They should be kept aside for emergencies like shortage of cash during a vacation or sudden illness of a family member. Control your shopping impulses; avoid using the card if you have cash. To protect your credit card from identity thefts avoid leaving them out at home or in the gym. Do not use them on unsecured sites or places. Credit card bills should also be checked regularly.



To request your free annual report under that law, you must go to : www.annualcreditreport.com