Credit Card Companies Crunch Credit

In a new article: "Subprime may be hitting credit cards, too" Jeanne Sahadi, CNNMoney.com senior writer, writes that credit card companies have begun to take steps to protect themselves while subprime mortgage markets are in turmoil.
Credit card issuers are reportedly raising balance transfer fees and making introductory rates less appealing. They are reducing how long lower introductory rates are valid. And they are taking the onerous step of lowering credit limits on existing cardholders, including some prime customers. Customers might be shocked one month to find that their available credit has disappeared overnight.
Once a credit limit has been lowered it can lead to hefty over-the-limit charges. I know from personal experience that this practice can take a bite our of your budget if you use the credit card, thinking you still have available credit, and the next month you find out you went over your limit. Not only did I incur an over-the-limit fee of about $30 at the time, but I also knew instinctively that I'd just bruised my credit.
Having your credit card company decide you get a lower limit is very likely going to reduce your overall credit score. You will be tapping into more of your available credit, and carrying more than a 50% balance on credit cards tend to result in lower FICO scores.
The credit crunch is spreading to what's in your wallet....
(Read full article here...)

Tougher times to refinance at lower rates.
If you had a credit score of 650 points out
of a possible 850 in 2006, you could demand
much lower interest than those with bad
credit. But now it takes a FICO credit
score of at least 680 to be getting the best
deal.

Boosting your credit score takes commitment
to pay all your bills on time, lowering
outstanding balances on the credit cards you
already owe, and paying down overall debt.
Experts recommend that you keep your
balances below 50% of available credit card
limits, while others caution not to go use
more than 35% of available credit.

It's probably a good idea to follow the
advice of one-third of your credit balance,
and start making plans to pay off credit
card debt as soon as possible.

At this time, it's also not wise to open new
lines of credit. This could signal that
you're desperately in need of more credit to
maintain your lifestyle -- something that is
almost certain to cause concern from lenders.

For more free tips, visit our website FindHow2.com.

Free sample letters dispute credit

We get a lot of requests for free sample letters people can use to dispute derogatory bad credit entries in their credit reports.
We've assembled some easy to use sample letters on our website:
http://www.findhow2.com/repair-credit.html
All you need to do is copy and paste into your favorite word processer this copy, customize the letter to fit your circumstances, and print off 2 copies -- one for yourself, one for the creditor or agency you are writing. It's best to keep a copy for yourself. Yes, I know, you can always print off a separate copy from the saved file on your computer. But my experience has shown me that if I do have a printed copy in a file, and I put ALL of my correspondence in that one file, with the notes of who I spoke to on the telephone, the date I mailed those letters, the dates I received updated credit reports, etc., then I can quickly track the credit repair progress.
I recommend that you send these letters to the CRA's and to your creditors registered return receipt mail, as then you will have a record of (1) the exact date you mailed the letters, and (2) the exact date of receipt and the signature of the person who signed for the letter.