Fall 2015
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Shopping Tips for
Loans and Credit Cards
Ways to be a Better-informed Consumer
How to Get Your Best Deal? Plan Ahead.
Beware of Thieves Who Target
Loan and Credit Card Shoppers
More to Know About the New
Disclosures for Mortgage Loans
“Add-ons” Sold With Credit:
Do Your Research Before You Buy
Banking Tips for
Small Businesses
More Answers to Deposit
Insurance Questions
ALSO INSIDE
F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N
Shopping Tips for
Loans and Credit Cards
Ways to be a Better-informed Consumer
How to Get Your Best Deal? Plan Ahead.
Beware of Thieves Who Target
Loan and Credit Card Shoppers
More to Know About the New
Disclosures for Mortgage Loans
“Add-ons” Sold With Credit:
Do Your Research Before You Buy
Banking Tips for
Small Businesses
More Answers to Deposit
Insurance Questions
ALSO INSIDE
2Fall 2015FDIC Consumer News
continued on the next page
L O A NS AND CREDIT CARDS
Many consumers think they cannot
influence whether a loan or credit
card application will be approved or
what interest rate they’ll get. But the
reality is that prospective borrowers
can take certain steps before filling out
an application that may increase their
chances of getting an approval, with
a favorable interest rate and attractive
account terms. Here are suggestions
from FDIC Consumer News.
Consider simple ways to improve
your credit scores. As we have often
said, paying your bills and loans on time
and owing as little as possible on your
credit card(s) compared to the credit
limits are two of the most important
things you can do to boost your scores
and get a better deal on a lending
product.
Also think twice before closing older
credit card accounts or lines of credit.
“Don’t immediately believe that you
have to close an old account because
of its age or because you’re no longer
using it,” said Susan Boenau, Chief of
the FDIC's Consumer Affairs Section.
“Lenders making credit decisions like
to see an established history of credit
use, and the length of your credit
history is figured into your credit
score. So in general, the longer you
can show you’ve been using credit
the better.” Striking the right balance
is key, so when in doubt, a reputable
credit counseling service can help. For
guidance on finding one, go to the
Federal Trade Commission’s website at
www.consumer.ftc.gov/articles/0153-
choosing-credit-counselor.
Check your credit reports for
accuracy. A credit report is a
compilation of how you have been
paying your credit card bills, loans and
selected other debts. By law, you are
entitled to at least one free copy of your
report from each of the nationwide
credit bureaus every 12 months. To
order your free credit report from the
three major credit bureaus (Experian,
Equifax and TransUnion), visit www.
How to Get Your Best Deal on a
Loan or Credit Card? Plan Ahead.
AnnualCreditReport.com or call
toll-free 1-877-322-8228.
It’s important to go through your
reports carefully to identify errors, such
as loan or credit card accounts in your
name that you did not authorize (and
are likely to be fraudulent) or incorrect
payment histories or account balances.
Some mistakes can significantly lower
your credit scores, which lenders
typically use when considering loan
applications and interest rates.
“It’s best to order copies of your credit
report from each of the three main
credit bureaus because an error that
appears on one report might not appear
on another,” said Heather St. Germain,
a Senior Consumer Affairs Specialist at
the FDIC. “That way, if the bank you
eventually apply to only uses one of your
three reports, and it’s one with an error,
you’ll have an opportunity to get that
corrected before you apply.”
If you do find an error on your free
annual credit report from a credit
bureau, contact the company to dispute
the information. Once a credit bureau
receives your complaint, it has 45 days
to finish its investigation. Generally,
consumers can file disputes with the
credit bureau online, by phone or
through the mail. A credit counseling
service can help here, too. You may also
contact the creditor directly because
it can provide updated or corrected
information to the credit bureau at your
request.
Sometimes consumers have difficulty
ensuring that erroneous information is
corrected or removed from their credit
reports. If you’ve tried to resolve the
issue on your own without success,
you can turn to the appropriate federal
regulator for help.
If the problem is with a bank and you’re
not sure which federal regulator to
contact (remember that the FDIC is
not the primary regulator for all of the
institutions it insures), you can call the
FDIC toll-free at 1-877-ASK-FDIC
(1-877-275-3342) or use an online
directory of insured banks at http://
research.fdic.gov/bankfind. (For general
information about resolving a complaint
involving a bank, see our article in the
Spring 2012 FDIC Consumer News at
www.fdic.gov/consumers/consumer/
news/cnspr12/complaint.html.) For
help with a problem involving a
credit bureau or a nonbank creditor
(such as a finance company or a retail
store), you can submit a complaint to
the Consumer Financial Protection
Bureau at www.consumerfinance.gov/
complaint/#credit-report.
Shop around. Before submitting an
application, it’s important to get the
best deal you can by researching the
terms and conditions of different loans
and credit cards offered by your bank
and a few competitors. Think about the
type of loan you need (for example, a
fixed- or an adjustable-rate loan) and
be realistic about what you can afford.
Know the fees that may be assessed and
what would trigger them.
Keep in mind that a loan or credit
card may seem like a good deal on
the surface, but a closer look at the
fine print may reveal that it is not the
best option for you. One of the most
important things to remember: Be clear
on whether an attractive interest rate
being advertised is locked in or if it’s an
introductory offer that may increase in
the future.
Also be aware that when you apply for
a loan or a credit card a record of that
“inquiry” will show up on your credit
report. “Because too many inquires may
hurt your credit score, it’s best to only
continued on the next page
L O A NS AND CREDIT CARDS
Many consumers think they cannot
influence whether a loan or credit
card application will be approved or
what interest rate they’ll get. But the
reality is that prospective borrowers
can take certain steps before filling out
an application that may increase their
chances of getting an approval, with
a favorable interest rate and attractive
account terms. Here are suggestions
from FDIC Consumer News.
Consider simple ways to improve
your credit scores. As we have often
said, paying your bills and loans on time
and owing as little as possible on your
credit card(s) compared to the credit
limits are two of the most important
things you can do to boost your scores
and get a better deal on a lending
product.
Also think twice before closing older
credit card accounts or lines of credit.
“Don’t immediately believe that you
have to close an old account because
of its age or because you’re no longer
using it,” said Susan Boenau, Chief of
the FDIC's Consumer Affairs Section.
“Lenders making credit decisions like
to see an established history of credit
use, and the length of your credit
history is figured into your credit
score. So in general, the longer you
can show you’ve been using credit
the better.” Striking the right balance
is key, so when in doubt, a reputable
credit counseling service can help. For
guidance on finding one, go to the
Federal Trade Commission’s website at
www.consumer.ftc.gov/articles/0153-
choosing-credit-counselor.
Check your credit reports for
accuracy. A credit report is a
compilation of how you have been
paying your credit card bills, loans and
selected other debts. By law, you are
entitled to at least one free copy of your
report from each of the nationwide
credit bureaus every 12 months. To
order your free credit report from the
three major credit bureaus (Experian,
Equifax and TransUnion), visit www.
How to Get Your Best Deal on a
Loan or Credit Card? Plan Ahead.
AnnualCreditReport.com or call
toll-free 1-877-322-8228.
It’s important to go through your
reports carefully to identify errors, such
as loan or credit card accounts in your
name that you did not authorize (and
are likely to be fraudulent) or incorrect
payment histories or account balances.
Some mistakes can significantly lower
your credit scores, which lenders
typically use when considering loan
applications and interest rates.
“It’s best to order copies of your credit
report from each of the three main
credit bureaus because an error that
appears on one report might not appear
on another,” said Heather St. Germain,
a Senior Consumer Affairs Specialist at
the FDIC. “That way, if the bank you
eventually apply to only uses one of your
three reports, and it’s one with an error,
you’ll have an opportunity to get that
corrected before you apply.”
If you do find an error on your free
annual credit report from a credit
bureau, contact the company to dispute
the information. Once a credit bureau
receives your complaint, it has 45 days
to finish its investigation. Generally,
consumers can file disputes with the
credit bureau online, by phone or
through the mail. A credit counseling
service can help here, too. You may also
contact the creditor directly because
it can provide updated or corrected
information to the credit bureau at your
request.
Sometimes consumers have difficulty
ensuring that erroneous information is
corrected or removed from their credit
reports. If you’ve tried to resolve the
issue on your own without success,
you can turn to the appropriate federal
regulator for help.
If the problem is with a bank and you’re
not sure which federal regulator to
contact (remember that the FDIC is
not the primary regulator for all of the
institutions it insures), you can call the
FDIC toll-free at 1-877-ASK-FDIC
(1-877-275-3342) or use an online
directory of insured banks at http://
research.fdic.gov/bankfind. (For general
information about resolving a complaint
involving a bank, see our article in the
Spring 2012 FDIC Consumer News at
www.fdic.gov/consumers/consumer/
news/cnspr12/complaint.html.) For
help with a problem involving a
credit bureau or a nonbank creditor
(such as a finance company or a retail
store), you can submit a complaint to
the Consumer Financial Protection
Bureau at www.consumerfinance.gov/
complaint/#credit-report.
Shop around. Before submitting an
application, it’s important to get the
best deal you can by researching the
terms and conditions of different loans
and credit cards offered by your bank
and a few competitors. Think about the
type of loan you need (for example, a
fixed- or an adjustable-rate loan) and
be realistic about what you can afford.
Know the fees that may be assessed and
what would trigger them.
Keep in mind that a loan or credit
card may seem like a good deal on
the surface, but a closer look at the
fine print may reveal that it is not the
best option for you. One of the most
important things to remember: Be clear
on whether an attractive interest rate
being advertised is locked in or if it’s an
introductory offer that may increase in
the future.
Also be aware that when you apply for
a loan or a credit card a record of that
“inquiry” will show up on your credit
report. “Because too many inquires may
hurt your credit score, it’s best to only