Since a good credit score and credit history has become so important for consumers to obtain credit and housing and insurance and other products and services, companies that target consumers who have poor credit histories with promises to clean up their credit report have run amuck. The FTC is one government agency responsible for curtailing fraudulent, deceptive, and unfair business practices regarding credit repair organizations. The FTC announced in the first week of September that … [Read more...]
Pay For Delete Letters to Remove Delinquent Accounts
June 11, 2010 By Leave a Comment
A pay for delete letter is a useful tool to try to eliminate a delinquent credit item from your credit report. A pay for delete letter is a means used to arrange for a settlement on a severely delinquent account in which the sender is requesting that the creditor remove the delinquent record in return for paying the account off. The payoff amount can be the full amount or an offer to settle for a lesser amount. The letter can be used in a variety of situations were the debtor wants to … [Read more...]
Credit Scores and Collection Accounts
April 24, 2010 By Leave a Comment
Collection accounts will almost always have a significant negative impact on a credit score. A collection account is a listing in a credit report that represents a consumer account that has been assigned to a company to collect on an unpaid debt obligation. If a consumer stops making the contractual payments on an account or debt, the lender or creditor may assign the account or sell the account to a collection agency. This action turns a credit account into a collection account. The … [Read more...]
Importance of Credit Scores Underscored with FTC Congressional Subcommittee Testimony
April 1, 2010 By Leave a Comment
Credit scores have become increasingly important in our lives, whether we like it or not and their importance and impact is almost certainly going to expand not diminish. The Federal Trade Commission just recently presented a report to the U.S. House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services regarding actions by the FTC that cover the accuracy of consumers’ credit reports, preventing identity theft, and giving consumers a better … [Read more...]
The Difference Between a Credit Report and Credit Score
March 28, 2010 By Leave a Comment
Credit reports and credit scores are often misunderstood. Understanding these products can be confusing especially when consumers hear about how important credit scores are combined with the intense marketing of credit scores and credit report services. Credit score and credit reports are closely related yet completely different products. A credit report is a list of all of credit information, public record information, and identification information that the credit reporting agencies … [Read more...]
Credit and Credit Scores after Bankruptcy
March 16, 2010 By Leave a Comment
Filing bankruptcy is a series decision that impacts an individual’s credit and credit score for quite some time. Bankruptcy doesn’t have to shut off credit access altogether nor does filing bankruptcy have to be significant detriment for financial success. There are certainly numerous cases of individuals that have filed for bankruptcy and rebounded stronger and gone on to create significant wealth. A bankruptcy is always one of the biggest negative factors that impact a credit … [Read more...]
Managing Money and Credit
March 2, 2010 By Leave a Comment
Learning how to manage money the right way is an important step for individuals to take toward controlling their financial position. Understanding where your money is coming from and where it’s going to, not only helps to manage a household budget but can make sure that an individual’s credit remains good as well as helping to improve credit and credit scores that are already weak. One of the first steps toward financial control and sound credit management is to calculate your net … [Read more...]
Changes to Credit Score Calculations
February 27, 2010 By 1 Comment
In 2007 Fair Isaac Corporation, creators of the FICO credit scoring system announced that they would change how their credit score models evaluate credit report data. The new credit score, referred to as FICO 08, was delayed in its implementation until the second half of 2009. The FICO score model is kept under wraps by the company that created it, but it is always a good idea to obtain a general understanding as to what makes a good or bad credit score. With the knowledge of what drives … [Read more...]
Fed Announces Rule Changes for Marketing Free Credit Reports
February 25, 2010 By Leave a Comment
The confusion over the marketing of free credit reports by companies that require a subscription to a credit monitoring service or other related products and services to receive the free credit report has resulted in intervention by the Federal Trade Commission. Numerous consumers have seen advertisements touting free credit reports. Most of these advertisements have small disclaimer that explain that there is a requirement that the consumer sign up for a credit monitoring service or … [Read more...]
Using Secured Bank Loans to Improve a Credit Score
February 23, 2010 By Leave a Comment
There are numerous tools that can be used to improve a damaged credit history and low credit score. Along with removing any derogatory items that may be inaccurate in a credit report, the next best tactic is to add new credit and build a quick credit history. There are several ways to add credit to a credit report. Adding credit that helps improve a credit score can be a slow process, but a process that is generally necessary to rebuild credit profile that is the foundation of a good … [Read more...]