Despite all the attention that has been given to credit scores and the impact credit scores have on numerous aspects of our day to day lives, many consumers still do not understand the weight these numbers have on what we can and cannot do. Credit scores directly or indirectly impact the cost of living for most consumers in the U.S. Credit scores can be a big factor in credit decisions for financial firms like banks but they are also a significant factor in insurance rates, employment, … [Read more...]
Credit Score Quick Facts
October 18, 2010 By Leave a Comment
Here are some quick facts about credit scores that consumers should keep in mind when reviewing their credit score, credit report or putting together a plan to help improve their credit scores. You need to have and use credit to have a credit score. Credit reporting agencies gather and report a consumer's credit history that includes debt repayments to credit cards, auto loans, mortgages and other creditor accounts. Credit reporting agencies also record information on judgments, liens, … [Read more...]
Credit Scores and Your Hospital Stay
June 7, 2010 By Leave a Comment
Hospitals have long struggled with handling delinquent medical bills of their patients. In recent years the business of identifying potentially risky customers in advance of rendering medical services has picked up steam. Credit scores have been used by lenders, landlords and insurers to evaluate consumer’s financial risk. Now the business of handling and managing medical bills has moved into the arena of credit scores and credit profiles. The medical credit score is intended to be … [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...]
Will a Debt Consolidation Loan Help My Credit Score?
March 9, 2010 By Leave a Comment
A: Debt consolidation loans are one of many alternatives to help improve an individual’s financial position. Debt consolidation loans can reduce a number of monthly debt payments into one consolidated payment that will usually have a much lower monthly payment. The debt consolidation can certainly reduce monthly payments and reduce stress but the impact on credit scores will generally be fairly small shortly after the loan. Over time a debt consolidation loan can improve a credit score … [Read more...]
Credit Repair Scams Halted by FTC
February 9, 2010 By Leave a Comment
In October, 2008 the Federal Trade Commission sent out a press release regarding charges brought against another credit repair scam operation. Credit report repair services that offer to repair credit for consumers have popped up across the nation. Unfortunately, many of these organizations fail to help consumers and in some egregious cases, violate the law by taking money in advance and deceiving consumers regarding the services they perform to improve credit histories and credit … [Read more...]
How Your Credit History May Affect Your Auto Insurance Rates
September 24, 2009 By Leave a Comment
Auto insurance companies often consider your credit report when they are determining the proper rate to charge you for your auto insurance. If you are shopping around for auto insurance, be aware that potential insurers may be looking at your credit report. There is a statistical correlation between consumer's credit history and possible auto insurance claims. Insurers assume that customers with better credit records are also more likely to be good risks for auto insurance policies. Not … [Read more...]
Credit Repair Scams
June 12, 2009 By Leave a Comment
When a person falls behind on their debt, things can be overwhelming. They may be laden down with harassing calls from debt collectors. Or worse, they might even have to go to court because a creditor, fed up with not getting their money, decided to take legal action. A person’s difficulties with debt are even more exacerbated if they are trying to buy or rent a house because of their bad credit report and credit scores. For all of these reasons many will be tempted to turn to credit … [Read more...]
Get Out of Debt, a Starting Point
May 29, 2009 By Leave a Comment
Debt is in every household. Too much debt can be paralyzing and you may be in over your head and not even fully realize it. If you suspect that you’re carrying too much debt in the form of credit cards, mortgages, car loans and other debt instruments, you need to determine your exact position and then, most likely, begin working to free yourself from the weight of the financial burden. Too Much Debt It’s expected, and actually a good thing, to have some debt. Your mortgage, for … [Read more...]