#tracy becker

Since financial pressure is a great cause of divorce and friction in relationships finding a mate who knows how to manage their finances and keeps their credit scores high can help a relationships longevity. Here are some sites that focus on dating and credit scores: Creditscoredating.com Datemycreditscore.com

Most private student loans usually have variable rates that were tabulated based on the consumers credit at the time the funds were borrowed. If the credit was limited or poor the rate may have been much higher. Many that used private student loans build more credit and develop older account histories as time goes by. This means that some of these borrowers may later have the ability to refinance these higher rate loans and save substantially. It is always beneficial to have the best credit and research to see if there are better options available on financing as your credit develops and your scores increase.

Many of us have found ourselves in a position over the past 5-7 years where one or more of our credit cards were surprisingly closed by the creditors. It is usually a shock and never seems to come at a good time. Even those with excellent credit and no need for the extra credit card feel slighted when they find out they have been rejected for continuing use of a credit card. Some even try to fight the creditor to re-open it with no success. The worst is when a creditor closes a credit card on us right before we are applying for a mortgage, causing our score to plummet. When balance to limit ratio's change due to a reduction in the aggregate limit, it could drop scores substantially, depending on the current balance. For example, if we have $50,000 of credit card debt with a $25,000 balance and a card closes that has a $25,000 limit we have gone from 50% balance to limit ratio to 100%. This action could drop our scores 50-100 points depending on our current Fico scores. This drop could cause a rejection for a mortgage or a much higher interest rate, costing us hundreds of thousands of dollars over the term of the mortgage. How could this be that creditors are allowed to just close credit cards on us without notifying us in advance? Isn't this wrong and illegal? Unfortunately, the answer is that it may be wrong to us but it is completely legal. Since the Credit Card Act of 2009, many changes were made to protect the consumers interest but not regarding creditor's closing credit cards. Creditors can close accounts for many reasons and some seem quite legitimate, like late payments occurring, going over the limit, and filing a bankruptcy. Creditors can also watch your credit reports and assess your spending, payment patterns, and management habits. If they feel you are carrying balances with other creditors that might make you a riskier bet they can shut you down without warning. Inactivity of credit is a common reason creditors close accounts as well, so if you don't use your credit card accounts at all they may pull the plug. Also, if you open too many accounts in a short time your ability to manage all of that new credit at once may be questionable. A creditor can close a credit card account for a delinquency, inactivity, or default without informing the consumer. When creditors close accounts due to poor credit they have to notify the card holder 30 days after the closing. Although it may seem wrong to take this action against the consumer without warning, there are valid reasons. Although many consumers would not take a negative action some would spitefully rack up charges once they know the account is closing, having no intention to pay them back. So how can consumers protect themselves from credit cards closing by the grantor? 1. First keeping low to moderate balances is a great help. Trying to stay at 20-40% aggregate and individual balance to limit ratios on credit cards is a good way to keep the credit risk alarms from going off. 2. Making sure all credit cards are active a few months out of the year is a great idea. Consumers don't have to charge a lot of money in those few months they just need to make a small purchase. 3. For those who have many cards and only carry a few with them they can put recurring auto pay memberships on the cards they don't carry like EZ pass, gym memberships, etc. 4. Making sure your credit is excellent and keeping it that way will also insure you look your best for those watching. Those with poor credit should search out an excellent credit repair company and get a free assessment of what can be done. 5. Many credit monitoring products help you daily, weekly, monthly to evaluate your credit standing while watching your balances. This is a great way to stay on track of your credit activity. 6. Only opening new accounts when you have strategically decided it is the right time and the right credit account. Randomly opening credit is never a good thing. Some consumers are under the false impression that if credit is closed by the consumer it impacts them less than when the creditor closes the account. This is totally false. The scores can drop just as much depending on many factors including the balance to limit ratios on revolving credit.

A collection account can be placed on credit reports for something as minor as not paying a parking ticket, library book fee, or a magazine subscription. If a creditor is not paid within a period of time the debt owed by the consumer gets passed on to a collection agency. Many of these agencies purchase or borrow the debt hoping to make a profit by collecting a commission or a higher amount than the purchase price they paid for the debt. Most consumers do not realize that just because they pay the collection does not mean the delinquent account will suddenly correct itself. In many cases if the debt is a small amount of money paying it off could reduce the score even further. If you have experienced this please share it with us?

Starting to build good credit and scores should be done at a young age. Since the Credit Card Accountability Act of 2009, consumers under the age of 21 cannot get credit without proving an income or having a co-signer apply with them for new credit. Once a young adult opens credit as a primary card holder, whether the parents co-signs or not, any old authorized user accounts will help to increase credit scores since the account will age the credit profile. Parents can add their children on as authorized users to old credit cards without even letting the young adult know. In three months this account will be added to the individuals credit profile and since average age of credit is a factor in the Fico scoring formula this old credit will help to increase the score. Once these two accounts age on credit for a year the consumer can buy his/her Fico scores to see where they stand: http://northshoreadvisory.com/orderreports.html. At that point they can apply for a new credit card based on the current Fico score.

How many times have I heard, “This card is so old and I rarely use it. I want to close it immediately and I know that will help my credit right?” Too many times is the answer! This is false. Keeping credit cards open and making sure they are active at least once a year can keep credit scores much higher. The older your credit, the better it is for your credit score. Average age of credit contributes to your credit score number. Since being in the credit game longer shows you have had more practice at managing credit it makes you less of a credit risk and can add 10, 20, 30, even 50 points on to your credit score depending on your average age of credit. Once you close an account it can drop off after two years of activity. If the account is very old it could have a major impact on your credit score once it falls off. Keeping credit active can prevent the creditor from automatically closing the account due to lack of use. Inactive credit usually closes after it has had no use for a year.

I can’t begin to count the many clients we have had with credit issues due to discarding a bill thinking it was junk mail. For example: Jack uses his American Express card for all of his purchases since he gains reward points. He rarely uses his other credit cards. One day he is at a local boutique with his wife and the store only accepts Master/Visa. He uses his card for the first time in 11 months. Three weeks later he gets an envelope from Bank of America and assumes it is probably a promotional offer or some kind of junk mail. He shreds the envelope only to find out a month later that he is late on his BOA Master Card payment. He immediately pays the bill and the rep on the phone says he will waive the late fee. Jack is breathing easy thinking all is well, but little does he know that late payment for less than $100 has dropped his Fico score from a 780 down to a 670. Six months later when trying to refinance his mortgage and save $1000 a month he learns the cost of that late payment is much higher than he dreamed possible. He cannot refinance due to his damaged credit. Always open all mail to insure it is not a bill from a creditor you are not used to seeing. It could be a medical bill, collection agency bill, credit card, or even a summons.

Since credit scores are what many use for car, mortgage, & credit card approval shouldn’t it also be protected and watched over? Most homeowners have alarm systems, insurance, landscapers, etc to help keep a property safe, maintain its value, and help when damages occur. We go to great lengths to protect our assets and credit shouldn’t be any different. Good credit is, for most, what affords them the ability to have these assets. Excellent credit can also deliver huge savings on loans, more buying power to purchase properties, and ultimately a better quality of life. More importantly, with the housing market on the rise, tighter restrictions on mortgage lending, ID Theft running rampant and massive errors being revealed on consumer credit reports, being aware of the state of our credit has become crucial. Unfortunately most people don’t look at their credit until they need to use it. Usually it’s when they hear “You have been declined“ that they suddenly begin to scramble to try to correct mistakes or delinquencies. Credit monitoring allows consumers to be alerted to changes in balances, knowledge of accounts being opened, delinquencies, and a view into who is looking at their credit. Many monitoring products also offer ID Theft insurance and more. Being proactive and monitoring credit may help save enormous