credit: Credit Tip Tuesday: How Long Does It Last?
- 08/04/15 01:47 PM
Sometimes even the most responsible individuals fall on tough times. Whether it's an oversight or a rough patch, negative credit events can follow you for a long time. The FICO algorithm, discussed in my last "Credit Tip Tuesday" post, does allow the impact of a negative event to decrease as time passes. The key is to not continue having them. With that being said a common question is, "how long does X stay on my credit report?" Different negative items, or black marks, stay on for different periods of time. Here are some examples: Late Payments- If you are 30 or more … (4 comments)
credit: Credit Tip Tuesday: What is a charge-off?
- 07/21/15 02:50 AM
In a previous installment of Credit Tip Tuesday we talked about the importance of monitoring your credit. If you're doing so and you've had some hiccups you may have seen "charge-off" or some variation of such somewhere on your report. So what exactly does this mean? 1. A charge off is not a forgiveness of debt Many people mistakenly believe if a debt is charged-off that the creditor has forgiven the debt. This could stem from a number of misconceptions or it could just be that the term itself is somewhat confusing. When a creditor charges-off their debt it really means they are … (4 comments)
credit: Credit Tip Tuesday: Not All Inquiries are Created Equal
- 07/07/15 04:57 AM
For this weeks installment of Credit Tip Tuesday we'll look at credit inquiries. Any time that you or a business entity requests a review of your credit report it is considered an inquiry. Some of these inquiries can have a temporary negative effect on your FICO score. Others do not hurt your score at all. You'll sometimes hear people in the business differentiating them between hard and soft inquiries. Hard inquiries are the ones that hurt your score. So what is the difference?
A hard inquiry occurs when you apply for credit: Whenever you decide to open a new line of credit the creditor … (4 comments)
credit: Credit Tip Tuesday 6/30
- 06/30/15 03:57 AM
As a mortgage loan officer we often receive applications where they client's credit scores are not where they need to be in order to obtain a home loan. The question that usually follows is "how can I increase my score in the shortest amount of time?" or some variation of that. For each individual that answer can be totally different depending on their overall credit profile. However, one of the most common negatives I see on client's reports is that their balances on revolving accounts is too close to the max. As a rule you want to stay below 50% of … (1 comments)
credit: More Credit Reporting Changes To Help Consumers
- 06/08/15 03:37 AM
As you may have heard there has been a number of actions brought forth by state attorney generals dealing with the way credit reporting agencies issue credit scores. Some of these changes include attempts to help those with "thin credit" acquire a credit rating while others are geared towards limiting the damage that medical collections can do to your score. There is another action brought forth by the AGs of 31 different states that has resulted in a new agreement regarding the requirements for collection account reporting. Below are some of the highlights: 1. Collectors will be required to delete accounts or … (1 comments)
credit: New FICO Model Could Help (or Hurt) Potential Buyers
- 04/06/15 11:48 PM
For years FICO scoring has been the main tool lenders have used to determine credit worthiness of potential customers. But FICO is not only used in lending as insurers, utilities, and other services consider a consumer's FICO score when pricing or granting services. Fair Isaac Company, the company behind the FICO model has been under pressure from the government to change its model to allow more consumers to access credit and they have been testing a new model for some time in partnership with 12 credit card issuers. Under the old model things like payment history for utilities, rent and cellphones were … (37 comments)
According to the CFPB 52% of all debt on consumer credit reports is medical.
About 43 million Americans have overdue medical debt negatively affecting their credit score.
Of those 43 million about 15 million have no other negative credit.
Many of these people do not know they have a bill. Along with making sure your identity hasn't been stolen this is another reason to monitor your credit.
The CFPB attributes part of this to "parking" or the practive of hitting the consumer's credit before they are even notified of an outstanding … (4 comments)
Sometimes even the most responsible individuals fall on tough times. Whether it's an oversight or a rough patch, negative credit events can follow you for a long time. The FICO algorithm, discussed in my last "Credit Tip Tuesday" post, does allow the impact of a negative event to decrease as time passes. The key is to not continue having them. With that being said a common question is, "how long does X stay on my credit report?" Different negative items, or black marks, stay on for different periods of time. Here are some examples:
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