The Credit Chronicle » TheCreditMaster

TheCreditMaster — Thu, 10 Dec 2009 21:25:00 +0000

FICO Discloses Effect of Credit Mistakes on Score reports A New Horizon Credit Counseling

Fort Lauderdale, FL (PRWEB) (A New Horizon) December 10, 2009 — For the first time, and with unusual candor, FICO revealed “damage point” data and how exactly credit mistakes affect credit scores. FICO is the company that established credit scoring assigning a three digit number ranging from 300 to 850. These “damage points”, depending on the reason for the credit mistake, can reduce your score by 10 to 240 points. The higher your credit score – The more damage the SAME credit mistake can affect your FICO score. Everyone knows that negative actions associated with your credit cards and loans will affect your credit score.

Common examples that affect your credit score are:

Making late payments can decrease your score between 60 and 110 points
Maxing out your credit card or exhausting your credit limit can decrease your score between 10 and 45 points
Negotiating DEBT SETTLEMENTS with creditors can decrease your score between 45 and 125 points
Filing for bankruptcy can decrease your score between 130 to 240 points

Understanding what affects your credit score is important and how that impacts not only your ability to get credit in the future, but how much you now may pay monthly because it also causes your interest rate to adjust.

In order to avoid situations that negatively affect your FICO credit score you may consider talking with a reputable Credit Counseling Service company. “The circumstances identified by FICO that can damage your credit score; that is, late payments, maxing out your credit limit and choosing Bankruptcy can all be avoided by receiving credit counseling and employing a structured debt management plan. The debt management plan will ensure that you maintain on-time payments of your obligations while you systematically reduce your debt; all of which translates to an improved FICO score” says Steven Stark, Chief Operating Officer and General Counsel at A New Horizon Credit Counseling Services in Fort Lauderdale, Florida.

By enrolling in a debt management program, certified credit counselors ensure that on time monthly payments are maintained on your behalf to all of your creditors. This, in turn, typically will INCREASE your credit score. “If your FICO score improves by using a debt management plan, the money saved because of the higher score can be used to repay your debt that much quicker” added Stark. At the end of the day, it is all about protecting your credit score and not allowing monthly payment s on credit cards or mortgage loans to increase or even worse, losing your ability to get credit. If you have already fallen into financial hardship, it is never too late to start the healing process through a structured debt management program. If you would like more information on how credit counseling may help your FICO score contact Stuart Lieberman who may be reached at (800) 556-1548 Extension 1126. A New Horizon –http://www.anewhorizon.org

Editor’s comments:
This disclosure by FICO again underscores the importance of regularly checking your consumer credit report. Many negative items on your report can be errors and they be costing you hundreds if not thousands of dollars every year in interest payments, fees and missed opportunities.

Apart from enrolling in a debt management program (which, though valuable and necessary, can be a very slow and tedious process) you may also seek to give your credit profile a shot in the the arm by having the experts at Positive-Credit.com add positive credit items to your report.

Bad Credit Help

TheCreditMaster — Tue, 08 Dec 2009 21:12:00 +0000

(light source) – Bad credit score can happen to anyone. No matter where you live, you still have a chance to experience bad credit problem. Since that, you need to be careful in making any financial decision. It’s better for you to check your credit score all the time to make sure that it is all right.

Repairmycreditnow.com is the one you can count on to evaluate your credit score. You just need to fill out the online form on the website if you want to receive free credit report evaluation. This website also gives you credit report information for free. For you who live in Houston, you can get houston credit repair at this website. Not only that, this website also offers austin credit repair and san antonio credit repair . Wherever you live, you can get the help you need in repairing your bad credit. By joining this website’s program, you can always monitor your credit score regularly. It prevents you from getting bad credit problem suddenly. This website also helps you to improve your credit score.

Bad credit is no more a big problem as long as you have this website as your back up. You will always get a help for your bad credit problem from this website.

Consumers fall behind on loans at record pace

TheCreditMaster — Wed, 08 Jul 2009 01:52:00 +0000

More fallout from a still deteriorating housing market

Reuters
updated 2:16 p.m. ET July 7, 2009

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt to an all-time high in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

Fallout from a still deteriorating housing market caused the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said.

Delinquencies were the highest since the ABA began tracking the data in 1974. Late payments on home equity borrowings set records, rising to 3.52 percent from 3.03 percent on loans and to 1.89 percent from 1.46 percent on lines of credit.

The overall delinquency rate actually understates consumer pain because it excludes bank-issued credit cards, where credit deterioration was severe.

Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter. The rate of delinquent accounts rose to 4.75 percent from 4.52 percent, near the record 4.81 percent in the spring of 2005.

“The biggest driver is job losses,” ABA Chief Economist James Chessen said in an interview. “When people lose their jobs or work fewer hours, it makes it that much harder to meet their obligations. Unfortunately, we’re going to see higher job losses in the next year, and I expect elevated delinquencies.”

The ABA represents most large U.S. banks and credit card companies. Tuesday’s data are a bad sign for them as they prepare to report second-quarter results starting next week.

While improved capital markets may boost the bottom lines of some, analysts expect lenders such as Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Capital One Financial Corp. and American Express Co. to suffer higher credit losses, especially in cards.

Bridge to employment
Borrowers are struggling as the nation’s jobless rate sits at a 26-year high of 9.5 percent, with 6.5 million jobs having disappeared since the recession began in December 2007. The Obama administration expects the unemployment rate to hit double digits before declining.

U.S. consumers ended March with $939.6 billion of revolving credit outstanding, a rough approximation of credit card debt, according to Federal Reserve data.

“Consumers tend to rely on credit cards as a bridge to cover their daily needs until they find new jobs,” Chessen said. “It’s taking longer to find those jobs.”

Meanwhile, home prices are down 32.6 percent from their peak in 2006, according to the Standard & Poor’s/Case-Shiller Home Price Indices of 20 large metropolitan areas.

The ABA in June said it expects the recession to end this quarter, despite rising unemployment.

Economists point to rising debt as next crisis

The overall ABA delinquency rate includes direct auto, indirect auto, closed-end home equity, home improvement, marine, mobile home, personal, and recreational vehicle loans.

Delinquencies rose to 3.01 percent from 2.03 percent on direct auto loans, to 3.70 percent from 2.96 percent on mobile home loans, to 3.47 percent from 2.88 percent on personal loans, and to 1.52 percent from 1.38 percent on recreational vehicle loans.

They fell to 3.42 percent from 3.53 percent on auto loans made through dealers, to 2.04 percent from 2.35 percent on marine loans, and to 1.46 percent from 1.75 percent on property improvement loans.

Acquiring and Maintaining Good Credit – Part 2

TheCreditMaster — Fri, 08 May 2009 15:18:00 +0000

NEW LEASE ON LIFE

A financial life jacket has just been thrown in the water. As foreshadowed in the first installment of this series (see part 1), there is a proven, reliable, l e g a l quick way to financial freedom. A n e w b e g i n n i n g. This involves the creation of a new credit file employing the use of a Credit Privacy Number (CPN).

The principles governing this technique are not new, nor complicated. They involve the proper use of a particular set of laws put in place to protect you, the consumer, from the abusive tactics of creditors and credit bureaus. These laws help ensure the consumer gets a fair shake, so to speak.

LITTLE-KNOWN TECHNIQUE USED BY THE RICH AND FAMOUS

It is used by celebrities, clandestine agents and VIPs. Some use it because the media can use their SS# to track what they are buying and where they are simply by tracking their credit cards. Some other examples of CPN use include, but are not limited to, persons in the witnesses protection program who would otherwise risk being located if they use their true social security number for credit transactions. These are just some of the reasons the Credit Privacy Number program exists. The reasons are not limited to the previous, so why shouldn’t you have a new credit file created with a CPN?

HOW TO GET ONE

Though the principles and concepts for the creation and use of the CPN are easy to understand. I recommend one employ professionals to assist you in the creation and maintenance of your new CPN and credit file. One such group, Wealth Affinity Research (www.positive-credit.com), can guide you through the new file creation process and even point you to the right service providors so that you may continue on to e n h a n c e your credit profile b y a d d i n g s e a s o n e d c r e d i t to a new or existing credit profile.

In the next installment, we’ll discuss strategies for leveraging your newly-created and/or newly-enhanced credit profile, maximize your credit potential and how to keep your files separate.

-TheCreditMaster

Acquiring and Maintaining Good Credit – Part 1

TheCreditMaster — Thu, 07 May 2009 13:51:00 +0000

Navigating the treacherous seas of the credit world can present itself as an ominous, even impossible task. Having bad credit is a debilitating, frustrating handicap that crushes dreams, hinders progress and limits possibilities. The financial weight of the resulting high interest rates, high monthly payments and endless rejection puts a strain on relationships often leading to divorce and depression.

Many methods exist for slowly improving one’s credit score over a long period of time but there’s only one reliable, quick way that people are freeing themselves from the shackles of bad credit and that is to create a new personal credit file within the credit bureau’s own system. This new file won’t have any of the previous credit information on it. And as you read on you’ll see exactly how to make sure that only your new credit file surfaces when someone is running a credit check on you. This sounds complicated but it’s very simple as you’ll see in the next part to this introduction.