How can you protect yourself and your credit when your identity has been stolen? Can you avoid fees on your credit card when traveling internationally? Will marriage impact my credit score? Watch the video below from this morning’s Money 911 for the answers — and click here to submit questions of your own!
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Last week, the New York Times wrote about the new credit and debt tools I launched at FinovateSpring 2010 in San Francisco, California. If you need a personalized approach to paying down your debt, or the ability to see specific errors that might be hurting your credit score, you’ve come to the right place! For more information on the new Pay It Down! app powered by DebtGoal or the JeanChatzky Score Builder, click here to read what the New York Times had to say. Then, check back here for information on how to sign up and learn to better secure your finances.
Wondering why your credit score seems to be fluctuating? When you’re struggling to make payments on your debts, should you go into default? What happens if your debt consolidation company goes bankrupt? This morning on NBC, the expert panel tackled these money questions – watch the video below for the answers.
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My husband and I are now unable to make payments on our debts since he lost his job two years ago. We’re considering bankruptcy, but we both have good credit scores (over 700). How will bankruptcy affect our credit? – Nancy, North Carolina
Let’s not sugar coat this. It will likely take your scores down by a couple hundred points. In fact, filing will have more of an impact on you and your husband because you have good scores than it would on people with so-so scores. Why? You have further to fall. That’s the bad news. More…
“I had a card cancelled because of debt on other cards. The company cited a ‘credit review’ even though I was not late on my payments. Is this allowed under the CARD Act? Is it something that is common?” – Joseph
Lenders conduct credit reviews periodically to evaluate the riskiness of their customers. If a card issuer feels you’re too great a financial risk – whether it’s because of how much credit you have available, or because your credit score suddenly decreased – they may cancel your account to protect themselves. More…
I have pulled my credit reports and have noticed quite a lot of incorrect information or inconsistencies across the reports. I would like to get this corrected as soon as possible. What is the most efficient way to do this? – Julie
When it comes to errors in your credit report, you’re definitely not alone. According to research published by the United States Public Interest Research Group, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind – and 25% of those errors were serious enough to result in the denial of credit. Errors can range from things like incorrect demographic information to loans being listed twice – and each varies in how it will affect your credit score. Whatever the error, it’s important to get it fixed as quickly as possible. More…
A couple of weeks ago, I answered a question about how your account and credit score could be affected when a bank-issued credit card’s provider changes. The reader, Brian, then followed up with a question about account age – which I’ve answered below!
I understand that a long history with an account affects your credit score. This account was probably a 12-15 year old account – but will it now show as a new account? — Brian
Account age, which accounts for about 15% of your credit score, affects your credit for a few reasons. Primarily, it’s because credit scoring models have shown that people who have older credit are less risky as customers. Lenders like to see that you’ve been able to maintain a long-term relationship with a creditor, because it shows that you’re a good customer. But how your score is affected by account age depends on several factors. More…
“We have all heard your advice on not closing credit card accounts and its impact on one’s credit score. My bank recently changed underlying card providers and my Visa was changed to a Mastercard with a new account number, etc. The bank said it will not affect my credit score or appear as if I closed one account and opened another. Is this true?” – Brian
You’re right – closing a credit card will typically impact your credit score in a negative way. That’s because your credit score is partially based on something called your utilization ratio – which has to do with how much credit you have available to you, and how much of it you’re using at any point in time. This accounts for about a third of your credit score – so it’s an important thing to consider when looking at your accounts. More…
I have credit card debt of $80,000 after helping to support a family member in need. In the past, I haven’t had problems paying the required monthly payments. However, a promised company bonus did not come through and credit card companies have doubled their interest rates and monthly requirements, making it difficult. I can pay each month, but money is really tight now. I want to pay these off, and wonder if I should just keep plugging along, or try a debt settlement arrangement. What do you advise? – Allison, Wisconsin
It’s hard to pass on helping a family member or friend in a time of need – but sometimes, it can have a major impact on your own life. That means making a choice about the type of changes you are willing (and able) to make in your life. Below, I’ve listed your three main options – and given you some insight into the pros and cons of each.
Cutting down. When you have debt like this that you need to repay, sometimes it’s possible to slow your spending and free up some additional money each month. Now, that’s not to say it’s easy. Making lifestyle changes like this one can be a challenge – but you’ll save your credit score, and learn some new budgeting strategies that will stay with you and keep you out of debt in the future. More…
“My husband and I have been the victims of 8 fraudulent credit cards, embezzlement and forgery committed by his former secretary and her family. We are in dire need of your help. The bank that allowed her to get away with this has now put us in collections for a fraudulent credit card.” - Jean, New Hampshire
I’m so sorry you’re dealing with this – many people don’t realize, but about a third of identity theft cases are committed by friends or family members of the victim, making your situation all the more common. The first thing you need to do, if you haven’t already, is file a police report. This is important, because you may need a copy of a police report to legitimize your claims. You should take that to the FTC to file a complaint there — which can then be used to make debt collectors stop collecting on those fraudulent debts. More…
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