Here’s a tale about two 40-year old guys who are best friends. We’ll call them Bill and Skip. From the time they were teenagers both Bill and Skip dreamed of becoming successful corporate sales executives and enjoying the finer things in life—you know, nice house, sporty cars, designer suits, the whole works. Bill and Skip …
The Story of Bill and Skip: Why Your Credit Score Matters Read More »
FICTION: If I check my credit report often, all those “inquiries” will lower my credit score.
If your FICO credit score falls between 760 and 850 points, you rate among the top tier of all consumers and have the cornerstone for what I call Perfect Credit. Getting a great FICO score, however, is just part of the achievement. Fair Isaac reports that, among consumers with credit scores of 760 or higher, only 1% risk defaulting on a debt. So having Perfect Credit also means being able to access a whole host of products and services—mortgages, automobiles, credit cards, business lines of credit, and personal loans—at the most favorable terms available in the marketplace. Once you snag that impressive credit score, and all the benefits it entails, does having Perfect Credit today mean you’ll have Perfect Credit tomorrow? Unfortunately the answer is “no.”
Debt is a massive problem in America. We’re up to our eyeballs in debt of all types: mortgage loans, credit cards, student loans, automobile loans. Moreover, the average mortgage balance in the U.S. is about $200,000; the typical family carries a monthly credit-card balance of $10,000; the average college graduate owes more than $20,000 in student loans; and the median car note now exceeds $27,000. Is it any wonder that Americans owe $2.5 trillion in consumer debt, excluding their mortgages? Throw in another $14 trillion in home loans, and it’s clear why our collective debt won’t go away any time soon.
Perfect Credit
If you have negative marks in your credit history, you already know what a pain it is living with bad credit: you get turned down for credit cards and loans, you pay sky-high interest rates when you do get approved, or you have to go (hat in hand) asking family or friends to co-sign for you or loan you money. The list of indignities you suffer with poor credit goes on and on.
If we’re honest with ourselves, many of us will admit that so much of what we spend money on – and why we spend money – is tied to our emotional state. Sometimes we spend money completely on a whim because something struck us a being a “must have” item in that moment. Later, that …
From a credit standpoint, the type of debt you’re carrying matters tremendously when it comes to your credit score and your overall credit rating. What precisely counts as “bad” debt? Nearly 100% of the time, it’s credit card debt. Yes, if the balances on your Visa, MasterCard, American Express or Discover cards have gotten out …
Does the Type of Debt I Have Impact My Credit Rating? Read More »
Any “Public Records” listing in your Equifax, Experian or TransUnion credit report will seriously lower your credit scores. Although the “Account Summary” section of your credit reports may contain negative information such as late payments or collections, more serious delinquencies will be listed in the “Public Records” area of your credit files. Public Records In …
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