May 27, 2006

What is Universal Default?

Did you read the fine print on your credit card disclosure?  It may have contained a sentence or two regarding Universal Default.  Universal Default is a clause that allows a creditor to raise your interest rate to a default rate (in many cases over 30%) even if you have never missed a payment to that creditor.  In other words, you are considered in default with that creditor even though you have never been late. (more…)

May 20, 2006

Does an inquiry affect your credit score?

The answer is yes and no; but mostly yes.  Sound confusing?  Please allow me to explain.

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May 13, 2006

Mail a dispute to Equifax, Experian and Trans Union

Filed under: Credit Repair

There are three methods of contacting the credit bureau to make a dispute.  You may contact them by phone, internet or snail mail.  While all three are valid means of resolving a dispute, the consensus is that certified mail with return receipt confirmation is the best. (more…)

May 6, 2006

Paying off a collection may REDUCE your score

There is a great deal of mystery surrounding the exact formulas used in credit scoring but ask any experienced Loan Officer and he will tell you this much:  paying off a collection is usually not the best way to improve your credit score.  In fact, paying off an old collection may reduce your score.   (more…)

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