I check your site every day for the most updated information.  I believe you have the best site on the web for credit information.

I had an old Capital One credit card account, with a perfect payment history, which I had not used for some time.  There was still a balance of $800 on it when it was sold to another credit card company. I was notified that the account was being transferred, and that I would be notified by the new account holder very soon.  After a few weeks had passed, I contacted Capital One, who told me that they could not give me any information, and that I would have to wait until I was contacted by the new debt holder.

After a couple more months (in March, 2007), I received a “Past Due” invoice in the mail.  I found out that evening that the credit card that had been issued, as well as all the bills and notifications that had been sent, were in the possession of a step-daughter who was living with me at the time.  The card had not been activated.  I called the number on the bill and paid the entire amount that day.  The credit bureaus show a payment history on this account of April and May, 2006, OK; June, 2006, 30 days late; July through December, 2006, OK; January, 2007, 30 days late; February, 2007, 60 days late; March, 2007, 90 days late.

I am trying to buy a business, and I feel like this account will prevent me from qualifying for a loan.  It is the only thing in the last seven years that is derogatory on my report. 

I am wondering if I should dispute the incorrectness of the reporting on this account, or whether I should just have a letter attached to each bureau report explaining the circumstances.  I am in a big hurry, and need advice as soon as I can get it.

Cheryl (more…)

My husband and I would like to purchase a new home within the next month.  My credit scores are in the low 600s. 

In order to bring my scores up, I was wondering if it would be enough to reduce my credit card balances to 30% of my credit limits. 

With the exception of one card with a credit line of $3,500, my other cards have credit lines of $500-1,000. 

Thanks for your help!

Susan (more…)

Below is a press release from Fair Isaac titled: “Fair Isaac Innovation Will Restore Authorized User Accounts to Calculation of FICO 08 Scores” on July 31, 2008.  Hold onto your Authorized User hat, here goes:

“July 31, 2008 – (Minneapolis, Minnesota, USA) – Fair Isaac Corp.(NYSE:FIC), the leading provider of analytics and decision management technology, announced today that its scientists have discovered a way to restore authorized user credit accounts to the calculation of FICO® 08 credit scores while materially reducing any potential impact to the score from tampering. Fair Isaac is now adding the patent-pending technology advance to its FICO® 08 formula. The company estimates that more than 50 million U.S. consumers are legitimate authorized users on another person’s credit card.

“The hallmarks of FICO scores have been quality and innovation, and this technology advance is a great example,” said Lisa Nelson, vice president of Global Scoring for Fair Isaac. “This breakthrough resolves an industry problem that we know has perplexed lenders and concerned regulators. We have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit experience. This kind of innovation is why Fair Isaac’s analytic scientists are regarded as the best in the world.”

Adding the innovation to the FICO® 08 formula is expected to take Fair Isaac several weeks. The company is working closely with credit reporting agencies to bring the new FICO® 08 score to market as quickly as possible.”

Source – Fair Isaac Press Release July 31, 2008

“Pay no attention to that man behind the curtain.”

Source – Wizard of Oz 1939

I have a credit card account that was closed because it was maxed out and i was not able to pay the minimum at the time (went on for about 5 months). Now that the account is closed, what happends next? I don’t understand the process. Can you please help me?

Wilfredo (more…)

Today is the first business day that FNMA DU Version 7.0 went into effect.  Here’s how FNMA is treating Authorized User accounts. 

“As stated in Announcement 08-08, DU Version 7.0 will not take into consideration credit report tradelines in which the applicant has been designated as an “authorized user.”  If the mortgage loan falls into the instance stated in Announcement 08-08 where the lender has information available that an applicant is an authorized user on a spouse’s credit report tradeline, and that spouse is not an applicant in the mortgage transaction, the lender must manually underwrite the mortgage loan in order to ensure such “authorized user” tradelines are taken into consideration in its underwriting decision.”

Desktop Originator/Desktop Underwriter Release Notes, Version 7.0

I recently paid off all my credit cards. Now I’m wondering if I should close some. I know about the debt/credit ratio, but have heard that TOO MANY ACCTS, even if all paid to 0, hurt your score. Is this true? Or should I leave them all open. Most of them have high credit limits around $10K or more. (There are about 12.) YOUR SITE IS GREAT!!

Ray (more…)

Hello Paul,

Wonderful service you provide. The information on your site has saved my house and my sanity!

I have been researching bits of the TILA act and it seems that it applies to many loans–not just ones that are secured with property.

My question: I believe that people can also rescind credit card loans–again within the three year period. From what I’ve found, TILA also covers loans under $25,000 that don’t have to be attached to ‘property’. It also covers leases, I believe.

Do you know of anyone who has rescinded a credit card loan? Do you know of how the process would go? I believe that those with high rates would benefit from having their loans lowered and they could probably even do this in bankruptcy.

Leela (more…)

CREDIT IS KING, AND CREDIT KING IS BACK!

PAUL, THIS SITE IS INSPIRATIONAL WITH THE MOST SOPHISTICATED AND NICHE INFORMATION ON THE ENTIRE WORLD WIDE WEB.KUDOS TO YOU, AND THANK YOU!!

AS OF MAY 1, 2008 I AM PROUD TO REPORT THAT I AM UP $1.4 MILLION IN UNSECURED CREDIT. HALF OF IT AT ZERO INTEREST. CREDIT IS THE GREATEST POWER ATAINABLE. THE INIMITABLE POWER OF IT IS ASTOUNDING YET SADLY ATTACKED BY INDIVIDUALS LIKE DAVE RAMSEY  OF THE “DAVE RAMSEY ” SHOW AND OTHER DEBT FACILITATORS. YOU TELL ME WHERE ELSE YOU CAN GET 0 INTEREST FOR 14 MONTHS OF CLOSE TO A MILLION?

OPM – OTHER PEOPLES MONEY IS TRULY AN UNDERRATED CONCEPT
SINCERELY

ALEX

PS THANK YOU VISA IPO, MY 0 INTEREST CAME IN HANDY

The Wall Street Journal reports today:

“A suit against a leading provider of arbitrators raises issues that for years have been leveled against the organization and that could come into play more as debt-collection actions rise in a likely recession. In March, the San Francisco city attorney sued the National Arbitration Forum Inc. alleging that it routinely favors debt collectors over consumers in arbitration actions. NAF says it is reviewing the claims and preparing its defense.  The suit follows a number of questions by lawyers, courts and some former NAF arbitrators in recent years about whether NAF arbitrations are fair to consumers.”

Something Smelly About Arbitration?

The Fair Credit Billing Act (FCBA) is contained within the Truth in Lending Act (TILA) and has a one year statute of limitations.  According to page 493 of the National Consumer Law Center’s “Truth in Lending” (6th Edition), the FCBA requires that the creditor must provide the following after receiving notification by a consumer of a billing error:

• Must acknowledge receipt of the billing error notice in thirty days;
• Must investigate and resolve the billing error dispute within two billing cycles or ninety days;
• May not attempt to collect the amount disputed prior to resolution of the dispute;
• May not threaten to report adversely on the consumer’s credit standing during the pendency of correction of billing error procedures;
• May not report disputed amounts as delinquent until after correction of error procedures are completed; and
• Must report subsequent resolution of any delinquencies to whomever delinquencies were initially reported.

The Fair Credit Billing Act is a powerful means of solving credit card billing problems and open-end credit disputes. 

Hey, did you notice the part that says: “May not threaten to report adversely on the consumer’s credit standing during the pendency of correction of billing error procedures” and ”May not report disputed amounts as delinquent until after correction of error procedures are completed”?  You read that?  Ok, just checking to see that you’re paying attention and not just looking at the pictures of the colorful credit cards.