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Time Since Most Recent Account Opening is Too Short

If you just opened a new credit account, you probably should think twice before applying for any new credit. Lenders consider consumer credit as a privilege and a responsibility that must be taken seriously. Continue reading

No Recent Bankcard Balances

Maybe you thought your credit was pretty good. You followed the rules by paying off your balances and even kept those cards open so that they would continue to age. Yet, if you have not used your major credit cards, they tend to provide less of a benefit. This is likely the case if your credit report is flagged with the “no recent bankcard balances” risk code. Continue reading

Refund Anticipation Loans Harder to Come By

The Internal Revenue Service has scored one for the disadvantaged tax filer. The IRS announced that it will no longer supply banks with the information they need to determine the likelihood that a tax filer will actually receive their refund. Continue reading

Number of Established Accounts

FICO credit scoring models reserve 15% of their formulas for factors that indicate duration of credit history. While having an account open for many years definitely helps increase your average account age, most lenders want to see that you have established a number of accounts with a lengthy credit history in order to classify you as a lower credit risk. Of course, those accounts must be in good standing to actually help you. Continue reading

No Recent Revolving Balances

Welcome to the most misunderstood aspect of credit scoring! This code is the source of more misinformation and poor advice than any other. Even some bankers and real estate reps will tell you that having no recent revolving balances can be corrected by carrying debt of around 30% of your credit limits. This advice is dead wrong. Continue reading

Number of Bank or National Revolving Accounts with Balances

If you have ever been told that you have too many bank or national revolving accounts with balances, then you might be predisposed to future delinquencies. While your current lenders may not like the higher risk, you can bank on new lenders to deny your credit application. Continue reading

FTC Puts Freeze on Debt Relief Robocalls

Rogue debt relief companies advertising through robocalls may no longer charge high upfront fees. That is the result of a Federal Trade Commission ruling that goes into effect October 27, 2010.

At issue is the practice of debt relief companies using auto dialers to contact thousands of people each day in order to push their financial products. The vast majority are debt settlement companies who prey on vulnerable debtors who are desperate to get help with their delinquent debt accounts. Continue reading

Serious Delinquency, Derogatory Public Record or Collection Filed

When denied credit due to serious delinquencies, it sends a message that lenders are not willing to risk lending you money at any price. They know that any judgments or collection activity that you have had in the past are indicative of likely defaults on new debts in the future. Credit bureaus refer to court judgments as derogatory public records. Continue reading