You were approved for $10,000 in credit, so why can’t you use it? You can, but understand that using too much of that available credit can lower your scores. That’s not a big problem, as long as you don’t anticipate opening a new credit account anytime soon. Continue reading
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Federal Reserve Board Launches Consumers Guide to Credit Cards
New rules are in place for credit card issuers, thanks to the Credit CARD Act of 2009. These new rules are designed to make consumer credit more transparent and easy to understand. Continue reading
Time Since Delinquency is Too Recent or Unknown
One of the most frequent error codes for credit scores is “time since delinquency is too recent or unknown.” Since 35% of credit scoring formulas depends on your payment history, late payments can be a big blow to good credit. The impact is greater the more recent your delinquency. Continue reading
Length of Revolving Credit History is Too Short
Seasoned revolving accounts can be a tremendous credit builder. You may find however that opening credit card accounts did not give you the boost that you needed to your scores, and may in fact have lowered your scores! Continue reading
Review of Financial Consulting Services
After receiving one of those robocalls touting the ability to lower the interest rates on my credit cards, I could’t help to find out exactly what their angle was. It turns out that the company calling was Financial Consulting Services. I decided to play along to see exactly what it is that this company does. Continue reading
Amount Owed on Revolving Accounts is Too High
Credit bureaus routinely lower credit scores when a debtor owes too much on credit accounts in general. There is an additional penalty if the amount owed on your revolving accounts is too high. Continue reading
Too Many Accounts Recently Opened
Credit bureaus penalize consumers who have had too many accounts recently opened. If you have been denied credit due to an excessive number of credit accounts opened in the last 12 months, this is a warning sign that you are taking on too much credit. Continue reading
New Credit Can Sink Scores Whether or Not You Open the Account
New credit is a classification of inputs in the credit scoring formulas developed by Fair Isaac Corporation. This component of credit scoring impacts about 10% of the scoring formulas. Continue reading
Too Many Recent Inquiries in the Last 12 Months
Some consumers find that their applications for new credit are denied due to having too many recent inquiries in the last 12 months. If you have been denied credit for this reason, there could be a couple of underlying problems causing the lender to deny your application. Continue reading
Credit Mix is a Ten Percent Factor in Credit Scoring
One of the least understood components of credit scoring is the 10% of the formula that is dedicated to credit mix. Fair Isaac rewards consumers who maintain an ideal mix of credit accounts. Continue reading
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