Archive for June, 2008
Credit Score Definition
June 30th, 2008
Question: A FICO question?
I've checked several online sources, and can't find a clear cut answer to this:
Many sources say that keeping credit down to a smallish (like 30%) of the limit on that card etc, raises your FICO Score.
But what is the definition of the 'balance' I have large limits, use a lot of them at times, because i run almost everything personal and business through my cards (collect points). The balances are paid in full each month, there is no balance carried forward.
So does this pattern of use hurt my score?
Answer: There's a catch-22 here from what I've read about this.
They say that keeping you debt/credit ratio for each line under 30% benefits your FICO Score, true. The trick is that your creditors report to the CRAs once a month (sometimes less) and typically that report coincides with your statement date.
This means that even if you pay your balance in full each month your "reported" debt load is what is reported on each statement and not what you are actually carrying forward.
In short, the answer to your question is a definate maybe. I'd order your free credit reports from Equifax and Transunion (can be done by phone, see below) and then compare the balance details with your credit statements from the applicable periods. You can get an idea of when your creditors report based on this comparison, and if your FICO is that important you can tailor your payment schedule accordingly.
Credit Score Definition 101
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Credit Score When You Get Married
June 26th, 2008
Question: When married how do spouses credit effect each others credit?
I will have to default on some recent medical bills (that I acquired before I got health insurance)- because I am pregnant and not working (husbands income goes to rent, car...everything else) - My plan is to go to work again when our baby is 3 months old.
Can I fix this by just paying it off even though it will already be on my Credit Report by then.
I know that your points go down with bad credit - but when you pay it off will the points go back up -. I'm thinking when I do start paying that stuff off I should try to get another credit card to help build it back up. I currently have one credit card which has helped to build up my Credit Score.
I hate that I cannot pay my medical bills at this time, also will my bad credit effect my husbands credit? I know being married sometimes they may run our credit together and sometimes they just run our credit separately.
Thanx
Answer: It is very likely you can make an arrangement with the hospital to pay them back and they will report that to the bureaus. So yes, once that is paid it will be cleared off your bureau and your score will go up provided you do not have other offenses.
Most applications for credit look at the household. If one spouse has had credit problems, it is often assumed that the other spouses credit will be affected. So yes, your credit will effect your husband`s credit.
Do not go delinquent and pay off the medical bills and your score will rise. Do not go over 50% utilization(If you have a $2,000 credit line try to keep your balance below $1,000)
As long as you do not have a major problem on your card, the person in the household with the most trades/credit history will be considered the principal. Once you have paid your medical bills you both will be treated better by lenders.
Advice to 23 me PART 3 - My Financial Redemption
Bankruptcy Part Two
June 11th, 2008
Bankruptcy (continues...)
What does it mean to go bankrupt?
When you go bankrupt (when you file for bankruptcy), all of your assets and debts come under the control of the bankruptcy court. It is important to understand that there are some assets that are called exempt assets in bankruptcy cases.
What are exempt assets from bankruptcies?
Examples of exempt assets from bankruptcies are:
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your clothing,
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food,
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books,
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personal belongings,
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furniture,
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some cash, and
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your wedding ring
These exempt assets from bankruptcies cannot be taken away from you. Other things such as your car and some real estate, especially your home, have additional protections. The law about what is considered exempt differs by state, but in general you are permitted to keep things you require for daily living.
What are non exempt assets from bankruptcies?
Your nonexempt assets from bankruptcies are those that the court can divide up among your creditors. These non exempt assets from bankruptcies include:
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investments,
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large amounts of cash, and
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valuable items you own.