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Archive for the ‘Fair Debt Collection Practices Act’ Category

Question: Will having no credit cards and no debt affect my Credit Score?

I have recently paid off all my credit card debt and am going to close these accounts. My current score is in the low 700s. I still have my checking debt card which I can use as a visa. Will doing this affect my Credit Score?

Answer: Having no credit card debt can improve your Credit Score. Closing your credit card accounts will negatively impact your Credit Score. Keep the credit card accounts open that you have had for the longest time (length of credit history is an important component of your score).

If you have more than 2 credit cards that you keep open, you can close the other accounts or simply cut up the cards so you can't use them. Be sure to use the card(s) you keep open a few times each year so the account stays active and you can show you are using credit responsibly.

Congratulations on paying off your credit card debt. That's a huge accomplishment. Your Credit Score is very good and will keep improving over time.

Hope this helps. Good luck!

Bad Credit Debt Consolidation

One day you may be faced with having to deal with unfair debt collection practices. When that happens, you will want to write a letter complaining about unfair debt collection practices. We have provided a free sample letter complaining of unfair debt collection practices for you.

What does a letter complaining of unfair debt collection practices contain?

The free sample letter complaining of unfair debt collection practices contains:

• your name and address
• name and address of creditor and/or collection agency
• date
• statement informing them that they have violated the Fair Debt Collection Practices Act.
• date of incidence
• what happened
• formal request for them to change their practices
• statement informing them that you are forwarding the letter complaining of unfair debt collection practices to the Federal Trade Commission and the state Attorney General.
• sign

The above letter is a free sample letter complaining of unfair debt collection practices. You can modify this free sample letter complaining of unfair debt collection practices to suit your credit dispute purposes. There are also other free sample Credit Repair letters available on various sections of our Repair Credit Score website.

Question: Help! New Landlord Question- debt to credit ratio vs. FICO Score?

If a FICO Score is between 700-800 but the debt to credit ratio is high (over 40%) would it be wise to lease to a person? What is the FICO and D.to.C.ratio I should consider acceptable when giving a one year lease ? Or should I look at only FICO and not D to C or vice versa??

Answer: Do they have a good history of making all their payments?

If you pulled their Credit Report it will show if they have made all their payments. If they are good about making payments, I'd lease to them.

With the current economy, many people have lost jobs. I know several people that lost jobs and had to live off credit cards until they found a new one. They have new jobs now and are working hard to pay the debt off. But it takes time. Their debt to income ratio is high and FICO is pretty good. They always made their payments on time. They would be good people to lend money to or to rent to. They make their monthly payments every month.

I'm not a land lord, but it seems to me there is more to consider than just the numbers. Regardless of their FICO or debt/credit ratio....your concern is will they pay you each month.

Repair Bad Credit - Raise Credit Score - Chris The Credit Guy - Improve Debt Ratio