The ins and outs of credit closure

admin • September 26, 2013

The ins and outs of credit closure.  A credit card is a helpful tool to aid in the ascension of any consumer’s credit score. A revolving account, such as a credit card, is the only way to establish length in credit history, which accounts for 15 percent of a person’s credit scores, they are eventually paid off and therefore no longer contribute to the evaluation of credit scores.

Just as obtaining  a revolving account can boost credit scores by 15percent, closing a revolving account, even in good standing, will actually cost the consumer 15 percent off his or her credit score. Furthermore, a consumer can expect and additional 45-point loss for closing a credit card account it still has a balance. The credit score system does not differentiate between a closed account with a balance; they are both closed accounts with a balance, and therefore can both trigger this 45-point reduction of a consumers overall score.

The best way to put a credit card to work for you to pay off the balance, but keep it open and active by making a small monthly purchase and paying it off when the statement is received. This technique will help credit scores climb without incurring any debt.

Red light camera tickets a credit risk

By admin • October 2, 2013
Red light camera tickets a credit risk – About a month ago I started getting calls from banks and mortgage companies that their loans all over Albuquerque were falling through for auto and mortgage loans. The reason? Years of red light camera tickets recently went into collections, all at one time, and thus put on the credit reports of Albuquerque consumers. Sure enough, I had many clients come in to have meetings to see if they were credit ready wise. Scores were knocked down between 35 and 45 points for each collection entry for these red light tickets.

Keep lease judgments off credit history

By admin • October 2, 2013
Keep lease judgments off credit history – I have seen many cases on my office of consumers with judgments on their credit reports due to early termination of a lease. In many cases the lease was walked out on due to a hostile living environment. Whatever the case, there are things to get this mark removed from your credit history.

Don’t let someone else’s credit problems slow you down

By admin • October 2, 2013
Don’t let someone else’s credit problems slow you down – Cross-referencing of others on your credit report – credit information that erroneously shows on your report because another person shares identical or similar name – can cause great financial hardships and has become an epidemic. I get one to two cases of cross referencing, and if the person you’re being cross referenced with has negative credit history, this will completely shut down your ability to get A+ credit.

Your own personal credit FAQ

By admin • October 2, 2013
Your own personal credit FAQ – I get a lot of questions at Credit Rescue Now, Where we counsel consumers about financial landscape and how to make sure their credit remains strong and sound. I thought it would be helpful to put together a list of frequently asked questions and answers. I hope this information is helpful.

Take care of your credit while renting

By admin • October 2, 2013
Take care of your credit while renting. People know what major financial step home ownership represents, but we often overlook the financial and credit implications of renting an apartment or home. There are some important things to consider.
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