Credit Q&A
You asked the questions and we've answered. We're here to help!
Here are just a few of the email
questions our team has answered since we launched the "tidbits"®
newsletter in January:
Q: How long does it take before a collection record is removed from
your credit report after it is paid off?
A: Collection records will remain on your credit reports for 7 years
from the last 180-day late payment that led to the account being
sold to collections. This expiration
date doesn't change if the account is paid off or sold to
another collector. Read
the full question and answer.
Q:
I have a question about melding excellent credit and terrible credit
scores when two people get married. Will the bad credit history
of one spouse ruin the good credit of the other?
A: Nothing happens to your credit reports and credit scores when
you get married. Each person's credit remains independent. Only
co-signed loans and joint accounts would appear on both your credit
reports. Read
the full question and answer.
Q:
I do not have any credit cards and I am afraid to apply for one
because I think I will be turned down due to my bankruptcy. I was
told that being turned down for credit lowers your credit score.
A: Not true! There is no record of a creditor's decision reflected
on your credit report. However, keep in mind that applying for credit
does cause an inquiry to be reported. Inquiries will remain on your
credit reports for up to two years. The bad news is that inquiries
can lower your credit scores and excessive inquiries can lower your
scores quite a bit. Instead of wasting time with credit card offers
that might not work out, be proactive and look for a credit
card that will best fit your needs. Read
the full question and answer.
Q:
My father-in-law says that making your credit card payments early
helps improve your credit score. I disagree with him and say that
paying early could help you avoid late payments, which can be damage
your score. However, just making payments early would not have a
positive impact on your score on its own. Who is right?!
A: Our reader is correct! Paying your credit card bills early is
a good idea but doesn't do anything extra to help you improve your
credit
scores. There isn't a record of exactly when you paid your
debt on your credit reports, just a note that the payment was received
on-time. If you miss your payment due date, your creditors can send
a record of that late payment to the credit bureaus and that negative
mark will damage your credit scores. Read
the full question and answer.
Do you have a question for our credit experts? We'd love to hear
it! Send your questions to tidbits@credit.com
and we'll do our best to answer.
Bonus Question:
One
of the most common questions we are asked is:
Does
checking my credit report lower my credit score?
The answer is NO. Checking your own credit
reports and credit scores (or even signing up for credit
monitoring) online doesn't harm your credit scores. Only applications
for new credit accounts can cause a drop in your credit scores.
Quote of the Month
A
rich man is nothing but a poor man with money.
- W. C. Fields
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