Tidbits® - July 2006
Credit insight from Credit.com
Welcome to the Credit.com newsletter!
Each month, this free email newsletter delivers easy-to-read tidbits
about credit directly from personal finance experts. In this issue
we're focusing on recovering from credit problems. We'd love to
hear from you! Send an email to tidbits@credit.com with your credit
questions or comments anytime!
Quick Tip
Check out Credit.com's brand new website for tips, tools and deals
to help you manage your money. We've added all sorts of new features
including product comparison charts, life stage guides and more!
Take a look at the new Credit.com! http://www.credit.com/r/home_page/
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 report 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 online - http://www.creditbloggers.com/2006/03/myth_busting_wh.html
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 online - http://www.creditbloggers.com/2006/04/reader_question_3.html
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 and this can lower your credit
score a bit. Instead of wasting time with credit card offers that
don't work out, be proactive and look for a credit card that will
best fit your needs. Read the full question and answer online - http://www.creditbloggers.com/2006/04/reader_question.html
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 make a late payment, a negative mark will be placed
on your credit reports and your credit score will be damaged. Read
the full question and answer online - http://www.creditbloggers.com/2006/07/reader_question.html
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 standing.
Featured Article
Are you deep in debt? Before you consider working with a debt professional,
try a little do-it-yourself debt reduction. Credit.com shows you
the tricks of the trade and the fastest way to reduce your debts
on your own in this new article.
Read more about reducing your debts online - http://www.credit.com/life_stages/overcoming/Debt-Reduction-Do-It-Yourself.jsp
On the Blog
The dreaded universal default clause is getting some negative attention
from regulators. This fine print arrangement allows your creditors
to raise your rates when you make a late payment on any account,
not just theirs. See what our credit law expert has to say about
the universal default clause and its critics.
Read about the universal default clause - http://www.creditbloggers.com/2006/06/universal_defau.html
Quote of the Month
A rich man is nothing but a poor man with money.
- W. C. Fields
Tidbits® - July2006
About this newsletter
This information has been compiled and provided by Credit.com as
a service to the public. While our goal is to provide information
that will help consumers to manage their credit and debt, this information
should not be considered legal advice. Such advice must be specific
to the various circumstances of each person's situation, and the
general information provided on these pages should not be used as
a substitute for the advice of competent legal counsel.
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