Dave Ramsey says credit scores are irrelevant. Are they? A WSB listener claims Dave Ramsey says to get out of debt and that FICO credit scores are not what they seem. Dave Ramsey says FICO credit scores are the “I love debt” score because there’s no way to get a great FICO credit score without getting into debt and staying in debt. While I agree with a lot of what Dave Ramsey says, I disagree with that premise. Here’s why I think FICO credit scores are relevant to your life today.
What makes a good credit score? What makes a bad credit score? How do you improve your credit score? Opening new lines of credit, using all of your available credit, making late payments, or not paying in full can all lower your credit score. The easiest ways to improve your credit score include keeping your credit accounts open for a long time, not opening new credit, having different kinds of credit account, and making your payments on time. Ilyce Glink shows how a credit score can be dropped very quickly, but it takes a long time to build up a good credit score. However, it is possible to improve your credit score over time.
Credit card debt is still high even as some claim the recession might be over. The recession has affected credit card debt, unemployment, consumer sales and foreclosures, but now one of those is bouncing back. Based on a report from Credit Karma, consumer credit card debt has decreased in the month of July. Decreased consumer credit card debt is a positive sign for the recession, and it is tied to consumer sales, unemployment and foreclosures.
If you can’t pay your credit card bills or your real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. taxes, you may be able to try to take out a home equityYour share of ownership in a company. Stockholders are often referred to as equity investors, because they invest in the equity of a company. loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds.. to get cash to pay your bills. However, home equity loans are increasingly hard to get from banks right now. If you find that you can’t pay your credit card bills and other bills, you might want to consider selling your home and use the equity to pay off your credit card bills and property taxes.
Your credit report will show your overall payment history, not individual credit card purchases. Your credit report will show any credit accounts you have, your payment history, if you have been late on payments, if the account were closed or if the credit company charged them off. You need to work to raise your credit score by improving your payment history.
Going through foreclosureForeclosure is the legal action taken to extinguish a home owner's right and interestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. in a property, so that the property can be sold in a foreclosure sale to satisfy a debt. isn’t what anybody wants to go through. For some, going through foreclosure can be the start of a process that can drag on for years. If the foreclosure process does not yield enough money to pay off the mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. that the lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. had given the homeowner, that homeowner could be stuck with a deficiency judgment and having to repay the difference for years to come. If the lender does not pursue the deficiency judgment or can’t, the foreclosure will still have a negative effect on the homeowner’s credit history and credit score for years to come.
A new credit card study compares the rates and fees and best credit card offers from 10 of the leading credit card companies. With the new credit card legislation changing how many of the credit card companies do business, this credit card comparison looks at the credit card rates and credit card deals today.
How long do you owe a credit card debt? If you haven’t paid on a credit card debt for the past five years can a credit card company still sell the debt to a collection agencyAgency is a term used to describe the relationship between a home seller and a real estate broker, or a home buyer and a real estate broker.? What is the statute of limitations for collecting on a debt?
President Obama signed into law new credit card legislation that will drastically affect both consumers and credit card companies. Among the changes, the legislation bans unfair rate increases, prevents fee traps, requires plain sight and plain language disclosures, and has many provisions for credit card company accountability and credit card protections for students and young people.
The average identity theft case takes 26 hours to resolve, but you may be dealing with the effects of identity theft for several years. If someone has used your social securitySocial Security provides retirement benefits, disability income, and MedicareMedicare is a program of Hospital Insurance (Part A) and Supplementary Medical Insurance (Part B) protection provided under the Social Security Act. for working individuals and their spouses. Under the Social Security Act of 1935, the government established social security and created the Social Security Administration to administer the program. number or other personal information to create a synthetic or false identity, chances are they have used your personal information to create multiple identities. A sophisticated identity thief may have created a very messy situation that could take you a very long time to unravel. Watch this Expert Real EstateReal Estate is land and anything permanently attached to it, such as buildings and improvements. Tips video and others on Identity Theft to learn how to protect yourself and your personal information.