5 Things That Won't Hurt Your Credit Score!

  1. What is or isn’t in your bank account – Bank account information will never, ever appear on your credit report and therefore can never affect your credit score. Your credit report is a comprehensive list of your debts, not your assets. If you plan on applying for a home loan or a car loan a chunk of change in your bank account can still help even though it won’t help your credit score. Extra money in the bank always looks attractive to lenders; some even consider it a “compensating factor” for a lower than desired credit score.

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Why Do I Have Different Credit Scores?

Great question! Every time a credit report is pulled by a company analyzing your ability to repay a loan they request your credit history from not one, but three credit bureaus; Experian, Equifax and TransUnion. Why do we need to have three different credit bureaus you may ask? Well in a way it is for your own protection! Think of it like a checks and balances system, if there were just one bureau they may go mad with power and create ridiculous credit standards, with three I suppose this is less likely.

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The True Cost of Rewards Points


Have you heard these words spoken before? “I use my credit card instead of my debit card because my credit card accumulates reward points. I pay it off every month so what’s the difference?” It SEEMS like a pretty good plan doesn’t it? Turns out there may be a price to pay for those tempting rewards points.


Not only do credit cards cost money to have; annual fees, interest rate charges etc. but they also may ding your overall credit score. Of course you say; that’s the nature of the beast! Fair. But you may not be fully aware of the creature with which you tangle.


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Little Known but very Important Mortgage Tips


Frequently we hear from clients, friends or simply overhear random conversations about how frustrated people are with the home buying process, particularly the mortgage loan portion – which is a pretty big portion! The three most important things to know about real estate are location, location, location, right? Well in the world of mortgages it’s preparation, preparation, preparation.


When I hear the irritation of those going through the mortgage process I have been able to come up with a few tips that if the buyer had known ahead of time would have saved everyone quite a headache.


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Mortgage rates are so low, why is it so hard to get one?


Mortgage interest rates are so crazy low that it seems like lenders are practically begging you to come and take their money to buy a home. Interest rates are hovering at levels that rival the lowest rates over the past 50 years. All indications from the powers that be (the Federal Reserve) indicate that rates probably won’t be jumping anytime too soon either? If this is the case then, why is the housing market still so lousy?


It is true that mortgage lenders really do want to loan you their money for a new home, they are just being really picky about it! The housing crash shed light on bad lending practices that brought down behemoth Wall Street banks and now the few left standing are being really careful. So how can you actually qualify for these fantastically low rates? Review this quick checklist:


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Facing Foreclosure? There may still be hope for your Home and Credit Score.

The realities of facing a foreclosure can be very painful to grasp. A foreclosure not only means the loss of a home but realistically a huge gouge to your credit and a mountain of debt. There is always hope and a road to recovery, but if you are able to catch the foreclosure before there it is finalized you may be able to save yourself a lot of money and hundreds of points to your credit score.

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Your credit score may not be at fault for being denied for new credit..


Being denied for a new credit card is not a good feeling to say the least. More than likely if you’re like the rest of us, you’ll probably be looking for somewhere to lay the blame for that nasty feeling of rejection. You’re first reaction may be to blame your credit score, but not so fast! Banks and lenders definitely weigh a credit score heavily in their decision as to whether or not to grant a credit line but the scrutiny doesn’t stop there.


In recent years it has become fairly difficult to become approved for a credit card especially cards with reasonable terms. If you already know that you may not have the best credit history and have your fingers crossed during the application process it’s important to remember that lenders are being particularly picky these days. Rather than take it too personally take the opportunity to turn your credit history around and proactively make some changes so that down the road you’ll be the consumer banks drool over.


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Credit Forecast: 2012


2012 is likely to be a year of credit recovery thanks to the legislation of 2011 as well as the evolution of consumer outlook on their financial needs versus wants list. It of course can’t be set into stone that 2012 will bring about an even better economic and credit climate than last year, but there are six factors which forecasters consider positive indications.


  1. Higher Credit Scores – Overall economic stability likely means higher credit scores across the board. National unemployment dropped from 2010 to 2011 and has indications of further dropping in 2012. How does this mean higher credit scores? Typically consistent income and jobs is a direct indicator that consumers will be able to pay their bills on time and therefore be able to maintain a healthy credit score.

  2. What Frank-Dodd did Part 1 - The Frank-Dodd act of 2010 put into effect as of October 1st, 2011 a multitude of financial policies to benefit and protect consumers. One of the many changes under this law changed transaction fees banks are allowed to charge on debit card transactions. Since October we’ve seen a bit of flip-flopping of banks attempting to enact a monthly debit card fee. It’s hard to say where this will land but its more than likely that we will see less debit card use and a rise in pre-paid “debit” cards as well as rewards credit cards. An increase in credit card use should help boost the credit economy.

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How to Protect Yourself from Identity Theft

 Identity theft has become one of the United States top crimes. It is estimated that on a yearly basis, this crime costs the government an alarming $1.3 Billion. Identity theft works so well because the swindlers are easily able to get all the information and documentation about their victim that they need. Another very alarming fact is that theft of an identity can go completely unnoticed for many months prior to the realization that the crime has occurred. In 2007, the United States will implement a new Type of identification card. This card will have biometrical information on the individual.

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How To Increase Your Credit Score With Credit Cards


Credit cards are often the first step for a Consumer to build their credit score. When you make regular payments with a small Credit Limit, lenders will be more willing to lend you larger amounts. Before you jump out and open an account, make sure you don’t have too many credit lines open or otherwise hurt your credit.

Pick A Good Card

Credit Card companies offer several different types of credit cards for consumers. You can find student programs that require no Co-Signer or income. This is a great offer for your first card, but these cards also have higher rates.

You can also find cards with cash back rewards or other incentives. The trade-off are higher rates though. However, you can find no frill cards with low interest rates if you plan to carry a balance. Whichever credit card program you choose, make sure it fits with your financial goals.

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How to choose a credit repair service


There is no doubt you’ve heard horror stories of people victimized by deceitful credit repair companies. We realize we run our business in an industry with an ugly reputation and in despite of these negativities we strive to provide a transparent plan of action to ensure you that we are here to help. Just as you may be looking for help in repairing your credit to show lenders that you’re a trustworthy individual in the sea of devious people, we strive to show you the same.

Your credit history is important and if you’re already suffering from a blemished past, the last thing you need is to be taken advantage of and left in a worse credit mess than you were previously. Whether you choose to work with us at Praxis Credit Consulting, or with another credit counseling service (though we really hope you choose us) there are a few important aspects of a counseling service you should consider.

First, do your research

Welcome to the age of free and easy to access information! Simply Google searching any credit repair service you may be considering will help shed a decent amount of light on the type of company you may be dealing with. See if there are past customer testimonials or client reviews available to read. But don’t stop here. Check with your local Better Business Bureau to see if they are a member as well as their current rating within the Bureau. To be very safe, you may want to check with your state’s Corporation Commission to see if there are any legal actions pending with this company.

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How serious is a lien on my home?

Liens are serious business. Not only do liens of all kinds affect your credit score for years and years, but they also have a lasting impact on all aspects of your financial life. Here is the basic lay out of the types of liens:

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How much will a Short Sale hurt my Credit Score?

It goes without saying but a short sale will no doubt damage even the highest credit score.It is fair to ask, what is a reasonable expectation for your credit to be after a short sale has concluded? It is impossible to say conclusively, but first and foremost it is important to understand how a credit report is scored.

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How judgments affect your credit score

Any new negative claim against your credit is going to hurt your credit score. Those are the simple facts. Judgments are considered a bit more severe than late payments and collection accounts; they are viewed more similarly to a bankruptcy or foreclosure. This means you can count on a hit of somewhere between 120 to 200 points. It’s not pretty so if there is any possibility or opportunity to avoid a judgment you’ll definitely want to take them up on their offer.

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Here is your Short Sale FAQ

Facing the reality of the possibility of a short sale leads each and every homeowner to question what a short sale will mean for them and wondering what to really expect.>

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Find Out What the Alternatives to Bankruptcy Are


Filing for Bankruptcy is the very last resort for people overburdened by debts and unable to clear them. The decision to file bankruptcy is a grave one and it is recommended not to make such a decision in haste. Many people choose this option without finding out the available alternatives to bankruptcy.

Some of the alternatives to bankruptcy are:

1. Settle your debts: If there is the smallest possibility that the debt you owe is manageable and will not be absolutely detrimental to your finances, it is advisable to make a full settlement or meet your creditors and discuss alternate payment arrangements. Another way to meet your debts is to borrow money to pay it off. But, even though this may even seem like a viable option at the time, it would be best to consider this option last, because if you are finding it difficult to pay off debts now, a new loan will only add to your problems. 2. Debt consolidation: A debt Consolidation Loan might be a good solution. How good it is, will depend on your situation. More often than not, debt consolidation loans are made using your home as Collateral by placing a second mortgage on your house. Again, there is a considerable amount of risk involved here. You must consider whether you will be able to pay your bills in a timely manner and be able to subsist on a monthly basis. If, and only if, this is possible, should you opt for a debt consolidation loan. It is also pertinent that you do your homework and choose a good loan consolidation company that provides loans at manageable interest rates. 3. Ignore your creditors: Although this is an option and a deferral tactic, it isn't the smartest decision to make. It does not matter how big or small your debt is, the creditor will not stop till he gets his money. Often, in business, people ignore debts until they pile up to the point that it is very difficult for them to pay them off. If you ignore your creditors long enough, you may even end up with a Lien on your home. So, it is best to try and solve the problem to begin with instead of ignoring it, which will only make matters worse. 4. Credit counseling: This is a much safer and a less mentally taxing option. Credit-counseling agencies can contact you creditors on a direct basis and can make new payment arrangements to suit your situation. They may also be able to get your interest rate lowered or have your interest payments ceased completely. Credit counseling is often the best solution for avoiding bankruptcy, as many families have found out. It will also give you the chance to sort out your finances in peace as your creditors will stop hounding you for payments. Always do your research before selecting a credit-counseling agency. It is recommended by experts to go with a non-profit credit-counseling agency rather than a for profit credit-counseling agency. Finally, if none of the above mentioned options are viable for you and you have used up all your resources, you may choose to file for bankruptcy as the only way out.

Next Step


About The Author Jon Arnold is an author and computer engineer who maintains various web sites to provide tips and information on a variety of topics. More info on this topic can be found at his Bankruptcy site at http://bankruptcy-data.com/.

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Fair Debt Collections Practice Act: Your Safeguard Against Creditors

The Fair Debt Collections Practices Act, also known as the FDCPA, is the consumer’s best safeguard against the harassing pastime of collection agencies. This act was passed by Congress to outline just how collection companies are allowed to treat their clients and holds them responsible if these guidelines are broken. Collection agencies have no right to make harassing phone calls or act like a mobsters loan shark; as a consumer in the United States you have rights.

What are the limitations of creditors under the FDCPA?

  • Creditors are not allowed to call at inappropriate hours. They may only make calls to you between the hours of 8:00 AM and 9:00 PM in your time zone.
  • They are not allowed to call your workplace if your workplace does not allow personal phone calls. Creditors do not have the right to put your job in jeopardy.
  • They may not send deceptive letters to you that appear to be a court document or any other official document.
  • Using offensive or inappropriate language is absolutely forbidden; doing so may be considered harassment.
  • They must file documents in courts within your vicinity. They are not allowed to force you to travel to handle this ordeal
  • Absolutely no threats are permitted. They are not allowed to lead you to believe you will be arrested, or charged exorbitant interest rates you did not previously agree to.

What can I do if a Creditor breaks one of these rules?
Take action! You may owe these creditors money but they have absolutely no right to treat you like a villain. If any one or more of these rules are broken you should report the company and employee if you are able to get a name. You have the right to file a lawsuit against these companies and have the right to sue for damages related to these violations as well as an additional $1000.00, as well as lawyer and court fees if the court finds in your favor.

Who do I contact?
There are a few different agencies that you may contact. Start with the Attorney Generals office in your state. You may also have luck with the Federal Trade Commission (FTC). There is also a newly formed Consumer Protection Bureau that has jurisdiction over these sorts of cases as well. 


There are a few different agencies that you may contact. Start with the Attorney Generals office in your state. You may also have luck with the Federal Trade Commission (FTC). There is also a newly formed Consumer Protection Bureau that has jurisdiction over these sorts of cases as well.

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Facing foreclosure – How it will effect your credit score

Times are tough across the country forcing tens of thousands of people into foreclosure or facing the very real possibility of losing their homes.With so many people in the same boat many are left wondering how foreclosure will affect their credit scores.Restoring credit scores are extremely important as soon as possible for so many Americans in order to acquire a rental home and restore a tinge of normalcy to their everyday lives.

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Experian starts to help bad credit renters by reporting history

Experian is beginning to assist renters build credit scores with the recent purchase of RentBureau. RentBureau is a company that collects information from landlords on renter payments. Their goal is to incorporate the rental payment history as an active trade line to generate part of the historical information.

This will help with multiple groups:

College no more free credit cards to pay for beer LOL!

helps in getting jobs, since more companies are using credit reports to screen applications.

will help create a stable payment history.

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How to Rebuild Your Credit After Bankruptcy

If you are worried about rebuilding Credit after Bankruptcy, this article will help you with some general advice about how to find your way back to the top.
What filing bankruptcy is all about
Bankruptcy is a process whereby a person in debt can crawl out from under it and start again. The idea is to help out those who are in dire financial straits, and are in debt over their heads. The result is that you do not have to pay back most of your debts, you are debt free and can move on. The drawback is that it leaves a nasty stain on your credit report for the next ten years, making it hard to reestablish yourself and recover.
Do I really have to wait another ten years before I can get a loan again?

No. As a matter of fact it is possible to get credit again. However, it will be a bit more difficult. One possibility is to get a protected or pre-paid Credit Card which can be used by depositing money into it, like a bank debit card. This can help you rebuild your credit again, and establish yourself. After a while it can help you start to get loans and credit again before the ten years is up.

What about my debts?

One good thing about filing is that it gets rid of the creditors once and for all. They won't be bothering you anymore. Once all the paperwork is in and processed, it is illegal for them to keep harassing you. You have the law on your side!

Will everybody know that I filed?

No. Very few will actually know about it. However, since the file is accessible to the public it will be visible on your credit rating, and will be kept on file for ten years.

What are the changes I've been hearing about?

The original laws were passed in 1978, and were revised in 2005. The general idea of the new legislation is to make people who CAN pay some of their debts pay. The laws were being abused by those who could have paid. Here are the major changes that went into effect last year:

  • You have to meet certain requirements in order to be able to file bankruptcy. Your family income will be checked to ensure that it is below the state average. They also want to make sure that your family is able to make the regular payments.
  • You are required to submit your last year's tax return, in addition to all the other paperwork.
  • They also require that you have lived in the state in which you file for at least two years. The reason for this is that some states have more or less lenient laws.
  • Child support and alimony and are the debts that have to be paid first.

Next Step

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