FICO Credit Scores, Approaching 850 scores Series #5

FICO Credit Scores, Approaching 850 scores Series #5

 

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

Today’s advice: Never, ever close any of your older credit cards. Generally, I don’t think any cards should be closed unless you opened one in the past couple of years AND your card balances are quite low or zero.

FICO Credit Scores, Approaching 850 scores Series #4

FICO Credit Scores, Approaching 850 scores Series #4

My own FICO-9 score peaks at 832 of 850 possible and I have not applied everything I know. I don’t want to do those two things.

This will be a LONG series of advice and comments. Keep coming back!!

In the previous blog, I gave a fantastic secured credit card possibility up to an $8000 line of credit.

Remember that credit cards achieve much better FICO credit scores when the credit limit is at least $2500.

Some people will be declined for that Comerica secured card because their credit scores are too low and NO other card will give that magical $2500 limit.

What to do?

I suggest a SPECIFIC card to apply for and no other: Capital One. They may only grant you a $250 to $750 limit, but if you have no other open credit cards then this card will help.

Really, don’t bother with other cards, not Credit One, not First Premier, not others. The reasons are from my own experience.

Once that Capital One card has been used and paid to $0 balance for 31 days then try the Comerica card again. Your credit scores may have recovered enough from the Capital One card.

Credit News Series #6 – Alternate Credit on “Experian Boost”

Credit News Series #6 - Alternate Credit on - Experian Boost

 

Experian ‘Boost’ Improves FICO Scores

Experian is offering a new way to get good credit onto your credit reports. This is only useful for people without good, open credit now. Those who have older open accounts do not likely need this.

The product is called Experian Boost. Here is an article on it… Experian ‘Boost’ Improves FICO Scores Via Data

Credit News Series #5 – Increase in Lawsuits on Bad Debts

Credit News Series #5 - Increase in Lawsuits on Bad Debts

Increase in Lawsuits on Bad Debts

There is no question that credit card companies are using vast numbers of people who failed to pay and defaulted on their credit cards.

In my 17 years helping people with their debts I cannot recall such a high percentage of my clients being sued as over the past year or two. Lawsuits have been filed over as little as $900 of debt!

The most important for you to know if you defaulted on a debt and get served a lawsuit: DON’T pretend it didn’t happen. You can have a lot of agonies if you do not face the problem.

You MUST answer the lawsuit, each state gives how many days you have to file your answer to the lawsuit.

Failure to answer a lawsuit will only give the other side an easy time getting a judgment against you. It is called a default judgment.

With a judgment, your wages can be garnished (money taken from your paychecks) or money can be taken from your bank account. If you own real estate then a lien can be placed on the property.

If you cannot afford a debt defense lawyer to answer the lawsuit then look for a paralegal with the correct experience to write an answer for you to file with the court in time. Paralegals should be overseen by a lawyer.  

Collection Account Series #10 -> Collector Deception

Collector Deception

 

Read the entire Series about this subject to understand everything before you DO anything about a collection account because you can seriously harm your FICO credit scores if you don’t study and apply what I know. More is to come!!

A lot of my week is dealing with collection accounts, charged-off credit cards, vehicle repossessions, and money judgments.

A very few collectors are sneaky and deceptive. I recall one company I thought was a collection agency, that they were collecting for another company. The collector made a small little slip in what he said, I almost didn’t notice it.

Then I learned that that company actually bought the debt and owned it. Everything they were telling me about discounts was a lie.

I got 100% off that debt and the deletions. Happy client, happy me.

I can’t train you in everything I know. Then how would I eat?

Credit News Series #4 – Citi Sued Over 2008 Manipulations, $100million

Citi Sued Over 2008 Manipulations, $100million

 

Citibank agreed to pay $100 million for their actions in 2008 to manipulate interest rates. Many state’s Attorneys General sued.

Like the Wells Fargo suits little or none of the money will actually go to the people hurt by the banks’ actions. Money is mostly going to states and cities.

All we can say is “wow”.

*******

 

 

Credit News Series #3 – What’s a Credit/debit Card Skimmer and Shimmer?

What's a Credit/debit Card Skimmer and Shimmer?

Criminals get very clever at how they get your credit card data. Not even the chips in cards protect you. I hate criminals.

Skimmers read your card’s magnetic strip. They are found at mostly at gas stations until gas stations MUST use the card’s chips in October 2020.

Shimmers read the chip. They are hard to see. The shimmer can be used to produce a magnetic strip with your data.

Your card information gets stolen by shimmers and skimmers.

If you report unauthorized card use within 60 days of receiving a statement you aren’t liable for more than a $50 loss.

At the very least, study your credit card and bank statements monthly. Look for transactions you don’t remember.

Or let’s go back to a cash society. The older man in my likes that but its hard to avoid loving 1.5% cash back too.

Collection Accounts Series #9

Did the collector delete but showing on credit?

Did the collector delete but showing on credit?

 

Read the entire Series about this subject to understand everything before you DO anything about a collection account because you can seriously harm your FICO credit scores if you don’t study and apply what I know. More is to come!!

I’ve had a number of cases when the collection agency did request deletion but the account did NOT come off one or any of the credit reports.

In such a case the thing to do is call the collection agency and ask what date they requested deletion. Deletions typically happen from 4 to 60 days after they are requested.

If it has been more than say 30 days since they requested deletion ask the collector to re-request deletion AND supply you with a “deletion requested” letter. This letter can be used to help speed up and ensure the “actual” deletion at the level of the Reporting agencies–simple dispute it.

Look up online how to do disputes and what IDs to send. Easy. Write, “Attached is the deletion request of (collection agency name). Please confirm in writing that you have honored the deletion request.” Watch for mail within about 35 days!

Credit News Series #2

https://youtu.be/G7XxBvrrZ74

REFUND!!!!!!

Earlier this year Citibank refunded $335 million to about 1.75 million cardholders. Why?

Citi said it’s customers were charged to much interest but REALLY why???

If the Consumer Financial Protection Bureau had discovered Citi’s over-charges then Citi would have been fined probably hundreds of millions by the federal agency in addition to the refunds.

Do ya think Citi would have refunded money if they were afraid of the federal agency?


The first thing that federal agency did after a year in operation was fine Capital One about $25million — for a mistake one of CapOne’s vendors did!

Credit News Series #1

Credit News Series #1

“FICO”, Fair Isaac & Company recently came out with yet another FICO credit score model supposedly to help consumers have higher FICO credit scores.

Once again the news media went wild over the supposedly “good” news, once again you the consumer have been deceived.

Here’s the article I wrote and sent to Consumers Union, publishers of Consumer Reports magazine the last time this happened when “FICO-9” was released by FICO. Live and learn because the media is getting it all wrong yet again.

December 18, 2014

Letter to Editor, Consumers Union, Consumer Reports

Re Jan. 2015 article re credit reports

Dear Sir or Madam,

As a FICO score and credit resolution expert I’d point out only one error, number 10 of 11 Steps to Rehab Your Credit.

Credentials:

Wrote probably the first book ever on how FICO scores actually work (2001)
Guest on radio shows nation wide 2002-2006, 2015-
Published world wide* consumer credit and score articles, Gannett Publishing 2003-2007
CA Dept of Justice registered Credit Services Organization–and the ONLY one in CA which does NOT use illegal credit dispute tactics or other fraudulent tactics
* Pen name Dave Peters

I am an expert on the mortgage FICO models in particular.

If consumers want to raise their mortgage FICO scores they absolutely must not pay their collection accounts, not a penny, contrary to your advice.

If they do pay collectors then their mortgage FICOs will either drop or fail to rise at all.

FICO-9 might ignore paid collections if any company buys it for credit decisions but history often repeats. FICO-08 (2008) made similar promises and NO creditor bought it for five long years until 2013 when FICO renamed it FICO 8 and sold it to Citi credit cards only.

It would be too expensive to re-model risk regarding mortgage loans and Fannie/Freddie say they won’t consider changing mortgage score models for at least two years.

When it comes to vaunted FICO score news I never buy into the hype until I see what really happens.

Thank you,

Dave Schram