Debt Is A Trap

Sorry for the delay in posting folks, with our relocation it has proven impossible to remain on a constant schedule.  In our new home March 1.  Pretty excited!

Recently I was having a conversation regarding someones credit score.  They were concerned with the amount of unexpected credit inquiries that were showing up.  First of all, an inquiry does indeed affect your score, but if there are other blaring concerns like collections accounts and unfulfilled debt obligations, the inquiries should be a minor consideration.

We have very little control sometimes over who inquires on our credit.  We unwittingly give permission all of the time to check our history.  Insurance companies, employers, our banks, they all manage to get permission one way or another to check into our business.  You will receive an inquiry every-time you apply for credit.  Its going to happen.  My advice is if you are working to raise your numbers, then don’t apply for credit.  If you are working to be approved for a loan, choose a lender by doing your homework, checking the better business bureau, talking to other customers, research their feedback.

DON”T LOOK FOR A LENDER WITH THE SHOTGUN METHOD.  You know, apply to ten companies and see who will take you or who has the best deals.  That’s a no no!

Keep up the good work!  E

With the current economic conditions, your credit score is increasing in importance.  The bank issues, defaulted loans, record repossessions are all reasons that the credit companies are being forced to continually re-evaluate their guidelines for credit worthiness.  Now I am not a Negative Nellie so I don’t want to rehash all of the negative things that are jumbling up our economy.  You have all the poison in the world to absorb on the Internet and with the local papers.  Which by the way you should not be buying anymore, most are available on line for free!

So why did you bring it up you say?  You should always review your credit report at least once a year.  You can get free copies of the report from the individual reporting agents such as Transunion and Equifax.  But you also can get it from the only FTC approved source for online credit reports… www.annualcreditreport.com.  Why? Because I make mistakes everyday and you cannot afford negatively impacting mistakes on your credit report.  It affects your credit score and many other aspects in your life.  I am not telling you to go out and apply for a credit card when you find your score has risen with you diligent efforts to reduce debt and pay bills on time.

My focus is on the big picture.  Disputing errors on the credit report can be more effective if done in a timely manner.  Finding the error five years later, heck the company might not even exist anymore!  Insurance rates, ability to rent, getting a job can all be affected by a poor credit score.  You should resolve to review it every year and the beginning of the year is a great time as we tend to be measuring everything else.  Order it today!!!