'Serious delinquency, derogatory public record or collection filed'
What it means: This can mean that your credit report includes a bankruptcy, judgment, tax lien or collection account. Bankruptcy remains on your report 10 years from the date you file (seven years for a completed Chapter 13). Paid judgments can be reported for seven years, but unpaid judgments can stay even longer. Paid tax liens are removed seven years after being paid, but unpaid tax liens can remain on your report indefinitely. Collection accounts may be reported for seven years and 180 days from the date you first fell behind with the original creditor, leading up to the account being turned over to collections.
What you can do about it: If the information is accurate, this is also a matter of biding your time and making sure you have as many positive credit references currently reporting as possible. (A secured card may be an option if you can't qualify for a regular credit card.) And while paying a collection, judgment or tax lien won't likely change this factor in the short run, it could result in the public-record item being removed from your report sooner and protect you from being sued for a debt, which could result in additional judgments or collections on your credit reports. If dates are incorrectly reported or payments are not being reported -- not uncommon with collection accounts -- dispute them.
'No recent revolving balances (or no recent bank card balances)'
What it means: This reason may appear when your credit report doesn't include any revolving accounts (usually credit cards), or when all your credit cards closed or are no longer being reported. If you have open credit cards, it may also appear when there are no balances on those accounts.
What you can do about it: Don't worry. This doesn't mean you have to have debt to have good credit. As long as you use your cards from time to time, this shouldn't be a problem. But if you are avoiding credit cards altogether, you'll have a tough time getting a top credit score. Get a credit card and use it occasionally -- even a secured card -- pay it in full and on time, and you should be fine.
'Lack of recent installment loan information'
What it means: Your mortgage was paid off years ago. You pay cash for your cars. You don't have any outstanding student loans. Guess what? The fact that you're ultra-responsible here doesn't help your credit scores.
What you can do about it: The strongest credit scores go to those with a mix of different types of accounts. Does that mean you have to rush out and take out a loan? No. But next time you go to buy a car, you may want to find out if you qualify for 0% financing or a low-rate loan. Or you may want to see if you can get a low-rate personal loan to consolidate some higher-rate credit card debt. On the other hand, don't go overboard. You don't want to pay a lot in extra interest charges.
'Too few accounts currently paid as agreed'
What it means: This reason appears when your credit report does not show enough accounts paid on time relative to the number of accounts with late payments. But if you haven't been late with payments, this reason most likely means that you need more accounts reported on your file as "paid as agreed."
What you can do about it: You may want to think about adding a current credit reference, or even a couple of them over time. If you're having trouble getting approved for a credit card or personal loan, consider a secured card.
- Calculator: How long to pay off your credit cards?
'Too many consumer finance company accounts'
What it means: Consumer finance companies make relatively small personal loans, usually limited to a several thousand dollars, and quite often at interest rates higher than those on most credit cards. Consumers who rely heavily on consumer finance company accounts tend to be riskier to lenders than consumers without such accounts.
What you can do about it: Paying off these types of accounts will not improve your credit immediately, but it's still a good idea to pay them off as soon as you can, since the interest rates are probably high. Next time you need to borrow, try first to get a standard personal loan through a social-lending website, for example, or from your bank or credit union.
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When was it, that the value of a fine human being became directly connected to a financial 'score' put together by the greatest thieves in history? What standards were used to do this? Does anyone know when we voted to have our lives ruined, and why it was allowed to exist? Was it another hidden agenda on a ballot somewhere in the 80’s? Why, has it anything to do with forcing on some, the inability to be mobile in a wasteful, 'urban sprawl' society? How, has someone's misfortune, possibly due to a rotting economy caused by ... ah, the banks, kept the person from ever working again? And when this downward spiral eventually begins to include one's home mortgage ... well you see the massive disaster today ! And it hasn't stopped yet, so down it all goes, like a house of cards .
I would like to know what evil, ''wizard ' behind the curtain ... (no don't look !! ) , came up with this idea, lovingly embraced by his peers, quietly, secretly, and for their great benefit. The banks have won ... big time, busy gambling with our lives, our real estate, and our ability to ‘pursue happiness’. The rest of all of us, even the wealthy, have lost, be sure ! " Let it roll, one more time, boys. Let's see if we can get double 7's with our bailout money from the government (Bush Administration), that we were supposed to use to give loans, ha ha !! "
Boycott them, fight for your rights, go to the cash system they want to abolish, and question every rejection for the basics needed in life , make 'demands' on our congressmen until they take down such horrible systems permanently . It's our only chance. Peace, and thank you for listening.
I have $20,000 in a CD, which I opened 3 years ago because the interest rate on it was a whopping 2.15 percent (unheard of in this lousy, seemingly endless depression this country is in: I remember when interest rates were at an AVERAGE of 5%! Those days are clearly over!). I didn't touch it - no additions or withdrawals - for 3 years. Last week, I received a letter in the mail from the bank that houses this $20,000 CD, informing me that there has been "..no activity on your CD for more than 3 years," and unless I either add to it or withdraw from it or notify the bank that there has been no activity on my CD because of my choice, the state of CT would confiscate the money! Can you imagine that?? Twenty-thousand dollars of my money would go to the tax-mad state of CT unless I notified this bank - within 2 weeks - that I still owned the CD and it was still mine, even though there was no activity on it! What a thieving, coniving financial climate this country espouses!
Personally, I can't wait to retire and leave this country... a country of which I was once so proud. I'll be happy living in a beach shack in Costa Rica ...where they have better health care than we currently have in the U.S. to boot!
in NY,insurance companies now calculate your premiums based on your credit score,their excuse is,and im quoting the insurance agent,"people with bad credit are usually bad drivers".biggest bunch of b.s. i ever heard of.WE ARE BEING SCAMMED,PEOPLE!!!
I'm happy to see so many of you living debt free and paying CASH. Since our votes dont count, this is the best way to sock it to the system. Plus, you get the added peace in your life.
Like many of you, I am also debt free but with the ******iest score on the planet. I have never been in a wreck or had a ticket, nor have I ever been late on rent. However I pay a high premium and no landlord will accept me to move. (Ive only checked with rental companies though.)
The jokes on us. We need to eliminate our debts and show the big guys we will not be slaves to them any longer. Let them fall, see if I care.
I hate credit. I save my money and pay cash. The thing is to start with a POS car, ugly but running well. Every month put back what you would normally spend on a car payment and put it in a savings account or what ever you think will get you the best return. After a very short time you will have saved enough to buy a better car and pay CASH for it. Then start this process all over again and save until you can buy a great new/used car or truck. Keep doing this and about every 4-5 years you will be buying a new/used car or truck with cash without any problems. Besides you have great bargaining position when you pay cash. I'll save thousands on a new truck when I walk in with cash. I love the look on the sales MANAGERS face, don't talk to a salesmen, they are commission, the manager isn't. He just wants to sell the vehicle. You can also do this with homes. Look for foreclosed sales. You can buy homes for penny's on the dollar this way. Keep doing the same thing. Put the money back just like a house payment and it too will add up until you can pay cash. If you do need to borrow money us Credit Unions. They tend to look at you and not the credit report so much. Also be very frugal with your tax return. Deduct everything. If you buy cloths for work it is a business expense. Work boots, tools, pens, lap tops, what ever. Even driving miles to work count. With all the driving I do for work I got to deduct 48,000 miles at .58 cents a mile a few years ago equaling a $27,840 deduction from my taxes for mileage, the deduction now is .50 1/2 cents per mile. The best time to start doing this is now. Whether you are young or old. Good luck and I hope this helps you as much as it did my family.
1 reason I don't WANT CREDIT!
It's a RIP OFF!!
As one who used to have credit cards I got my first card at 21, Bt 23 I had 2 more. By 27 I was holding 5 different credit cards. Juggling each one I'd keep each of them at about the same balance of between $1500 and $3000. When I got the cards the banks offered me an interest rate of 6% to 11%. By spacing the due dates on payments at different times of the month I was always able to make payments on them on time and never missed a single payment so never had any late fees and the interest rate remained steady. Sometime around the mid 90s the credit card companies decided to include a new clause in my statement which said if you have a late payment on a utility bill the credit card company deems you to be in bad standards and can raise your interest rate. Apparently I sent in a phone bill a day late and within my next billing statement saw my rates on all five cards go to 24%!! With the rate tripled I attempted to make larger payments immediately but in as little as 6 months the minimum payment due was equal to what I owed in interest somwhere around $200 per card. I played along and kept making payments for a few months and came to realize I was basically paying out toward something that was out of control. Even more so due to the credit limit had been reached and the cards had no value whatsoever.
With no options left I decided to file a Chapter 7 Bankruptycy and within 2 months all my cards were voided and with no balance due. It was a great relief to find there was an option to this madness and had I abided by my obligation to pay the balance back I would have gone into hock.
Today I do not own a single credit card other than a bank debit card used for air travel and cash withdrawls. I only deposit enought money in my bank to cover my bills and have no access to further credit. The feeling of being debt free is something I never dreamed I would ever get to experience. The years of feeling I needed credit to obtain "status" are long gone. In looking back at what I used that credit on it was mostly toys to impress and keep up with the so called "in crowd" in my early day. From feeling I had to have the latest mountian bikes to travel to Europe it was all a big front that made me look waelthier than I was. Today I pay cash for every purchase. My 2000 Chevy is paid for in full and I choose to rent an apartment over owning a home with a mortgage. To describe being free of debt is probably as close as one can come to being born again without religion..
I paid off my car last month and my credit score dropped this month, but my insurance score went up. We have 3 paid in full vehicles and I don't care how much they want installment accts. I am not going to borrow just so I can borrow. DUMB Catch-22
It's amazing how many people have set themselves up for financial disaster before they turn 21 by racking up debt on credit cards and also not understanding the rules/how they work/and the consequences that can come from this. My brothers and I were fortunate that our dad took time to drill into our heads that a credit card means responsibility, there is no such thing as free money.
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