Finance Globe Blog

U.S. financial and economic topics from several finance writers.

What a New Application Means for Your Credit Score

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  Any time you make an application that requires a credit check , an inquiry is added to your credit report. These inquiries are factored into your credit score for the next 12 months, which means each application has the potential to hurt your credit score for up to a year. Inquiries vs. Other Credit Score Factors Inquiries only make up a small percentage of your credit score - 10 percent to be exact, so...
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Frank
Every time I get approved for a new credit card or loan, I would say my credit score declines 40-50 points. It usually takes me 6-... Read More
Sunday, 25 November 2018 16:39
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Using the Debt Avalanche Strategy to Pay Off Debt

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Getting out of debt is nowhere as easy as it is getting into debt. Many people start out their debt journey by putting a little bit of extra toward all their debts. Even though you may be spending putting a lot of money toward your overall balance, you may not see much progress. That’s discouraging. Having the right debt payoff strategy is essential if you want to be effective in paying off your debt, even if...
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Frank
Great information here! I would add to seek advice and help when you are under this situation. Professional advice and advice from... Read More
Sunday, 25 November 2018 16:38
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The New UltraFICO Will Give Millions of Consumers a Score Boost

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Since it was created, the FICO score has been based only on consumer credit history. The score uses past credit information that's compiled by major credit bureaus to calculate a credit score that predicts a consumer’s likelihood of defaulting on a new credit or loan obligation. Next January, FICO plans to release the UltraFICO score, a score that could make it easier for millions of borrowers to qualify for loans they wouldn’t otherwise be able to...
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Wanderer
Great write up! Appreciate knowing what is coming and how it will work. Likely this new credit tool will benefit people that have ... Read More
Wednesday, 24 October 2018 04:30
Finance Globe
Indeed, this will likely provide many responsible and financially independent people a more accurate credit score. Excellent news,... Read More
Friday, 26 October 2018 22:18
Frank
Very very good news! I had heard this was coming down the pipeline. Thank you for summarizing Latoya!
Monday, 29 October 2018 11:50
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5 Tips for Negotiating with Creditors

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There may come a point when you realize you’re unable to pay a creditor in full. While you could default, it’s much better to contact your creditor with the idea of negotiating your debt. As scary as it may be to make this call, once you’re on the right track you’ll realize that it’s not nearly as difficult as you thought. Here are five tips for negotiating with creditors: 1. Know Your Story Go into...
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Frank
I would add to be very careful and document everything in writing. This is a very slimy business so your debt gets traded on the s... Read More
Monday, 29 October 2018 11:37
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Credit Freezes Are Now Free for Everyone

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Placing a security freeze on your credit report is one of the best ways to protect yourself from identity theft and thanks to changes in federal law, you can now do it for free. What is a Credit Report Freeze?   Freezing your credit report locks it to new inquiries. Businesses that use credit information in their lending decisions would decline an application when they can’t access your credit report. Would-be identity thieves would fail...
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Frank
I am very glad this is free now, because it can be a great tool for the consumer!
Wednesday, 26 September 2018 14:26
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6 Tips to Bounce Back From Bankruptcy

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Bankruptcy has the stigma of ending your financial life, but if you’ve been struggling with debt for months, or even years, bankruptcy can give you the fresh start you need to get back on your feet. Once your debts are wiped out in bankruptcy, it’s what you do next that determines your future financial success.  Make sure your credit report is accurate. Bankruptcy can stay on your credit report for up to 10 years, but won't take...
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Frank
I would add to be prepared to pay everything with cash for a very long time. No one is going to give you credit so be prepared to ... Read More
Wednesday, 26 September 2018 14:15
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10 Things You Should Know About Credit Report Disputes

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Your credit report has a major influence on your life. The information in your credit report is used for everything from your home purchase to getting a new cell phone to car insurance and even employment. A 2013, FTC report showed that one in five consumers has a credit report error. Sometimes errors are enough to hurt your credit score which leads to higher pricing and even denied applications. A credit report dispute is the...
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Frank
Great information Latoya! Have you had dispute anything on your credit report before?
Wednesday, 26 September 2018 14:14
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Debit Cards vs. Credit Cards

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This might be common knowledge to many, but there are people who have asked me what the differences are in debit cards and credit cards. Also if you want to teach your kids, below can be a reference guide to discuss the differences between a debit card and a credit card. Debit cards look and feel similar to credit cards . They are issued by major banks, such as Bank of America and Wells Fargo,...
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Wanderer
As an addition to the difference between Debit Cards and Credit Cards is the liabilities in case of loss, identity theft and so on... Read More
Friday, 03 August 2018 05:09
Frank
Great point Wanderer! That is another reason why I solely use credit cards.
Thursday, 30 August 2018 09:14
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4 Tips for Handing Debt Collector Calls

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When one of your accounts falls past due, your creditor may sell the account to a third-party debt collector. The debt collector then has the right to pursue you for payment. Of course, one of the ways debt collectors attempt to get you to pay is by calling you. These calls can be a nuisance, especially when you can’t afford to pay. Knowing how to handle debt collector calls can keep you in control of...
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Frank
I usually recommend to not speak to them. I recommend seeking out counsel to help you deal with your debt and debt collectors.... Read More
Thursday, 19 July 2018 15:52
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What Happens If You Don't Pay a Collection

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Any time you fall behind on a payment, there’s a risk of your account going to a debt collector. This applies to credit cards, loans, cell phone payments, cable service and anything else that has a monthly payment. Many people incorrectly assume they no longer have to pay off an account because it’s been sent to a collection agency. However, you still owe a debt, even when it’s been sent to collections, and there are...
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Frank
Once your outstanding bill is sent to a collection agency, you are going to be harassed and bothered a lot. Please reach out to an... Read More
Friday, 29 June 2018 11:19
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