Bankruptcy can negatively impact every aspect of your life, but it has a particularly terrible effect on your credit score. A declaration of bankruptcy can sink your credit rating by as much as 220 points for seven years or more. That’s enough to take a “good” score down to “poor,” which means that you won’t be able to enjoy your low interest rates, cash back rewards and high spending limits for a long, long time. However, filing for a Chapter 13 or Chapter 7 bankruptcy doesn’t mean that you should stop using credit altogether. Continue Reading
There’s a new kind of credit score in town. It’s called the CoreScore. Have you heard of it? While the new CoreScore looks at the typical FICO credit related patterns – credit card borrowing, bank transactions and mortgage data, CoreScore digs deeper. CoreScore examines transactions that are likely to occur at the lower end of the income scale such as car and rental payments, payday loans (if you’re familiar with this blog, you know what we think of payday loans), and even missed child support payments. If it can be financed, it can be linked to the new CoreScore. For more on this new consumer credit rating, check this out. Do you feel it’s too invasive?
Even as more Americans are piling on debt, fewer are seeking counseling or other kinds of relief to try and get their finances back in order. Poverty has increased. Unemployment stubbornly hovers around 9%. Meanwhile, consumers accumulated $18.4 billion more in credit card debt in the second quarter than they did in the first quarter, according to a new study from CardHub.com. That is up 66% from the same quarter in 2010 and up 368% from two years ago. “People need help more than ever, but they are not coming to us,” says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. “I think some are just tired of trying and have given up.” Consider: The number of people who went to a credit counselor declined 20% last year from 2009, and the downturn has continued so far this year, the NFCC says. Fewer consumers are signing up for…
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