John – I’ve heard you shouldn’t close old credit card accounts because older accounts are good for your FICO scores and closing them can hurt your scores. Is that true? Answer – That is absolutely not true. You’ve identified what I believe is the 2nd most common myth in credit scoring, right behind “employers using …
The truth about what happens when you close old accounts? Read More »
Question – John, I was wondering if you had any advice for my wife who is originally from Colombia. She has been in this country for 4 years now and so far, she has no credit history. She’s never held a credit card or any kind of credit account in this country. We do share …
John – I want to get my FICO scores. I’m confused about the options. What is the best and cheapest way to get all three of them? Answer – That’s a very easy question with a very complicated answer. There is no retail website where you can go buy your three FICO credit scores. It …
What’s the Cheapest Way to Get All Three of Your FICO Scores? Read More »
John – My question is; I want to pay off some old debts in full. I would like to do “pay for removal.” Should I call them and say I am willing to pay off the debt but they must send me on a letter on company letterhead that spells out they will remove the …
Can I Force Collectors to Delete Collections From Credit Reports? Read More »
John – I want to close an old credit card but I’ve heard it will lower my FICO scores. Why? Answer – When you close a credit card, assuming the balance is $0, that card will no longer count in the calculation of your revolving utilization percentage, which is an important component of your FICO …
How does closing a credit card impact my scores? Read More »
John – My dad wants to add me to his mortgage loan. Will that screw up my credit? I’m 21. Answer – It doesn’t matter if you’re 21 or 121, what your dad is suggesting is a horrible idea. When your name goes on the loan you’ll become just as liable for the debt as …
John – I was in a car accident and the driver of the other car hired an attorney who sent me a demand letter for $20,000. They have threatened to sue me if I don’t pay. Can this ruin my credit if I get sued? Answer – A lawsuit will not have any negative affect …
Do Settlements Hurt Credit Scores?
Hi John, If a collection account has been paid in full for a credit card, can either the credit card or the collection be removed from a credit report? It seems that is a double whammy. If I didn’t pay the issuer and they sent me to collections, my card account record shows a charge-off, …
Why Does Defaulted Credit Card Debt Show Up Twice? Read More »
