Wednesday May 22, 2013
Most people know that credit reports are used with loan applications, sometimes job applications, and even in establishing utility services. Your credit report can also be used against you in divorce court, particularly for alimony consideration, according to a story on Forbes.com.
In the Forbes article, a soon to be ex-wife was requesting a large amount of alimony from her husband, claiming that she had limited resources. However, her husband's attorney accessed a copy of her credit report which showed that she had access to over $50,000 in credit. She'd recently been made an authorized user on her new boyfriend's credit card accounts. Unfortunately, that hurt her ability to get the alimony she'd requested, even though she was merely an authorized user.
If you're going through a divorce, beware! The information on your credit report may be used against you.
More on Credit Reports
Wednesday May 15, 2013
In their third annual survey on consumer knowledge about credit scores, the Consumer Federation of America (CFA) and VantageScore Solutions found that many consumers still have major misconceptions about what influences credit scores and how credit scores are used. In fact, 54% of people answered they have not checked their credit scores within the past year. (Thirty-seven percent have never checked their credit report.)
Before the bad news, here's a bit of good: 94% of those surveyed realized that timely loan payments can help improve their credit scores.
About one-third to two-fifths of survey respondents did not know:
- Credit scores are used when credit card issuers and mortgage lenders approve applications or determine pricing
- Age and marital status are not considered in credit score calculations
- When they're entitled to a free credit score from their lender
- That payment history - positive or negative - on a joint loan also influences the co-signer's credit score
- That high balances hurt credit scores and that minimizing credit applications helps credit scores
Only 16% of those surveyed said they had excellent knowledge of credit scores and 39% answered that they had good knowledge of credit scores.
1,022 people were surveyed.
Credit Score Resources:
Tuesday May 14, 2013
The new credit card rules require your credit card bill to be due on the same date every month. This takes some guesswork out of when to send your payment. Knowing the due date won't always make it easier to send your credit card payment, though.
When you're tempted to put off your payment a few days or weeks, think about the consequences - like a lower credit score or late payment fees. Read: 7 Reasons to Make Your Credit Card Payment on Time.
Alex Slobodkin / iStockPhoto
Friday May 10, 2013
Few things are as exciting as a new romance. But, as you may know, the euphoria of budding love may be so overwhelming that your decision making is impaired, e.g. you may spend more money dates than you know you can really afford to.
While you're enjoy dating, don't forget to be smart about your finances, particularly your credit. One of the biggest Don'ts of Credit and Dating is not using your credit card to impress the person you're dating. Think about it: is it really that impressive that you're able to borrow money? Will it be as impressive when you're struggling to pay it back? Will the debt make you resent the object of your affection?
The person you're dating may last or they may not last. The credit decisions you make while dating will definitely last. Make sure they're good ones.
Managing Credit & Relationships