Category Archives: Consumer Credit

Filing for a bankruptcy can clear consumer credit such as credit cards and payday loans.

Five Personal Finance Habits That May Improve Your Credit Scores

Your credit scores can have a major impact on several areas of your life. These scores, which are calculated from the information in your three credit reports, determine where you can live and which loan terms you receive from lenders. Credit scores can even affect the type of job offers you receive. If you have poor credit scores, the good news is that they are not permanent. You can always adopt new personal finance habits to improve your credit scores. The following personal finance habits may help you achieve this goal. Pull your credit reports often. Pull your credit reports as often as possible. You can pull your reports from Equifax, Experian and TransUnion once per year for free. However, you should try to pull these reports twice per year at a minimum. If you are able, try to pull your credit reports once every four months. Look for mistakes,…
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Do Student Loans Affect My Credit Scores?

Credit scores are calculated from the information contained in your credit reports. Payment history and credit utilization are examples of factors that affect your scores. Like other types of debts, your student loans also have an impact on your creditworthiness. The following facts about student loans may help you understand how higher education debt can affect your credit scores. Student loans can improve your credit scores if you pay on time. Out of all the factors that affect your credit scores, payment history is the most important. Your student loan payment history accounts for 35 percent of your FICO scores. Paying your student loans in full on time each month can improve your scores. Late payments could hurt your scores, but not always. It would depend on whether your servicer reports your late payments to the credit bureaus. Student loans can tank your credit scores if you default. Your credit…
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What Does Not Affect My Credit Scores?

Previous blogs have discussed why your credit scores can decrease. Unpaid bills, excessive use of credit and identity theft can significantly lower your credit scores. However, there are also factors that do not affect your credit scores. Factors that would not affect your credit score include: Checking your scores or reports. You can pull your free credit reports from Equifax, TransUnion and Experian once per year. In addition, many private services allow you to check your scores. Your credit scores are not affected if you are the one pulling the information. However, your scores could be minimally affected if a lender does a “hard pull” on your credit history. Using your debit card. Your credit scores are not affected by using a debit card. Only credit utilization is considered by your credit reports (and therefore your scores). However, your credit could be affected if you overdraft a debit card and…
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