Credit Reports

Credit checks don't tell potential employers enough to allow them

Sarah Gilbert Feb 9th 2010 @ 3:15PM EST Filed Under: Credit, Career, Credit Reports

The state of Oregon is considering a bill I think is a fabulous idea. SB 1045 is titled "Limits use of credit history for employment purposes to certain circumstances," and it does just that: prevents employers from requesting credit checks to use as a screening tool for potential employees, unless the credit history provides a substantial relation to the employee's job (for instance, a bank teller or mortgage broker position).

As someone who's seen this issue from many angles: as an employer who checked credit; as an individual with bad credit looking for a job; and as an employer burned by unethical employees, I believe credit histories, instead of providing an employer with valuable tools, are loaded with pitfalls on both sides of the hiring desks.

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Auto insurance premiums tied to credit score

Gina Roberts-Grey Jan 29th 2010 @ 5:00PM EST Filed Under: Credit, Insurance, Credit Reports, Credit Cards, Insurance - Car Insurance

You might expect a plunging credit score to affect your ability to qualify for a car loan or how high the interest rate on your credit card will soar. But too often Americans don't realize a plunging credit score can cost them big bucks on insurance premiums.

One of the biggest mistakes insurers say people make is not realizing when their credit score is tanking.

"Credit scores factor heavily into your rate," says Ashley M. Hunter, a construction-risk insurance specialist who owns HM Risk Group in Austin, Texas. That's because in the eyes of your insurer, if you've missed a few payments to your credit card company or have written a lot of bad checks (that wound up in collection), chances are you'll do the same thing to them.

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You CAN rebuild credit without credit cards

Geoff Williams Jan 22nd 2010 @ 4:00PM EST Filed Under: Credit, Debt, Credit Reports, Credit Cards

Rebuilding lousy credit is a hot topic with consumers these days, and one I've thought about a lot, having recently written a book about bad credit and having survived many, many years of financial turmoil. I currently have no credit cards, save one that my wife and I were able to get when my wife needed dental work last year. When I mentioned this to my bank manager once -- during a discussion about my almost-every-other-month overdraft fees -- he suggested I get a secured credit card.

Secured, as in, I put my own money into the credit card, say $300, and then I use it for a year, and eventually I'm be granted credit again. (Bankrate.com does a nice job of explaining the ins and outs of secured credit cards, in case you're interested in learning more.)

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New credit reality: scores must be higher to get the best rates

Lita Epstein Jan 22nd 2010 @ 1:30PM EST Filed Under: Credit, Debt, Credit Reports, Credit Cards

Getting the best interest rates on major purchases, whether that's a house or a car, can be much harder with today's stricter credit standards. Credit scores must be higher, and so does the amount you plan to put down on a house, even to get a mortgage.

In 2006, when I wrote my book, The Complete Idiot's Guide to Improving Your Credit Score, you could get a 0% down home loan with a credit score of 720 and still get the best interest rate. Today in order to get the lowest rates for a home loan, you'll need at least 10% down and a credit score of 760 or higher. For a 15-year equity line, you'll need a score of at least 740 and you'll only be able to get a loan for up to 80% of your home's value. In 2006, you could get a loan for as much as 100% of the home's value. Loans for as much as 125% of the home's value were also available, but you wouldn't get the best interest rate.

Continue reading New credit reality: scores must be higher to get the best rates

Another reason to doubt mortgage modification: It will wreck your credit score

Charles Feldman Jan 3rd 2010 @ 3:00PM EST Filed Under: Banks, Real Estate, Credit Reports, Mortgages

For some time now, I -- and others here at WalletPop -- have argued that the Obama administration's mortgage modification plan has largely been a dismal flop, with many distressed homeowners unable to get even a temporary three month modification, let along the desired permanent fix that would keep them in their homes.

I have repeatedly argued here and elsewhere that just lowering a home-owner's interest rates a few months would do little good and maybe even do harm. The only real solution would be a change in the bankruptcy laws to allow judges the flexibility to actually lower the loan's principal. Banks objected. The President first seemed to back that fix but then apparently caved to lobbyists. Congress this month ended up nixing a measure that would have changed the law.

Continue reading Another reason to doubt mortgage modification: It will wreck your credit score

Got a bad credit deal? In 2011 you'll know why

Lita Epstein Dec 23rd 2009 @ 1:30PM EST Filed Under: Credit, Credit Reports, Credit Cards

Have you been offered a bad credit deal by a lender but don't know why? Starting in January 2011, banks will have to tell you why and give you free access to your credit report any time you're given less-favorable terms, according to final rules issued Tuesday by the Federal Reserve and the Federal Trade Commission.

Until that time, lenders don't have to explain why you're getting particular terms on any form of consumer credit, including credit cards, auto loans, mortgages and student loans. The rule change doesn't impact business lending.

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Zendough: Become one with your money

Josh Smith Dec 20th 2009 @ 5:00PM EST Filed Under: Budgets, Credit, Technology, Identity Theft, Credit Reports

In early January, TransUnion will launch a new personal finance tool called Zendough that, instead of focusing on every transaction you make, aims to help you become one with your money. WalletPop was able to get an early look at the service -- which you can test out with a free, seven-day trial -- and we're impressed overall with the amount of information provided and the easy-to-understand manner in which it's presented.

The first thing you'll notice when you start using Zendough is that the Zen theme runs deep, but rather than being corny, it works. Perhaps it's the calming effect of a bonsai tree, stacked rocks and a Koi pond that makes knowing exactly how much debt you have less of a heart rate elevating experience.

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Ask the Dolans: How do I get a copy of my credit score?

Ken and Daria Dolan Dec 11th 2009 @ 2:00PM EST Filed Under: Credit, The Dolans, Credit Reports

Ken and Daria Dolan, America's first family of personal finance, answer your questions every Friday.

Click here to ask Ken and Daria your question.

Your credit score has never been more important than it is today. In an economy where credit is ridiculously tight, credit card companies are ruthlessly raising interest rates and slashing credit limits, and competition for jobs is fierce, your credit score can make or break you. Today, Ken and Daria help WalletPop reader Sharon learn the basics of what her credit score is and how to get a copy of her credit report.

Dear Ken and Daria,

How do I get a copy of my credit score? Is "FICO" a credit score and how do I figure mine out?

--Sharon

Learn more about improving your credit score and debt management at Dolans.com.

Bad Idea: Company claims to know credit score from Twitter friends

Josh Smith Nov 17th 2009 @ 4:15PM EST Filed Under: Credit, Technology, Credit Reports

According to a data mining company, the old adage of being judged by the friends you keep translates easily into the digital friends you keep.

Rapleaf, a social media monitoring company, claims that by analyzing public information such as the friends you have on Twitter it can assess how creditworthy you are and how likely you are to respond to advertising.

Rapleaf monitors public digital conversations and stores away your Twitter and Facebook status updates, restaurant reviews, Amazon book reviews and plenty of other online public information in its database of 378 million profiles to profile you.

Continue reading Bad Idea: Company claims to know credit score from Twitter friends

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