Perfect credit score doesn't guarantee a smooth ride

Source: Charles A. Jaffe/The Star-Ledger

"The CARD Act is supposed to ensure borrowers with a poor credit score and a history of late payments get treated the same way as borrowers who have kept their credit record clean.
...
Alas, while the idea was to help the people in trouble, the more likely outcome is that card issuers will treat responsible borrowers and troubled ones the same by making it harder on the good guys."

Read the full article here.

How credit scores impact your mortgage rate

Source: Bankrate.com

"Interest paid on a mortgage can add up to hundreds of thousands of dollars over the life of the loan. The most influential determinant of your mortgage rate will be your credit score. The higher your score, the lower the interest rate. On a loan as large as a mortgage, a mere percentage point up or down can add up to a significant amount of money.

Not only are credit scores more vital than ever when it comes to getting a good rate on a home loan, but they will influence whether you can even get a loan at all."

Read the full article here.

One possible reason he's just not that into you: Your weak credit score.

Source: Amy Hoak, MarketWatch

"One-third of people said they'd wait to marry someone until that person's credit score improved, according to a recent survey of 1,000 U.S. adults, commissioned by PayPal.

More than one-third said they would consider not marrying or moving in with someone unless he or she "makes a fair amount of money." And 65% said they wouldn't want to date someone with significant debt."

Read the full article here.

Do your homework when transferring balances

Source: Chicago Sun-Times

"If your interest rate is high because your credit score is low, it's unlikely you'll get the lowest advertised rate, and your introductory period for that rate may only be three to six months, said Bill Hardekopf, chief executive officer of LowCards.com."

Read the full article here.

Settle credit card debt for pennies?

Source: Bankrate.com

"My experience also tells me that most people are very concerned about their credit score or rating. Here's what a debt settlement process may do to it. First, you have the lender reporting the debt as delinquent. Next, the debt would charge off. If you are sued, there would be a negative public record entry on your credit report. At each stage your score would drop more and the amount you owe would increase from fees, interest, penalties and legal expenses. How much fun is this? For you, none..."

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'Walking away' not immoral, prof says

Source: The Arizona Republic

"A legal concept known as "efficient breach" holds that it is ethical to breach a contract in cases where the ramifications for doing so are less harmful to the party than adhering to the contract would be.

White said he's in the process of crafting another legal argument, based on Arizona's non-deficiency statute, that says lenders don't have the legal right to report mortgage defaults to the credit bureaus, and that walking away should not have any negative effect on the borrower's credit score."

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5 Easy Self-Help Steps to Boost Your Credit Score in 2010

Source: CardRatings.com

"Most Americans like to make New Year's resolutions involving numbers. You may want to lose weight, increase your savings, or boost your stock portfolio. If you're planning on buying a house, financing a car, or purchasing insurance in the next year, your credit score is one more number you'll want to track on your resolution list. Use these five steps to help yourself improve your credit in the next year."

Read the full article here.

FHA Announces Policy Changes to Address Risk and Strengthen Finances

Source: U.S. Department of Housing and Urban Development

Update the combination of FICO scores and down payments for new borrowers.

• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
• This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Read the full article here.

Pay off credit card debt on time for better credit score

Source: Bills.com News

"Recently, Informa Research Services made recommendations for consumers with cards who are trying to make sure they don't affect their credit scores in a negative way. One thing consumers should make sure to do is pay off their credit card debt on time."

Read the full credit score article here.

Payments on time aids credit score

Source: HattiesburgAmerican.com

"Between annoyingly catchy jingles and flashing pop-up ads, it would be hard for a person to not think about their credit score.

Whether you're getting a car loan or looking for somewhere to rent, your credit score can be as important as bringing a bat to a baseball game. But what many people do not realize, is the timeliness of your payments makes up a large part of your score, followed by how much you owe versus how much your available credit is."

Read the full article here.