I have NO credit, but I want to build credit. I am just about to graduate college with two degrees and I need to build credit.
Answer:
If you have no credit and want to build your credit history, then secured credit card offers can be an ideal option for you. Intended specifically for people with bad or no credit, a secured card will report your credit payments to the major credit bureaus monthly. This will serve your purpose greatly if you make your payments on time and keep well within your spending limit.
Another impressive feature of the secured credit cards is that they don’t check your credit records. This means, that even if you can’t qualify for unsecured credit cards, you may get a guaranteed approval when applying for a secured card offer. You’ll just need to make at least a minimum money collateral deposit ($200-$300) into a bank savings account in order to be approved. Your deposit will be equal to your credit line and will be charged by your lender only if you fail to pay off your debt.
www.ncrcreditplus.com 866 4696599
Tuesday, November 24, 2009
Monday, November 23, 2009
Home Loans & Auto Loans for Bad Credit
Are you ready to buy a home or automobile, but are having difficulty in finding a loan that you can afford and a lender who is willing to provide financing?
NCR Credit Plus has partner with a nationwide network of lenders who specialize in helping people that don’t have perfect credit. These special financing programs can provide you with a loan approval when others fail to produce the results you would like.
It doesn't matter what your credit score is , we will try to help. We have lenders that work with people that have good, fair, bad, or no previous repayment history, as well as with people that have zero or no money down.
So no matter how good or bad your credit is, please take a moment to complete Loan Application.
Home Loan Application http://ncrcreditplus.com/service/home-loans.php
Auto Loan Application http://ncrcreditplus.com/service/auto-loans.php
NCR Credit Plus has partner with a nationwide network of lenders who specialize in helping people that don’t have perfect credit. These special financing programs can provide you with a loan approval when others fail to produce the results you would like.
It doesn't matter what your credit score is , we will try to help. We have lenders that work with people that have good, fair, bad, or no previous repayment history, as well as with people that have zero or no money down.
So no matter how good or bad your credit is, please take a moment to complete Loan Application.
Home Loan Application http://ncrcreditplus.com/service/home-loans.php
Auto Loan Application http://ncrcreditplus.com/service/auto-loans.php
Texas tops 2009 Closing Costs Exclusive
Texas beats New York in 2009 as the state with the highest closing costs.
Nationwide, the average origination and title fees on a $200,000 mortgage this year totaled $2,732, according to Bankrate's annual survey of closing costs. The fees in the survey don't include taxes, insurance or prepaid items such as prorated interest or homeowner association dues.
New York had been the most expensive state for four years in a row in Bankrate's annual survey, with Texas occupying the runner-up slot. But this year, the two states swapped places. In Texas, the average origination and title fees on a $200,000 mortgage were $3,855 in Bankrate's survey. New York's fees averaged $3,408.
The least expensive state was Nevada, at $2,276. In 2008, North Carolina occupied the bottom rung. (Here is the ranking of all of the states.)
The annual survey is conducted by obtaining online fee estimates for a $200,000 purchase mortgage on a $250,000 house in each state's most populous city, plus the District of Columbia. Because it is so populous, California was split in two: Bankrate surveyed closing costs for Los Angeles and for San Francisco.
The states with the biggest populations tend to have higher-than-average closing costs. This year, the four most populous states occupy the top four spots: After Texas and New York, the highest closing costs were in Florida and San Francisco. Los Angeles ranked 14th.
On the other hand, Illinois is the fifth most-populous state, and, as usual, it was one of the most inexpensive states for closing costs. Illinois ranked 43rd out of 52, with average origination and title-related costs of $2,486 on a $200,000 mortgage.
Texas is perennially at or near the top of the list because of the high cost of title insurance. In Texas, title insurance premiums are "promulgated," that is, the fees are fixed by state regulators. Title insurers in the Lone Star State can't charge more or less than the promulgated rate. On the purchase of a $250,000 house, the title insurance premium in Texas would be $1,644.
Of the seven lenders that Bankrate surveyed in Texas, none got the title insurance premium exactly right, although most were in the ballpark -- between $1,572 and $1,697. That's why these closing cost averages should be taken with a caveat -- they are, after all, derived from estimates.
New rules for good-faith estimate
Beginning Jan. 1, lenders will be required to give more accurate estimates of closing costs, as part of a revision of the Real Estate Settlement Procedures Act, or RESPA. The new rules are designed to prevent the lender from low-balling closing costs when the borrower applies for a loan then surprising the borrower with higher fees at the closing table.
Under RESPA, the lender is required to provide a document called the good-faith estimate of closing costs when you apply for a mortgage. The GFE divides settlement costs into two types: those charged directly by the lender and those charged by third parties, such as title insurance companies, appraisers and flood certifications.
Lenders will have to stand by that first category of fees -- those charged directly by the lenders. So a lender won't be able to put a $250 processing fee on the good-faith estimate and then change it to $500 at the closing table.
The regulations will allow 10 percent of slack in the estimates for third-party closing costs. For example, if next year a lender's good-faith estimate says that the title insurance, appraisal, attorney's fees and flood certification will total $1,500, then the final bill can't exceed that total by more than 10 percent, or $150.
The more-accurate GFE is scheduled to arrive next year. And there has been a substantial change this year: Appraisals cost more.
In Bankrate's 2008 closing costs survey, the average appraisal cost $296. This year, the average appraisal cost $362. The culprit, according to appraisers, is something called the Home Valuation Code of Conduct, or HVCC.
The HVCC is the product of a legal settlement stemming from a lawsuit filed by New York's attorney general. As part of the settlement, the mortgage industry agreed to forbid mortgage brokers from choosing appraisers. The idea was to prevent brokers from pressuring appraisers into overvaluing houses so the loans could go through.
But critics contend that the HVCC weakened independent appraisers and strengthened appraisal management companies, which act as middlemen between lenders and appraisers. By adding a middleman, prices went up, critics say.
Pat Turner, CEO of P.E. Turner & Co. Ltd., the largest appraisal firm in Richmond, Va., said this summer that a bank-owned appraisal management company demanded that he cut his appraisal fee by $150, to $200. He refused, and he says the company will no longer hire him to do appraisals.
The kicker: "That lender charges the borrower $500 per appraisal," he says.
www.ncrcreditplus.com 866 4696599
Nationwide, the average origination and title fees on a $200,000 mortgage this year totaled $2,732, according to Bankrate's annual survey of closing costs. The fees in the survey don't include taxes, insurance or prepaid items such as prorated interest or homeowner association dues.
New York had been the most expensive state for four years in a row in Bankrate's annual survey, with Texas occupying the runner-up slot. But this year, the two states swapped places. In Texas, the average origination and title fees on a $200,000 mortgage were $3,855 in Bankrate's survey. New York's fees averaged $3,408.
The least expensive state was Nevada, at $2,276. In 2008, North Carolina occupied the bottom rung. (Here is the ranking of all of the states.)
The annual survey is conducted by obtaining online fee estimates for a $200,000 purchase mortgage on a $250,000 house in each state's most populous city, plus the District of Columbia. Because it is so populous, California was split in two: Bankrate surveyed closing costs for Los Angeles and for San Francisco.
The states with the biggest populations tend to have higher-than-average closing costs. This year, the four most populous states occupy the top four spots: After Texas and New York, the highest closing costs were in Florida and San Francisco. Los Angeles ranked 14th.
On the other hand, Illinois is the fifth most-populous state, and, as usual, it was one of the most inexpensive states for closing costs. Illinois ranked 43rd out of 52, with average origination and title-related costs of $2,486 on a $200,000 mortgage.
Texas is perennially at or near the top of the list because of the high cost of title insurance. In Texas, title insurance premiums are "promulgated," that is, the fees are fixed by state regulators. Title insurers in the Lone Star State can't charge more or less than the promulgated rate. On the purchase of a $250,000 house, the title insurance premium in Texas would be $1,644.
Of the seven lenders that Bankrate surveyed in Texas, none got the title insurance premium exactly right, although most were in the ballpark -- between $1,572 and $1,697. That's why these closing cost averages should be taken with a caveat -- they are, after all, derived from estimates.
New rules for good-faith estimate
Beginning Jan. 1, lenders will be required to give more accurate estimates of closing costs, as part of a revision of the Real Estate Settlement Procedures Act, or RESPA. The new rules are designed to prevent the lender from low-balling closing costs when the borrower applies for a loan then surprising the borrower with higher fees at the closing table.
Under RESPA, the lender is required to provide a document called the good-faith estimate of closing costs when you apply for a mortgage. The GFE divides settlement costs into two types: those charged directly by the lender and those charged by third parties, such as title insurance companies, appraisers and flood certifications.
Lenders will have to stand by that first category of fees -- those charged directly by the lenders. So a lender won't be able to put a $250 processing fee on the good-faith estimate and then change it to $500 at the closing table.
The regulations will allow 10 percent of slack in the estimates for third-party closing costs. For example, if next year a lender's good-faith estimate says that the title insurance, appraisal, attorney's fees and flood certification will total $1,500, then the final bill can't exceed that total by more than 10 percent, or $150.
The more-accurate GFE is scheduled to arrive next year. And there has been a substantial change this year: Appraisals cost more.
In Bankrate's 2008 closing costs survey, the average appraisal cost $296. This year, the average appraisal cost $362. The culprit, according to appraisers, is something called the Home Valuation Code of Conduct, or HVCC.
The HVCC is the product of a legal settlement stemming from a lawsuit filed by New York's attorney general. As part of the settlement, the mortgage industry agreed to forbid mortgage brokers from choosing appraisers. The idea was to prevent brokers from pressuring appraisers into overvaluing houses so the loans could go through.
But critics contend that the HVCC weakened independent appraisers and strengthened appraisal management companies, which act as middlemen between lenders and appraisers. By adding a middleman, prices went up, critics say.
Pat Turner, CEO of P.E. Turner & Co. Ltd., the largest appraisal firm in Richmond, Va., said this summer that a bank-owned appraisal management company demanded that he cut his appraisal fee by $150, to $200. He refused, and he says the company will no longer hire him to do appraisals.
The kicker: "That lender charges the borrower $500 per appraisal," he says.
www.ncrcreditplus.com 866 4696599
Sunday, November 22, 2009
How Do the Credit Bureaus Interpret Your Score ?
You may have worried many times about what your score is, and how to keep it at the optimal level. Do you however, know how the credit bureaus interpret or calculate your score? It's very important that you know about such details when you want to repair your credit in a hurry.
Here is a glimpse into how the credit bureaus mark your credit score.
Regular Payment Is Most Important
As much as 35% of your credit score is allotted to your payment history. This is why it's extremely important for you to pay your bills on time. Every time you are late with a payment, you are hurting your score. Unfortunately, this damage cannot be undone even after you successfully repay the loan. This is why the first and most important thing about keeping your score up is to pay your bills on time.
The Indebtedness Level
The next important thing is how much you owe; 30% of the score is allocated to this aspect. There are two important facets here: (1) the amount of your overall debts, and (2) how much credit power you are using. For one, if your total debts repayment amount exceeds 30% of your income, you are trading on thin ice.
In the second case, say – if you are maxing out all your credit cards and also have 2 - 3 other loans, it looks like you are about to overextend yourself. This is something that the credit bureaus and creditors will not find desirable.
The Length of Your Credit History
This is something that you often cannot do much about. Your credit history accounts for 15% of your score. The creditors love to see a long period of history, because that gives them a better idea of what your financial habits are. You cannot make your credit history any older (or younger) than it is. However, you can try to keep it as flawless as possible. The credit bureaus and creditors like to see very little deviation in payments.
The Rate of Opening New Credit
This is earmarked as 10% of the score. One other thing that creditors and credit bureaus treat as a flashing red light is opening too many accounts at the same time. This will be seen as a negative trait even if you pay all your bills on time and carry minimum balances. Your score will also be hurt if you are changing credit card providers too often. This is interpreted a you being desperate to borrow, which does not throw a healthy light on your financial status.
Types of Credit You Have
This accounts for another 10% of your credit. There are two types of credit – (1) open-ended (i.e. "revolving") credit, which does not come with a fixed number of payments (such as credit cards), (2) and installment loans, which will be closed when the whole amount due is repaid. Creditors need to see that you handle both types of loans with responsibility and maturity.
Now, that you know how your score is calculated you will find it easier to improve on it. Whatever your financial past is, once you make up your mind to be steady and put this resolution in practice, your score will reflect it.
visit us http://ncrcreditplus.ning.com
Here is a glimpse into how the credit bureaus mark your credit score.
Regular Payment Is Most Important
As much as 35% of your credit score is allotted to your payment history. This is why it's extremely important for you to pay your bills on time. Every time you are late with a payment, you are hurting your score. Unfortunately, this damage cannot be undone even after you successfully repay the loan. This is why the first and most important thing about keeping your score up is to pay your bills on time.
The Indebtedness Level
The next important thing is how much you owe; 30% of the score is allocated to this aspect. There are two important facets here: (1) the amount of your overall debts, and (2) how much credit power you are using. For one, if your total debts repayment amount exceeds 30% of your income, you are trading on thin ice.
In the second case, say – if you are maxing out all your credit cards and also have 2 - 3 other loans, it looks like you are about to overextend yourself. This is something that the credit bureaus and creditors will not find desirable.
The Length of Your Credit History
This is something that you often cannot do much about. Your credit history accounts for 15% of your score. The creditors love to see a long period of history, because that gives them a better idea of what your financial habits are. You cannot make your credit history any older (or younger) than it is. However, you can try to keep it as flawless as possible. The credit bureaus and creditors like to see very little deviation in payments.
The Rate of Opening New Credit
This is earmarked as 10% of the score. One other thing that creditors and credit bureaus treat as a flashing red light is opening too many accounts at the same time. This will be seen as a negative trait even if you pay all your bills on time and carry minimum balances. Your score will also be hurt if you are changing credit card providers too often. This is interpreted a you being desperate to borrow, which does not throw a healthy light on your financial status.
Types of Credit You Have
This accounts for another 10% of your credit. There are two types of credit – (1) open-ended (i.e. "revolving") credit, which does not come with a fixed number of payments (such as credit cards), (2) and installment loans, which will be closed when the whole amount due is repaid. Creditors need to see that you handle both types of loans with responsibility and maturity.
Now, that you know how your score is calculated you will find it easier to improve on it. Whatever your financial past is, once you make up your mind to be steady and put this resolution in practice, your score will reflect it.
visit us http://ncrcreditplus.ning.com
What Makes Us Different ?
We work to improve your credit and help remove inaccurate and obsolete information from your credit report.
* We are not a debt consolidation or bill payment program. Federal law requires that any unverifiable, outdated or erroneous information must be removed from consumer credit reports by reporting agencies. NCR Credit Plus agrees to use its best efforts to provide these services, and will perform them in accordance with federal and state laws.
* Our warranty is designed to reassure you that our goal is to truly remove inaccurate and obsolete information from your credit profile and that if we can't, we will gladly refund your money. It's as simple at that!
* Our staff includes lawyers, accountants, underwriters, bankers and credit repair specialists and they apply creative solutions while adhering to the rules and regulations of the credit reporting industry.
* Our team keeps fully up-to-date on the latest consumer laws and we understand how to apply those laws to help you clear your credit report.
* Our Progress Status Section is designed in accordance with the latest website technology so you can see the progress of items that you’ve requested be removed and the status of each account as the process takes place. 24/7 anytime
* NCR Credit Plus acknowledges that its Authorized Representatives have been alerted to the sensitivity of the Customer Information. As such, NCR Credit Plus will use its best efforts to ensure that Customer Information will be handled in a responsible and professional manner.
* NCR Credit Plus has more than ten years of experience challenging the credit reporting bureau's and their methods.
* Though each person’s credit history is different, we usually begin to see results in as little as 45 days.
* We offer fees for individuals and couples as well as easy convenient payment plans.
* You’ll NEVER be charged a per deleted item fee.
http://ncrcreditplus.ning.com/
* We are not a debt consolidation or bill payment program. Federal law requires that any unverifiable, outdated or erroneous information must be removed from consumer credit reports by reporting agencies. NCR Credit Plus agrees to use its best efforts to provide these services, and will perform them in accordance with federal and state laws.
* Our warranty is designed to reassure you that our goal is to truly remove inaccurate and obsolete information from your credit profile and that if we can't, we will gladly refund your money. It's as simple at that!
* Our staff includes lawyers, accountants, underwriters, bankers and credit repair specialists and they apply creative solutions while adhering to the rules and regulations of the credit reporting industry.
* Our team keeps fully up-to-date on the latest consumer laws and we understand how to apply those laws to help you clear your credit report.
* Our Progress Status Section is designed in accordance with the latest website technology so you can see the progress of items that you’ve requested be removed and the status of each account as the process takes place. 24/7 anytime
* NCR Credit Plus acknowledges that its Authorized Representatives have been alerted to the sensitivity of the Customer Information. As such, NCR Credit Plus will use its best efforts to ensure that Customer Information will be handled in a responsible and professional manner.
* NCR Credit Plus has more than ten years of experience challenging the credit reporting bureau's and their methods.
* Though each person’s credit history is different, we usually begin to see results in as little as 45 days.
* We offer fees for individuals and couples as well as easy convenient payment plans.
* You’ll NEVER be charged a per deleted item fee.
http://ncrcreditplus.ning.com/
Weird stuff that hurts your credit
What seems smart, like moving a balance to a lower-interest credit card, can ding your credit scores. Here are some of the other hidden threats to your credit and how you can fight back.
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One of the things that drives people nuts about credit scores is how they react when you close an account.
A Client named Charles put it this way in an e-mail:
"You say . . . that canceling a credit card, even one that has been kept in good order, can negatively impact your FICO score. This seems unreasonable, even unfair, almost un-American. Is there some reason that makes it all right for the scorekeepers to do this?"
I'm not sure about "un-American," but it certainly can seem unreasonable or unfair until you understand a bit more about how credit scoring works.
Losing points for voluntarily closing accounts is just one of the unexpected ways you can hurt your credit scores, those three-digit numbers that lenders use to gauge your creditworthiness.
You also can get dinged for:
* Opening accounts, both when you apply and for as long as a year afterward.
* Transferring credit card balances.
* Settling debts.
* Using "limitless" cards.
* Incurring library fines, parking tickets or other penalties seemingly unrelated to credit.
Here's what you need to know and what you can do to minimize unintentional damage to your scores.
Among all the bankrupts, you're the best!
The FICO credit-scoring system, which is the most widely used, groups together people with similar histories when rating them. These groups are called score cards.
If you have a bankruptcy on your report, for example, you'll be grouped on a score card with other bankrupts. Your credit habits may look pretty good compared with theirs, but if the bankruptcy were to disappear from your record, you'd be lumped in with people who have stronger histories. Your credit behavior might not look so good compared with this new group.
Something similar apparently happened to Jessica Lopez, who had $62,000 of credit card debt and a 710 FICO score. After paying off $19,000 of debt in a few months, her score rose to 726. A few weeks later, though, her score suddenly plunged to 686.
Such abrupt drops can often be traced to a negative item, like a delinquency or a bankruptcy, disappearing from a borrower's credit report. In this case, though, the change was even more subtle.
Here's how Barry Paperno, the manager of customer service for Fair Isaac -- the company that created the FICO -- explains it:
Identity theft and your credit scores
"Jessica had opened a new account (a year previously) which, at that time, put her in a different scoring group consisting of consumers who had newly opened accounts on their credit files. Then when this recently opened account had aged enough to take her out of this scoring group and put her into one with consumers who had not opened any accounts recently, her score dropped."
There's not much you can do about this quirk in the scoring formula, other than brace for the potential effect. The good news: Georgescu's score recovered within a few months, as Paperno had predicted. The key was continuing to pay down debt and holding off on opening any new accounts.
(Keeping your balances low, by the way, has become even more important since Fair Isaac rolled out the latest version of the score, FICO 08.)
Don't transfer your problems
Lower interest rates are generally better when you're trying to pay off debt, but taking advantage of a balance-transfer offer can wallop your credit scores in a number of ways.
Just opening a credit card account to take advantage of the offer can ding your scores by 5 points or so. Transferring your balance to a card with a lower limit can hurt your scores, as can consolidating debt.
That's because the FICO model is heavily influenced by your "credit utilization ratio," the portion of your available credit limit you're actually using. The formula likes to see a wide gap between your balances and your limits. Transferring a balance from a high-limit card to a lower-limit card makes it look like you're closer to maxing out that second card, and the scores can react negatively.
Become a member of NCR Credit Restoration Group http://ncrcreditplus.ning.com/
To put it simply: The FICO formula typically would rather see $1,000 balances on five cards than a $5,000 balance on one card.
You can compound the damage to your scores by closing the card from which you transferred the balance. Closing the old account trims the amount of available credit that's used in the credit-scoring formula.
If you're planning to take advantage of a balance-transfer offer, read the fine print and consider the following:
* Limit the number of accounts you open. If you want to improve your credit scores, don't keep bouncing your balances from card to card.
* Pay down your debt. Use the lower rate as an opportunity to reduce your debt load. Paying off debt is good for your wallet and good for your credit scores.
Settling debts
For years, a glitch in the FICO formula often penalized folks for paying old debts that had been charged off and sent to collection agencies. That glitch finally got fixed, as I wrote in "When paying bills can hurt your credit."
But you can still do substantial damage to your scores if you settle a current debt for less than you owe. If an account hasn't been charged off and you're dealing with the original creditor, Fair Isaac officials say, a settlement can be worse than leaving the account open and unpaid. Of course, leaving an account unpaid will eventually result in a charge-off and a referral to a collection agency, which isn't good for your scores, either.
advertisement
One of the things that drives people nuts about credit scores is how they react when you close an account.
A Client named Charles put it this way in an e-mail:
"You say . . . that canceling a credit card, even one that has been kept in good order, can negatively impact your FICO score. This seems unreasonable, even unfair, almost un-American. Is there some reason that makes it all right for the scorekeepers to do this?"
I'm not sure about "un-American," but it certainly can seem unreasonable or unfair until you understand a bit more about how credit scoring works.
Losing points for voluntarily closing accounts is just one of the unexpected ways you can hurt your credit scores, those three-digit numbers that lenders use to gauge your creditworthiness.
You also can get dinged for:
* Opening accounts, both when you apply and for as long as a year afterward.
* Transferring credit card balances.
* Settling debts.
* Using "limitless" cards.
* Incurring library fines, parking tickets or other penalties seemingly unrelated to credit.
Here's what you need to know and what you can do to minimize unintentional damage to your scores.
Among all the bankrupts, you're the best!
The FICO credit-scoring system, which is the most widely used, groups together people with similar histories when rating them. These groups are called score cards.
If you have a bankruptcy on your report, for example, you'll be grouped on a score card with other bankrupts. Your credit habits may look pretty good compared with theirs, but if the bankruptcy were to disappear from your record, you'd be lumped in with people who have stronger histories. Your credit behavior might not look so good compared with this new group.
Something similar apparently happened to Jessica Lopez, who had $62,000 of credit card debt and a 710 FICO score. After paying off $19,000 of debt in a few months, her score rose to 726. A few weeks later, though, her score suddenly plunged to 686.
Such abrupt drops can often be traced to a negative item, like a delinquency or a bankruptcy, disappearing from a borrower's credit report. In this case, though, the change was even more subtle.
Here's how Barry Paperno, the manager of customer service for Fair Isaac -- the company that created the FICO -- explains it:
Identity theft and your credit scores
"Jessica had opened a new account (a year previously) which, at that time, put her in a different scoring group consisting of consumers who had newly opened accounts on their credit files. Then when this recently opened account had aged enough to take her out of this scoring group and put her into one with consumers who had not opened any accounts recently, her score dropped."
There's not much you can do about this quirk in the scoring formula, other than brace for the potential effect. The good news: Georgescu's score recovered within a few months, as Paperno had predicted. The key was continuing to pay down debt and holding off on opening any new accounts.
(Keeping your balances low, by the way, has become even more important since Fair Isaac rolled out the latest version of the score, FICO 08.)
Don't transfer your problems
Lower interest rates are generally better when you're trying to pay off debt, but taking advantage of a balance-transfer offer can wallop your credit scores in a number of ways.
Just opening a credit card account to take advantage of the offer can ding your scores by 5 points or so. Transferring your balance to a card with a lower limit can hurt your scores, as can consolidating debt.
That's because the FICO model is heavily influenced by your "credit utilization ratio," the portion of your available credit limit you're actually using. The formula likes to see a wide gap between your balances and your limits. Transferring a balance from a high-limit card to a lower-limit card makes it look like you're closer to maxing out that second card, and the scores can react negatively.
Become a member of NCR Credit Restoration Group http://ncrcreditplus.ning.com/
To put it simply: The FICO formula typically would rather see $1,000 balances on five cards than a $5,000 balance on one card.
You can compound the damage to your scores by closing the card from which you transferred the balance. Closing the old account trims the amount of available credit that's used in the credit-scoring formula.
If you're planning to take advantage of a balance-transfer offer, read the fine print and consider the following:
* Limit the number of accounts you open. If you want to improve your credit scores, don't keep bouncing your balances from card to card.
* Pay down your debt. Use the lower rate as an opportunity to reduce your debt load. Paying off debt is good for your wallet and good for your credit scores.
Settling debts
For years, a glitch in the FICO formula often penalized folks for paying old debts that had been charged off and sent to collection agencies. That glitch finally got fixed, as I wrote in "When paying bills can hurt your credit."
But you can still do substantial damage to your scores if you settle a current debt for less than you owe. If an account hasn't been charged off and you're dealing with the original creditor, Fair Isaac officials say, a settlement can be worse than leaving the account open and unpaid. Of course, leaving an account unpaid will eventually result in a charge-off and a referral to a collection agency, which isn't good for your scores, either.
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