Is credit reporting unfair to minorities?
According to MyFICO.com scoring considers only credit - related information. Factors such as race, gender, nationality and marital status are not included. The Equal Credit Opportunity Act prohibits lenders from considering this type of information when issuing credit.
Showing posts with label credit. Show all posts
Showing posts with label credit. Show all posts
Tuesday, June 13, 2017
Will a poor credit score ever go away?
Will a poor credit score ever go away?
Your credit score will change gradually as a result of how you handle your credit. A score is just a snap shot and will change gradually with time and as you open and close accounts. Bankruptcies, collections, charge offs and tax liens do eventually fall off in 8-15 years of absolutely no contact with you. If there is contact or the debt is sold the process can start over based on the new date of last activity.
Your credit score will change gradually as a result of how you handle your credit. A score is just a snap shot and will change gradually with time and as you open and close accounts. Bankruptcies, collections, charge offs and tax liens do eventually fall off in 8-15 years of absolutely no contact with you. If there is contact or the debt is sold the process can start over based on the new date of last activity.
Will my credit score drop if I apply for a new loan?
Will my credit score drop if I apply for a new loan?
According to MyFICO.com credit inquiries make up 10% of your credit score. Everything is relative in credit scoring. So, if you are already struggling with a lower score, inquiries will have more of an impact. If your credit history is shorter, inquiries will have more of an impact. Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically these are treated as a single inquiry and will have little impact on the score, if done within 30 days.
According to MyFICO.com credit inquiries make up 10% of your credit score. Everything is relative in credit scoring. So, if you are already struggling with a lower score, inquiries will have more of an impact. If your credit history is shorter, inquiries will have more of an impact. Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically these are treated as a single inquiry and will have little impact on the score, if done within 30 days.
HOW LONG WILL A FORECLOSURE AFFECT MY FICO SCORE?
How long will a foreclosure affect my FICO score?
A foreclosure remains on your credit report for 7 years, but It's impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, its a common misconception that it will ruin your score for a very long time. In fact, it you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure in a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.
source myFICO.com
A foreclosure remains on your credit report for 7 years, but It's impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, its a common misconception that it will ruin your score for a very long time. In fact, it you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure in a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.
source myFICO.com
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