Judy Sepac

Seems the rules keep changing no matter what you do. Following is some old and new information to help you keep your credit score in the high range. The rules have changed and I'm sure they'll change again.

OLD: Be sure to check your credit reports (see below). NEW: Look for changes to your account limits.
Most negative items should be removed within 7 to 10 years. If it's still on your account be sure to notify the credit bureaus to remove it or at minimum add your comment regarding the issue.

NEW: Pay off your credit cards! Approximately 30% of your credit score is based on the ratio owed on your ACTIVE credit cards. Note: if the credit card company has reduced your credit limit, the ratios will change and your credit score will drop!
Companies are fearful you'll end up in foreclosure, and they won't get paid! I recently received a letter from Chase, telling me they would be closing my account since I had not used it for a year. I was O.K. with that, but then I found out that will be a "negative" on my credit score! Imagine that, I get penalized for NOT using the card. I hadn't used it because I chose to use two other cards (Mastercard & Visa).

NEW: Don't apply for new cards! The more cards you have the more "at risk" you're considered.

OLD: Pay bills on time. NEW: Pay MORE than the minimum amount. Payment history counts for 35% of your credit score. Pay off the credit card that has the most interest on it.

Did you know that if you're late on one charge card (or medical payments to doctors/hospitals) that the other credit card companies can raise your interest rate?

You can order your FREE credit reports at TransUnion.com, Equifax.com & Experian.com. Be sure to check all three for validity. Don't follow a link; enter the url and sign on at the site.

Does anyone remember when our parents would actually pay-off their home loan? Do you recall when they would have a mortgage burning party and celebrate that event?

We've all been suckered into thinking the money we were getting from the ATM's and items we purchased were ours. Nope, it's theirs until we pay for them (think CASH). Careful you don't pay 6 times (or more!) what they are worth. The longer you take to pay it off, the more you are paying each month in interest. Avoid the ATM's (and their fees). Avoid the credit cards (unless you can pay it off at the end of the month). Use the Debit card (like cash, it's taken directly out of your account). You'll use it less if you know it's coming right off the top. Take back control of your finances!

(some information obtained from e-mail of Christine Menker of USA Mortgage )