In Tip 9, I discuss dividing up your accounts, and why it is important to do this early so you can prepare to move forward as soon as the divorce is done.
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Tip 9 video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The law prevents harassment by a debt collector. It is harassment if they call you at work?
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Posted In: Collections, debt collection
In Tip 10, I discuss how to start watching your finances and why it is important to pay attention to your money.
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Tip 10 video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you are going through a divorce, your thoughts are probably not focused on what your credit score looks like. However, this is exactly the time to think about these issues!
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during this tough time. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Introduction video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The statute of limitations for your state determines how long you can be sued for a debt. However, if you treat your debt wrong, the state of limitations can be reset and the clock starts over.
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you have filed for bankruptcy, you are going to have to repair your credit.
The question becomes when do you start? My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd. You can also see my blog entry on this subject by clicking here.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The debt collector can get a lot of information about you. However, do they have the right to see your bank records?
My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Recently, I have been getting a bunch of questions about credit, debt, foreclosure, bankruptcy, and other topics about credit.
The first couple of entries are already on YouTube, and you can see them here: httpv://www.youtube.com/user/MyCredEd
It can take a long time to write a blog entry, and I just don’t always have the time. So, I decided to go ahead and release some videos that answer the questions.
Here is how this works:
See the form to the right? You ask your question there. Just type in what you want to know, and I will work on answering it. Now, I can’t guarantee that I will answer every question, but I will do my best.
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
I am working hard to grow this blog, and I want to grow it in a way that helps you. So, please ask your questions!
Again, you can find the videos on YouTube right here:
http://www.youtube.com/user/MyCredEd
<!–[if gte mso 9]> Normal 0 false false false MicrosoftInternetExplorer4 <![endif]–><!–[if gte mso 9]> <![endif]–> Becky has a JC Penney card, issued by GE Money Bank. She has never been late (she showed me her payment history online), and is well below her credit limit of $400.00. A few days ago, right after she made a large payment and paid the card off, she got a letter telling her that her credit limit would be reduced to $100.00 or her current credit limit, whichever was greater.
Now, fortunately for Becky, she had just paid off the card. Or maybe that was unfortunate. She now has a $100.00 limit on her JCP card. From the standpoint of her ability to spend, she doesn’t really care. She has worked hard to be able to live on a cash basis. However, from a total credit line standpoint, this really hurt her.
Part of your credit score is determined by your total credit used divided by your total limit. If your limit is decreased, your scores might fall, as your percentages rise. Since Becky is working on rebuilding credit, having this kind of a change might adversely impact her scores.
So why did JCP do this? Well, there is an easy answer. They are trying to weather the financial storm. They are taking clients who might be a risk and reducing their credit limits. How do they determine risk? Well, as is normal with their practice, they look at credit history, ability to pay, and how much credit a person has. If they find a situation that might cause a potential problem, they are within their rights to reduce the rate.
In Becky’s case, she had recently applied for, and been approved for, a new credit card with a $1500.00 limit. This was because she had taken care of her credit, and never missed a payment. However, that new card ended up being a big red flag for JCP. At some point, a creditor will look at your available limits, calculate the max payment you might have to make if you maxed out all of your cards, and then decide if they think you will be able to pay things back. If your creditors think you can’t pay back what you use on your cards, they may reduce your limits!
How can you combat this? Well, Becky called in and talked to a JCP credit service person. They told her that ALL accounts had their credit limits reduced! I can’t verify this, but in talking to 4 other people that have JCP cards, they all got similar letters. Of course, the people I spend time with talking about credit have all had some credit problems in the past, so they might not be indicative of the normal treatment of a customer by JCP. Becky was told she couldn’t get her limit raised.
What are your options? Well, you really have two. You can either live with the decision, or you can pay your account off and cancel it. Personally, I think canceling your card is a bad idea. First, it hurts your credit aging, and second, it reduces your total available credit by the credit limit on your card.
When you have a limit lowered, immediately start paying the balance down to improve your debt ratios. When you get it paid down, just stuff it in your sock drawer and leave it there for emergencies.
Your creditors can do damage to your scores, but you can recover quickly from a credit limit being lowered by a creditor. Make sure, if your limit is lowered, that you contact the creditor to find out why, and see if they will reconsider. But, unless you have a really good reason to do so, don’t close those cards as that can hurt your scores more than the reduced credit limit.
Posted In: credit card, credit limit
