Sneaky ways you're ruining your credit score

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  Posted by spanky Tue Jul 29, 2008 1:25am PDT

  if you screw up and cant pay and it goes so far as they are asking you to settle for a lesser payment like 50%...NEVER DO IT. When you "settle" you are actually dooming your credit score FOREVER. You see, usually when you have a bad spot on your credit report it can legally stay for only 7 years. However, when you settle it is actually legally considered "positive" since you actually paid something in the end. By law, positive credit info can stay on your credit report FOREVER! New credit applications will be provided this info that a long time ago you had to settle and this is really bad. This is very tricky and dishonest and should be outlawed. The truth should not look like a pretzel. Remember...NEVER SETTLE Just dont pay it and it will leave your credit report in 7 years.

  good luck and keep spending beyond your means!

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  Posted by Tue Jul 29, 2008 8:39am PDT

  Its legalized crime. The rules are put in place by The Banking Committee so I think that is where the changes need to take place.

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  Posted by Cryptblade Tue Jul 29, 2008 9:42am PDT

  this post sucked. it really did. there was not much information about how these things could ruin your credit. how does credit line increase ruin your credit? and how does 1 cc acct make you look bad if you pay it on time? where's the view from the other side? I know when i did mortgages, particularly subprime, i looked at people's credit cards and only looked for late payments. I also looked for how many open cards they had. Multiple open cards, all paid up - no problem. Multiple open cars with late payments, potential problem. 1 open card with late payments - problem. Basically, if you stay on top of your bills, pay on time, and spend within your means, you will be fine.

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  Posted by RickyRecon Tue Jul 29, 2008 12:40pm PDT

  The formulas used to score credit are a mystery, one that is NOT OPEN TO "THE PEOPLE"! These agencies are NOT Federally mandated, and are ONLY legislated with respect to "Fair Credit Reporting..." practices by law. It's called the Fair Credit Reporting Act. The ONLY reason these agencies exist is that they provide a 'service' that creditors can use to gauge users ability to repay, yet they have the upper hand because we the PEOPLE do NOT have access to these credit score formulas... hence some severe in-equities in credit scores vs. debt histories. The only way to resolve this appears to be through legislation, have these formulas MADE PUBLIC AND STANDARDIZED IF THEY ARE NOT. Yes, financial responsibility is the responsibility of each individual, but transparent standardized financial reporting responsibility is on the credit reporting agencies, and if they will not do it themselves, then it is up to Congress and the Senate to provide financial protection to us, the PEOPLE.

  Here is yet another example of the in-equities of the credit reporting system:

  I divorced my wife recently for reasons to numerous and private to mention here, and VERY mistakenly thought that it would be best for our children to remain with her. We had an account with the local electrical co-op (Jones-Onslow Electric Membership Cooperative)in both our names. She refuses to take my name off the account and accept responsibility for it herself, even after 21 months since we separated. She has made 17 of the last 18 monthly payments late, yet if I have the account shut off, as I am legally entitled to do, my children will suffer because despite almost $1000.00 in child support per month, EVERY month, yet she cannot afford to put the account in her own name. This has negatively affected MY credit rating and score, and there is nothing I can morally or ethically do about it without my children ultimately suffering for it.

  How screwed up is THAT?!

  Credit reporting is currently BIASED by the Credit Reporting Agencies toward it's PAYING CUSTOMERS, that being CREDITORS/BUSINESS OWNERS, NOT WE THE PEOPLE!!! Call your elected officials to start changing this!

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  Posted by HM.Hou Tue Feb 3, 2009 1:59pm PST

  JOE-It is better to close your account while paying your CC off (if you were going to close it anyway).

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