For the first time in history, debt collectors -- the guys who hound you over unpaid bills -- are about to get a tough federal regulator scouring their own books.
CNBC's outspoken financial adviser, Suze Orman, has a new piece of advice for her viewers: Go pick up her new, self-branded prepaid card.
Medical debts that you paid off long ago can drag down your credit score for years after you've settled them. But recently proposed legislation could mean old doctor bills will finally be erased from your credit report.
The credit score you get from an agency might be quite different from the credit score your lender gets, according to a new study released Tuesday by the Consumer Financial Protection Bureau.
As part of an effort to pull back the curtain on how creditors go about making their lending decisions, consumers are soon going to find out exactly why they got rejected for a credit card or loan.
Getting a mortgage can be tough these days -- even people with near-perfect credit have been rejected for loans. But for some lucky borrowers, things aren't as bad as the doom-and-gloom crowd says.
When you've got it flaunt it -- an excellent credit score, that is. You know all too well the importance of that three-digit number, which lenders use to assess the risk you represent. If your score is in the top tier: 750 or above out of 850 on the FICO scale. (Check yours for $20 at myfico.com.) That alone qualifies you for membership in a fairly exclusive club : Only a third of Americans have achieved such a high number.
Grisha Stpanov opened a credit card, charged up $20,000, but never paid it back.
For those of you without credit cards or mortgages, there's a new way to build your credit: Pay your rent on time.
Identity theft is the number one complaint by consumers to the Federal Trade Commission and has been for the past five years.
If you're about to buy a car and you've got spotless credit, good for you. But what about the rest of us who've maybe been late with a credit card payment once in a while?
If you own your home, your house is your biggest asset, and often your biggest investment.
A bad credit history doesn't mean you won't pay your rent on time. But if you know that your credit report will be less than stellar, there are some steps you can take to make it easier to find a new apartment.
Q: Do you need a credit card to establish good credit? -- K.J., New York City
Question 1. My grandmother opened a credit card account in my name without my knowledge, did not pay it and now they are coming after me. She is 71 years old. What shall I do? -- Jackson, Greensboro, N.C.
Ready to embark on the quest for an 800 credit score?
A major league pitcher dreams of throwing a perfect game. High schoolers eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT. Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850 credit score.
A major league pitcher dreams of throwing a perfect game. High schoolers eyeing the Ivy League study furiously in hopes of earning 2400 on the SAT. Meanwhile, Chris Peplinski is pursuing his own brand of flawlessness: an 850 credit score.
Falling behind on your bills? It could cost you a job.
Dear Annie: I'm sure I'm not the only one with this problem. I just came from a job interview -- my first in 4 months, despite pounding the pavement every day -- where the interviewer asked me to sign a form permitting the company to contact any or all of the three major credit bureaus for my current and past credit scores.
The credit scores of millions more Americans are sinking to new lows.
When you're looking for a job, you're probably not thinking about your credit score. But you might want to start.
updated: Mon Jul 12 2010 10:16:00
The Help Desk is all about getting answers to your financial questions! Send an e-mail to CNNHelpDesk@CNN.com for advice.
Denied credit? Even if the economy is improving, it's still hard to get a loan. Here's what you can do if you can't get the banks to open up their purse strings.
The pitch: The FTC is cracking down on sites that mislead people into thinking they're getting a free credit report when they're really signing up for a monitoring service. (One offender: freecreditreport.com.) But don't expect ads for these services to end: All three credit bureaus still offer to watch your credit for $15 a month. They claim to protect you from fraud. But are they worth it?
Walking away from a mortgage you can still afford to pay has consequences; everyone knows that. Your credit score is shot and it can be impossible to get credit.
If you were denied a loan, rejected for a job or charged a higher interest rate based on your credit history, you may soon be able to get your credit score for free thanks to an amendment passed by the Senate.
People who are denied credit or a job because of their credit history may soon be able to get their credit score free of charge, thanks to an amendment passed by the Senate Monday evening.
If you're delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much?
For years, catchy advertisements have convinced viewers that if they don't log on to a Web site offering a free credit report, they could end up living in their parents' basement or working at a seafood restaurant.
Many of the changes put into place by the Credit Card Act of 2009 went into effect back in February; one part of the legislation will go into effect April 2.
As banks shy away from making risky consumer loans, a mediocre credit history just won't cut it anymore. To get the best rates on mortgages, credit cards and auto loans, you need a killer score.
Introduction: Use this CNN Student News financial glossary to help students understand concepts about today's U.S. economy that are currently in the news.
updated: Thu Feb 25 2010 18:46:00
CNN's Nicole Collins reports on some new credit card rules that go into effect today.
A batch of new restrictions aimed at curbing the most egregious credit card practices kick in Monday, but business owners will need to stay alert -- the new rules don't cover cards used for corporate purposes.
The recent spike in the number of delinquent Federal Housing Administration-insured loans has some people worried that taxpayers will eventually have to bail the agency out.
It's going to be harder to get a government-backed mortgage from now on.
The tax man has gotten a lot more aggressive in slapping liens on taxpayers who are seriously delinquent in their payments.
I know money is tight. I know you're busy. And I know tackling money issues isn't fun. But here's what I also know: You wish you could once and for all get your financial house in order.
Most troubled homeowners view President Obama's foreclosure rescue plan as a way out of their financial troubles.
You are at the checkout counter with an armload of packages and as you dig into your purse or wallet, you're presented with an offer of a store credit card along with a holiday gift.
QUESTION 1: I wanted to know if you could tell me how much longer the tax credit for first-time homebuyers will be available? I am a US citizen living abroad and plan to purchase a condominium in Texas-would this tax credit apply to me for that? --Anonymous
Out: credit cards. In: debit cards. As more and more Americans shun traditional credit cards, they're turning to debit cards. But you should know there are downsides to debit cards too.
QUESTION 1: I know that Congress is considering extending the unemployment benefits, but what about Cobra? That has been a godsend for my husband and me. Instead of paying $1,100 a month, we only pay $434. My husband has been laid off since December of 2008 after 22 years with a newspaper company. --Dawn, Ohio
Question 1. Do you have to claim the money in the Cash for Clunkers program you received as income in your tax returns for next year? -- Joe, Indiana
Borrowing money today requires impressing an increasingly hard-to-please crowd. With creditors of all kinds more cautious than ever, you need an A+ application to land the best terms -- and that means an A+ credit score, the number lenders use to judge your risk of default.
Want to create jobs? Restaurant owner Rob Redfearn says send some stimulus money his way and he would create 50 jobs within three months.
updated: Fri Aug 21 2009 11:12:00
Small business owners with poor credit need not apply. CNN's Christine Romans reports on a new world of lending.
There's a reason consumers are worried about protecting their credit- and debit-card information.
When the stock market goes up these days, your 401(k) isn't the only thing that will follow. So, too, does the volume of Google searches for economic terms.
You're not alone. Credit card companies are tightening their underwriting standards as they try to pare down their debt. Here is some advice on how to cope if you've been denied credit.
Question 1. We heard you mention forgiveness of law school loans. Our son and daughter-in-law are both new attorneys saddled with law school loans and we'd love to help them find more information, if possible. -- Paul and Mari
Mortgages insured by the Federal Housing Administration can be a lifeline for low-income or high-risk borrowers. These loans have tiny down-payment requirements, competitive rates and easy credit-score hurdles.
updated: Mon Apr 06 2009 15:17:00
Is the government's plan to fix America's banking industry working? Fortune.com's Colin Barr explains.
All money missteps matter, but there are ways to keep your financial foibles from costing you big bucks.
For Mint.com founder Aaron Patzer, personal finance should be "easy and effortless." Following are a few tips from Patzer on saving and spending. (Read more about how he started Mint.com here.)
Question 1. I have been looking for a job for seven months. I got an offer for the perfect job. But my credit score is in the high 500s. Will this hurt my chances of getting the job? Should I explain this to HR in advance? Janet, Georgia
Facing a difficult financial decision? Send in your question to Gerri for some timely advice.
Fair Isaac - they're the company that develops the formula that determines your FICO credit score - is rolling out a new version FICO 08 with the credit bureau TransUnion.
Now that it has received $6 billion in aid from the federal government, GMAC, General Motors' auto financing affiliate, is easing up its terms for writing new auto loans. That means you could have an easier time financing a GM car, but you should still look at all your alternatives.
Lenders are boosting the credit scores they require to lend consumers money.
Yes, the country is in a financial crisis, and the government has provided a $700 billion Band-Aid to help stop the bleeding. But what kind of first aid is there for your personal finances?
After a weekend getaway in New York City, Joseph Lanza logged onto his Bank of America Visa account and was shocked to see that his line of available credit had been reduced to $1,000 from $3,800.
Wall Street's meltdown has put the squeeze on all sorts of lending, and home loans are no exception. Now, even some very well-qualified home buyers are getting turned down for mortgages.
Consumers know all too well that going over their credit limit can mean a nasty fee, a higher interest rate and maybe even a lower credit score.
Mortgage rates have plummeted, but that hasn't made getting a home loan any easier for most borrowers.
Back in February, Congress passed into law a quick fix for the housing market. Unfortunately, it hasn't done much good.
Even weeks after Brenda Clarke's identity was stolen and thousands of dollars in illegitimate credit card charges were discovered, she is still saddled with extremely high interest rates on her credit cards and a damaged credit score.
The student loan market is rejecting more applicants because of too-low credit scores, but the market is still advancing money, even as colleges prepare to resume classes. Some tips from CNN's Gerri Willis on how to nab a loan.
Times are tough, and understanding your credit score is crucial to financial survival. But knowing your score and getting access to it isn't so easy.
Gerri Willis answers reader's questions.
From buying insurance to getting a mortgage, your credit score is your financial DNA. Personal Finance Editor Gerri Willis is here with her dos and don'ts of establishing good credit.
You can sign up today to receive free credit monitoring services from the credit bureau TransUnion due to a settlement the company reached on a class-action lawsuit.
As many as 1 million borrowers from Sallie Mae, the nation's largest student lender, may have seen their credit score plunge overnight after a coding error made some student loan repayments appear delinquent.
It's entirely possible that in the future buying a house that is shocking pink, ultramodern or in a neighborhood that's up and coming (no Starbucks yet) could add an extra fee to your mortgage for what banks perceive as added risk.
A good credit score doesn't mean you can't end up in foreclosure.
Gerri Willis answers reader mail:
From that latte addiction to another pair of shoes you just have to have, everyone makes some missteps with their money. But there are some mistakes you should never fall into.
From mortgages to refinancing and home equity lines of credit -- it's getting harder for people to qualify for a loan. And that makes your credit score even more vital.
Americans are drowning in debt.
Finally, some good news about credit: Fair Isaac, the company that calculates consumer credit ratings for lenders, is rolling out a new formula that promises to favor responsible credit holders. Your FICO score could benefit.
Banks are tightening their purse strings, making it harder to qualify for loans. And now the Better Business Bureau is warning that some companies are using the credit crunch to take advantage of consumers who want to clean up their credit. Here are some top tips on avoiding these scams.
If you've applied for a mortgage, auto loan or credit card recently, then you're probably intimately aware of what your FICO score is.
The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.
Mortgage payments are set to jump. Home prices have plunged. "I'm outta here."
I wanted to get college funds started for the kids this year. Should I invest in a 529 plan or a Roth IRA? I thought you could take money out of your Roth for education and not be penalized. - James, Kansas.
The credit crunch may be bleeding into the student loan industry. Here's what it could mean to your wallet and how to protect yourself.
I've lost $9,000 in a week due to the declining stock market. Should I pull out my money and put it into CDs or should I ride out the storm? I am only 36 so I have time to make it back, right? - Seasick
A congressional panel turned the spotlight on what has been called "unfair" practices of credit card issuers yesterday. This is part of a broader regulatory effort to crack down on credit card practices that are deemed unfair to customers. Here's how you can fight back against rising interest rate fees.
Question 1: You say that bad credit will be forgiven after 7 years. But what happens after 7 years? Are creditors not able to see your past history or will they not use it against you? - Lawrence, Penn.
Lending standards will be tighter, credit-card deals skimpier and savings rates will remain in a holding pattern. These moves will help you nab the best borrowing and savings deals next year.
By the end of the year, consumers in all 50 states will have a new weapon in preventing identity theft - credit freezes. We'll tell you if this protection is worth the time...and the money.
Managing money smarter can put you on track to a rich life. Here's how to reach your long-term financial goals.
A sea change in credit scoring could deflate your magic number: Fair Isaac, which calculates the widely used FICO score, recently announced that it would no longer recognize authorized-user accounts.
The stock market is going crazy. Hedge funds are going under. But for the average American looking for a home loan, the crisis in the subprime mortgage market may actually be good news.
Bond prices dipped Tuesday in volatile trading as U.S. stocks rallied after the Federal Reserve kept interest rates unchanged, indicating concerns on credit markets. The dollar rose against the euro and declined against the yen.
By now you know that you need to keep tabs on your credit history to make a good impression on lenders, landlords and employers. But did you know that your home and auto insurers are also looking?
Now that you can get a free credit report every 12 months from each of the three major credit-reporting agencies (Equifax, Experian and TransUnion), you've likely been bombarded with ads telling you to "get your free credit report NOW!" Here are the six most important things that you need to know before you delve into your credit history.
When my husband and I took out a mortgage a few years ago, our mortgage broker assured us that no matter which product we chose, we didn't have to worry. If we decided we didn't like the loan in a few years, we could simply swap it for a new one. Nowadays a lot of borrowers with adjustable-rate and interest-only loans are facing rate resets and would love to swap out of trouble. But despite low interest rates and plenty of competition among lenders, would-be refinancers are finding it anything but easy to get new loans. Here's why.
Buying your credit score is supposed to give you clarity about your creditworthiness. But clarity may be the last thing you'll feel.
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