Posts Tagged ‘credit scores’

No Divorcing Your Credit Scores

January 18, 2012, by FreeScore


divorcing credit scoresIn many divorces, assets are split down the middle. After that, each person moves on and begins anew. Unfortunately, some couples are brought back together by unforeseen circumstances. Rather than a chance encounter at the grocery store, sometimes all it takes is a bold move by a credit card company to get people talking again.

A recent article on The Consumerist details the story of one divorced couple reunited by a credit card company. When it was time for one reader to pay her credit card bill, she simply paid the $500+ bill and went on about her business. It wasn’t until she received an angry call from her ex that she found out Chase had taken the money from his checking account instead of hers. The couple had never shared an account before, but they did use the same credit union and still share a last name. Upon logging into the Chase website, the reader discovered her ex-husband’s account number as the default payment option. She has since repaid her ex for the bill and vowed to monitor her Chase account and checking account more frequently. As the reader points out, the situation could have easily been reversed, with her checking account being debited for someone else’s credit card payment.

This story did not have any far-reaching consequences, but what if that extra $500+ dollars had caused the reader’s ex-husband to miss a credit card payment of his own? His credit scores would have taken a serious hit. And what if he had been trying to get a loan for a house or a car? He could have been denied because of a black mark on his credit reports.

Whatever your marital status, you can avoid the “what-ifs” by signing up for the Power of 3 from FreeScore. You’ll receive access to your three credit scores and reports, as well as 24/7 credit monitoring and automatic alerts. Plus, if someone tries to steal your identity, FreeScore will put you in touch with licensed investigators to resolve the situation. Arm yourself with knowledge by keeping tabs on your finances and credit information and avoid being caught off-guard by unexpected charges.


new credit criteriaWe all know that just one missed credit card payment can negatively impact your credit scores. But what if you don’t use credit cards at all or even have a traditional bank? Millions of people in the United States have little or no credit, good or bad. This is why credit agencies are pushing to widen the criteria used to determine credit scores.

According to an article in the Atlanta Journal-Constitution, people with little to no credit are referred to as having thin credit files. Having little to no credit can make it hard for them to get traditional loans or even pass a background check. Even though most people with thin credit are not captured by the traditional credit net, they still make payments for telephone or Internet service, as well as utilities. Because of this, credit agencies are seeking to widen the credit net used to determine scores.

The credit bureaus assert that widening the net will allow lenders to make safer credit decisions that could affect millions of people. And because several agencies are now collecting data on job history, assets, income and even rental history, lenders can access that information as well. Consumer groups have doubts about adding these new credit factors, citing higher percentages of low-income people having histories of delinquent utility bills. Another problem stems from the fact that some states require consumers to miss a utility payment in order to receive energy assistance.

As the Atlanta Journal-Constitution article explained, Equifax is one credit bureau using alternative forms of data to evaluate creditworthiness for credit card companies, auto lenders and mortgage firms. In Georgia alone, 12.2 percent of households are unbanked, which means they don’t use a traditional bank and there is no way to judge their credit worthiness. Overall, 35 million people in the U.S. aren’t scored or barely registered in the bureau’s traditional database. Equifax believes the alternative methods of scoring will help millions of unbanked people become creditworthy. Of course, lenders are now using these additional factors on all customers, not just those with little to no credit history.

Because credit bureaus and lending agencies are starting to look at more than just credit cards and mortgages, staying on top of your credit situation is more important than ever. If you’d like to see your credit scores and reports from the three major credit bureaus – Equifax, Experian and TransUnion – sign up for the Power of 3 from FreeScore. Not only will you receive unlimited access to your three credit scores, but you’ll also gain peace of mind with 24/7 credit monitoring and automatic credit alerts at all three credit bureaus. That’s the kind of credit management and protection you need, regardless of what criteria is used to evaluate your creditworthiness.

‘Tis the Season To Save More With Good Credit Scores

November 17, 2011, by Good Score Guys


good credit scoresWe love the holiday season, with the songs and lights and gift-giving – but what we don’t love is when credit scores start to drop because of reckless spending. We want everybody’s credit scores to be as strong as us so they can take advantage of the most generous credit card rewards of the season. With so much money to save and so many incentives to enjoy, the higher the credit scores, the happier the holidays. The halls are decked with credit card deals if you have scores like us on your side.

CNN Money recently rolled out a list of the best credit cards to shop with this holiday season.

The Chase Freedom card is offering 5 percent cash-back on purchases up to $1,500 in certain categories, including department stores, dining and charities. If you spend $500 in the first three months the card is open, you can receive $200 cash back.

The Capital One Cash Rewards card offers 1 percent cash back an all categories as well as a 50 percent anniversary bonus on cash earned on the previous year’s purchases. This card also offers a bonus of $100 cash back if $500 is spent in the first three months.

Visit CNN Money to see all of the other cards, but first check your credit scores at FreeScore.com to determine if your scores are good enough to qualify for such deals. FreeScore gives you all three scores from the major credit bureaus – TransUnion, Equifax and Experian. Since opening and closing accounts can affect your credit scores, be sure to choose a card you want to use year-round.

Do you plan to use credit card rewards this holiday season?

Guest Blogger:

Good Score Guys
Good Score Guys

Everyone has three credit scores, and we hope yours look as good as the Score Guys! A credit score over 700 is considered Good or Very Good, and will help you get the lowest interest rates and best deals. Listen to what they have to say!

View all posts by

The opinions, findings and suggestions expressed here belong to the sole author and do not necessarily reflect the views of FreeScore.com.


The Girl Scouts, already known for cookie hawking and wilderness skills, are about to become a financially savvy bunch as well.

girl scouts creditNPR reports that the Girl Scouts of the USA have revamped their badge offerings to accommodate the changing times and interest of today’s girls. That includes a variety of badges in a new category called Financial Literacy. Girls can earn badges like Money Manager, Budgeting, Financing My Future and Good Credit. These badges give girls a terrific head start toward managing their finances from the get-go.

Your Girl – or Boy – Scout days may be over, but many adults are still scouting for the best way to protect and manage their credit. Like today’s Girl Scouts, FreeScore believes in the power of good credit and can equip you with leading-edge features and benefits to help you get the most of your credit. With the Power of 3, you’ll get all three of your credit scores from the major credit bureaus, 24/7 credit monitoring, and automatic credit alerts. That means you can easily track changes in your credit, and you’ll be instantly notified if your credit profile shows any sign of identity fraud. To educate consumers about the importance of good credit management and trends in the credit industry, FreeScore.com includes a free credit information library filled with helpful articles, tools, and calculators.

You don’t have to earn a badge to be financially savvy – Scout’s honor.

Learn more about credit score literacy.

What money management advice do you wish you learned as a child?


unemploymentThe US job situation continues to look bleak, with 9.1 percent of the population – that’s 13.9 million Americans – actively looking for employment and unable to find it. According to NPR, the bad news just gets worse as you dig deeper. On top of traditional unemployment, 8.5 million Americans want a full-time job but are only able to find part-time work. Additionally, 2.2 million people want a job and have looked in the past year, but have not searched in the past month. All of these numbers together comprise the broader unemployment rate, which is now just hovering under 16 percent.

If you are in this 16 percent, or fear you will join it, how will your unemployment or underemployment affect your credit scores? If you can still satisfy your debts, it may not be as dire as you think.

Unemployment or underemployment is not something reported to credit bureaus. If you file for unemployment or take a pay cut, your credit scores will not automatically be affected. But financial stress and economic uncertainty make it all the more important to be vigilant with your credit.

Your credit scores may take a hit if:

  • You become past due on your bills, since around 35 percent of your score is based on payment history.
  • You begin to charge more to your credit cards, reducing your available credit limit, since around 30 percent of you score is based on amount of money owed.
  • You need to open new lines of credit, since 15 percent of your score is based on length of credit history, and 10 percent is factored on the number of new credit lines opened in a period of time.

Unemployment doesn’t have to spell disaster for your credit scores. When you sign up with FreeScore, you’ll be able to access your credit scores at any time from the major credit bureaus — TransUnion, Experian, and Equifax — so you can track your scores for fluctuations. With FreeScore’s Power of 3, you’ll also receive 24/7 credit monitoring and automatic credit alerts that let you know if your identity may have been stolen.

Visit FreeScore.com to protect what may be your most valuable asset – your credit scores – during the ongoing unemployment crisis.


bank card feesIf you’re one of the millions of Bank of America customers who will be assessed a monthly fee to use your debit card, are you pretty riled up about it? The general consensus is that banks shouldn’t take hard-working Americans’ money through any more fees than are already in place. Bank of America isn’t the first bank to announce the fee, and it certainly won’t be the last.

What are your options to avoid a fee-free banking experience? An increasing amount of Americans are beginning to move their money to credit unions. Credit unions are member-owned instead of owned by shareholders. There is usually some requirement for membership, such as a particular place of employment or county of residence, but with them popping up all over the country, there is likely a credit union you could join.

If you don’t want to go through the hassle of moving your money and re-entering bank information for online bill payments or direct deposits, you could keep your Bank of America account and still pay no fees if you are smart with your money. Bank of America will not charge its cardholders a fee for ATM usage, so anytime you retrieve cash from one of its ATMs it is fee-free. It also does not charge a fee for its credit card, which can come with rewards. By using those two forms of payment and paying off your credit card balance each month, you can keep your account in one place, eliminate fees, and avoid damaging your credit scores with late or missed payments.

If you haven’t signed up for a credit card yet, now is a great time to check your credit scores. With FreeScore, you’ll receive all three credit scores from the major bureaus: TransUnion, Experian, and Equifax. The higher your score, the better credit card rates and terms you may qualify for. With FreeScore, you receive the Power of 3 – three credit scores as well as credit monitoring and alerts at all 3 bureaus. If somebody steals your information and opens a new account in your name, you’ll be alerted so the thief can be stopped in his tracks. How do you feel about the new fees for debit cards?


credit educationBy now, the kids have established their school routines and they’re learning all sorts of new things to share around the dinner table. Isn’t it time you learned something new too?

FreeScore.com offers a wealth of information to teach you how life situations can affect your credit scores and why your credit scores should matter to you. A simple visit to our free credit information library online will let you feel like one of those financial gurus on TV whenever credit scores come up in the course of conversation.

For example, do you know:

  • How to report and dispute errors in your credit information?
  • Canceling a credit card can damage your credit scores?
  • Your credit score can vary greatly between credit bureaus?
  • There are certain financing and credit options to help people with low credit scores?

Knowledge is power, so the more you know about your credit, the better. The site also offers a series of calculators and infographics to help you understand the full impact of your credit scores.

Once you browse the library, you’ll be able to see just how important it is to protect your credit with a monitoring service that covers the three major credit bureaus: TransUnion, Experian, and Equifax. That’s why FreeScore offers the Power of 3 – all three credit scores, 24/7 credit monitoring, and automatic alerts to help combat identity fraud.

Have you browsed the information library? What credit score fact was most shocking to you?

Move into a Mansion for Cheap with Good Credit Scores

September 29, 2011, by Good Score Guys


cheap mansion with good creditIf there’s one thing the Good Score Guys love, it’s… well, a good credit score. But another thing we love is a great deal. CNN Money recently shared some very affordable mansions that cost less than condo living in a big city.

One example is a nine bedroom, five and a half baths, 8,381 square foot home in Toledo, Ohio listed at $289,777. Another steal is a ten bedroom, ten bathroom 11,000 square foot gated home in Detroit for less than $500,000.

These homes are all victims of the nation’s housing crisis, but present an incredible opportunity for investors or those looking for a great deal on a home. Are you in the market for a mansion, or perhaps just a modest home you can call your castle? Before you start applying for mortgages, you’ll want to check your credit scores. If you have healthy and strong scores like us, you’ll be in the best position to secure the most favorable interest rate possible on your loan. Remember that historically low interest rates continue to be available to applicants with scores like us on their side.

What’s the best way to check your credit scores? FreeScore presents all three credit scores from the major bureaus – Experian, Equifax and TransUnion. With the Power of 3, it also offers credit monitoring and alerts, so you’ll be aware if something changes in your credit files, such as a new account opened in your name.

Making sure your credit scores are up to par before you try to negotiate a mortgage can help you secure the home of your dreams, whether it’s a mansion in the suburbs, loft in the city or charming bungalow. Of course, if you have Billy Bad Score lurking in your credit profile – well, let’s just say you can avoid unpleasant surprises if you check your scores at FreeScore.com now.

Guest Blogger:

Good Score Guys
Good Score Guys

Everyone has three credit scores, and we hope yours look as good as the Score Guys! A credit score over 700 is considered Good or Very Good, and will help you get the lowest interest rates and best deals. Listen to what they have to say!

View all posts by

The opinions, findings and suggestions expressed here belong to the sole author and do not necessarily reflect the views of FreeScore.com.


bankruptcy and college gradsThe Washington Post reported on a study that shows college graduates are the fastest-growing demographic of consumers filing for bankruptcy protection in the past five years. Degree holders have learned that in the current economy, anybody can be at financial risk. While low-income consumers without college degrees still make up the majority of bankruptcy petitioners, consumers with bachelors and masters degrees are increasingly joining their ranks.

How can a bankruptcy affect your credit score? It depends on what your credit score is to begin with. According to Consumer Affairs, if you have a 780 FICO score, your score could drop 240 points after filing. If you had a lower score, for example a 680, your score may drop only 150 points.

Lower credit scores can mean higher interest rates for credit cards and loans as well as denied applications. A bankruptcy could also hurt your chances of employment, renting an apartment or taking out a mortgage.

Whatever financial path you are on, checking and monitoring your credit score will arm you with the knowledge to make smarter money decisions. If you’ve filed bankruptcy, you can track your score’s progress and know when may be a good time to apply for a new car loan or credit card. FreeScore offers the Power of 3: your three credit scores from the major credit bureaus (TransUnion, Experian and Equifax) as well as 24/7 credit monitoring and automatic credit alerts. Sign up to stay on top of your ever-changing credit scores.

How Identity Theft Can Affect Credit Scores

September 22, 2011, by Carrie Coghill


The impact of identity theft on an identity theft victim can vary. It can range from a couple of hundred dollars lost to the complete disarray of a victim’s life.

Individual identity theft victims lose, on average, $4,841 and it takes about 330 hours to recover identities, as reported in an infographic by Jolie O’Dell in Mashable.

But what does this have to do with credit scores?

Think about it – when someone uses your stolen identity information to rack up charges on your credit cards – do they have any intention of repaying that debt, let alone repaying that debt on time? No way. Even worse, identity thieves could use your information to take out a loan that you will default on.

All of this affects your credit scores. Your credit scores take into account the amount and types of debt you have, new lines of credit opened, and especially – if you pay your credit obligations on time!

Your credit scores are like your SAT scores – they tell inquiring eyes how well you manage your credit. If an identity thief messes up your score, it could affect your ability to get a mortgage, obtain car insurance or a new line of credit.

To prevent identity thieves from squandering your credit scores, here are some tips:

  • Check your credit reports – new credit inquiries, new loans, and unpaid bills all show up on your credit reports. You can get one free from each of the three major credit bureaus from annualcreditreport.com. Or, you can sign up for a credit score service.
  • Password protect all devices – identity information can be usually be accessed through devices like laptops and smartphones.
  • Check your accounts regularly – you can check most accounts online.
  • Join an identity protection service. For example, IdentityHawk and other services provide 24/7 identity security scanning as well as access to identity fraud specialists and $1 million dollars of identity theft insurance in case an incident occurs.

Take these precautions and don’t let identity theft affect your credit scores.

Carrie Coghill is Director of Consumer Credit Information at FreeScore.com. Check out her blog at http://www.carriecoghill.com/.