A new credit reporting agency is changing the rules on credit scores, but not necessarily in everyone’s favor. A Los Angeles man said he was turned down for a car loan despite having a high credit score from the three traditional credit bureaus. Bobby Torrence takes his finances seriously. “I wanted to eliminate debt. Whenever I get credit cards that come in, I pay them off in three to four months’ time,” Torrence said. #MeToo Leaders: Cosby's Conviction Will Bolster the Movement His credit score is above 800, which is considered excellent by the traditional credit bureaus, Experian, Equifax and TransUnion. So when Torrence bought a new car, he thought getting a loan would be easy. He was wrong. “They said that I was denied because of this new credit reporting agency,” Torrence said. William, Kate Reveal the Name of the New Royal Baby That credit agency, SageStream, gave Torrence a credit score of 631. That’s considered poor … [Read more...] about Turned Down for a Loan? Could A New Credit Bureau Be To Blame?
New credit reporting rules
But credit card interest rates have hit their highest levels in nine years. The average rate is now 14.7 percent. A year ago it was just above 13 percent. The spike in rates has been caused by the new credit card regulations, reports CBS News business correspondent Anthony Mason. Fed Adopts New Credit Card Rules Obama Signs Sweeping Financial Reform Into Law Those regulations limit the banks' ability to assess penalty fees. Under the same law, lenders now also have to give at least 45 days notice before they can raise interest rates on delinquent borrowers, so banks are simply charging higher rates up front to reduce their risk. At the same time, card issuers are also cutting back on the amount of credit they extend to borrowers. The average credit line on a new card is now about $3900. A year ago it was more than $4400. That's a drop of 11 percent. All of this may force Americans to be more frugal but it's not going to help an economy that is struggling to pick up speed. Credit … [Read more...] about New Credit Card Rules May Harm More Than Help
Last Updated Apr 28, 2010 5:18 PM EDT This story was updated April 28, 2010 After new credit card rules took effect in February, cardholders found that it wasn't all good news. Card companies hit them with new fees and interest rate hikes, as the companies tried to replace sources of revenue that reform was quickly cutting off. Millions of Citibank cardholders, for example, got hit with a $60 annual fee on cards that were previously free. That's got some of my readers asking whether cancelling these cards will hurt their credit scores. And, if so, will it hurt enough to matter? The first answer is "yes." The second one isn't so easy. Your credit score is an algorithm aimed at handicapping your propensity to pay your bills. It looks at a number of factors that Fair Isaac Corp., the creators of FICO scores, think best indicate whether you're both responsible and solvent. Little missteps -- like having too few credit cards; or cards that are too close to their limits -- can undermine … [Read more...] about Your Credit Score and the New Credit Card Rules
By Gerri Detweiler/Credit.com If you've reviewed your credit reports recently you've no doubt seen many dates -- many, many dates. Some are more important than others. And some are absolutely critical. A Credit.com reader asks: "What's the difference between Date Opened, Date Reported, Date of Last Payment, etc.?" There are two reasons why dates on your credit reports are so important. The first is that they may directly affect how long information remains on your credit reports. The second is that they may relate directly to how that information affects your credit scores. We've explained how long information can be reported here; in this article we will explore how these dates can affect your credit scores, and your FICO scores in particular. Date Opened/Open Date There are a couple of ways that the date an account was opened can impact your credit scores. On the positive side, an account opened a long time ago can help the "age of credit history" factor in your credit reports … [Read more...] about The most important dates on your credit report
NEW YORK -- Freeze your credit reports before you get burned. That's the message from security experts, consumer advocates and some state Attorneys General. They say more people should consider a credit freeze as a way to block identity thieves from opening new credit cards and other accounts in your name. They recommend a freeze even if your identity hasn't been stolen. "It's much better to shut the door before it even takes place," says Mike Litt, a consumer program advocate at the nonprofit U.S. Public Interest Research Group. "You can save yourself so much time and headache." I didn't listen, and now I regret it. Someone recently applied for 10 credit cards in my name and opened two wireless phone accounts. Removing the fraudulent activity off of my credit reports took hours: I had to make several phone calls, send paperwork and fill out a police report. And my credit score will probably be hurt temporarily until everything is removed. I could have avoided all that if I had frozen … [Read more...] about Why you should consider freezing your credit reports