20 Percent of Consumers get Different Credit Scores than Lenders
News from Opposing Views:

When consumers seek a line of credit, they may be fairly confident that they know where they stand with regard to their rating, but this might not always be the case.

Anywhere between 20 and 27 percent of the time, credit scores consumers see are meaningfully different than the credit scores lenders use, and that can cause significant problems for would-be borrowers, according to a new study from the federal Consumer Financial Protection Bureau. The result of these discrepancies between what a consumer might see when they order a copy of their credit score, and what a lender might see, is that a potential borrower might be under mistaken impressions of what they can actually qualify for.

For instance, those who believe their credit ratings are better than they actually are may be put in a position where they continually apply for financing for which they are unqualified, and therefore have an even more negative impact on their score because of the number of hard inquiries processed in a short period of time, the report said. On the other hand, those who think their scores are lower than what they are in reality may end up qualifying for a line of credit that isn’t as beneficial or affordable as what their real standing shows they deserve.

The inherent problem with these differences in scores consum…………… continues on Opposing Views

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More Consumers With Bad Credit Scoring Car Loans
News from Fox Business:

In the market for a new car but worry that your iffy credit score will put the brakes on getting a good deal? Take heart: A new report shows that you might be able to snag those keys after all.

During the worst of the recession, stringent loan requirements shut out many buyers with poor credit, skewing the average credit score of car buyers very high, to a peak of 776 for new car buyers in early 2010. A credit analysis recently released by Experian Automotive, however, found that more buyers with poor scores are getting approved, and adding their lower scores to the mix has brought average scores down almost to pre-recession levels. For new car buyers, the average score was 760 in the first quarter of 2012, just a few points higher than for that time period in 2008. 

“A few years ago, it could have been much more difficult to get an auto loan,” says Melinda Zabritski, director of automotive credit at Experian Automotive. “A lot of lenders who specialize in subprime financing might not even have had the funds to lend.”  But times have changed, she says: “It’s a good time to buy a car.”

Bad credit? No problem

Car dealership slogans aside, there is good news for consumers who want a new set of wheels. A…………… continues on Fox Business

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Home loan: Check your credit score
News from Indian Express:

Owning your own home is one of the finest feelings in the world. Nothing beats the sense of achievement and security when you first open the door to your brand new home. Purchasing your own home involves thorough planning and research and the most crucial factor which influences your decision is your financial ability. It makes sense to get all your reports and inspections completed before scouting for a house or applying for loan.

The low ticket home loans have decreased by half to 22 per cent of all loans during the last five years because of steep increase in property prices. As per the data by the Credit Information Bureau (Cibil), about 75 per cent of new accounts opened in 2011 had sanctioned amounts between R 5 lakh and R 50 lakh. This also means that the shift is clearly towards higher value loans, indicating property price rise and higher borrowing affordability. For instance, in 2011, approximately 48 per cent of the total home loans sanctioned in metro cities had a ticket size of more than R 20 lakh.

According to figures from Cibil, home loan enquiries have more than doubled from first quarter (Q1) of 2007 to third quarter (Q3) of 2011. The first three quarters of 2011 show an increase in home loan enquiries by 21 per cent over the same period last year.

The trends of acquisition of new home loans by banks show that in 2008, 23 per cent…………… continues on Indian Express

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Consumers clueless about credit scores
News from Fin24:

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Consumers still unclear on credit score impact
News from SouthCoastToday.com:

May 20, 2012 12:00 AM

Consumers understand credit scores better than they used to, but many still don’t fully appreciate how costly high scores can be, according to a new survey.

Almost everyone knows mortgage lenders and credit card issuers use credit scores in making their decisions, according to a survey released last week by the Consumer Federation of America and VantageScore Solutions.

Most people realize landlords, home insurers, and cell phone companies also check consumers’ credit ratings, though by smaller majorities, according to the study. The results showed improvement in consumers’ understanding when compared to a credit score knowledge survey released by the two organizations last year.

Stephen Brobeck, the consumer federation’s executive director, said the results showed the best year-over-year increase in consumer awareness he has seen in the various surveys that the organization has conducted.

“However, credit reports and scores are so important to consumers that they should try to improve knowledge that remains deficient in several key areas,” Brobeck said in a statement.

Only 29 percent were a…………… continues on SouthCoastToday.com

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Consumers savvier on credit scores
News from Columbus Dispatch:

By  Mark Williams

The Columbus Dispatch Tuesday May 15, 2012 5:38 AM

Consumers know much more about credit scores than they did a year ago, but they still don’t know how costly a low score can be, according to a study released yesterday.

“The good news is that consumers know much more than in early 2011,” said Stephen Brobeck, executive director of the Consumer Federation of America, which conducted the survey in early April along with VantageScore Solutions.

“Despite our positive survey findings, there remains cause for concern,” Brobeck said.

Among those concerns: consumers who wrongly think factors such as age and marital status affect credit scores or the belief by many consumers that credit-repair companies are always or usually helpful in correcting credit-report errors or improving scores, he said.

The report follows a Dispatch investigation that detailed how easily mistakes can show up on credit reports and how difficult it is to remedy those issues. Mistakes on credit reports have cost people home loans and much more.The second annual study by the Consumer Federation, an association of nearly 30…………… continues on Columbus Dispatch

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Business networking and educational opportunities
News from Post-Bulletin:

By Jeff Kiger
The Post-Bulletin, Rochester MN

• Business After Hours, a monthly business networking event sponsored by the Rochester Area Chamber of Commerce, is scheduled from 5 p.m. to 7 p.m. at Canadian Honker Events at the Ramada,1517 16th St. S.W.

• Your Credit Score, Tips for 2012
, a workshop sponsored by Rochester’s Small Business Development Center, is scheduled from 1 p.m. to 3 p.m. in Room HA 110 at Rochester Community and Technical College’s Heintz Center, 1926 College View Road S.E. This workshop will discuss how to understand the components that make up a credit score and strategies to improve a personal credit score. The fee is $ 20 per person. For information or to register, contact Kay at 285-7536 or kay.wiegert@roch.edu.

Fuel Rochester and the Rochester Area Chamber of Commerce is sponsoring a day-long Young Professionals Summit from 8 a.m. to 4 p.m. in the Doubletree Hotel at 150 S. Broadway. Topics for the event will include Networking 101, Take Charge of Your…………… continues on Post-Bulletin

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Math Lesson Plan For Teachers!
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LARS credit forum helps consumers deal with credit scores
News from Baltimore Sun:

Many clients who seek assistance from Laurel Advocacy and Referral Services — a Laurel nonprofit that helps 2,000 homeless and low-income individuals each year — are in trouble because of credit. Credit scores impact their lives, from the ability to rent apartments or obtain insurance to employment opportunities.

To help clients, and others in the community, learn about the impact of credit scores, LARS staff members and finance professionals held a forum on consumer credit March 7 at the Laurel Police Department’s Partnership Activity Center.

“It’s not just credit, it’s not just banking. … If a credit score’s higher (or) lower, that’s going to affect us in a lot of parts of our lives,” Deanna Booker, community outreach manager at Consumer Credit Counseling Service, said at the forum.

Booker joined Kelly White of Revere Bank, Bernie Robinson of PNC Bank and Gyssette Isom of Capital One in presenting a briefing on credit basics. They explained what constitutes a bad credit score; the ways individuals can hurt, or improve, their credit score; and how long it takes for a poor credit score to recover.

continues on Baltimore Sun

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Tips for Finding Your Pot of God
News from Bradenton Herald:

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Late medical bills can lower credit scores for consumers: How to check and fix …

Late medical bills can lower credit scores for consumers: How to check and fix …
News from Washington Post:

When a debt collector goes after you for a late medical bill, your credit can suffer — even if you quickly pay up.

Paid or unpaid, large or small amounts — all can affect a credit score, said Anthony Sprauve, a spokesman for FICO, developer of the most widely used measure of credit risk. Banks and credit card companies use FICO and other credit scores to decide if they’ll lend to you and how much you’ll have to pay to borrow money.

The effect on a credit score can vary, but for any medical collection — paid or unpaid — “a person with a FICO score of 680 will see their score drop between 45 and 65 points. Someone with a FICO score of 780 will see their score drop between 105-125 points,” Sprauve said.

Your credit score is determined by information in your credit report, which you can check for accuracy. Federal law says everyone is entitled to one free credit report per year from each of the three major credit reporting companies — TransUnion, Equifax and Experian.

The government-approved site www.annualcreditreport.com tells how to request a free copy of your credit report.

If you find a mistake in your credit report, you can dispute the error with the credit reporting company. The Federal Trade Commission has steps for disputing errors, including a sample dispute letter, on its website.

But if the bill wasn’t a mis…………… continues on Washington Post

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How to check your credit for medical debt snags
News from Newsday:

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Quick ReadLate medical bills can lower credit scores for consumers: How to check and fix your report

When a debt collector goes after you for a late medical bill, your credit can suffer — even if you quickly pay up.

Paid or unpaid, large or small amounts — all can affect a credit score, said Anthony Sprauve, a spokesman for FICO, developer of the most widely used measure of credit risk. Banks and credit card companies use FICO and other credit scores to decide if they’ll lend to you and…

Newsday & ExploreLI are now available at no charge to Newsday 7-day and Optimum Online® subscribers. To continue reading, plea…………… continues on Newsday

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BBB reminds Consumers of their Free Annual Credit Report
News from Tucson Citizen:

Start the new year knowing your credit is in good standing and your credit report is accurate. Under the Fair Credit Reporting Act, consumers can receive a free copy of their credit report from each of the three nationwide reporting agencies — Experian, Equifax and TransUnion — every 12 months.

“Pulling your credit report annually is a smart way for consumers to understand their financial health, as well as avoid financial and identity fraud,” said Kim States, BBB President.

Many television advertisements and websites claim to offer “free credit reports,” “free credit scores” or “free credit monitoring.” However, Better Business Bureau of Southern Arizona reminds consumers that AnnualCreditReport.com is the only authorized source for free annual credit reports under federal law.

Additionally, BBB reminds consumers that a credit report is different than a credit score. A credit report is a snapshot of your credit use history which gives a lender a view of whether you pay your debts back or not. Your credit score is a number which shows lenders how much of a risk you are in paying back a debt.

BBB offers these tips for pulling your annual credit report:

Do not access the Annual Credit Report…………… continues on Tucson Citizen

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COLUMN: The troubling fine print of Suze Orman’s prepaid card
News from Reuters:

Personal finance expert Suze Orman poses at the OWN: Oprah Winfrey Network launch cocktail reception for the Television Critics Association Winter press tour in Pasadena, California January 6, 2011.

Credit: Reuters/Fred Prouser

Tue Jan 17, 2012 10:56am EST

(Reuters) – Can those celebrity-linked prepaid cards really help the unbanked?

Lately there have been a spate of them, from Kim Kardashian’s to Lil Wayne’s. When it comes to that newest one, the Approved Prepaid MasterCard issued by the Bancorp Bank and endorsed by personal finance personality Suze Orman, who is also an investor in the product, less is not necessarily more. There are better alternatives.

First, a disclosure. I knew Orman well before she became brand-name famous (we’re both from Chicago) and she even wrote a blurb for my book, “Late-Start Investor,”…………… continues on Reuters

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Your Credit Score: How to Improve the 3-Digit Number That Shapes Your Financial Future (4th Edition) (Liz Pulliam Weston)

This is the eBook version of the printed book. Today, a good credit score is essential for getting decent terms on credit–or for getting credit at all. But that’s just the beginning: You’re now being judged on your credit score by everyone from employers to cellphone carriers. Now, MSNBC/L.A. Times journalist Liz Weston has thoroughly updated her best-selling guide to credit scores, with crucial new information for protecting (or rebuilding) yours. Your Credit Score, Fourth Edition thoroughly c

List Price: $ 19.99


Consumers Tap Phones to Check Credit Scores
News from Bloomberg:

Consumers shopping for a loan or looking to rebuild their credit can use a free mobile application to monitor changes in their credit scores.

The application, for Apple Inc. (AAPL)’s iPhone, updates users’ credit scores from Experian Plc (EXPN) once a month, in addition to details about how much of their available credit they’re using and their home value, according to a release today by Credit Sesame Inc., which also provides free scores through its website.

“If you’re trying to rent an apartment and the landlord or agent wants to know about your credit, you can go through o…………… continues on Bloomberg

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Smart shopping tips to keep your credit healthy
News from Milwaukee Journal Sentinel:

(ARA) – ‘Tis the season to be jolly, but for most Americans, it’s also the season to shop. While the items on your shopping list are sure to make gift recipients happy, being mindful about financial stress and maintaining good credit should remain top-of-mind.

Going overboard on holiday purchases is all too easy when you’re caught up in the spirit of the season. As many as 14 million people responded to a recent Consumer Reports survey admitting that they’re still paying off purchases from last year’s holiday season.

“If it’s taking more than a year to pay off purchases, you’re possibly on the way to damaged credit,” says Barrett Burns, CEO of VantageScore Solutions, LLC. “The short term enjoyment that you might get from a purchase could be far outweighed by potential stress that could come later when those credit card bills come due. Resolve now to h…………… continues on Milwaukee Journal Sentinel

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