Millions of Consumers Are “Credit Invisible”

Millions of Consumers Are “Credit Invisible” The Consumer Financial Protection Bureau has a report on the 26 million Americans who are “credit invisible.” The Bureau found that one in every 10 adults do not have any credit history with a nationwide consumer reporting agency. About 189 million Americans have credit records that can be scored. The report also found that Black consumers, Hispanic consumers, and consumers in low-income neighborhoods are more likely to have no credit history with a nationwide consumer reporting agency or not enough current credit history to produce a credit score. Another 19 million consumers have unscored...

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How Hard and Soft Inquiries Affect Credit Scores

How Hard and Soft Inquiries Affect Credit Scores Consumers are often confused about the effect of inquiries on their credit scores. CreditCards.com consulted experts about the differences between hard and soft inquiries, how the big three credit bureaus’ report on inquiries, and inquiries’ effects on credit scores. Their experts explained that a hard inquiry means the consumer actively applied. for credit. Soft inquiries are reported anytime you review your own personal credit report, your credit is evaluated by existing creditors, or you receive a promotional credit card offer in the mail. Soft inquiries have no impact on your credit report...

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Does Too Much Credit Hurt Your Credit Score?

Does Too Much Credit Hurt Your Credit Score? Does having too much credit hurt your credit score? Should you close credit cards to reduce your credit available? These are questions addressed by Barry Paperno a contributor to creditcards.com. Conventional wisdom 20 years ago was that if a borrower had access to too much credit, he or she would be tempted to use too much credit and get in trouble. But in the 1980s, FICO did a study and found that there was no evidence that having “too much” credit would change the consumer’s behavior. The same research confirmed that open...

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Court Condemns Attorney’s Illegal Credit Repair Scheme

Credit repair schemes almost always require payment in advance of any results. Typically, the customer pays the money and then gets no results. To curb this abuse, the federal Credit Repair Organizations Act, 15 U.S.C. Section 1679f, prohibits anyone from offering to improve a customer’s credit to charge money in advance. This week, the 9th Circuit Court of Appeals agreed that an attorney who charged clients $599 to improve their credit had violated the credit repair act. Consumers are well advised to never pay money to anyone who promises to improve or repair their credit reports or scores.

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Credit Repair Scams: How To Spot Them

Consumers with poor credit naturally want to clean up their credit reports. But as Michelle Singletary reported in her Washington Post column last week, there are credit repair scammers out there that are perfectly willing to take consumers’ hard-earned cash and then fail to do anything useful. Worse, some of their “methods” can be unethical or even unlawful. Consumers should look for these red flags in deciding whether a credit repair organization is legitimate. Beware of credit repair organizations that do any of the following: 1) The company requires an upfront fee. Under the federal Credit Repair Organizations Act, it...

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