400 Factors That Can Negatively Affect Your Credit

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In this tough economy with the unemployment rate at 9.6% and many people filing for unemployment, one thing that can be negatively affected is your credit. Today, adequate credit is a necessity, but with prices going up on gas, food and utilities many times there just isnt enough money to go around. If you are not able to pay your bills your credit score is one of the first things to be affected, and your credit score is a direct indicator to creditors, banks and utilities as to your creditworthiness. So what is the best thing to do if this happens to you? The first thing to do is the hardest thing to do, call your creditors. With most credit charges, gas, and electric bill repayment services, there is normally a long term credit program that will allow you to convert your payment program to something that may fit your current income situation. Make sure you work out a repayment that you can realistically pay with now limited resources. Dont base your repayment on the job that you hope to get in the next thirty days or the income tax refund thats coming, but base it on what money you realistically have available after covering necessity items such as the mortgage, rent, food and utilities.

Here is a breakdown of what some creditors analyze when determining your creditworthiness:

  1. Credit history and past delinquency: Creditors feel that individuals that have failed to make payments in the past tend to do the same in the future.
  2. How past credit was used: If your prior credit shows that your credit card balances where maxed out over long periods of time, you are considered a high risk credit.
  3. A high number of inquires: Someone with an extremely high number of inquires is often someone seeking credit that has been turned down for one reason or another. Also, a larger number of inquires can bring your credit score down.
  4. A high number of credit cards and revolving loan accounts balances: Someone with a large amount of high credit balances may run into trouble if their income is negatively affected by a job loss or income reduction and is considered a high credit risk.

Thanks to a new federal law, the three major credit reporting agencies, Equifax, TransUnion and Experian, are each required to provide consumers, upon request, a free copy of their credit report once every 12 months from a centralized source. This centralized source includes a Web site, a toll-free telephone number and a postal address.

Consumers can obtain a copy of their credit report free of charge by going online to www.annualcreditreport.com. Individuals without web access can call 877-322-8228. Lastly, you can request a copy of the Annual Credit Report Request brochure, fill it out and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. All three credit reporting agency reports can be accessed through this service.

Vincent C. Ragland is owner of PLANS. Mr. Ragland can be reached at (312) 286-6886 and by Email at vncnt599@sbcglobal.net.

There are lots of dangerous things in your homesome youd never think ofand they deserve your attention.

Fertilizer for your lawn? Good ideabut make sure that the package is tightly closed until you use it. Seems that moisture can destabilize it, creating a heat-producing chemical, and the whole thing could ignite. (Its safe once its spread on the lawn, though.)

Electric blankets can overheat if bedding or other weight is placed on topeven the family pet. Its better to roll the blankets for storage than to fold them, which can damage coils.

Store your exercise equipment in a locked room if there are young children around who can be injured. Pet doors? Make sure they are lockable for times when youre away.

Some home fire sprinkler systems contain antifreeze, which can actually feed grease fires in the kitchen. Better: have them drained and refilled with water.

Your protection is our concern. Count on us for the best service on your homeowners insurance at 526 East 87th Street or call us at (773) 651-6200.

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