The subject of credit repair is a powder keg, lightening rod, PR loser…chose your own metaphor. Opinions on the subject seem to be polarized, meaning you either like credit repair companies or you hate credit repair companies.
Short sales are a relatively new phenomenon and because of this there’s an incredible amount of misinformation about the impact to your credit. Some people are even going so far as to say that a short sale is neutral to your credit, which is incorrect.
What is a credit inquiry and do they hurt my credit scores? And what’s this rumor I keep hearing about how FICO (FICO) scores are protected from multiple inquiries in a short period of time? All this and much more on this week’s episode of Credit Blab with John Ulzheimer.
It’s commonly known and generally accepted that banks, credit card issuers, auto lenders, credit unions and finance companies see your credit reports when you apply for a credit benefit. But what many people don’t realize is that other entities have the ability to see your credit reports and do so enjoying the protection of the Fair Credit Reporting Act.
Do you buy a $1,000,000 home when you can only afford a $150,000 townhouse? Then why in the world would you ever let your 18-year-old kid, who is no longer allowed to get a measly credit card on their own, to walk blindly down the path of financial suicide just to go to an expensive school?
The seven deadly credit sins: they all represent some form of default on a credit obligation. And while this is certainly not an exhaustive list of items that can damage your FICO scores, it’s a very good list to avoid.