I want to share the story and video that aired last week on KBOI CBS TV. Todd Christensen, Debt Reduction Services Director of Education, shared some excellent thoughts on the current decline in overall consumer credit scores.
Here is the text version article which can also be found on www.KBOI2.com.
By Kiersten Throndsen
Story Updated: Jul 15, 2010 at 9:27 AM MDT
It doesn’t take much to hurt your credit score.
“A late payment is the fastest way to damage your credit, second is are you maxed out on your credit, if you have a card that is maxed out that can influence up to 30 percent of your credit score,” said Todd Christensen, Director of Education for Debt Reduction Services, a non-profit group that helps consumers tackle their credit crisis.
A new report by FICO – the Fair Issac Company – shows the number of people with a score of 599 or below is up by more than 2 million people in the past two years.
“It would have something to do with the housing market and rate of fore closures,” said Christensen.
He says while the increase in consumers low credit scores is not surprising that’s not the only group feeling the effects.
“A 650 five years ago was pretty much going to be the same as it is today but how a creditor looks at it they are going to say okay we are not willing to make that much of a risk now,” said Christensen.
So what’s the fastest way to get your credit score to bounce back?
Christensen recommend these steps: paying down debts, getting away from maximum credit limits, and most importantly paying your bills on time every time.
“Whether it’s on loans, club memberships, utilities, anything that if you are late can go to collections.”
Experts say the only authorized website to offer free credit checks is: annualcreditreport.com.
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