Hard Credit Check Versus Soft Credit Check: What’s the Difference?

Every time someone checks your credit report, the inquiry is logged.

That’s important because too many inquiries over an extended period of time can spell trouble for your credit score.

There are different ways and different reasons your credit report might be checked. Some, like hard credit checks—also known as hard inquiries or hard pulls—might have an adverse impact on your credit score. Others, so-called soft checks, are harmless. Too many hard credit checks in a short period of time could knock a few points or more off your credit score. But no matter how many soft credit checks are run against your credit history, they will have no effect.

Read more…Hard Credit Check Versus Soft Credit Check: What’s the Difference?

10 questions to ask before getting a secured credit card

It’s tough to get by without a credit card.

You need one to make a hotel or plane reservation, or to rent a car, even if you plan to pay cash. Responsible use of a credit card builds a good credit rating, too, marking the owner as mortgage-worthy.

But people who have never had credit or need to repair a poor credit history may not qualify for a regular credit card. For them, a secured credit card may be the only way to establish, or re-establish, credit.

Read more…10 questions to ask before getting a secured credit card

If your debt is discharged, do you still owe it?

I recently read an online forum which said that a creditor charges off a debt once it’s turned over to collections. What’s more, I gathered that a person does not have to repay this debt and can write “cancelled” on any invoices received from a collection agency instead of paying the bill. Is this information correct?

Unfortunately, the Internet is often a source of misinformation.  If you opt to write “cancelled” on a invoice for a debt you legitimately owe, you may find yourself being sued.  If you’re already dealing with the fallout from past debts, getting sued will only further complicate your situation.

Read more…If your debt is discharged, do you still owe it?

Establishing or Rebuilding Credit Scores: Options for Moving Forward

Your credit scores are prepared by FICO and other companies and are mainly based on your history of managing debts, such as whether you tend to make payments on time. Your scores play a significant role in your everyday life because the next time you apply for a loan or a credit card — or perhaps a new apartment or insurance —your scores could affect the final decision, including your costs.

Read more…Establishing or Rebuilding Credit Scores: Options for Moving Forward

3 Things to Know About Debt and The Statute of Limitations

The statute of limitations is a law that protects consumers when they are contacted by a collection agency about an old debt.

The statute varies from state to state. But once a debt passes beyond the number of years in your state’s statute of limitations, a debt collector no longer has the right to sue you for payment.

Read more…3 Things to Know About Debt and The Statute of Limitations

Don’t Fall for This Chip Credit Card Scam

The credit card industry is undergoing a massive change as it switches to chip-based cards, and scammers are taking advantage.

Banks have been sending out new credit and debit cards that have an embedded microchip to meet an October 1 liability change deadline. But not everyone has received a new card yet: A September survey showed almost 60% of card users haven’t received a chip-enabled card.

Read more…Don’t Fall for This Chip Credit Card Scam