1. I don’t actually recommend freecreditreport.com. Instead, I recommend that you use annualcreditreport.com. And then for the other times during the year that you check your credit report, consider buying a triple report. They are usually less than $40 (and around $50 if you want your FICO score thrown in).
2. I enjoy a good trip to the Renaissance Fair as much as the next person. You get to dress up and eat junk food. Plus, I like to look at (and possibly purchase) weaponry.

Happy Friday!

Post from: EveryJoe

Friday Fun Video: Renaissance Fair

Biggest FICO credit score change: Fine shadings

The change that will have the biggest effect on your credit score is likely to be the fact that the FICO score formula will now take into account degrees of your habits and credit history. One missed or late payment will be graded differently than if you have three missed payments. This change will likely boost many FICO scores.

However, there is an issue with what FICO will be considering. Will the company — with the availability of technology to better track habits — begin to include the types of purchases you make in your overall credit score? That remains to be seen.

Keep an eye on your credit score, though. There are estimates by FICO that between 40% and 50% of consumers could see their credit scores change by 20 points, in either direction.

Improving a credit score through piggybacking

Piggybacking (the practice of being an “authorized user” on someone else’s account) is also being affected by the new FICO score formula. It will look at who is piggybacking (children, spouses), and also make it harder to improve one’s credit score through piggybacking. This, according to Credit.com, is most likely to affect a large amount of women, whose credit scores are partially dependent on their husbands’ scores.

What do you think of the changes to the FICO score?

Post from: EveryJoe

FICO Prepares to Change Its Credit Score Formula

1. Pay your bills on time and in full. This is a biggie. Missed payments, or payments that come in below the minimum show you as irresponsible and unreliable. Give yourself plenty of time to make payments, and pay the minimum. If you are having troubled, contact your creditor before things get too desperate and make arrangements. As long as you try, and as long as you get things back together, most creditors will delay reporting your to the credit bureaus.
2. Keep maintained bank accounts. Checking and savings accounts show stability and responsibility.
3. Maintain long-standing accounts. I have a credit card that doesn’t do me much good. It has no rewards program. But it is the oldest credit card I’ve got. Every now and then I buy a pizza or a pair of shoes on it. Then pay off the balance. This credit card establishes that I have a long credit history. This is a good thing.
4. Use your name consistently on credit applications. Pick a version of your name and stick with it. Just altering the middle initial can make it look like you are attempting to get more credit under other names. This can be rough for women, but if you change your name upon marriage, use one version of that name. This will show only one alias for you, and it’s a pretty obvious one.
5. Try to focus on “good” credit. “Good” credit includes things like reasonable auto loans, home loans and major bank credit cards used judiciously. Retail store credit cards and finance company loans are not considered “good.” That payday loan or that Xpress card will damage your rate more than a personal loan from a major bank or a Visa card.
6. Get rid of “pre-screened” offers. Preferably by shredding them. These offers come to you, but don’t affect your credit score until you fill out and send in the application. The more inquiries into your credit, the lower your score. You can get a good credit score boost by not applying for credit for at least six months.
7. Fix mistakes on your credit report. Check your credit report regularly for discrepencies and mistakes. My credit report was showing duplicate accounts, as if I had two credit cards with one company. I disputed and had the extra account removed from my report. My credit score went up by 8 points immediately. Make sure you fix any mistakes you find on your credit report.

Post from: EveryJoe

Give Your Credit Score a Boost