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My Credit Plan and its blog is operated by Family Financial Education Foundation, a 501 (c) (3) non-profit credit counseling agency. This blog offers many unique insights from direct research. My Credit Plan's blog and website are designed to help you find the correct answers to many of your questions, explain why, correct misinformation, and identify solutions to improve your FICO scores. Let’s go! (Information referenced on this blog must be sourced.)
During the Financial Crisis of 2008 and beyond, many homeowners found themselves upside down in their primary residence: they owed more on their mortgage than the value of their home. Lenders came up with a possible solution to offer consumers a loan modification. How did a modification impact their FICO® scores and their finances? There is something critically important to know before anyone goes down this path of skipping mortgage payments.
There are times when information is disseminated which is just simply not true. CNBC’s Alexandria White’s writes that closing your oldest credit card will not have a substantive impact to your FICO Scores. Let's take a closer look at her analysis and how closing your oldest credit card can impact your FICO® scores.
(Updated March 20, 2020)
With the economy teetering from to the coronavirus, many consumers face declining income from lost hours and even losing their jobs. Some inquire about the possibility of skipping loan payments on their homes or auto from the loss of income. Is this a possibility – and will it impact your credit report / FICO® scores?
Let’s take a closer look.
Interest rates have dropped further over the last few weeks to all-time lows to the surprise of many. As a result, home purchasing power for many prospective home buyers has increased substantially since the beginning of 2020. This is one positive from the market chaos created from the coronavirus.
What a week for interest rates!
Rates have taken a wild ride lower over the last several months. This week however, rates have broken through new lows. The 10 year treasury bond hit historical lows on Friday, February 28 at 1.13%. This historical rate drop gives a generational opportunity for many homeowners to lower their monthly payments.
What opportunity is there for consumers? Let’s take a look.
My Credit Plan has released its 2019 results – and it shows phenomenal success. The average Classic FICO® score increased 53 points for those who enrolled into My Credit Plan during 2019 – which means an improvement between 2 to 3 grades better in mortgage and auto loan terms. That is a lot of money saved by lower interest rates and fees.
FICO® announces the rollout of their new credit score, FICO 10. They warn consumers that this scoring model will lower their FICO scores by 20 or more points if you are a heavy user of credit cards. Most consumers are concerned about their FICO scores dropping going forward. There is one BIG issue practically every reporter has failed to mention. Sarah O’Brien at CNBC highlights this issue and how it will impact you, the consumer. Great job Sarah!
Experian™ claims it is offering consumers an opportunity to raise their credit scores. Is it real? Is it true? Experian unfortunately provides an incomplete picture of its Boost program.
Major business news outlets such as CNN Business, CNBC, and Fox Business are reporting that for many, your FICO® credit scores your lenders use are going to drop 20 points under the new FICO score calculation. This reporting is simply not true.
No. That's not how the lender's Classic FICO scores work.