My Credit Plan Blog

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In a recent survey on credit scores, those between the ages of 25 and 70 graded themselves as having a “B” grade understanding about credit scores. When they took a subsequent questionnaire, their passed rate was 29%. Do consumers really think they are much smarter than what they really know about credit scores? The correct answer is a resounding “Yes” and this costs every such consumer a lot of money.

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For many years, Mr. Dave Ramsey, debt solutions guru, advocates a position that no consumer needs a credit score. He claims that you can purchase a house or anything else without a credit score. He basically tells his followers that a credit score is a bad thing. Since he doesn’t understand FICO® credit scores, he pushes a position that is financially illiterate.

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I recently walked in another loan officer’s office when I overheard his conversation with a client he was on the phone with. He was trying to tell her how to raise her FICO® Scores. However, the information he gave was inaccurate. After he finished the call, I asked him about his incorrect credit score comments to the client. He responded, “It doesn’t matter. She won’t know the difference.” he didn't care. It was not his money at stake. This is not out of the ordinary. Loan officers too often give bad advice that end up hurting their clients. Why does this happen?

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Bank failures have captured the headlines over the last few weeks. Silicon Valley Bank and Signature Bank along with a few others have been taken over the U.S. government. How does that impact you when you have an account with one of these failed banks. It can have a huge impact – almost always lower – on your lender’s FICO Scores.

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When you purchase a home, agents will usually sell their clients on a Home Warranty. Unfortunately, I often hear horror stories of consumers trying to file a claim with a home warranty company. It can be a roof, an appliance, or a pipe, home warranty companies find every way to NOT cover the costs of repairs. There are more claims that are never covered. Why?

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Over the last three months, first time homebuyers have canceled new construction contracts, have canceled existing home contracts and basically no longer engaged in purchasing a home. They are MIA. It has gone from bad to worse with rates jumping so high. When are the first time homebuyers going to come back?

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There have been plenty young adults, those just turning 18, with several credit profiles in their credit report. How does that happen if any 18 year old cannot take out a loan before 18 in most states?

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Inflation is really starting to show its ugly face in the latest housing numbers from ATTOM Data Solutions and CNBC. Home foreclosure activity surged in the last few months and is 153% higher than last year at this time. MyEListing reports that almost 15% of all renters are behind on their rent payments. There appears to be considerable trouble brewing in the housing market.

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President Biden has simply blown it with cancelling student loan debt. This is just flat out wrong and its repercussions will last for generations. I see the problems with this every day and the financial devastation it has caused. This is a real mess and it all starts with the change in the law with the Affordable Care Act. How does the law with insurance coverage impact student loans and now Biden's proposal to cancel its debt? Let me explain.

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Equifax® admitted to providing inaccurate FICO® Scores from March 17, to April 6, 2022 from a coding error. How did this impact you as a consumer? If you bought a home or a new car, the impact could cost you a lot of money.