2 Reasons NOT To Cut Up Your Credit Cards 1. If the card still has a balance on it and you cancel the card, the credit bureaus won’t find anything on your report for “available credit” and the “credit limit.” That’s good, right? Wrong. Since you still have a balance on the card and no credit limit is listed (since you closed the account), it actually looks like you maxed it out. And that can—and likely will—wreak havoc on your credit score. 2. If you have paid off your balance, but cut up your card anyway, you’re missing out on a valuable, steady payment history. Remember, you’re going to need that credit down the road to take out a loan, buy a house or negotiate better deals on existing payments. Cutting your card is essentially taking you out of the game before you have a chance to play. And even if you do have a good reason to close a card (it charges exorbitant annual fees or stops offering the perks that made you sign on in the first place), cutting it up isn’t all you have to do: You can keep the card alive by leaving one recurring payment on it, like a utility bill, and using auto pay. That way, you don’t have to think much about it, and it’s still active. In the meantime, to help get your debt under control, start switching a majority of your daily spending to a debit card--that way you are spending money that’s actually in your bank account. Studies show that people using credit cards spend 12% to 18% more when using credit rather than debit cards.
It’s never too early to talk money with your honey. Financial intimacy is key to a healthy and happy relationship, whether you’re simply heading out of town together for the weekend, or you’re settling down to buy a house and start a family. Yet most of us are more comfortable bringing someone home than we are telling them how much rent we pay to live there in the first place. We’d rather bare our bodies than our bank accounts. That doesn’t mean you have to exchange credit scores on the first date. Almost 90% of people have discussed finances with a partner in the past, and agree it’s a conversation that must be had. But the problem is figuring out how to start having “the talk” in the first place. So try using relationship milestones such as taking your first trip, moving in together or getting engaged as a timeline to share what you make, what you spend and what you owe, so that you’re both on the same page. What to do if one of you has bad credit? One partner’s low credit score doesn’t directly damage the other person’s score. But when you apply for joint loan applications or mortgages as a couple, you could be denied, or get slapped with higher interest rates. This is why I suggest you first find out why their credit score is low. Is it because the person hasn’t built up much credit yet? Or is this a sign of skeletons in the closet like paying bills or taxes late, defaulting on loans, or overspending? This is definitely the time to have a heart-to-heart conversation about your financial situation. This also builds trust in a relationship and you avoid a possible divorce in the future as we all know that this is a reason a lot of people get divorced etc. so make sure you and your love are on the same page.
Credit Ballers has an affective restoration solution for requesting e-OSCAR to verify the Metro 2 Compliance reporting of items on your credit reports. This solution forces e-OSCAR to work to your benefit, not the benefit of the Credit Reporting Agencies. There is a Difference between a traditional credit dispute and a Metro 2 Compliance based request via e-OSCAR. Compliance of Reporting is a minimal standard of reporting not an optional one whereas the truth and validity of claims is a minimum standard of collection but not all items that meet collection standards meet the requisites of reporting. The fact is, you can have a collectable item not be legally reportable. Disputing derogatory items on your credit reports is one tactic but not the only tactic to get deletions. Yes, disputing derogatory accounts can be effective but there are going to be those accounts that will always come back verified because they are indeed accurate and the creditors are able to validate the debt. When we send in a dispute the credit reporting agencies use a computer system called e-OSCAR that processes and conducts the investigation, almost all of this is done electronically which is why some disputes come back as verified even though they are clearly reporting inaccurate. When we challenge the Metro 2 Compliance standards for derogatory accounts you are actually utilizing e-OSCAR to your benefit, which is a very effective tactic. You are forcing e-OSCAR to evaluate these accounts based on whether the reporting is within the compliance standards it is required to follow. If the reporting of the account isn’t 100% in compliance then e-OSCAR must delete the account from your credit reports.