Personal Finance and Investing

How does removing a collection or a bankruptcy bring down the credit scores?

Removing a collection will NOT bring down the FICO scores.

ALL collections reported as such (not tradelines) SHOULD be deleted.  However, removing the bankruptcy often lowers FICO scores when you still have derogatory accounts reported.

That’s because the FICO scoring models (about 10 different formulas) will rate derogatory accounts less severely when you also have the public record bankruptcy reported.

And that’s why I’ve seen FICO scores OVER 720 frequently WITH the bankruptcy public record AND with many correctly reported discharged accounts.

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The credit card news, as of late, has been anything but positive. The government is tightening the reigns the credit card industry who, in turn, is scrambling to switch up the rules of their credit cards before the new credit card bill takes place. And who is left in the middle of this mess? That’s right: you, the consumer.

All of this mess can make any consumer think twice about even having credit cards anymore. But is the solution to simply cut up your credit cards and live without them?

Although it would make sense that credit cards sometimes hurt credit, most of the time they help credit. I

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The criminal trial of two former Bear Stearns executives, Ralph Cioffi and Matthew Tannin, ended with a not guilty verdict on all charges Tuesday.

On left, Bear Stearns hedge fund manager Matthew Tannin, in a June 19, 2008 file photo in New York…. On left, Bear Stearns hedge fund manager Matthew Tannin, in a June 19, 2008 file photo in New York. On right, Bear Stearns hedge fund manager Ralph Cioffi,in a June 19, 2008 file photo in New York. Both men have now been acquitted of criminal charges in relation to their work at the collapsed investment firm. Read more…

Bill consolidation loans used to be the standard method for debt consolidation, but we have learned a lot since that time and financial experts have decided differently. They are not all bad, but there are several things that you should consider carefully before you go out and apply for a debt consolidation loan.

The benefits

1. Your debts are consolidated and you will only make one payment each month.
2. There is a chance you will have a lower monthly payment, but that usually means a longer repayment period.
3. This debt relief method will not ruin your credit.
4. The interest paid on the loan is tax deductible.
5.

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