Ask Creditnet Questions

Ask Creditnet Questions

Ask Creditnet: Will a Loan Modification Hurt My Credit Scores?

Dear Creditnet: I'm thinking about applying for a loan modification so I can hopefully continue to afford the mortgage payments on my home, but I've heard it will really hurt my credit scores. Is that true? If so, what kind of hit can I expect my scores to take? -Wendy in CA

Ask Creditnet: What No Pre-set Spending Limit Really Means

Amex Credit Cards Dear Creditnet: I get credit card offers in the mail all the time that say they have no pre-set spending limits. Does this mean that if I'm approved for one of these cards I can charge as much as I want? I run a small business out of my home and have had trouble getting a credit card with a high enough limit to cover my monthly expenses, so a card with no pre-set spending limit sounds like it could be the perfect fit. - Rebecca from NC

Ask Creditnet: Best Way to Get Cash When Traveling Overseas

foreign currency exchange

Dear Creditnet: I don't like carrying cash when traveling, but I'm about to take a trip overseas and I know I'll need plenty of cash while I'm there to cover expenses I won't be able to pay for with my credit card.

How can I get local currency at the best possible rate? Should I use a my credit card or debit card to withdrawal cash at an ATM, or should I plan on exchanging dollars for local currency when I get there?

Ask Creditnet: Is it Worth Paying Off Debt in Collections?

Dear Creditnet: What's the advantage of paying off credit card debt that's still within the statute of limitations but already charged off and sold to a collection agency? If it's not going to help improve my credit scores right away, I'm beginning to think I might be better off just keeping the cash in my own pocket. -Adam from VA

Ask Creditnet: Is Failure to Pay Off Credit Card Considered Fraud?

Dear Creditnet: I've heard that it's considered fraud if you get a credit card, use it, and then can't make any payments. If I unexpectedly lose my job and can't make my credit card payments, could I get sued?

Ask Creditnet: Should I Close My Son's First Credit Card?

Dear Creditnet: I wanted my son to have a credit card in his name when he went off to college. However, the only way we could get him a card was to apply for one in my name and add him as an authorized user. He used the credit card responsibly for the last four years and upon graduation was able to open a new credit card in his own name. We'd like to close the old one now, even though it doesn't have an annual fee, but we're concerned about how this might affect both of our credit scores. Should we just close it since we don't plan on using the card again?

Ask Creditnet: Can Paying Taxes Late Hurt My Credit Scores?

IRS tax extension

Dear Creditnet: I've procrastinated filing my income tax return and just found out from my CPA that I'll probably owe a lot more than expected this year.

I know I'll have to pay penalties and interest if I file an extension and fail to pay what I owe in full by the 17th, but can paying taxes late hurt my credit scores too? I want to buy a home later this year and simply can't risk hurting my credit.

Ask Creditnet: Is an 800+ Credit Score Worth the Extra Effort?

Dear Creditnet: I already have pretty good credit scores in the 790's, but it kind of bothers me that I can't seem to break the 800 mark. I've tried for years and I just seem to be stuck where I am. Is it really worth the extra effort to try and raise my credit scores above 800? - Megan from TN

Ask Creditnet: Pay Off Credit Cards vs. Installment Loan

Dear Creditnet: Will it be better for my credit scores if I pay down my credit card debt (I have about $8000 in balances) or pay off an installment loan of $10,000? I am looking to buy a home in the next year and I need to improve my credit score about 50 points. - Pete from GA

Ask Creditnet: How Long Will a Bankruptcy Last on Your Credit Reports?

Dear Creditnet: I filed Chapter 7 bankruptcy on April 1, 2009, and I've avoided any type of credit since then. I haven't even checked my credit scores in years. When will the bankruptcy fall off my credit reports, and will it happen automatically? If it doesn't happen automatically, what do I need to do to convince the credit bureaus to remove it? - Jake from WI


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