Ask Creditnet Questions

Ask Creditnet Questions

Ask Creditnet: What's the Difference Between DOFD and DOLA?

debt calendar

Dear Creditnet: I'm trying to clean up my credit reports so I can get approved for a mortgage this year. While I've already removed a lot of errors, I still have a few old credit card debts I think are ready to drop off at any time.

What confuses me is how to determine exactly when these debts will fall off my credit reports. Should I be trying to determine the "date of first delinquency" or the "date of last activity", and can you explain the difference between the two terms?

Ask Creditnet: Credit Card Options After Bankruptcy

Dear Creditnet: My FICO score has climbed to 668 after going through a bankruptcy in 2008, and now I'm looking to improve my credit even more by getting an unsecured credit card. However, I don’t want to apply and hurt my score if I'll just get an automatic rejection due to the bankruptcy. I know that I can probably go through Orchard Bank (HSBC) for an unsecured credit card, but are there are other viable options?

Ask Creditnet: Chargebacks on Recurring Payments

MasterCard credit card

Dear Creditnet: I have unsuccessfully tried to cancel my contract with an alarm company. Although my 3-year contract ended, I've been told I automatically signed up for another year because I didn't give them one month's notice. I did call 2 1/2 weeks in advance to cancel.

I believe these guys are unethical since they continue to charge my credit card every month, so what happens if I initiate a chargeback through my credit card company? Is that the only way to get them to stop charging my card?

Ask Creditnet: How Fast Should I Pay Off My Car Loan?

Dear Creditnet: I want to improve my credit scores, but the only type of credit I have at the moment is a car loan. I haven't used credit cards in years. I have the ability to pay off my car loan early and save money on interest, but should I keep making payments for the entire life of loan to help boost my credit scores? I know that making more payments over time is probably better for my scores, but the interest rate on this loan is really high.

Ask Creditnet: Will Employers Pull My Credit Scores?

Dear Creditnet: I lost my job a year ago and have been unable to find full-time work ever since. I've also fallen behind on my bills during the past 6 months, which has really trashed my credit scores. I think my FICO scores are now below 600. I've heard that employers can pull credit scores when reviewing a job application. Is this true? If it is, this may be one reason I keep getting turned down for new jobs. Is there any way to avoid this?

Ask Creditnet: Minimum Payments and 0% Interest Credit Cards

Dear Creditnet: I have a new rewards credit card that offers 0% interest for 12 months. My plan is to transfer all my existing credit card debt to this card so I can save on interest in 2012. Do I have to make minimum payments at all during the first year, or can I just save up my money and make a one-time payment in full before the 0% interest promotion ends?

Ask Creditnet: Is 0% Credit Utilization Better Than 10%?

Dear Creditnet: I know that my credit utilization ratio makes up a large part of my FICO credit score.  I've also read that it's important to keep my ratio under 30%, or preferably at 10% or less. My question is would it be better to keep my credit utilization ratio at 0% or 10%?  If I pay my balance off every week and my credit utilization is reported at 0%, is that hurting my FICO scores?

Ask Creditnet: I'm a Disabled Vet - Who Can Help Me Fix My Credit Problems?

american flag

Dear Creditnet: I am a disabled veteran who ran into a lot of financial trouble and really messed up my credit reports. Long story short, I basically went crazy and stopped paying my bills because I thought I was going to die every day. Now, my actions just haunt me every day with horrible credit.

I am married with two children and one on the way, and I am nervous that my bad credit is bringing my family down. My wife has good credit and a great job so I feel like I am the only one holding us back. Please, is there an agency or someone who can help me fix my credit problems?

Ask Creditnet: Do Lenders Use PRBC Credit Reports & Scores?


Dear Creditnet: I just read Creditnet's article about the credit bureau, PRBC, and it sounds like a great thing...long overdue. My question is, when applying for a loan or credit cards, do most (or any) lenders check with PRBC along with the 3 major credit bureaus?

Also, does the PRBC report information to any of the big 3, and if not, can we request that they do so?

Answer: Since the PRBC, which now stands for "Payment Reporting Builds Credit", is another credit reporting agency, they don't actually report any information to the other big 3 credit bureaus- Equifax, Experian, and TU. What the PRBC is doing is independently verifying "nontraditional" payment data, such as rent and cell phone bills, and then providing this information in their own separate credit report that lenders can use to supplement the underwriting process when applicants have otherwise "thin" credit reports.

Ask Creditnet: Secured Credit Cards and Interest Rates

credit cards Dear Creditnet: I have interest in applying for a secured credit card. I found one that I really like and it says that for every 3 months I pay my bills on time my interest rate will be reduced. The confusing thing is that there is also a 7-month 0% APR period. My question to you is will my interest rate be reduced during that 7-month introductory period as I make payments on time?


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