June 22, 2003
Should we have to deal with a corrupted measuring tool by learning how to "trick it" or should we try to fix the broken machine? In "Knowing the Score on Credit Can Help" (Personal Finance, May 25), Kathy M. Kristof makes a good effort in trying to help citizens cope when dealing with FICO scores. We're told not to pay off small old accounts with balances, don't cancel an old unused credit card, and many more practices that a conscientious person with a good credit rating would normally do. Why shouldn't we do this?
June 18, 1988 |
Savings and loans are teetering. A record number are failing. The carnage strains the already ailing Federal Savings & Loan Insurance Corp., the government agency that insures S&L deposits. Not a happy story. But there is a way you can assist the troubled industry--and lock in a nice yield to boot. You can buy a new type of security called FICO zero-coupon bonds. Proceeds from the bonds, first issued about a month ago and primarily sold through major brokers, go to FSLIC.
July 12, 2010 |
Battered by unemployment and tighter lending standards, the credit scores of millions of Americans are sinking to new lows. About 25.5% of consumers — or 43.4 million people — had credit scores below 600 in April, according to FICO Inc. Historically, only about 15% of consumers — or 25.5 million — have had scores below that level, FICO said. Consumers with low credit scores will have increased difficulty obtaining credit cards and other loans, said Christian deRitis, director of credit analytics at Moody's Analytics.
April 1, 2012 |
Dear Liz: My husband and I are nearing 60. The company where we both have worked for over 30 years recently merged with another firm. The money in our retirement accounts, which totals several hundred thousand dollars, will be distributed to us, and we need to figure out how to manage it. We took your advice to interview several fee-only financial planners, and all of them are pushing for wealth management. They would manage the money in exchange for a percentage of the assets.
August 8, 2010 |
Dear Liz: I've followed your advice on building credit and now, at 20, have credit scores around 730. I recently applied for and received an American Express gold card. But I've read that charge cards can hurt your credit score, or at least not help it. Should I use this card? Answer: Charge cards require you to pay your balance in full every month, unlike credit cards that allow you to pay only a fraction of what you owe. You typically need good credit scores to qualify for a charge card, and it can be an excellent way to manage your finances without incurring debt.
September 9, 2012 |
WASHINGTON - With generous new guidelines from Fannie Mae and Freddie Mac likely to stimulate large numbers of short sales by underwater homeowners, what effect will the sales have on the sellers' credit scores? It's a crucial question, because short sales typically cause FICO scores to plummet, sometimes 150 points or more. This, in turn, complicates sellers' credit capabilities for years and makes additional borrowing - whether for auto loans, credit cards or new mortgages - tougher and more expensive.