Does Age Count in Your Credit Score?
John, My date of birth is on my credit reports. It’s not hard to determine my age. Do creditors look at that and do credit scores look at that?
Answer You’d be surprised to learn that considering your age is NOT illegal or prohibited. Think about your insurance premiums…they are certainly determined by your age, and a variety of other things. In fact, the Equal Credit Opportunity Act outlines how age CAN be used by lenders as long as they compensate its negative influence on protected classes (the elderly). So, the short answer to your question is no, it does not count. But, it doesn’t count not because of its legality.
When’s The Best Time to Pay Your Credit Card Bill?
Hey John – Is it better to pay off a credit card immediately after using it or to wait for the billing statement. Is there a difference?
Answer – Nice question. If you pay the balance before the statement is generated then that debt never makes it to the statement. And, more importantly, it never makes it to your credit reports. If it never makes it to your credit reports then it can’t influence your credit scores. The downside, obviously, is you don’t get the full benefit of the grace period. If you were going to pay it in full by the due date anyway then I say adjust your payment habits to pay in full before the statement close date. If you don’t know the statement close date then call your credit card issuer or look at your online summary of activity.
Should I Replace a Credit Card That Doesn’t Have a Credit Limit
John
I closed a Platinum AmEx because the unlimited credit limit actually shows up on my credit report as $0 credit. I opened an AmEx Blue account instead. Was that a good move?
Answer
If your goal is to get an account on your credit report that actually helps your revolving utilization percentage then yes, good move. If you’re referring to the Amex Platinum charge card then it’s not being considered for that percentage in the newer scoring models. You now have a new inquiry on one of your credit reports that could be hurting your score a bit and you will have a new account on all three of your reports that will also probably hurt the scores a little bit. But, in the grand scheme of things having lower utilization is much more important and actually having a card that shows a high credit limit is a good move. By the way, your old Amex card really does have a limit. It’s called a “shadow limit.” Do you really think you can go out and charge an unlimited amount of goods or services on that card?
Should I Pay Settled Debt?
Hi John
Last yr Cap One sent me statements on two accounts saying I owe money. I thought I settled these accounts and even made electronic payments but without a settlement letter. I had not heard from Cap One for almost 4 yrs and now they have added interest to the amount they say I owe. How can I resolve this matter. The last time I had contact with them was in 2006. I live in NY and the debt was incurred while I lived in NY.
Answer:
First off, if you really settled it then you don’t owe anything on it any longer. That’s what a settlement buys you…a zero balance. If someone is trying to collect a debt that you don’t owe any longer that’s illegal. If the debt was incurred in NY and it wasn’t really settled then they can sue to collect the debt for six years so it would still be an issue. You say you paid it electronically. See if you have any record of the transaction in the archive statements. I can see my statements online for the past seven years so hopefully you can do the same and find a record of the transaction. I wouldn’t pay a debt that you don’t owe unless you just don’t care and don’t want to deal with it. If you absolutely know you settled it then contact a NACA attorney and talk to them about your rights under the FDCPA.
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