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A grab bag of debt advice
Dear Debt Adviser:
"I read that closing your unused accounts would damage a person's
credit report. Is that true?"
Gabriel
Dear Gabriel:
One of the criteria used to calculate a person's credit score is
the length of time that the person has had credit. While overall,
closing unused accounts is a good idea, if the unused account that
you close includes accounts that you have had the longest, closing
them could lower your score. You may want to keep one of the accounts
open to assure your score does not change. At least, make sure you
keep your old accounts open when you're about to apply for a mortgage
or other loan.
Dear Debt Adviser:
"How can I get a credit report sent to me by e-mail?"
Kerry
Dear Kerry:
You may purchase a copy of your credit report from the three major
credit bureaus online and have the report sent to you by e-mail
or view the report online. The three major bureaus are Equifax,
Experian and TransUnion.
You may obtain a credit report for free if you have recently been
turned down for credit.
Dear Debt Adviser:
"I want to ask my credit card company to lower my high interest
rate of 19-20 percent to a lower rate. How do I go about doing it?"
William
Dear William:
Your best bet is to call the creditor's customer service number
and speak with a supervisor. Keep one of the endless teaser offers
we all receive to transfer balances from one card to another and
quote the rate during the call. Make sure to keep good records of
when you called and to whom you spoke. If your interest rate is
high because of missed or late payments, the creditor is not likely
to work with you to lower the rate. You may need to make regular
payments for at least six months and then try again to have your
APR lowered. If your issuer insists on charging you a high rate
when your payment record shows you deserve a better one, Bankrate's
credit card search engine can help you comparison shop for a
new card.
Dear Debt Adviser:
"Where can I find the best rates to refinance my student loan?
800 phone numbers please."
Victor
Dear Victor:
Here are two places to start, Federal Direct Consolidation Loans
(800) 557-73-92, TDD (800) 557-7395 and Sallie Mae (888) 2-SALLIE.
Just as with any loan product, shop around and find the best loan
for your needs. Also, be aware that once you consolidate your student
loan, you are not eligible for consolidation again.
Dear Debt Adviser:
"If I skip a monthly credit card bill and pay nothing, can
the lender tack on finance charges to my credit card activity for
that month and then charge interest on it the next month?"
John
Dear John:
You bet! In most credit card agreements you are charged interest
on the balance due. If you skipped a payment, the finance charge
would be added to your previous balance. On the next statement,
you would be charged interest on the total balance, including this
month's purchases as well as the previous month's finance charge.
Any fees that you might be assessed for not making a payment would
also be added to your balance, and you would pay interest on that
amount. Do yourself a favor: Don't skip payments.
Dear Debt Adviser:
"Can I pay a bank car loan payment with a credit card?"
Teri
Dear Teri:|
Yes, it is likely that the bank would accept
a payment by credit card. However, if you do not have the money
to make your car payment and will be using credit so you do not
miss a payment, ask yourself if you will have the money for the
payment and the additional money to make a credit card payment next
month? If you don't, you're going where you don't want to be --
in the fast lane of the debt highway.
On the other hand, if you are making the payment by
credit card to get more air miles or other perk from your credit
card and will make the payment in-full, then go ahead and charge
it with my blessings.
I hope the short answers help more of you. They certainly
helped me feel better about my backlog! Good luck with your own
spring cleaning!
The Debt Adviser, Steve Bucci,
is the president of Consumer Credit Counseling Service of Southern
New England. Visit CCCS
for additional debt
advice or click
here to ask a debt question.
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