The Poor Economy and Credit Scores
Sadly, even with increasing financial education, most people are truly unaware of how powerful their credit score can be. Recently, I caught a segment on Washington Watch with Roland Martin focused on how the three credit reporting agencies have a major impact on our lives. It highlighted how our credit score can affect simple things like getting a job, purchasing a home/apartment, buying an automobile and even dating online.
Mr. Martin spoke about how some people will never be able to purchase a home because of increased job losses and increased foreclosures. Many can’t afford to pay their bills due to our deflated economy. Adding to the frustration, blemished credit scores take time and hard work to fix.
The three credit reporting agencies are not giving amnesty to anyone at this point for job loss and not being able to repay debts. Mr. Martin goes on to say that even being debt free can hurt your credit score–without some form of credit, there is no way to build your score.
Roland’s guest, personal finance author Rodney Anderson, goes on to talk about a bill he has put forth and has been passed in the House of Representatives and passed through to Congress. The bill deals with medical collections and, in short, it states if you have paid off your medical bills in collections instead of them reporting this on your credit report for seven years it can be removed in 45 days. If this bill passes it could possible help a host of individuals.
Viewers are warned to be very careful with their credit and not to over extend themselves, but rather to live within their means.
If you’re facing credit problems due to past due bills and want help, credit counselors at nonprofit Clearpoint Credit Counseling Solutions can help you create an action plan for getting out of debt.
Call 877.412.2227 (CCCS) to speak with a credit counselors now or schedule an appointment for later.
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