checking your credit score with credit karma may not lower your score, but what they don’t tell you is that you’re getting a vantagescore 3.0 model, and not a true fico score (model 5, 8, etc). less than 10% of lenders use the vantagescore to determine credit worthiness. the vantagescore is useful for detecting trends in your credit worthiness but should never be used when talking about your credit score.
some credit card companies give you a fico 8 score for free and this is much more accuarate than a vantagescore. different lenders will use different scoring models (auto, credit card, mortgage, etc.). otherwise, you have to pay for your fico scores.
the three major credit reporting agencies (experian, transunion and equifax) use different formulas for credit scores and tradelines can report differently between the three companies.
a “good” fico score is around 720.
free credit reports are available every 12 months here:
https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report
your credit report will not come with your credit scores, but they are still important to obtain to ensure the information on there is accurate.
if there are inaccuracies on your reports you can dispute them with the credit reporting angency. do NOT dispute anything that is accurate to try and get it removed. this is fraudulent.
collection agencies....
if you owe a collection agency money, paying the debt is the right thing to do, but don’t expect it to come off your credit report or increase your score. according to the fcra (fair credit reporting act) removing a negative tradeline in exchange for paying the debt is called “credit bartering” and it is not allowed. a paid collection account will remain on your credit report until the statute of limitations has expired. this will vary depending on the type of debt. a paid collection account is still going to report as a collection account until it is removed. credit scores do not generally change when a collection account status goes from unpaid to paid.
government debts have different rules. some government debts can be removed by completing or entering repayment programs (dept of ed). if you have government debt in collections you may be subject to tax offsets and administrative wage garnishment, which means it’s all handled via paperwork and you will not be summoned to court. your employer has an obligation to cooperate in the administrative wage garnishment process. if you quit and change jobs, the government will eventually find you. if you’re really unlucky the government will also levy your bank account.
bankruptcy does not make your debt go away. it essentially makes the debt non-collectible.
chapter 7 generally wipes out unsecured debt. you still owe the debt but creditors can not collect on it.
chapter 13 is a structured payment program for people who don’t qualify for chapter 7, but need debt relief.
again, government debts play by different rules. generally, government debt cannot be discharged through chapter 7 but can be included in a chapter 13 filing.
most people don’t like talking about credit because they don’t understand it, or they have bad credit. the only way to overcome this is through education and setting the appropriate course of action.
i have 15+ years of collections experience, including government contracts and have numerous certifications in collections laws (fdcpa and various individual states) as well as fcra laws. i also have an education in law (civil, criminal, commercial).
some credit card companies give you a fico 8 score for free and this is much more accuarate than a vantagescore. different lenders will use different scoring models (auto, credit card, mortgage, etc.). otherwise, you have to pay for your fico scores.
the three major credit reporting agencies (experian, transunion and equifax) use different formulas for credit scores and tradelines can report differently between the three companies.
a “good” fico score is around 720.
free credit reports are available every 12 months here:
https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report
your credit report will not come with your credit scores, but they are still important to obtain to ensure the information on there is accurate.
if there are inaccuracies on your reports you can dispute them with the credit reporting angency. do NOT dispute anything that is accurate to try and get it removed. this is fraudulent.
collection agencies....
if you owe a collection agency money, paying the debt is the right thing to do, but don’t expect it to come off your credit report or increase your score. according to the fcra (fair credit reporting act) removing a negative tradeline in exchange for paying the debt is called “credit bartering” and it is not allowed. a paid collection account will remain on your credit report until the statute of limitations has expired. this will vary depending on the type of debt. a paid collection account is still going to report as a collection account until it is removed. credit scores do not generally change when a collection account status goes from unpaid to paid.
government debts have different rules. some government debts can be removed by completing or entering repayment programs (dept of ed). if you have government debt in collections you may be subject to tax offsets and administrative wage garnishment, which means it’s all handled via paperwork and you will not be summoned to court. your employer has an obligation to cooperate in the administrative wage garnishment process. if you quit and change jobs, the government will eventually find you. if you’re really unlucky the government will also levy your bank account.
bankruptcy does not make your debt go away. it essentially makes the debt non-collectible.
chapter 7 generally wipes out unsecured debt. you still owe the debt but creditors can not collect on it.
chapter 13 is a structured payment program for people who don’t qualify for chapter 7, but need debt relief.
again, government debts play by different rules. generally, government debt cannot be discharged through chapter 7 but can be included in a chapter 13 filing.
most people don’t like talking about credit because they don’t understand it, or they have bad credit. the only way to overcome this is through education and setting the appropriate course of action.
i have 15+ years of collections experience, including government contracts and have numerous certifications in collections laws (fdcpa and various individual states) as well as fcra laws. i also have an education in law (civil, criminal, commercial).