Movie theater patrons were instructed to leave their cell phone ON when entering thee movies.
EMERGE INSURANCE AGENCY
Here are three important credit score myths — mostly half-truths — you need to know. After all, the more you know, the higher your score is likely to be.
Three credit score myths
THE MYTH: Closing a credit card you’ve had open for a long time will hurt your score because the formula values a long account history.
People often hesitate to close credit card theyeve had open for years because they think that doing so will shorten the length of their credit history, which comprises 15% of one’s score. Not so.
“Closing an account with a good payment history does not cause you to lose the history for that account,” says Rod Griffin, director of public education at Experian. “Closed accounts with a zero balance that have no negative information in their history remain 10 years from the date they are closed.”
So if you have a long and healthy credit history, you won’t likely see an immediate, sharp drop to your score if you close an old card—at least not for reasons related to length of credit history.
But you might see a dip for credit-utilization reasons. “Losing the available credit limit on that card can increase your overall utilization rate, also called your balance-to-limit ratio, which can hurt credit scores, at least temporarily,” Griffin says.
A full 30% of your credit score is heavily influenced by your credit utilization ratio. Since many people have high limits on their older cards, closing one could drive up your credit utilization ratio — and drive down your score — if you’re carrying balances on other plastic.
This could do serious damage to your score, so the credit limit — not the age of the card — is what’s most important to consider before closing an account.
THE MYTH: Your credit score will be fine as long as you pay your balance in full every month.
Staying out of credit card debt is important for maintaining a good credit score, so you might be patting yourself on the back for paying off your balance in full every month.
Not so fast. If you’re charging too much at any point in time, there’s a still chance your score could suffer.
As discussed above, 30% of your credit score is heavily affected by your credit utilization ratio. And the FICO scoring model generally penalizes consumers who use more than 30% of the available credit on their cards.
FICO gets the information about what you’re charging — and all the information used in your score, in fact — from the three major credit bureaus, Experian, Equifax and TransUnion.
Here’s the catch: Card issuers typically report to the bureaus on a specific day each month, regardless of when your balance is due. This means that if you spend $4,000 on a card with a $10,000 limit, and this balance is reported midway through your billing cycle, your score could get dinged — even if you later pay it off by its due date.
To be on the safe side, keep your credit utilization below 30% on all of your cards, at all times.
THE MYTH: Applying for too many loans in a short span of time will ding your credit score
Unraveling this half-truth depends on how you define “short span of time.” Ten percent of your credit score is determined by new credit inquires, and applying for too much credit too quickly — as in, over the course of a few months — will result in lost points.
But most scoring models count several applications for the same type of loan that occur within a 14- to 45-day window as one hard inquiry instead of many. So if you’re shopping for a mortgage, try to submit your applications within a few days of each other. This is better for your score than stretching the process out over several months.
EMERGE INSURANCE AGENCY
SOURCE: Nerdwallet Finance by Lindsay Konsko, 11/07/2014
Halloween is just around the corner! While you may be planning decorations, preparing for trick-or-treaters or organizing Halloween-themed activities, it is also important to take certain precautions to keep you and your family safe so everyone will be able to fully enjoy the evening. Check out these simple steps to a safe and fun Halloween:
Another important thing to remember is that whenever you are expecting guests at your house for a party or other activity, there is a possibility that an unfortunate accident or injury may occur. Emerge Insurance Agency is a local agency that can assist you in getting the personal or general liability insurance and benefits that will provide you with the most protection. Having adequate coverage means your expenses will be covered if a party guest accidentally slips and falls in your home, a trick-or-treater is injured on your property, or your belongings are stolen or damaged.
A local insurance agent from Emerge Insurance Agency will be able to review your policy, advice you about what coverage you have, or put together a tailor-made policy that better fits your needs and budget. Our goal is to get you the protection you need at the lowest possible cost.
We live and work in your community, and we are able to meet with you during or off business hours at a time and place most convenient to you. Contact us to discuss your insurance needs.
EMERGE INSURANCE AGENCY
According to the U.S. Consumer Product Safety Commission, more than 15,000 fires are sparked every year by clothes dryers. Lint and other debris can build up in your dryer vent, reducing air flow to the dryer, backing up dryer exhaust gases, creating a fire hazard.
"Clothes dryers are an appliance that make our lives easier but we often take them for granted. We shouldn't," said Angie's List founder, Angie Hicks. "We need to maintain them and most importantly have their vents cleaned."
Facts and figures
For additional tips on how to keep your dryer in proper working order to prevent fires, watch the video titled, “NFPA Safety Tips – Clothes Dryer Safety” or download their safety tips flier.
We encourage you to share this information with your family and friends. In our opinion, everybody is so busy, the focus is on taking care of the pile of clothes in the laundry room and we don’t take time to think about the importance of proper maintenance. Or we see or hear a story like about a dryer fire and think it will never happen to us.
EMERGE INSURANCE AGENCY
It can not be stressed enough how critical it is to maintain a high credit score. Your good credit score it important not only for lending opportunities but also other cost-saving opportunities.
Insurance companies derive an “insurance score” based on your credit score. It’s part of the process with out exception. Rest assured, however, it’s considered a “soft hit” and will not impact your credit score in the same way when trying to secure financing.
If your credit score is low, insurance companies views you as a poor risk when it comes to paying your bills on time. If you do not pay your bills on a timely basis, costs to maintain and administer an insurance policy becomes much more expensive to the insurance company. Insurance companies will charge you for this risk and some will decline to even provide a quote.
One way to prove insurance companies wrong is to agree to set up your policy on an Electronic Funds Transfer (EFT) basis. This keeps your account current and in force. Credit bureaus like to see that you pay your bills on time. This will help to avoid blemishes for late payments as well as any potential collection agency issues.
But, we are not the expert in building credit or repairing credit and encourage you to ask the experts for advice.
Here is a list, as provided by Experian, of items on a credit report and how long it could affect your credit:
1. Open accounts with no negative payment history: remain indefinitely as long as they are open and active.
2. Closed accounts with no negative payment history: remain 10 years from the date they are closed. Positive accounts remain on your credit report longer than negative accounts.
3. Late payments remain seven years from the original delinquency date. A single late payment is deleted at seven years. If there was a series of late payments (not paid at 30 days, or 60 days, or 90 days) and then brought current, the payments would be deleted seven years from the first one missed in the series. If the account was never brought current and charged off and placed for collection, the entire account will be deleted based on the date the account became late and was never again current. This is known as the original delinquency date.
4. Collection accounts remain seven years from the original delinquency date of the original account. Collection accounts are treated as a continuation of the original debt and are deleted at the same time.
5. Chapter 13 bankruptcy is deleted seven years from the filing date because at least a portion of the debt is repaid. Chapter 7 bankruptcy remains 10 years from the filing date because none of the debt is repaid.
6. Civil judgments remain seven years from the filing debt. A civil judgment is essentially a debt you owe through the court.
7. Unpaid tax liens remain 10 years from the filing date. Once paid, the lien will remain seven years from the paid date.
8. Inquiries: remain two years from the inquiry date. However, the impact of inquiries on credit scores is minimal and decreases rapidly.
There are several tips that could help you when trying to repair your credit. They include but are not limited to:
1. Pay down your credit cards.
2. Don’t carry big balances.
3. Reuse an older credit card to reflect the longevity of your credit history.
4. Dispute smaller or older negatives.
5. Eliminate significant errors listed on your report.
6. Add an installment loan (auto, mortgage loans) vs. revolving credit (credit card) to your financials to prove your reliability to pay bills.
We encourage you to work with a professional if you need to pursue building or repairing your credit whether personally and/or for your business.
EMERGE INSURANCE AGENCY
Cecil Williams -