“Credit Score” Archive
Feb
5
I’ve gotten a few emails over the past few months from loyal readers who were asking “Now that you are in all this debt, what is your credit score?” Well, my answer, at least for now is I don’t know and I don’t care, at least for now. At first blush this might seem like a somewhat reckless answer, but it frankly is the truth. Clearly–given my current level of debt–I will not be applying for a credit card anytime soon. I have two cards with $1000 limits that currently have a zero balance that I can use in the case of emergencies. Given I sold my car and have no plans in the near future to buy another one, I will not be applying for a car loan anytime soon. The only potential snag I may run into is if and when I decide to move out of my current apartment (something I am seriously considering). Luckily I have a well paying, stable job with one of the most stable and well-respected companies in the area, so I should be able to convince a potential landlord that I can pay my rent, particularly if that rent is less than what I am paying today.
In the meantime, I am doing all the things that should, in theory, improve my credit score, albeit over time. I am paying down my debts, most of which are at 0% interest as quickly as I can at the moment; yes I’m working to provide an accurate update on the Debt-O-Meter. I’m not taking on any additional debts or loans at the moment and I’m making sure that my payments are being made on-time.
Admittedly there is also a psychological element to not checking my credit score right now. Yes, I know my credit sucks. Yes, I know my credit score sucks. Pulling my score quite frankly would make me feel worse about everything that I have done over the past few years financially. I would much rather wait until some time has passed and my accounts are re-aged (something many creditors have agreed to do) and I have paid down a good chunk of debt; my credit score should be higher at the end of 2008.
That said, I will be checking my credit reports, now that things are settling down in terms of accounts being sent to collection and then back to the original creditor. In fact, I will have a lengthy update with regard to the AMEX situation as things have changed significantly on that front. Everyone is entitled to check their credit report for free, once per year. You can go to AnnualCreditReport.com to request your free copy of your TransUnion, Equifax and Experian credit reports. You can order and view your report online or you order your reports by mail. Mail requests typically take several weeks for processing and mail time. Each year I have compared all three reports I have found errors or inconsistencies between the different bureaus so it makes sense to check all three.
Stay tuned for a Debt-O-Meter update as well as an update on AMEX.
