Credit Scores

Credit Scores

What Impacts Your Score?


Here is some new information. A class action lawsuit claims that certain credit issuers (name in particular is Capital One) withhold certain information about your credit experience. For example, the allegation is that Capital One does not report the actual outstanding balances for its credit card users, but only the credit limit.

The scoring system used by the big three credit reporting companies then assumes that the entire credit line amount is being used and reports it accordingly. The conjecture is that this can lower one’s credit score by 20-50 points if that credit card holder only has 50% or less outstanding balance compared to the credit line amount.

Not much we can do about this ourselves except wait and see what develops from this lawsuit or only have credit cards from entities that report full outstanding balances to the credit reporting companies.

Read the entire article at:

http://realtytimes.com/rtcpages/20060703_suitomissions.htm

Jim Lubinsky
Re/Max Affiliates
614-766-5330 ext 119