Credit Score and Credit Report

Dear Liz: My husband and I are in the process of refinancing our mortgage. I just received my credit report in the mail, and my score was 724.

Although the odds of having your identity stolen remain quite low, anyone who's ever been had their bank or credit card account compromised knows what a pain it can be to unravel the mess.

Dear Liz: We have four credit cards that generate airline miles, each of which has a yearly fee. We also have a Capital One card with no fee that we use for travel to avoid currency conversion fees.

Dear Liz: I've seen advertisements for services that promise to help you raise your credit score by the exact number of points you need to qualify for a good mortgage rate. Are these services worth the money?

Dear Liz: I have a roommate who has truly bad credit. He has been turned down from getting a checking account at banks because his mom bounced checks on his account when he was 18 (he is now 31). What is the best way to rehab his credit?

A recent study published by the Federal Trade Commission reports that one in five credit reports contains errors. It's now more important than ever to review your credit report and report inaccuracies.

Dear Liz: My boyfriend is deployed. I have his power of attorney, and during his deployment I have paid off all of his credit card debt. The accounts now need to be closed because they are ones that were acquired with his former wife. I know you say that it will hurt his credit to close accounts, but I'd rather close them because they're tied to his ex.

Dear Liz: I'm 22 and a graduate student with only one year left before I enter the "real world." I have four credit cards — one store card, two Visa cards and one MasterCard — only one of which carries a balance. I want to make the best decisions regarding my financial health.

Dear Liz: I am in the process of paying off a huge debt on my credit cards. Will it help me get a better credit score if I pay it all off at once?

Dear Liz: Yesterday I lost my wallet along with four major credit cards. I called the card companies to report the loss. They canceled the cards, created a new account for each and are sending me new cards.

Dear Liz: In 2005, I purchased a town home for my children, and they have since vacated the property. The town house is now worth 60% of what I owe, and I am considering a short sale.

Dear Liz: I spent the last five years rebuilding my credit to where I am able to qualify for any credit I need. Recently, however, I have been getting denied for credit even though my balances are low and I have never missed a payment.

Dear Liz: You recently answered a question about a young man who was turned down for a car loan because he graduated from college debt free and had no credit history. This is the same scenario my daughter encountered this past year.

Dear Liz: Why are child support arrears reported to credit agencies if they cannot be discharged in bankruptcy? And, why is it one can discharge some federal income taxes in bankruptcy but not child support?

Dear Liz: I don’t know why credit scoring is shrouded in mystery. I’ve read that a short sale is as bad as a foreclosure, and elsewhere that it’s better, and still elsewhere that it’s much better. Which is true?

Dear Liz: Our mortgage is paid off and is no longer shown on our credit history since it’s been 10 years. Is there a way to have that information included on our credit report?

Dear Liz: My wife has always paid her bills, but we got a call the other night that said she owed a $496 cellphone bill from 2002. The debt, even if she actually owes it, would be beyond the statute of limitations in our state.

Dear Liz: I would like to get my interest rate reduced on a couple of my credit cards. I’ve never been late on a payment and have decent credit scores.

Dear Liz: I want to get satellite television, but the company wants my Social Security number to check my creditworthiness. I dislike giving out my Social Security number to anyone in this climate of identity theft. Are there any laws that can help me?

Dear Liz: I question your advice to the father whose son was turned down for a car loan. You told the father: “Your children don’t need to take on debt to build their credit histories. A couple of credit cards, used lightly but regularly and paid off in full every month, will do the job.”