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AMAZING

Dear Friend
Answer your credit questions. Page 2

Health

Take a Walk. Page 3

Trivia

Dog Days of Summer. Page 3

2013

Credit News is a monthly newsletter from your friends at Elite Credit Care Dear Friend We hope you enjoy this months newsletter. It is a great time to spend outdoors with your family! Respectfully, Attila Thiry

Credit News
The Newsletter Thats Both Informative and Fun!

Volume 1, Issue 23

Visit us on the web... www.EliteCreditCare.com | (877) 604-4489

Time in File?
Contact Us Now To Get A Free Consultation! (Valued at $200) | 877-604-4489 Answers to the trivia:
9: Great Dane. 6: 42. 3: The Chow. 10: The Greyhound. 4: Two Gentlemen of Verona. 8: Labrador Retriever. 2: Chihuahua. 5: Cynophobia. 7: Germany. 1: His paws. By Attila Thiry When it comes to credit scoring things can get very complicated very quickly. Discussions of algorithms, characteristics, scorecards and weights are not generally a part of our everyday conversations. Despite the complexities of credit scoring, there are some aspects that are fairly easy to understand, such as time in file. Time in file is one of the components of all credit risk scoring models. Both FICO scores and VantageScore credit scores use time in file related characteristics to calculate consumer credit scores. In FICOs scores the category is worth 15% of your score points and in VantageScores scores it is deemed as being highly influential. Time in file is a fancy way to describe the age related metrics that are a part of your credit scores. And while your actual age is not taken into consideration there are two credit file age measurements that are critical.
File Age

What is

What is Time in File?

continued from page 1 reporting agencies will remove even the positive information. This is a policy decision, which can change, but as of the publish date of this article it appears the credit reporting agencies will maintain positive information for 10 years and then it will be removed. If course you can have a positive account that is well over 10 years old. Think of a mortgage loan that can be active for decades. Think of a credit card that is never closed as long as the issuer allows it to remain open. Think of student loans, which can take well over 10 years to pay back. The 10-year rule seems to apply to only inactive accounts that have been closed by either the consumer or the credit grantor. My father, for example, has a Sears credit card that he opened in the 1960s that he still uses from time to time. Its the oldest account on his credit report so his

time in file is almost 50 years, which is great for his scores. Credit scores have no memory so if old accounts are removed then you immediately and permanently lose the value of the age of that account in your scores. If you have other old accounts then it may be a non-issue. But, if your credit report goes from being, say, 25 years old to being 3 years old then you scores will undoubtedly go down.
Average Age of Trade

age measurement explained above, average age of trade can be manipulated by adding or removing accounts. As with file age, an older average age of trade is much better for the consumers score.
Myth about closed accounts not aging

The second, and last, method credit scoring systems use to determine age related metrics is the average age of trade approach. Every trade line has its own discreet age, again based off the date opened field. Credit scoring systems will determine the average age of trade by adding together the ages of each of your tradelines and then dividing by the number of tradelines. If you have two tradelines, one being 10 years old and the second being 20 years old then your average age of trade is 15 years. As with the file

Theres a credit age related myth thats pretty common. Some people suggest that when you close a credit card you lose the value of the age of that card in your scores. Thats not true. As long as the account is on your credit reports youll get the benefit of the age of the account. And, even when closed, accounts continue to age. A credit card that was opened in June 2000 is now 13 years old. If I closed that card it would still be 13 years old. And, in one year from now (June 2014) that card would be 14 years old.

Your credit report has an age. That age is determined not off of the creation date of your credit report but by the age of the oldest account. All of your accounts have a date opened field populated by some date. Credit scoring systems will go through each of your dates opened and locate the oldest one. The oldest account is used to set the age

of your credit file. So, if out of all of your accounts your Discover credit card opened 8 years ago is the oldest then your credit file will be 8 years old. And yes, the older your credit report is, the better for your credit scores. This is one of the reasons you should never, ever argue with the credit reporting agencies or the data furnisher to have old accounts removed. The negative information has to come off of your credit reports after a defined period of time, which is usually 7 years per the Fair Credit Reporting Act. The positive information can remain on your credit reports indefinitely as there is no legal requirement to remove it. Having said that, eventually the credit

Also in this issue

This Month in History pg 2 Internet Tidbit: TheSwizzle.com pg 2 By The Numbers: Tornadoes pg 3 Quotes to Live By pg 3 Quotes to Laugh By pg 3

Continued on back page

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This Month in History:

August 1, 1916 Hawaii Volcanoes National Park, location of the active volcanoes Kilauea and Mauna Loa, was established. August 2, 1776 The Declaration of Independence was signed in Philadelphia. August 28, 1963 Martin Luther King, Jr., delivered his I Have a Dream speech to about 250,000 people attending the March on Washington for Jobs and Freedom from the steps of the Lincoln Memorial. August 29, 2005 Hurricane Katrina made landfall near New Orleans, Louisiana, as a Category 4 hurricane.

Dear Friend,
Dear Friend, The Value of Paying Installment Loans Early If you were to pull up the FICO pie chart and do a little research on the relative impact of certain credit report items on your credit scores youd see that the second most important category is debt burden. 30% of the points in your FICO scores are as a direct result of your debt. Still, the challenge when focusing on debt is to make sure that youre focusing on the right kind of debt. Increasing your credit scores can be a challenge, especially for those who have negative credit entries. However, for those who do not the fastest way to improve your scores is to get out of debt. But for clarification purposes thats going to be revolving debt, not installment debt. Installment debt is debt with a fixed payment for a fixed period of time. Auto loans, mortgages, student loans, personal loans and boat loans are all examples of installment debt. This debt is usually secured by some asset, like a house or a car. That makes installment debt much less risky to the lender. If you were to stop paying your installment loans the lender would simply come repossess the collateral. And who wants their car repossessed? Because installment debt is much less risky to the lender it is also much less indicative of elevated consumer credit risk. Consumers can have millions of dollars of installment debt and still have FICO scores well in excess of 800. But, you cannot say the same thing about consumers who have large amounts of credit card debt, which is much more risky to lenders and, thus, has a much more significant impact to your credit scores. Paying off installment loans is great. Youre out of debt and its a great feeling. But, you should not expect your scores to shoot through the roof. Why not? Your scores wont increase much because they werent lowered that much when you initially took out the loan. No initial impact means no reward once its paid off. So, if you do choose to accelerate the pay off of installment debt then be realistic about your credit score improvement prospects. You wont see much of a bump, if any at all. FICO Scores Based On Experian DataTheyre Back! Several weeks ago Experian and FICO sent out a joint press release announcing that they would make available the Experian FICO score via FICOs consumer website, myFICO.com. This week FICO rolled out the product on their website. Now, for the first time since February 2009 consumers now have access to all three of their FICO credit scores. The news is bittersweet because the score isnt free. In fact, if you want your Experian FICO score youll have to cough up between $15.95 and $19.95. And, a lot has changed since 2009 that makes this news less compelling than it could have been. There are many free score options that mimic a FICO score so there may be no need to pay to see the real deal. CreditSesame.com, CreditKarma. com, and Credit.com all give away a free credit score, no strings attached. The scores are all scaled similarly to FICOs 300-850 score range. While these are not FICO scores they are directionally accurate. That means if you have good credit youll have a good score regardless of what model is being used. If you have bad credit youll have bad credit regardless of what model is being used. For those of you in the credit repair business you likely have a need to see the score changes as you complete your work. Some of the free score services allow you to see a free, new, score as often as each day. And while there is no tri-bureau free credit score, you can easily coble together two of the three credit reports (Experian and TransUnion) and quasi-FICO scores without paying a dime. Equifax is the only credit reporting agency that doesnt allow for their reports to be given away for free or a score based on their data to be given away for free. Sure, they have fee based products and you can buy your reports and credit scores but no free options.

Trivia Quiz: Dog Days of Summer

1. Through what part of the body does a dog sweat? 2. What is the smallest breed of dog? 3. What is the only dog with a black tongue? 4. What is the only Shakespeare play that has a dog named in it? 5. What is the term for a fear of dogs? 6. How many teeth does an adult dog have? 7. Contrary to popular belief, the Poodle did not originate in France. Where did it come from? 8. According to the American Kennel Clubs list of registrations, what is the most popular breed of dog? 9. What breed is the popular cartoon character Marmaduke? 10. What is the fastest dog breed?

Answers on back page

By The Numbers:
Tornadoes

Internet Tidbit
Does your email inbox fill up each day with product newsletters? You may not want to unsubscribe from them all, but it is tedious to go through each one every day. To easily combine your newsletters, deals, and offers into a single email, go to TheSwizzle.com. If you are receiving newsletters you dont want, The Swizzle also helps you get rid of them quickly and easily. With this free service, you will enjoy the newsletters you want to read and skip the rest.

Health & Wellness

Take a Walk

New research from the George Washington University School of Public Health has shown that the simple act of taking a walk after a meal could reduce the risk of developing type 2 diabetes in older people.
By Attila Thiry

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- The tornado that struck Moore, Oklahoma, in May will cost insurers approximately $3 billion in claims to cover personal, commercial, and industrial property losses. - In 2012 in the U.S., there were 939 recorded tornadoes, resulting in 70 deaths. - The United States averages about 1,100 tornadoes each year, leading the world in tornado activity. Canada is second with about 100 per year. - About 95 percent of all tornadoes in the United States are below EF3 intensity. Only about 0.1 percent reach EF5 status. - Texas leads the nation in tornado sightings, with an average of 126 per year. Kansas comes in second with an average of 96 annual tornadoes. Alaska, Rhode Island, Hawaii, and Vermont average less than one tornado a year.

Exercising is a great way to combat the development of many diseases. This study shows that it might be beneficial to spread out the time you spend exercising instead of having one burst of activityas long as that exercise is timed correctly. Instead of relaxing, sitting, and watching television after eating, which researchers found was the worst thing you can do, older people can

get the most bang from their exercising buck by heading outdoors. In the study, it was found that three short walks after meals were as effective as one 45-minute daily walk. The research showed that the benefits of this type of exercise were especially helpful for those in their 70s and 80s. Often people in this age range find long periods of exercise too difficult. It may be easier to incorporate

intermittent physical activity in this way. Older people also are less able to control blood sugar after meals. The effects of taking short walks after eating were significant in reducing blood sugar for up to three hours after a meal. So, next time you get up from the dinner table, tie on your shoes and take a jaunt around your neighborhood instead of crashing in front of the TV.

Quotes to Live By:

- You see things and you say, Why? But I dream things that never were and I say, Why not?

Quotes to Laugh By:

- There is no psychiatrist in the world like a puppy licking your face.

George Bernard Shaw

Ben Williams

2 August 2013 | Elite Credit News

Source: NOAA

Elite Credit News

| August 2013 3