Banks and credit unions dont report bank account information, including closures, to the credit bureaus. However, closing an account may have an indirect impact on your credit in a few scenarios. Closing a bank account doesnt hurt your credit, at least not directly. However, there are some instances where closing an account could result in … Read more
Creditors play a crucial role in the financial system, yet their function is often misunderstood. In one sentence a creditor is an individual or institution that extends credit to another party, allowing them to borrow money that is to be repaid at a future date. This concise definition captures the essence of what a creditor … Read more
Many couples marry and decide to intertwine their finances along with the rest of their lives. For most couples, opening joint bank accounts and buying a car or home together is the norm. However, even after decades of living together and leading similar financial lives, spouses may find out their credit scores are different. There … Read more
The FICO score is one of the most widely used credit scores in the United States. There are actually multiple versions of the FICO score, each tailored for different types of lending. FICO Score 2 is specifically designed for mortgage lending. As you go through the home buying process, it’s important to understand how this … Read more
The path to a great credit score can be a long one, and it can have some bumps along the way. But if you keep your credit utilization ratio low and avoiding anything negative (like missing payments, etc. ) those bumps should be minor. Keep in mind that the credit game requires a fair amount … Read more
Credit score ranges in Canada vary based on the entity providing the score, but in general, they’re described as: Poor, Fair, Good, Very Good and Excellent. It can help to know where you stand on the credit score scale before you try to get different types of credit, like a loan, credit card, or even … Read more
If buying a home is on your wish list for 2025, it’s important to understand the minimum mortgage requirements for the most common loan programs. We’ll give you a quick tour of the loan landscape, so you know which loans come with the lowest credit score and down payment requirements, the highest loan limits and … Read more
Youre not limited to a single monthly payment. Smaller, more frequent payments can reduce your interest charges and provide other benefits. Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or … Read more
A charge-off can remain on your credit report for seven years from the date the creditor charged off the debt. A charge-off, which appears on your credit report after a lender or other creditor gives up trying to collect a debt you owe, remains on your credit report for seven years. Lenders view charge-offs as … Read more
A loanâs principal balance is generally the amount you initially borrowed. Making extra principal-only payments can decrease how much interest accrues on your loan and how long it takes you to pay off the debt. A principal payment is a loan payment that goes toward a loans principal balance. Generally, the principal is the amount … Read more