Cancelled debt may constitute income that is subject to state and federal taxation.  If you receive a 1099-C form, consult with a tax professional.

Every lender has their own computer generated scoring model.  Lender A might give more importance to payment history than lender B.  Lender B might give more importance to length of credit history than lender C.  Etc.  And, most lenders now give more importance to credit card debt, than in the past.

One other factor that you  shared with me, in a separate conversation, is that you have opened new accounts.  Those new accounts will lower your scores for several months…until you prove you can handle the responsibility of that account.  It is because of this that we usually do not recommend new accounts within six months of attempting a mortgage loan.

You might be confused to find you have an account reading  AMEX/DSNB.  Macys is now associated with American Express, which is noted as AMEX in credit reports.

Credit Keeper has an error occurring…they are sending alerts regarding new account activity, usually a collection.  However, within the credit report the date collection was opened is not recent.  This appears to be a CK computer problem.

The person added as ‘authorized user’ does not need to use the account, or be provided a credit card for use, therefore the holder of the account is not impacted by this move.

Sometimes your scores will drop when activity occurs on a derogatory account, such as settling a collection account. However, the scores generally rise above previous level in 30 – 60 days.

It is important to keep credit cards open and active in order to constantly feed positive information into the credit report.  Ask a relative to add you on as an ‘authorized user’, also known as ‘piggybacking’, to their credit card(s).  An account that has been open for years, balance is low, and always paid on-time, is preferable.

‘Piggybacking’ came under major scrutiny in summer of 2007, and Fair Isaac, Co. was going to remove it from the scoring model. However, the authorized user account cannot be excluded from the scoring model under the Equal Credit Opportunity Act, so it is here to stay…in some cases it is a great tool if you wish to establish credit and/or boost your scores.

Credit Keeper home page is black, white, and red, and there is a man with glasses reading a paper. 

To view your scores and reports after logging in, below ‘monitor’ click on ‘access credit reports’, next page toward left side and middle of page click on ‘credit report’.  The first time you use the site you will generate a security word.  When you reach page with a score graph, just above that graph is tab to view reports.

After a month your scores and reports will update, but only if you order an updated report, which is the ‘report’ tab above the score graph.  In addition to your three credit scores you will notice ’score tracker’.  This score does not pertain to your three credit reporting agency scores…we ignore it.

Your scores and reports will update once a month, but only if you order an updated report, which is the ‘report’ tab above the score graph.

3/15/11  Currently Credit Keeper and mortgage scores are running fairly close, with exception of Equifax.  Equifax mortgage scores tend to be 20 points above the CK scores.