Credit Questions? Just Ask Nicole

Change Bad Credit Habits or Credit Restoration Will NOT Work!

Your credit may be bruised and abused, but there's plenty of different ways to improve it. It may take a little time - and maybe an act of Congress - but it can be done. :)

Out of the many strategies and tactics that can be used to help restore your credit, nothing can replace knowledge and accountability.

Both play a vital role in the credit restoration process and if either is ignored, your chance of credit success - especially long-term success - is slim.

Now I can help you take care of the knowledge part. After all, the very core of my business is helping you "get smart about your credit."

But when it comes to accountability, that's something you have to take care of on your own.

I can give you all of the credit knowledge, tips and best practices in the world, and give your credit an overhaul by taking you through my credit restoration process, but if you refuse to implement what you learn and be more accountable for your financial actions, then it all just becomes pretty much a waste.

In order to improve your credit, become a smarter consumer, and move forward in life without repeating the credit mistakes and mishaps of your past, you must be willing to fully commit to the credit restoration process.

And part of that commitment involves being more accountable by kicking old, bad credit habits to the curb!

You can not continue to do things that cause bad credit - like maxing out credit cards, paying bills late, bouncing checks or ignoring your financial obligations - while going through the credit restoration process to achieve better credit.

That's like oil and water - the two simply do not mix!

If you don't ditch the bad credit habits and become more accountable with your money and finances, credit restoration will not have a snowball's chance in hell of working for you!

Good Credit, Bad Credit and Marriage

Thanks goes out to Tiffany, from Chicago, IL, for asking this question!

"I'm getting married this summer and even though I love my future husband to death, he has horrible credit! My credit, on the other hand, is pretty good. My question is when we get married, will I automatically inherit his bad credit? What's going to happen to my credit after we get married? Should I be worried?"

Tiffany, I'm sure you already have plenty to worry about with your upcoming nuptuals, so you'll be pleased to know that you won't have to also worry about inheriting your future husband's bad credit!

When you get married, your spouse's credit does NOT automatically become yours.

You each have your own separate credit profile before you get married, and you each will keep your own separate credit profile after you get married.

However, if you apply for credit jointly, whether married or not, you both will be legally responsible for that debt, and that debt will appear on both of your credit reports and affect each of your credit scores.

Bottom line, there's no need to worry. Nothing will automatically happen to damage your good credit simply because you are marrying someone with not-so-good credit.

Just continue to keep up your good credit habits and check your credit reports often for accuracy to be sure your credit stays in tip-top shape.

And if you haven't already done so, you may want to encourage and help your fiance to start working on ways to improve his credit, as well as to learn how to manage money and credit better than he has in the past.

You'll find that both of you having good credit will come in handy over the course of your lives together, especially when it comes to things like buying a house, getting life insurance, etc., where both of your credit histories will play a part in the credit decision process.

Remember, that if one of you has good credit and the other one doesn't, and you apply jointly for credit or insurance, the person with the bad credit history may cause you to pay higher rates or fees, get less-than-ideal terms, or be declined all together.

Best of luck to both of you and congratulations!

Playing Catch-up!

It's been a little over a week since I posted to this blog, so needless to say, I have some catching up to do!

Thanks for all of the emails and questions that have been submitted recently. I'm going through them just as fast as I can, so expect some new postings soon!

Cartoon: No to Loan, Yes to Credit Card - Go Figure!

FREE Online Tax Filing Services

If you have NO legal requirement to file a 2007 federal income tax return this year, and you are only filing in order to receive your economic stimulus payment, you can file your return online for FREE using these companies.

If you DO have a legal requirement to file a 2007 federal income tax return this year, you can file your return online for FREE using these companies, if you meet certain requirements.

I hope you're not waiting to file until the very last minute like me!

File Your Taxes to Receive Economic Stimulus Payment - One Week Left!

You have exactly ONE WEEK FROM TODAY to file your federal income tax return by the deadline of April 15, 2008.

I've recently received a few questions regarding the economic stimulus payment that's going out to American consumers starting this May, and whether or not you have to actually file a tax return in order to receive it.

Well, the answer is...

You have to file a federal tax return, even if you haven't before, or would otherwise not be required to file this year, in order to receive your economic stimulus payment.

Even retirees, disabled veterans, and low-income workers who are usually exempt from filing a federal tax return will have to file this year in order to receive a stimulus payment.

You must have:

• a valid social security number
• $3,000 in income
• and file a 2007 federal income tax return

To get more information and find out all you need to know about the economic stimulus payment program, click here.

You might have already received a notice in the mail about your economic stimulus payment from the IRS that looks like this.

Just be sure to file your 2007 federal income tax return ASAP. The clock is ticking and you have one week left!

To calculate what your economic stimulus payment might be, use this calculator.

And if you want to know when to expect your economic stimulus payment, click here for the IRS payment schedule (which is based on the last 2 digits of your social security number).

Consumer Credit & Debt Rises - AGAIN!

Following are the preliminary consumer credit statistics for February, 2008:

• revolving credit increased at an annual rate of 5.9%, with a total outstanding of $951.7 billion

• non-revolving credit increased at an annual rate of 0.4%, with a total outstanding of $1,588.1 billion

• overall, consumer credit increased at an annual rate of 2.4%, with a total outstanding of $2,539.7 billion

If you're interested, remember to check back here next month to compare these preliminary February, 2008 stats to the revised numbers that will be released later.

The revised figures for January, 2008 are:

• revolving credit increased at an annual rate of 7.1%, with a total outstanding of $947.0 billion

• non-revolving credit increased at an annual rate of 3.6%, with a total outstanding of $1,587.6 billion

• overall, consumer credit increased at an annual rate of 4.9%, with a total outstanding of $2,534.6 billion