310.376.9865
While not a credit repair expert, I tried to keep my ears open for any credit info that comes my way.
This morning I heard on the radio someone who studies credit.
He indicated when you go into a department store and accept their offer of 10% off if you apply for a store credit card, it may have an adverse affect on your credit score.
Lets say you buy a big screen TV for $1,000 and accept the store credit card, and max out the credit limit of $1,000. First, Store credit cards do not add any weight to your credit score. Second, our credit score is affected by your debt ratio. Therefore, you just used 100% of your credit on this particular card ($1,000 credit card limit, used $1,000 worth of credit for TV), and this may result in a 100 point deduction in your credit score. Now, if you pay off your credit card debt within 30 days, then your score will probably only take a 25 point hit.
Consider whether you really need this new TV.
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Los Angeles/Orange County Chapter 7 Bankruptcy Attorney- A Debt Relief Agency.
- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
