Rock-Bottom Credit Scores Are Even Harder to Hit Than 'Perfect' Scores

Swiping a credit cardWalletPop readers already know that credit scores fall into a range between 300 and 850. While it can be difficult -- if not impossible -- for most of us to reach that "holy grail" of 850, it turns out that it's even tougher to hit the bottom of the barrel. Even people who make every mistake in the book don't drop to a 300 score, experts say.

Part of the reason is that lenders have a tendency to stop handing money to people who blow off their bills and have to be hounded for payments. That said, though, banks once again have begun issuing credit to people with poor scores, although the cost for them to borrow is much higher.While having a bunch of credit cards in collection will certainly damage your score, it won't drag it all the way down to 300. It will drag it down far enough, though, that applying for a slew of new credit cards and getting them is an unlikely prospect. (Not to mention the fact that applying for a whole new batch of credit cards is also a downer for your score.)

As this article points out, simply having a long credit history will protect you against ever hitting 300. Even if you've been foreclosed on, or had a car repossessed, you're not looking at a 300, because the score-calculating method ranks you higher if you have a variety of loans (like a mortgage or a car loan). According to Mechel Glass, director of education at nonprofit credit counseling organization CredAbility, there's no one single financial misstep that will drop your credit score into the depths. "It's a combination of numerous things," she says. "The overall factor is this person hasn't managed their finances well."

Glass tells WalletPop that the lowest score she's seen was in the low 500s, and that belonged to a client who recently had both unpaid credit card bills and a bankruptcy. While so-called "subprime" credit scores (generally considered to be anything under 600) are on the rise in America, "it's not the end of the world," if a person's financial problems drive down their score. "What we instruct people to do is make sure they get current on their other debts and make a new credit history for yourself," she says. "It's going to take time, because all this didn't happen overnight."

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Do yourself a "HUGE FAVOR" and carefully read this:

The 21st Century Act: Final Amendments to Regulation CC Section:
"Prohibits" reimbursement of Credit, Loan, and Finance Balances to a "Bank Entity" leaving only "Nonbank Consumers" able to receive reimbursement, as specified on Pages 85 and 86.

The 21st Century Act states on pg. 85 and 86 that "Only Nonbank Consumers can suffer losses and File for
Re-credit or Re-claim on any Accounts under the Federal Reserve System" also “Any Second or Third Party Presenters utilizing a Banks Documentation, Contracts and/or Agreements to seek Claims shall be considered to be that Bank under the Rules and Regulations”, the Expanded Definitions also includes Credit Cards and Home Equity Lines of Credit.
Also on Pages 100 and 101 "In any Financial Claims the Indemifying Bank (Parent Bank) must be Identified".

(Left-Click to Search Link)
21st Century Act: Final Amendments to Regulation CC

This Federal Law signed January 1, 2006 makes it "Fraudulent" and therefore "Illegal" for the 3 Major Personal Credit Reporting Agencies: Equifax, Experian, and TrasUnion to allow the Banks and the Banks "Third Party Presenters" to place any claim of "Negative" or "Potentially Negative" Accounts on your Personal Credit Based upon the fact that they have no "Legal Grounds or Claim" to the Money.

This is an "Unfair Practice" that diminishes our Financial ability to support ourselves and adversely affects our ability to gain work in many areas which breaks "Antitrust Laws".

These Rules also back claims of: "Aiding and Abetting" Racketeering and Extortion (of Finance Accounts and Personal Credit Reports), Pandering (of Credit and Loan Accounts, and Conspiracy to wit), Theft, Fraud, Federal Mail Fraud, and Telephone Harassment. Also "Threatening of the U.S. Financial Infrastructure", which is a "Capital Crime".

In order to engage the Federal Trade Commission to act against this injustice we must File many Claims, as these Reports must be Filed by a large number of people in order for the Federal Trade Commission to pursue
"Legal Action".

(Left -Click to engage Email Address)

This is way easier than "Occupying Wall Street"!

March 11 2012 at 4:52 PM Report abuse rate up rate down Reply

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January 12 2012 at 5:27 AM Report abuse rate up rate down Reply