Credit Cards Good Credit

Most lenders use credit scores when considering requests for loans or credit which is why this is an integral part of understanding why a good credit score is important. The importance of having a good credit score does not end there. It's also used in determining your interest rate, the amount of your down payment and the variety of mortgage types available to you if you're buying a house, your ability to get a car loan, the premium on your auto or homeowners insurance, and even your ability to get a job. If your credit score is on the low side, you'll pay a higher interest rate on loans and credit cards. To get the best interest rates, your credit score should be 720 or above.

Regarding your circumstances, it is unusual for someone with your credit rating to be denied a credit card. However, you did not mention the name of the company the charge off is with, your income, and employment history. All these factors are important to consider along with your credit score. If the charge off is with Bank of America you still owe them the money, and it makes sense that they would deny you credit, regardless of your good credit score. Bank of America reserves the right to not lend to you if you have had any delinquency, collection, or charge off with them in the past. Furthermore, it is up to Bank of America who they choose to lend money to. Bank of America is not obligated to lend to anyone regardless of a person's credit rating.

Federal law (US Code Title 15, §1681c) controls the behavior of credit reporting agencies. This law is known as the Fair Credit Reporting Act (FCRA). Under FCRA §605 (a) and (b), an account in collection will appear on a consumer's credit report for 7.5 years. The clock starts approximately 180 days after the date of first delinquency on the account. To learn when an account will be removed by the credit reporting agencies (TransUnion, Equifax, and Experian and others), add 7.5 years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the seven-year rule.

If you believe that there is an error with your credit report I encourage you to read an article I wrote, Dispute Credit Report. To learn more about resolving debt, see the Bills.com resource Consolidate My Debt.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/