We got an email via Ask The Expert recently with some great questions about credit. I thought all of you might benefit from a little credit Q&A as well, so here are some highlights of my response to the reader:
Q: Is it a good idea to get a credit report for myself? I have heard that requesting your own credit report decreases your score; I don't even know what my score is.
A: Anytime a person requests their own credit report or score (also known as a self-inquiry), neither is affected. You can request a credit report from each of the three credit reporting agencies (Experian 
, TransUnion and Equifax ) annually free of charge . However, you'll have to pay for your credit score, which you can do at any of the previously mentioned credit reporting agencies. To find out where you stand currently, I'd recommend purchasing your score.
Q: I have one credit card that is two years old with a $3,000 limit that I don't use — have never used — what is this doing to my credit score?
A: This credit card that you don't use increases the available credit you have, so you're using less of your possible credit, which is a good thing. You've also had it opened for a while, so it may be helping your length of credit history. One thing you want to consider with this card is that because you don't use it as frequently, you might not catch any fraudulent activity as quickly.
Q: I have another credit that my mom thinks I should switch to a miles rewards card. Is switching the balance a good idea and what will it do to my credit score? Can I ask them to decrease my interest rate?
A: If you decided to switch the balance to a new card, you may have an inquiry by the credit card company that could affect your credit score. If you think that the rewards you'd get from a new card would be worth it, switching may work for you — be sure that you research all the terms of the new card before you make any changes. If you stick with your current card and are interested in lowering your rate, I'd say ask. If they say no, at least you tried!
We'd like to talk more with you about credit in some upcoming posts! What credit questions do you have?
My credit score is being hurt by my student loans! Why am I being penalized for this? Also, I recently discovered via a credit report that a particular credit card which was closed in 1992 was STILL on my credit report!! I called that company and they removed the amount however, it is still on my credit less the dollar amount. What can I do about these situations?
jett -- If you're making your scheduled payments, your student loans shouldn't be negatively affecting your credit score. Actually, by having a different type of credit, your score may be helped by them and show positive credit history. As far as your old credit card is concerned, note that closing an account doesn't make it go away. A closed account will still show up on your credit report, and may be considered by the score. Accounts continue to report your payment history associated with any outstanding balance. If the card was closed in 1992, but a balance remains, it will continue to report.
My son went through a divorce and while separated his ex wife lived on their joint credit card. Now the CC is coming after him for payment which he does not owe. How will this one card appearing delinquent on his credit report hurt his chances for student loans?
Lou -- Whether or not a credit card delinquency would affect your son's ability to get a private student loan would depend on the credit criteria that the lender uses to make the loan decision. However, Federal Stafford Loans are not based on an individual's credit history, so your son may be able to secure some funds for his education that way. Either way getting the delinquency taken care of and working to clean up his credit report is very important. Hopefully he's moving forward to get the issue resolved.
I defaulted on prior loan and had a judgement against me(not with wells fargo) this was when i first had credit. The responisible party attached itself to my bank acct took what was in there, which was not much and put my account in the negative. How long will they stay or allowed to stay by law or by wells fargo guidelines.???I am afraid it will shut down my account in the negative. What happens do they have to give up for the moment or what?
Hi Shane -- Generally, once a judgment has been rendered, lenders and collection agencies are able to garnish your wages. Other than the amount of the debt, there is no limit to the number of times they can seek funds from your account. The best solution in a situation like this is to contact the lender you owe to see if they'll set up a plan for you to repay the loan. This way they'll know you're on track to repay your debt and won't need to garnish your account to recover what you owe them.