Ask Jennifer: Credit Scores

Your credit score affects the interest rate you pay on car loans and mortgages, but you can't always control some factors that affect it

Your credit score affects the interest rate you pay on car loans and mortgages, but you can't always control some factors that affect it.

Financial Planner Jennifer Lane joined us to answer some questions on credit card debt and building your credit score.

Carrie in Boston wrote, “I'm a long-time, loyal customer of Sears, and recently went there to make some purchases. The cashier told me my account had been closed for "inactivity." I've purchased all kinds of appliances over the years and never had any problems. Will this affect my credit score?”

Lane said that it is a temporary problem, one that she cannot solve. She said it’s much better to have a major credit card. She said that she may be missing a little bit of history, but does not recommend trying to reopen the card.

Judy in Weston wrote, “I'm getting divorced and discovered I have a very low credit score. My ex-husband managed our accounts and I was an authorized user but nothing was in my name. How can I start building credit? Not where I wanted to be at 50!”

Lane said it’s frustrating, but a reminder that people should be checking their credit report annually. She said that people want to make sure that there are cards and accounts in their name to build credit.

If you have a question for Lane you can email her at Jennifer@www.necn.com.
 

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