Manipulating Your Credit Score
There's been much buzz recently about how easy it is to manipulate credit scores. A handful of companies, some of which advertise on radio and television, promise to improve poor credit scores, which determine how easy and expensive it is for people to take out loans. I recently spoke with Larry Chiang, founder of Duck9.com, which promises to help people boost their credit score to an impressive 750.
Here's how it works: Duck9.com reminds people to pay their bills on time, which is key to improving credit scores. Students—the service is aimed at those in college—can pay $9.95 a month for this reminder or put themselves on a 25-to-40-day wait list and get the service free. "Twenty-four on-time payments in a row get you to a FICO score over 700," Chiang says. "It's very binary."
My take: Life doesn't need to be this complicated. Pay attention to the bills that arrive by snail mail or E-mail, and you won't need to rely on a company to give you reminders.
Tags: credit | personal finance
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Reader Comments
d.u.c.k. Deep Underground Credit Knowledge
@ John of Florida, 'don't borrow'.
The biggest expense in most people's lives is interest.
@ Teresa of NC, "Get Real"
The key reason why I'm guessing you have great credit is that you watch and wait for email/ma
il AND "take 15 seconds to write on a calendar".
@ Angela of TX, "No Way"
Your observation after watching your scores 'like a hawk' is correct, but what you may not realize is that scores are fairly stagnant. Duck9 focuses on making college students first 12-24 credit interactions PERFECT. Starting and keeping a great score high is easier than fighting uphill.
A great book I read is "Ultimate Credit Handbook" by Gerri Detweiler. She agrees that on-time payments is the critical component in your credit score.
@ Veronica of NY, "love the website"
We take privacy and credit card fraud very seriously. I have also testified before the 108th Congress on privacy. http://www.creditcard.org/testimony.htm
Duck9 doesn't take credit card number(s). What we do is take the bank name, due date and appx balance. We do not collect credit card numbers.
Thx to readers and especially commenters. Let me be a resource for you. Text message the company questions at 650-566-9600 or 512 775-8100. My direct line is 650-566-9696; or email me 'larry (at) duck9 dot com'.
love the shady website
I went to the website for the heck of it, and clicked on their waiting list info. They want all your credit card numbers, but the site isn't even encrypted. Nice credit card fraud waiting to happen...
Give me a break....no, really... please do!
Payments on time are not the only factors when involving your credit score. Debt ratio is a huge factor also. If you are making too little compared to how much you owe to debtors then this will take its toll on your score. Besides...why pay out more money just to have a reminder of when to pay bills? Write in it your planner or on a Post-it and put it on your computer if you don't have a calendar...That extra $10 could go on that credit card bill or add it on to your light bill .... never hurts to pay a little over on a bill. It can help out in the long-run if it's an on-going revolving account.
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