<html xmlns="http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv=Content-Type content="text/html; charset=unicode"> <style> <!-- a:link, span.MsoHyperlink { color:blue; text-decoration:underline; text-underline:single; } a:visited, span.MsoHyperlinkFollowed { color:purple; text-decoration:underline; text-underline:single; } p { font-size:12.0pt; font-family:"Times New Roman", "serif"; } .MsoChpDefault { font-size:10.0pt; } --> </style> </head> <body lang=EN-US link=blue vlink=purple> <div class=Section1> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>From: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>North Shore Advisory [amanda@northshoreadvisory.com]</span></p> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>Sent: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>Monday, February 01, 2010 1:16 PM</span></p> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>To: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>amanda@northshoreadvisory.com</span></p> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>Subject: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>High Credit Card Debt, Credit Scores, What is a consumer to do?</span></p> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>Follow Up Flag: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>Follow up</span></p> <p style='text-autospace:none'><b><span style='font-family:"Calibri","sans-serif";color:black'>Flag Status: </span></b><span style='font-family:"Calibri","sans-serif";color:black'>Completed</span></p> <div align=center> <table border=0 cellpadding=0 width=595> <tr> <td width="100%"><p><span style='font-size:8.0pt;font-family:"Verdana","sans-serif"; color:black'>Having trouble viewing this email? <a href="http://campaign.constantcontact.com/render?v=001vd12ggE3Xa5EOs4XD8hshiQaqANPTL9pL1RIcp0nTlgw69Oi5saautj_IbZBRdwRWf7MmhxEkjpDzYHEPYRd1PRV8qOayXsmWlgfEPH_WcOUfur00q2Z4_nbBH1NiCpz3ok3HTiSDCeRuCWtJQsyG110ntGwyKrrRxcmXd_Kios%3D" target="_blank" track=off shape=rect>Click here </a></span></p></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%" id="content_LETTER.BLOCK1" hidefocus=true tabindex=0 cols=0 contenteditable=inherit datapagesize=0> <tr> <td><div align=center> <table border=0 cellspacing=0 cellpadding=0 width=600> <tr> <td width="100%" valign=top><table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td><p align=center style='text-align:center'><img border=0 width=599 height=109 id="_x0000_i1025" src="http://ih.constantcontact.com/fs095/1102643164998/img/2.gif" name=ACCOUNT.IMAGE.2 contenteditable=false></p></td> </tr> </table></td> </tr> <tr> <td valign=top bgcolor="white"><table border=0 cellspacing=0 cellpadding=0 width=600> <tr> <td valign=top><table border=0 cellspacing=0 cellpadding=0 width=600> <tr> <td width="100%"></td> </tr> </table> <table border=0 cellspacing=0 cellpadding=0 width=600 id="content_LETTER.BLOCK4" aria-posinset=0 aria-setsize=0 hidefocus=true tabindex=0 cols=0 aria-level=0 contenteditable=inherit datapagesize=0> <tr> <td width=410 valign=top><div align=center> <table width="100%" border=0 cellpadding=0 cellspacing=0 bgcolor="#CCCCCC"> <tr> <td><p align=center style=' text-align:center'><span style='font-size:18.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Credit News&nbsp;</span><span style='font-size:18.0pt; color:black'> </span></p> <p align=center style=' text-align:center'><em><span style='font-size:18.0pt;font-family: "Century Gothic","sans-serif";color:black'>by Tracy Becker</span></em><em><span style='font-size:18.0pt;font-family:"Century Gothic","sans-serif"; color:#990000'> </span></em></p> <div> <p align=center style=' text-align:center'><span style='font-size:18.0pt;font-family:"Century Gothic","sans-serif"; color:black'>February&nbsp;2010</span></p> </div></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table width="100%" border=0 cellpadding=10 cellspacing=0 datapagesize=0 cols=0 bgcolor="#CCCCCC" id="content_LETTER.BLOCK22" aria-posinset=0 aria-setsize=0 hidefocus=true tabindex=0 aria-level=0 contenteditable=inherit> <tr> <td><p align=center style='text-align: center'><span style='font-size:24.0pt;font-family:"Century Gothic","sans-serif"; color:black'>High Credit Card Debt, Credit Scores, What is a consumer to do?</span></p></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div> <div align=center> <table width="100%" border=0 cellpadding=5 cellspacing=0 datapagesize=0 cols=0 bgcolor="#CCCCCC" id="content_LETTER.BLOCK38" aria-posinset=0 aria-setsize=0 hidefocus=true tabindex=0 aria-level=0 contenteditable=inherit> <tr> <td color="#857d72"><div> <p size=3 face="Times New Roman">&nbsp;</p> <p size=3 face="Times New Roman"><span style='font-size:10.0pt;font-family: "Century Gothic","sans-serif";color:black'>Credit card debts are going into default at record highs.&nbsp; With unemployment up, and home values dipping, creditors are having a very hard time getting paid.&nbsp; Consumers are confused about how late payments affect their scores and what to do about making payments to creditors.&nbsp; We find that many good people are making the wrong decisions out of fear and misinformation.</span></p> <div> </div> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>When it comes to credit scores it doesn't matter whether you have a bankruptcy, judgment, late payment for $10.00 or $10,000.00, repossession, charge off or collection (when you don't pay a creditor at all for a length of time), settlement, or a foreclosure.&nbsp; Your score will drop anywhere from 60-100 points for your first derogatory mark.&nbsp; The higher your score the more it drops.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>For example:&nbsp; If you have a 780 Fico score and you have a $10.00 late payment with Macys, your score will go down to a 680.&nbsp; If you have a 680 score it will drop down to around a 600 -620 for the same late payment.&nbsp; If you had a bankruptcy 3 years ago your score could be higher than the consumer who just had the new late payment.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>The scores are more sensitive to new derogatory information.&nbsp; Since the score is evaluating your risk level as a consumer, for all types of financing, it is most concerned about who you are <i>now</i>!&nbsp; If you defaulted yesterday you are a much higher risk than the consumer who hasn't had a problem in 3 years.&nbsp; The older the late payment the less it affects your score and vice versa.&nbsp;&nbsp;All derogatory accounts stay on the report for at least 7 years, and bankruptcy 10 years.&nbsp; They can be removed earlier by companies like ours.</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Besides late payments, what affects the score dramatically is balances.&nbsp; Balances that are over 10 percent of the limit on revolving credit have a greater impact on the scores.&nbsp; Revolving credit is any account on your credit report that you have the ability to charge the maximum and pay the minimum.&nbsp; &nbsp;The closer you are to your limit the more your score drops.&nbsp; Once you go over the limit, even by $1.00, your score will plummet.&nbsp; It can decrease 100 points from this alone. &nbsp;It is important to note that to keep your score high you must keep all your revolving credit balances lower.&nbsp; If one is high and 5 are low it will still hurt your score.&nbsp; You are better off paying them all down, as low as possible, rather than paying the larger balances down to the lowest dollar amount.&nbsp; It is the ratio of all your revolving credit balances to their limits that holds the most weight.</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Now that we know all these facts it is clear why many consumers find their limits being dropped when they have carried high balances and incurred recent late payments.&nbsp; Over the past year or so creditors have been guarding against defaults by dropping limits and increasing interest on consumers that have paid late or carry high debt ratios.&nbsp; &nbsp;They don't care about who you were in the past only what you are doing now.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>It has been the Wild West with the credit card companies.&nbsp; They have been able to hike up interest rates, sometimes 30 percent if they see any defaults, with no hesitation.&nbsp; They have used what is called &quot;universal default&quot;.&nbsp; &nbsp;This is when a creditor, like Chase, watches your credit profile and sees you were late last month with a Capital One Visa card.&nbsp; Chase then hikes your interest rates (and or reduces your limits in some cases closes your account) as high as possible because of your history with another creditor.&nbsp; This will no longer be legal in July 2010 when the credit card rule changes go into effect.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>You should be able to get a sense now of how things work.&nbsp; If you have had one or two late payments and are having trouble paying your bills your credit scores have already dropped dramatically.&nbsp; Many consumers, at this point, should be much more concerned about protecting themselves, not their creditors.&nbsp;Juggling payments to creditors, paying them before yourself with concerns about your credit is not wise once your score has gone in a negative direction.&nbsp; When money is tight consumers should be responsible to unsecured creditors last.&nbsp; There are other choices to consider.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Debt settlement, debt consolidation, and bankruptcy are all good choices depending on your situation.&nbsp; If bankruptcy hurts your credit as much as a new late payment why would a consumer be so opposed to it?&nbsp; Many consumers are so afraid of what the word implies.&nbsp;</span></p> <p size=3 face=Calibri><i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Bankruptcy </span></i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>was created to help consumers who, like many these days, have lost their jobs or have medical expenses that are too overwhelming to bear.&nbsp; Its whole purpose is to protect us as consumers.&nbsp; After you have gone to bankruptcy your credit can be cleaned up within two years.&nbsp; In most cases you can keep your primary residence if that is the only property you own.&nbsp;</span></p> <p size=3 face=Calibri><i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Debt settlement</span></i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'> means you can stop paying your creditors (credit card debt) and in time settle the accounts down to 20-50% of what you owe.&nbsp; You will receive a 1099 on the saving and pay taxes after it is added to your income.&nbsp; Your credit can be cleaned up within a year or two after your accounts are paid off.&nbsp;&nbsp;</span></p> <p size=3 face=Calibri><i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Debt consolidation</span></i><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'> can be used for people who can't go to bankruptcy and don't want to go into a debt settlement program.&nbsp; Consolidation is done by non-profit companies that pay your creditors, less than the minimum payment, and reduce interest rates down to 5 or 6%.&nbsp; You pay them one payment a month and they, for a small fee, pay your creditors for you.&nbsp; This also hurts your credit, and it can take a long time to finish paying off debt. Credit can always be improved once the financial picture has become stable.</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>It is also important to know that there are many different types of scoring systems.</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>The Fico score is the one that the mortgage banking industry uses.&nbsp; A good Fico score is a 720 to a 740.&nbsp; A great Fico score is a 740 and above.&nbsp; The Plus score is what you will find on sites like <a href="http://rs6.net/tn.jsp?et=1102985183033&amp;s=1&amp;e=001InCWdZzPK289MWSrV4cQiihcuRCn-cfDnq0koUtGNj4HIXva_deSGK8P9CXaPNTWESNLPIywfo9pE-R38Jds7MQROccBblx5wNrVASxWlZp-yM6-_dlKZLjW-CMUxL9c" target="_blank" shape=rect>www.annualcreditreport.com</a>, <a href="http://rs6.net/tn.jsp?et=1102985183033&amp;s=1&amp;e=001InCWdZzPK282vwbxYjPZVGWtnak46EjekXbYm3mGJEvso2fEzxkZ_65PDBdIP0W3651-ZnvYIvk9N9H7rhOgkLLPVzve19QGpBTAx2zBXC_5uFT-w55ucw==" target="_blank" shape=rect>www.freecreditreport.com</a> and <a href="http://rs6.net/tn.jsp?et=1102985183033&amp;s=1&amp;e=001InCWdZzPK2-rqXZmMDw7hzyYeLeR9Ic2HKfNjpzF2muplvuAaIF-ZidccwhPNgJohoVL4AeSTYGjaa1gHhnhGkXDT8vM0mePh22-JK_3RhV4R2rxJKI1wA==" target="_blank" shape=rect>www.truecredit.com</a>; these sites are where consumers can go to buy scores direct. &nbsp; Plus scores are 40 points higher than Fico scores.&nbsp;</span></p> <p size=3 face=Calibri><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Vantage scores are yet another score variation offered online. Experian created the Vantage score a few years ago to compete with Fico.&nbsp; Vantage scores are usually 200 points higher than Fico and have letter grades as well.&nbsp; It is essential to know what score you have pulled and how it relates to the one you are being evaluated by.&nbsp; &nbsp;You can buy your Fico score at </span><span style='font-size:10.0pt; font-family:"Helvetica","sans-serif"; color:black'><a href="http://rs6.net/tn.jsp?et=1102985183033&amp;s=1&amp;e=001InCWdZzPK285sA2UwPvXabAE7YBtQ6_lV-BdiUBZlLhSJukYX7J-VJSUqo9_NtuXH3U_z5vZCa8ozbakwznh2iUC4n-M6XcUbBnPJBtD4XU=" target="_blank" shape=rect><span style='font-family:"Century Gothic","sans-serif"'>www.myfico.com</span></a></span><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'> but you will only be able to see your Trans Union and Equifax Fico score.&nbsp; &nbsp;Experian will not allow Fico to use their info to tabulate and sell the Fico score to consumers.</span><span style='font-family:"Helvetica","sans-serif"; color:black'>&nbsp;&nbsp;</span></p> <p><span style='font-size:10.0pt;font-family:"Arial","sans-serif"; color:black'>Feel free to call us if you have any questions! </span></p> <div> </div> <p><strong><i><span style='font-family:"Century Gothic","sans-serif"; color:black'>Great credit brings great opportunity!!</span></i></strong><em><span style='font-family:"Century Gothic","sans-serif"; color:black'> </span></em></p> </div> <p><span style='font-size:10.0pt;font-family:"Century Gothic","sans-serif"; color:black'>Copyright © 2010 North Shore Advisory, Inc.</span></p></td> </tr> </table> </div> <div align=center> <table border=0 cellspacing=0 cellpadding=0 width="100%"> <tr> <td bgcolor="white"></td> </tr> </table> </div></td> <td width=190 valign=top bgcolor="#990000"><table border=0 cellspacing=0 cellpadding=0 width="100%" id="content_LETTER.BLOCK18" aria-posinset=0 aria-setsize=0 hidefocus=true tabindex=0 cols=0 aria-level=0 contenteditable=inherit datapagesize=0> <tr> <td><p align=center style='text-align:center'><span style='font-size: 10.0pt;font-family:"Arial","sans-serif";color:white'><img border=0 id="_x0000_i1026" src="http://ih.constantcontact.com/fs095/1102643164998/img/1.jpg" name=ACCOUNT.IMAGE.1 contenteditable=false></span></p></td> </tr> <tr> <td color="#ffffff"><p align=center style='text-align:center'><span style='font-family:"Century Gothic","sans-serif";color:white'>Tracy A. 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