Junk snail mail and bad credit can go hand in hand.
I can’t begin to count the many clients we have had with credit
issues due to discarding a bill thinking it was junk mail.
For example:
Jack uses his American Express card for all of his purchases since he gains reward points. He rarely uses his other credit cards. One day he is at a local boutique with his wife and the store only accepts Master/Visa. He uses his card for the first time in 11 months. Three weeks later he gets an envelope from Bank of America and assumes it is probably a promotional offer or some kind of junk mail. He shreds the envelope only to find out a month later that he is late on his BOA Master Card payment. He immediately pays the bill and the rep on the phone says he will waive the late fee. Jack is breathing easy thinking all is well, but little does he know that late payment for less than $100 has dropped his Fico score from a 780 down to a 670. Six months later when trying to refinance his mortgage and save $1000 a month he learns the cost of that late payment is much higher than he dreamed possible. He cannot refinance due to his damaged credit.
Always open all mail to insure it is not a bill from a creditor you are not used to seeing. It could be a medical bill, collection agency bill, credit card, or even a summons.
For example:
Jack uses his American Express card for all of his purchases since he gains reward points. He rarely uses his other credit cards. One day he is at a local boutique with his wife and the store only accepts Master/Visa. He uses his card for the first time in 11 months. Three weeks later he gets an envelope from Bank of America and assumes it is probably a promotional offer or some kind of junk mail. He shreds the envelope only to find out a month later that he is late on his BOA Master Card payment. He immediately pays the bill and the rep on the phone says he will waive the late fee. Jack is breathing easy thinking all is well, but little does he know that late payment for less than $100 has dropped his Fico score from a 780 down to a 670. Six months later when trying to refinance his mortgage and save $1000 a month he learns the cost of that late payment is much higher than he dreamed possible. He cannot refinance due to his damaged credit.
Always open all mail to insure it is not a bill from a creditor you are not used to seeing. It could be a medical bill, collection agency bill, credit card, or even a summons.
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