Tuesday, May 30, 2006

Credit Monitoring

Well, as a continuation of my previous post, I went ahead with my 0% balance transfer plan. Just to recap, I've extended myself a $33000 line of credit from MBNA that will go straight to a GMAC savings account and earn interest until January 2007 at which point, I will pay off the entire balance as the 0% offer expires.

As part of a little experiment, I wanted to see how much doing this would affect my credit score. While obtaining a credit report is free from annualcreditreport.com, obtaining your FICO score is not and can run up to $45 to obtain all 3 scores.

So I signed up for a 30-day free trial credit monitoring service provided by Experian which also provides what they call a PLUS score which I had never heard of. According to Experian, it ranges from 330-830 so I thought it is a very similar scale to the FICO score. Now, I think paying a monthly fee for "credit monitoring" is a waste of money; if anything, credit card companies should provide this service for free since they will benefit most from it from not having to absorb any fraudulent disputed charges. Nonetheless, I plan on canceling my free trial but I did obtain my credit score pre-0% balance transfer... a score of 784.

It's amazing how many different credit accounts (many closed) that I have listed on my report. Just my student loans alone are something like 7-8 accounts although I long ago consolidated them into one. Back to the main point. The line of credit has shown up on my MBNA credit card statement but has yet to be transferred to my checking account.... I'll keep updating..
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