How to Build a BETTER Credit Score
we hotflash by JT Robinson best blog for women over 50 HEALTH, BEAUTY, LIFESTYLE, and more
HELLO LADIES! Welcome to my Blog!
Everyone has heard of credit scores. What does it mean?
Why do you want a high credit score?
Very SIMPLE…YOU SAVE MONEY! READ Here
HOW to Build a BETTER credit score
The difference between a great credit score and
a not so good credit score could save you $6,000 on a five year $20,000 car loan. Because lenders weigh both your credit report
(history of your financial actions) and your credit score
(a numerical snapshot of your financial actions) when deciding terms
and rates for everything from credit cards to home mortgages. Read this to separate fact from fiction, and then you can improve your own credit score!
Checking your credit score more than once a year with damage it.****FALSE****
While it is true applying for a loan or line of credit will cause your score to dip 5 to 10 points credit agencies
distinguish between these types of requests, and consumers pulling their OWN requests. So you should not be discouraged from requesting your score and reviewing it at least once a year. It is reported that 1 in 5 reports contain an error that can effect your score. So finding and fixing it can help. You are legally entitled to a free report from the three main agencies at least once a year. (TransUnion, Experian, and Equifax)
It’s better to make minimum one time payment than a larger late payment ****TRUE****
Your ability to make payments on time counts for as much as 35% of your credit
score. A late payment can lower it quite a bit. So keep on a good schedule,
to avoid late payments.
When you claim BANKRUPTCY your credit is wiped clean.****FALSE****
Bankruptcy is a last resort to control your finances. It doesn’t give you a clean slate on your credit report. The public records of the court proceedings linger on your credit report for 7 to 10 years. After filing BABY STEPS start to pay your bills on time, spend conservatively and regular responsible use of credit will build your credit back up slowly.
Extending your credit limit raises your score ****TRUE****
By most measures, a third of your score is determined by credit utilization. That’s the ratio of how much debt you have and how much is available to you. In general you want to be using 30% or less of what’s available to you. A way to improve your ratio is to pay down balances or increase limits.
Once you’ve settled a debt it drops off your credit report ****FALSE****
Whether it’s good or bad information on your credit report stays on there 7 years.
Having a fistful of credit cards hurts your credit score ****FALSE****
Less isn’t more when it comes to the number of credit cards in your wallet. Banks like to see how you manage your credit. remember closing an account means you have less credit and can hurt your score.
You can pay to have your financial mistakes erased ****FALSE****
Beware of companies that claim they can clear a credit report of your mistakes.
What these companies do is flood credit reporting agencies with dispute letters.
But once the creditor verifies that is was your mishap it goes right back on your credit report. Only factual inaccuracies can be permanently changed ( like a duplicate account)
Have a Great day! JT