Since I have been a mortgage loan officer license for five years, to share some information about you today, I thought I would.
I have many customers come to counseling, family and friends, and learned to be alone, finally, to hear what they say is completely wrong. Today, I would like to know about credit scores and credit repair mistruths.
I have many customers come to counseling, family and friends, and learned to be alone, finally, to hear what they say is completely wrong. Today, I would like to know about credit scores and credit repair mistruths.
Myth # 1 - pay my collection of old score will increase. Error. You must pay the old collection or oral promise to pay if you fall in a high risk of credit immediately, and the risk of a new period of limitation.
Myth # 2 - Closing credit card accounts help my score. Error. A loss of 2 points to close credit card accounts then. Firstly, it affects the value of debt Factor score of 30%. length of credit history also affects 15% of the score against them.
Myth # 3 - to pay off a negative account removed from my report. No! Specific rules and laws that allow these products remain in the report. However, you can ask from the beginning.
Myth # 4 - little things do not impact much greater. In fact, the penalty score for a collection of $ 100 and $ 1000 a separate collection. you encounter a large medical bill or invoice for that matter, you can create a payment plan!
Myth # 5 - Adding a user of a difference in my report will be released. Plain text is the statement. does not affect the results, and the borrower will probably not read. All lenders will be your point, open collections, late payments and public records such as judgments and Liens are important.
Myth # 6 - OK if I go over my credit because the bank was approved. Even if you exceed $ 1, down payments, and you will see a 80-10 score.
Myth # 7 - FreeCreditReport.com is free. was free, how to pay if all the catchy advertising? They will be charged $ 14.95 a month, you must register because "Triple Advantage." Only one free credit report at annualcreditreport.com.
Myth # 8 - to pay the tax Liens, judgments, records and other public institutions and improve my score. I think it's worth it to pay debts, but the truth is that payment of the public record of your credit score is not low power. In fact, this happened all the scores have the greatest impact. Tax Liens and Bankruptcy Judge can pay 100-150 points, hit a maximum 300 points for lead.
True # 1 - When the balance of 50% (30% of what anyone thinks), exceeding the available balance, you lose points at the start. Maxed out credit cards can cost you 80 points.
True # 2 - Limit the number of points does not affect your score. The card limit is $ 500 as a goal of $ 5,000 limit.
True # 3 - debt (debt to pay less than) to solve more than 100 points led the press. If the debt is fully paid, the creditor will be able to report "paid less than the total amount, the" Settlement Payment "or" accept this account at the concert. "Each of these options to score over 100 points.
True # 4 - Use your credit card. Although I would not recommend the credit card for every purchase of this attack, the idea of a good credit history credit card used to make and improve your credit score.
*Excerpts from this newsletter were taken from “The Big Score” by Linda Ferrari.
If you’d like to see more posts like this, please let me know! I’ve got so much information I could share with you about mortgages, credit scoring, and how to repair your credit on your own.
Disclosure: I do not claim to be a credit repair company.
Credit score is a 3 digit number which helps the creditors to assess the credit worthiness of a particular consumer. This will help them to decide whether or not the creditor will offer a loan to a consumer. With time a lot of misconceptions regarding credit scores have evolved in the minds of the people. One of the common credit score myths is that there is only a single score. But this is not the fact. There are a large number of credit scoring models available in the market. However, it is a fact that most of the lenders/creditors will use the FICO scoring model to calculate your credit score. Another common credit score myth is that checking your credit score will affect it negatively. But the fact remains that if you check your credit score on your own, then it will be considered as a soft check and it won’t affect your credit negatively.
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