Smack Debt Consolidation Services

An individual credit score is the deciding factor used by a creditor to approve a personal loan, home rental, job applications, credit card applications, or for getting a new cell phone for yourself. The credit number you have makes a big difference in everyday life in situations where you may not even expect it to. Many individuals do not understand all the aspects of the credit score. Listed below are some of the misconceptions about the credit score you have.

• Every time you check your report, the credit score is reduced. Checking your credit score does not affect your credit at all. For a free credit report, you can try freecreditreport.com. This will give you your current report on the debt that is showing on your report. For a free trial run of the software to give you your Fico score try MyFico.com. This provides the score you show and not the report itself and monitoring of the score for up to a year if you choose. Some internet sites will charge you for this information but you can get one free report each year from the major credit reporting agencies as required by the federal laws through www.annual creditreport.com.
  
  
• The more money you have the better the credit score you have. At no time you're your income have any bearing on your credit score. It is totally and completely based on how you have used your credit in the past and the credit you now have. Over a third of your credit score is based on how you have paid your bills in the past and a third is based on the debt you now have. A little over a tenth of it is based on any new credit you have acquired and a tenth is based on the credit types you have used before. You could literally be a billionaire and not have a good credit rating because of the lack of credit data and on your report so you cannot borrow money if you wanted to.
  
  
• Looking for a loan from different companies will hurt the credit score. Your credit score will be reduced when you apply for a large amount of loans or lines of credit but if you apply for the same venue of credit within a two week period of time it will show up as one application and not affect your credit so harshly.
  
  
• Paying off credit cards and closing the accounts will raise my score. Taking the balance of these cards down will work to raise you score but you need the accounts open to constantly show a good payment history? Even when you pay the account in full, leave it open. The debt percentage you have will go up and the affects will be bad for your credit score.
  
  
• There is only one score for your credit. Instead of one score, you actually have three. There is one from each of the credit agencies that have been reported to. These are Equifax, Experian, and Transunion. The Fico score you hold is the main thing creditors will look at in their decision to give you credit. For those paying for the credit score, make sure it is the FICO score and not another number as it will not make a difference in the credit you need.
  
  
• My spouse affects my credit score with theirs. Many individuals are under the impression that their spouse's credit score is combined with theirs but this is not true. You keep your separate credit scores no matter if you are married or single. If you go in for a joint account for a home or other credit line, the account is placed on each individual report. If a husband opens a credit account by himself it will not affect his wife's report in any way.

 Subscribe in a reader | Service providers | Back to blog for recent articles
Bookmark this page | Search this site | E-mail a Friend

Enter your email address for free subscription. Smackdebt has a no-spam policy.


Delivered by FeedBurner

Recommended reading
1. Debt consolidation for poor credit
2. Best Solutions For Online Mortgages
3. Debt Collectors - Bogus Threat and Illegal Tactics
4. Car Insurance Quote - Tips and Secrets
5. Debt consolidation banks
6. Should you use a credit counseling service
7. When And Why Seek The Help Of A Wrongful Death Lawyer?
8. Bad Credit Remortgage - How to Revive Your Credit Quickly
9. Debt consolidation pitfalls
10. Medical Malpractice - Lawyers, Liars and Litigation

Debt Topics