Five Common Myths About Credit

1.  Credit ratings are improved if you closed your credit card accounts.

MYTH! Canceling your credit card contributes to the shortening of your credit account's age, which is included in the primary decisive factors of your credit rating. Your credit rating, for that reason, will not increase once you choose to close your credit cards.

2. Credit scores are increased once you repay your installment loans.

MYTH! Paying back installment debts will not increase your credit score. The detail that has effects on your credit score is not the amount you paid for the debt, but the exact date you repaid the debt. The truth is, credit report officers are only interested in confirming even if you settled your loan before the deadline or not.

3. It is impossible to get more than one credit score.If you receive your credit reports from different agencies, then your credit scores will all look the same.You can only get one credit score.

MYTH! In reality you can have as many as three credit scores. Each of the three leading credit report agencies in the country has its own way of preparing your credit score. The calculations formulated by the three companies result to three credit scores with diminutive differences. All three credit scores are accepted by the Fair Isaac Corporation, which is the company responsible for the preparation of your FICO scores.

4. You cannot erase a negative entry in your credit report before the seven-year requirement expires.

MYTH! A bad mark, may it be a late payment record or an existing debt item, can be deleted from your credit account. You can start this by asking for a goodwill adjustment from your loaners or by reporting the imprecision of your credit records.

5. If you hold your credit card balance, then your credit score will improve.You can improve your credit by maintaining your credit card balance.

MYTH! It is actually the opposite. It is absolutely fine to have credit card activity; however, it doesn't affect your account balance. Maintaining a remarkably low balance or no balance at all is actually one of the most effective means to prolong a considerable credit score and improve it.


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