Credit score is important to lenders. How? A FICO (Fair, Isaac and Company) credit score is a number that companies granting credit use to assess an applicant's risk. In other words, it gives them a picture on how well you will be able to repay the loan that they are considering of giving you. According to the Credit Education Center, about 65 percent of your credit score is based on your payment history, which includes payments on your credit cards and loans, and the amount of money you owe on your accounts. This score can affect whether you get a loan or credit card so, it is good for you to know the common myths that hinder you especially from pursuing your dream of purchasing or getting a home loan for a home.
1. You have to Pay a Fee every time you check your Credit Score - Yes, you have to pay but it's going to be only a small one time payment free to annualcreditreport.com and checking your score will definitely not pull your score down.
2. A Credit Repair Company can improve my score - Perhaps, but it's not the best way to improve your score. A credit repair company by definition is an organization that helps you to manage your finances better and offers you assistance to improve your credit score through various ways like checking the accuracy of your credit reports with the credit bureaus, settling any credit report dispute as it arises, repairing credit in the wake of bad debts, and so on. However, this is not the best way to improve your score. You can pay your bills or monthly mortgage payments on time, lower your balances, and reduce the number of credit card accounts that you have.
3. My Bad Credit record Will Never Change - Of course not. Having foreclosure and short sale notes on your credit report can last for years, but they will disappear once you have made some improvements on your credit like paying down credit cards and paying all of your bills on time.
4. I have to use my credit card more often to build good credit rating - This is totally hilarious! It's actually even better if you're not going to use your credit card at all rather than using it and risk your score by not being able to pay on time, which can definitely ruin your credit score.
In order to win, we need to play the game by the rules. And how do we play by the rules? We need to be informed of the rules. Just like in making purchases or getting a home loan for your dream home at Homes in Inner Grove Heights, you need to know the facts as well as the myths in order to get the best deal.
1. You have to Pay a Fee every time you check your Credit Score - Yes, you have to pay but it's going to be only a small one time payment free to annualcreditreport.com and checking your score will definitely not pull your score down.
2. A Credit Repair Company can improve my score - Perhaps, but it's not the best way to improve your score. A credit repair company by definition is an organization that helps you to manage your finances better and offers you assistance to improve your credit score through various ways like checking the accuracy of your credit reports with the credit bureaus, settling any credit report dispute as it arises, repairing credit in the wake of bad debts, and so on. However, this is not the best way to improve your score. You can pay your bills or monthly mortgage payments on time, lower your balances, and reduce the number of credit card accounts that you have.
3. My Bad Credit record Will Never Change - Of course not. Having foreclosure and short sale notes on your credit report can last for years, but they will disappear once you have made some improvements on your credit like paying down credit cards and paying all of your bills on time.
4. I have to use my credit card more often to build good credit rating - This is totally hilarious! It's actually even better if you're not going to use your credit card at all rather than using it and risk your score by not being able to pay on time, which can definitely ruin your credit score.
In order to win, we need to play the game by the rules. And how do we play by the rules? We need to be informed of the rules. Just like in making purchases or getting a home loan for your dream home at Homes in Inner Grove Heights, you need to know the facts as well as the myths in order to get the best deal.
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Play the game by the rules. And how do we play by the rules? We need to be informed of the rules. Just like in making purchases or getting a home loan for your dream home at Homes for Sale in Suffolk Virginia. You need to know the facts as well as the myths in order to get the best deal for your Woodbridge VA Real Estate.
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