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Casual Articles - The Truth About 10 Credit Score Myths
I am in awe of Billionaires.Not the trust fund babies, but the folks that started with nothing and earned huge fortunes through their own hard work and creativity.For the last 10 years, I’ve researched the lives and companies of a group of entrepreneurs that I call the “Billion Dollar Marketing Club”. These entrepreneurs have a combined net worth of $41.6 billion dollars and together they are worth more than the gross domestic product of 151 countries.The companies they have founded titans in the marketplace.You may have heard of them – Google, Nike, eBay, and Harpo Productions (the owner of “Oprah!”). For years, I’ve been obsessed with “cracking the code” to their success. I obsessed over the question - “What is the Secret to Creating a Business Juggernauts that is Guaranteed to Earn its founder a Billion Dollars – minimum?”And, to my surprise, I discovered that each entrepreneur that I studied had one secret in common. I call this hidde
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First,
So you want or need a new car but you have done some mistakes in the past that has led to a bad credit history? This is quite unfortunate but not an obstacle that you can't cope with. Many people experience difficulties when looking for a new car deal just because they have bankrupted before or simply have made more mistakes with their credit card usage or home mortgage repayment fees. Of course buying a new card with bad credit will not be that easy as buying a car with good credit history however it is possible.The first thing to worry about is to get the financing right. You can borrow the money from someone; look for bank loans or car dealers' loans.Bank loans. Despite the fact your credit history is bad there will be banks that will give you the money for your new car. You need to be persistent and patient and check as many banks as possible until you find the best deal.Once you think you have found it all you need to do it to fill in a loan application and wait fo
With good credit you can borrow more and pay less. With a mortgage, a borrower with solid credit might pay the best available rate while someone with poor credit might pay an additional 1.5 percent. That doesn't sound like a big deal, but on a $300,000 mortgage you're looking at an additional annual cost of as much as $4,500.
There are a lot of questions concerning good credit and how to get it. Here are 10 basics that come up with great frequency.
1. I finished college a few years ago and did not pay a lot of bills. Now I want to buy a house. How can I improve my credit?
Negative items remain on credit reports for seven years (bankruptcies stay on for 10 years). However, mortgage lenders are particularly interested in your recent credit behavior, what you've done in the past two years or so.
To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.
2. Is it true you need a big income to get a good credit score?
No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making $45,000 a year to have a vastly better credit rating than someone who makes $200,000.
3. Can I use a federal employer number instead of a social security number to get a better credit rating?
No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot?
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First,
The way that most people approach their careers is that as long as it puts money on the table, they are happy and they basically relegate themselves to a life full of complacency and mediocrity. However, that shouldn’t be the case. In order to get those promotions and salary raises, one needs to do a lot more than just going through the motions of work. One should eventually try to step up and look to enhance their career. So whether you are planning to live out your working life in the same company or planning to move to another in a few year’s time, it would be best that you start improving your career now. Here are some of the most effective ways to go about climbing the corporate ladder.Have other people evaluate youThere are certain individuals within one’s network that the person looks up to. Try to create a so-called panel who will provide feedback and counsel to you regarding your career. You might look to have someone in your company who understands the company much be
There are a lot of questions concerning good credit and how to get it. Here are 10 basics that come up with great frequency.
1. I finished college a few years ago and did not pay a lot of bills. Now I want to buy a house. How can I improve my credit?
Negative items remain on credit reports for seven years (bankruptcies stay on for 10 years). However, mortgage lenders are particularly interested in your recent credit behavior, what you've done in the past two years or so.
To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.
2. Is it true you need a big income to get a good credit score?
No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making $45,000 a year to have a vastly better credit rating than someone who makes $200,000.
3. Can I use a federal employer number instead of a social security number to get a better credit rating?
No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot?
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First,
If you are in the boat cleaning and washing business then you need to learn how to do sales so that you can deal with the customers. There are several types of customers and they have different needs. You will learn this overtime, but you will learn a lot quicker if you will listen more and do less selling or telling or talking.If you are dealing with a Yacht Broker, then they need to know they can call you prior to sales appointments with the potential client. One way to ensure that you'll get their business over your competitors is if you promise to give them prompt service and even give them your home telephone number and your direct cell number.They need to know they can call you out of the blue at any time and you will run out and do a touch up on a boat they might be trying to sell. You are selling service and if they trust you and know you can deliver that type of service you will have their business.When selling to a private boat owner they need to make sure t
To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.
2. Is it true you need a big income to get a good credit score?
No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making $45,000 a year to have a vastly better credit rating than someone who makes $200,000.
3. Can I use a federal employer number instead of a social security number to get a better credit rating?
No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot?
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First,
A couple of months ago (well, September 30, 2006 to be exact) an e-mail popped up on my monitor from Yahoo! Search Marketing touting the Best Practices for 2006 Holiday Planning, analyzing some key statistics from last year's gift-giving season.Included was the "preferred day" (not the best day, mind you, but the preferred day) for B2C (that would be Business to Consumer I believe) marketing e-mail campaigns. (Apparently, in Internet Marketing it is mandatory to communicate in Internet Marketing "speak " so as to distinguish marketers as somewhat unique, or perhaps distant, from the English language.)The best day, according to the brain trust at Yahoo! Search Marketing is Friday, rated at 31% (one assumes, always dangerous but necessary in this case since it is not given by the source), apparently for the response rate.In Internet Marketing, you see, everyone is supposed to know what you are talking about. My perception is marketers explain their every offer to death wit
3. Can I use a federal employer number instead of a social security number to get a better credit rating?
No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.
4. If I have a strong payment history should I borrow a lot?
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First,
I’m the founder of Cleret, maker of the coolest looking squeegees on the planet.It all started in 1986 when I let this big burly contractor talk me into putting fancy clear glass shower doors in my brand new bath - BIG MISTAKE!After bathing, there were all these unsightly water spots on my new glass shower doors and puddles everywhere. And then it started to mildew and turn green and stink. My bath looked horrible, and it looked (and was) dirty all the time. To combat this, I began to wipe down my bath after each shower with my bath towel. But by the end of the week I had a mountain of towels piled nearly to the ceiling in corner of my bath. Ugh!I was at a loss as to what to do. Then one day it hit me: a squeegee…in the shower! A couple of quick swipes right after bathing and it was bye, bye ugly water spots and grunge. But unfortunately, because I had to leave the squeegee in the bath so I would remember to use it, it was also hello UGLY squeegee in my dazzling new
No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.
5. Is it better to have lots of credit cards or just one or two?
If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:
First, you have to watch credit limits. The general ideas is that the more of your available credit that you use the lower your score. For instance, imagine that you have five credit cards with different limits and in each case you have used 50 percent of the amount available to you. You then combine all cards into one card with a big balance but now you're using a far-higher percent of your available credit line, say 90 percent. A better approach is to keep balances low and pay off credit cards as you can.
Second, while it makes sense to pay down credit card debts, it may not make sense to close accounts. The reason has to do with credit card history. The general rule is that the longer your history, the higher your score. The result is that you may actually want to keep older accounts open even if they're not used.
6. I'm good about paying off credit cards but not some other bills. Will this impact my credit?
Yes. First, many credit cards include a so-called "universal default" provision. This means if any bill is late or unpaid, the credit card issuer can raise your rate. Second, other bills in addition to credit cards show up on credit reports and negative items are reflected in credit scores.
7. My mortgage payment is due on the 1st of the month but I'm allowed to pay as late as the 15th without penalty. If I pay on the 14th will this show up on my credit report?
No -- but be careful here. A debt is considered "late" for credit reporting purposes only if it's at least 30 days overdue. However, some unscrupulous lenders charge excessive fees and may even raise interest rates if payments are even a day late. If you have such financing you should consider refinancing to get better terms.
As to that mortgage payment, lenders typically provide a payment grace period because checks may be delayed in the mail and payment days may fall on weekends or holidays. However, since the bill must be paid anyway, it's absolutely best to pay either early or on time.
You may find if you have a good pa
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