Articles & News About Your Credit

5 Fatal Mistakes We All Make That Drive Down Our Credit Scores

Most people don?t realize that they can drive down their credit scores even if they have a near-perfect record of paying their bills. The five classic mistakes you need to avoid are:

1. If you are applying for a mortgage, never pay off old collections, judgments or tax liens until the closing. (Ask your mortgage lender if you pay these debts at your closing.)

When you pay these debts off before applying for a mortgage, they are treated and scored as new and recent accounts with delinquent activity. This drives your credit scores down.

2. Closing credit card accounts initially lowers your scores. Again, this is due to your action showing up as new and recent credit activity. Any new or recent activity will have an initial detrimental effect on your scores.

Of course, after you close inactive or unnecessary accounts the scores will eventually come up because you will have less credit or potential credit risk. But it may take months for this to occur. Unfortunately most people close superfluous accounts right before applying for a loan thinking that it will improve their scores. If you want to close these accounts, do so well in advance of applying for a loan.

3. Don?t keep high balances on credit cards and revolving debt. Maintaining balances under 30 percent of the available credit on each card can improve your scores. For example, if your available credit on a card is $1,000 keep the balance under $300. Also remember to pay off debt instead of moving it to other revolving accounts. Moving balances to zero- or low-interest credit cards can actually lower your scores.

Lured by credit card offers with low initial rates, many consumers move their credit card balances over and over again to keep their accounts at lower rates. This creates new activity on your credit report and lowers your scores.

4. Don?t apply for credit you don?t need. Many people are tempted by department store promotions offering them 10 percent to 20 percent off their purchases if they apply for a credit card. What may look like a great deal really isn?t because the new account will lower your credit scores.

Use credit cards wisely. Remember that someone who has a good credit card history is viewed more favorably by credit bureaus than someone who has no credit cards. To build an effective credit history, have a mix of installment credit (cars, furniture, etc) along with credit cards and mortgages.

5. Don?t assume the collection account, judgment or tax lien you paid has been reported to all three credit bureaus. Likewise if you close an account, don?t assume that has been reported to all three bureaus.

Unfortunately, agencies and creditors are quick to report you when you owe them money or have made a recent mistake. But they can be slow to report the final resolution to that account when you have paid them off. Collection agencies and the creditors that have sold your account to the collector are both extremely poor at reporting the account paid in full. If you have declared bankruptcy you need to be especially vigilant. Less that 50 percent of the accounts, collections and judgments discharged in a bankruptcy will show up on your credit reports after the completion of the bankruptcy.

It is your responsibility to make sure that all three bureaus have the most recent and accurate information about you. You can write to them or file online disputes with each individual bureau. Be sure to supply them with copies of paid receipts and any correspondence you may have to ensure that your record is recent and correct.

Ron Cahalan is a 26-year veteran of the mortgage lending industry. His controversial new book, ?Lenders Are Liars,? exposes what he calls the greed and lack of ethics in the industry. It provides steps homeowners and borrowers can take to get the best rates and negotiate lower closing costs and other essential information homeowners must know.

Visit http://www.LendersAreLiars.com for free eBooks on such topics as ?Basic Guide to Debt Relief,? and ?15 Top Ways to Save Money? and to be entered into a drawing for an iPod.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Credit Card Fees. The Credit Card Companies Strike Back
Spending on plastic has never been more popular as more and more rely on cards instead of cash. Indeed experts believe carrying cash could soon become a thing of the past. High Street spending on debit cards outstripped cash for the first time in 2005 according to Precious Plastic 2007, the latest study of the UK consumer credit market from accountants PricewaterhouseCoopers.

CreditScoreQuick.com Now Offers Free Information on Consumer Credit Repair and Assistance
As part of a continuing credit education program, CreditScoreQuick.com offers consumers tips on how to minimize credit risk and repair credit history in their online blog.

Credit Learning Center Releases Consumer Warning The Silent Force Lurking Behind Credit Card Offers
This release announces a special feature on www.creditlearningcenter.com which warns consumers of the dangers inherent in pre-approved credit card offers.

JK Harris Offers Tips on Claiming Earned Income Tax Credit
JK Harris and Company offers tips to help taxpayers determine if they qualify for the Earned Income Tax Credit.

Instant Approval Credit Cards: No Need To Wait
The Internet has sped up the process of almost everything, including credit cards. Now you can apply online for an instant approval credit card. After filling out an application, you will find out in less than a minute if you have been approved. It?s just that easy and fast! Here?s what you need to know about instant approval credit cards and if they?re right for you.

Benefit Of Credit Card Debt Relief
Approximately 60 million Americans are seeking some form credit card debt relief Credit cards debt causes a tremendous misery

Student Credit Card Myths
No matter what you research or try to sign up for in life, you?ll probably notice that there?s always controversy or rumors that spread around that particular topic I know it?s always hard to find the truth but I must assure that certain people know what they?re talking about whether you want to believe it or not

Improved Credit Score Spells Mantra for UK Bad Credit Mortgage Approval
Bad Credit condition of an individual is considered as the worst imagination as creates long lasting impression on future finance planning?fs. All future dreams related to mortgage loans will remain on a shaky track. Don?ft worry we are here to help you out of this condition. Just follow the mantras revealed in below mentioned lines get taste the dreamed mortgage even if you suffered the effects of UK Bad Credit Mortgage:

Way to Use Your Credit Cards Wisely
Credit cards are actually a great financial tool; its how you use credit cards that are bad. Always remember credit card should be looked at as a financial tool, not as a means to buy now and pay later

Can I Really Get A Mastercard With No Credit?
Having a credit card can come in very handy. It allows you the freedom to make a large purchase for a television that you have had your heart set on or anything else. It can even help you pay for food if you are a little short on cash for the week. The options are virtually endless. There is no reason why you can?t get a mastercard with no credit. Don?t? get me wrong it?s not going to be as easy as if you had good credit. There are so many people that don?t have any credit and get a mastercard. There are just a few things that you will need to do in order to get your very own mastercard with no credit.

Cash Back Credit Card - The Ultimate Reward Credit Card
The credit card industry has become so competitive, a new and more creative credit card reward offer is being announced almost daily. If you play your cards right, you can make the financial institutions pay you to use their card. Some consumers consider a cash back credit card the ultimate reward credit card. Nothing is sweeter than receiving a check in the mail.

Getting Rid of Your Bad Credit
For people, who have the tags of bad credit holders on their names, it is necessary to do away with bad credit immediately Bad credit is an obstacle in the way of applying and being eligible for loans

4 Things To Consider Before Getting That Credit Card
You see them everywhere. They arrive in the mail. They arrive by phone. They arrive by email. They are positioned by cash registers and gas pumps. They are credit card offers. It can be exciting to read all the enticing offers included on the applications. Free gifts, prizes, rewards, and discounts abound when it comes to credit card applications but before you stretch out your eager hand to grab that pen to fill in the offer you should take a few minutes to consider four important questions.

Understanding Mortgages And Your Credit Score
Most people understand that the mortgages that they may qualify for are directly related to their credit scores. Common sense dictates that the better your credit scores are the more mortgages you would qualify for, and for better interest rates, as well.

South Florida Credit Union Offers Loans to Refinance Your Commercial Real Estate Mortgage
Special Offer: Refinance Your Business-Occupied or Commercial Real Estate Loan With Tropical Financial Credit Union