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Posted 11:05 PM 06/27/11
Ten Credit Myths People Believe in
Sometimes people think that it takes them forever to dispute information on their credit file.
But indeed, according to the law the bureaus have just 30 days to complete an analysis on your credit file, so you only need to ask for it.
A big number of people consider that their bad credit will affect them evermore.
But call your attention to the fact that according to the law the information about bad credits stays on your credit file for just seven years and
as for bankruptcies this time is 10 years. And in addition, banks usually take into account the past 2 years.
One more mistake is that when people think that it is all the same when to pay a collection,
for the reason that when they pay it, the collection will be taken away from their credit report.
But, in fact, you should try to pay a collection immediately after you have known about it.
There is such mistake as, for example people consider that their score will fall if they ask for new credit.
However, inquiries are a very small part of the score computation. Moreover, multiple inquiries from mortgage or auto lenders in a small period
of time are usually treated as one inquiry.
People believe that it's no matter if their credit card balances are high or not, if they make payments on time.
Actually, having maxed-out credit cards are, in fact, a very negative thing. It's better for you to keep balances at 30% of your obtainable credit.
Sometimes people open up an account when they are proposed a discount at the store or 0% interest for a few years.
But remember that you'll get a negative influence on your score if you open up a new account through a finance company,
and as a result, it is usually considered as a maxed-out revolving account.
Very often people hasten to close out old accounts which they don't use.
But, it's interesting to know that these old accounts demonstrate your good long payment history and, as a matter of fact go on keeping
these accounts open and try to use them in a half of the year or maintain them active.
The myth is when people cosign on a loan and think it won't influence their credit.
However, if you cosign a loan, you sign on as an accountable person for it, an as a result, it'll influence on your credit.
Don't think that lenders will look at only your credit score alone.
Actually, lenders, as well, draw their attention to such things as income, debt, and employment history.
Some people appeal only in one bureau because they are afraid that bureaus send each other updated information. Truly, the bureaus give each other no information, so appeal as many of them as you wish.
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