Friday, June 7

10 Ways you can tell your credit

| By Barry Paperno,

When it comes to your credit score, it sometimes seems as if no good deed goes unpunished.

It is always the same. You think that you do the right things when it comes to your credit. Pay off, an old delinquent debt to close old accounts, maybe even decide to stay in total debt. Then, your credit score takes a dive. You thought you were, if you are financially responsible. Tell me how?

We hear this kind of questions, which was commonly used by people who credit card, track their credit scores with our free report, so we felt it important to address some unexpected consequences that may arise in the word of credit. A credit score is a calculation of your credit behaviour that says a lender, how big of a risk is to lend you money. Basically, they want to see if you've had credit, if you've had it for a long time, and if you did it, responsible. However it is more complex than that which is why we are looking for in some healthy common sense moves, which do not necessarily produce better credit.

Here are the good deeds, which will not go unpunished by your credit score:

1. You're your last credit card balance paid off and finally debt-free. But your score drops or, after months of inactivity, you will have no result at all. Credit scores placing greater emphasis on current data to risk predictions. While you need non - and should not want - in debt to a good credit score, there must be at least a part of the recently disclosed information on your credit report, continue to get a credit score.

2. You don't have to choose one of your parents credit card, but instead your own way with school work and money in the Bank. Still have some of your classmates who are authorized users on their parents cards to show better results than you, and the beautiful cars. It is only a young person with a good credit score, despite no work or money at the Bank can offer true, if you are an authorized user on a foreign card, your credit report now contains the entire history of this account.

3. Your spouse or partner you buy a surprise anniversary gift. Unfortunately the big surprise that both your results are before the big day, since this purchase pushed jointly held credit cards to the limit and that the credit utilization (raised balance-to-limit ratio) is however a high percentage.

4. Teach your children financially responsible, help them secure to open the card accounts with low limits, which she paid each month. Now, they have successfully established their own good credit at a young age, and the tide turned, deeper have fallen over their training costs into a debt trap, where you now need they co-signed for your next auto loan.

5. After it, choose to close all credit cards you no longer use a victim of identity theft. Unfortunately availability is caused by the closure of most of your available credit lines of credit overall these high balance, carrying on a map to now include a higher percentage of your available Guthabens-well - and lead to a lower credit score, dropped sharply.

6. Your 10-year-old bankruptcy is it your credit report, what spotless. So fall why then your score? While such changes are more the exception than the rule, this unintended consequence of the "scorecard" is system, which makes credit-scoring formulas. To illustrate, your credit report can turn certain information added to or removed from your report in a different scorecard used for the calculation of the credit score, where factors are another set of score to evaluate your credit. Guests can climbing in the long run higher, now that the bankruptcy has disappeared, but you can direct impact of this one-time reorganisation of the formula often temporarily credit score by a few points lower.

7. You open a department store card to save 10% off a large purchase. After you determine that your credit score just a hit took when added to report your credit card a 'hard' investigation and a new account. And what questions did worse when received the credit limit for this new account was only a slightly higher amount than what you charged on this day, your income decreased even further due to this "heavily used" new card.

8. You have a small "faithful and believe" payment to the collection agency, which was rush lately has. The result was, that an old debt was unenforceable, phased out due to statute of limitations for collecting such debts, rendered now was essentially reinstated and new (the collection agency) revive, which the Statute of limitations clock tick start re - and resume the collection activity.

9. They deny an inaccuracy of card issuer to your department store, they fix the account as in the dispute to the credit bureaus reports and error where. So far, as you know there is no another problem until five years later, when the account is always still incorrectly reported as "in dispute", and is now available on your home mortgage keep up to it at each of the three legal-can be corrected, can take easily up to 30 days.

10. You paid only a $300 medical bill, which was slipped through the cracks and into the hands of a debt collection agency. Not only has lower this law not even budge your previous high score by more than 100 points, but after paying the balance in full to the score. For some types of debt, such as collections, tax liens and judgments, a debt of $300 can hurt your score, such as a $3,000 debt the were-unimportant with the bad news is that even after full payment is received your guests not to the previous level for many years back.

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