Free Yearly Credit Report – You are looking to get a credit report but know know too much about them, you might find your credit score it a little unhealthy and needs some medicine? What about internet scams – there's plenty out there – do you know how to dodge them? Here we debunk myths and show you tips and tricks to get your report and get on your way to financial security.
You may have read some info on what will and will not damage your credit report and quite what the lenders look at – your credit score, I've done the research for you and can let you know a few secrets, firstly lookout from information you broker may provide to you, it it sounds like the following then find a new brokers.
By closing your bank or credit card account can they help your credit score? Actually it will do the opposite – it will damage your score. While It's true that having too many open accounts can hurt your score, once you've opened accounts actually already done the damage. It is simply impossible to repair it by shutting the account, and you may actually make things worse. It works by the possible lenders looking at the difference between your available credit and what you're actually using.
By shutting down these accounts will decrease your total available credit, making your balances loom larger in ratio to the possible amount of funds you can access this will have a negative effect your score. Closing older accounts will also make your credit history look younger than it really is which will also hurt your score.
When thinking of getting a consolidation loan then consider that you will damage your credit score – you will decrease your monthly repayments as you interest rate on the loan will typically be small but you will have a serious effect on your credit score – so it might be worth not getting a consolidation loan – it depends just how dad your score already it.
Can checking your FICO score can hurt your credit? This is wrong – and it is only considered a "soft call" I'll explain what this means later. Basically, applying for new credit (a "hard call") is only what can damage your score, or put a ding it the score. Simply ordering a copy of your own credit report or credit score will not.
Those mass inquiries made by credit card lenders, or other general lenders, who are trying to decide whether to send you an offer for a pre-approved card will not go to hurt you, though if you take them up on their offers then that's a different story.
A way around this is just apply for credit in a short period of time – these "hard calls" – multiple inquiries – within a 45-day period act as just one inquiry, The FICO score treats these as one block of inquiries and ignores all inquiries made within 30 days prior to the day a final score is made.
Remember that one inquiry will generally knock 5 points off a score, that does not sound like much but every point counts and you do not want to loose any unnecessarily.
Will having Credit counseling damage my score as much as a bankruptcy? The current FICO formula will ignore reference to a credit counseling service on your report. This has only happened in last three years, after researchers at Fair, Isaac, the company that created the FICO scoring system started noting that people getting credit counseling did not actually default on their debts and no more often than anyone else, so because this is a relevant new adjustment there is a lot of people who are not clear on if it damages your Credit Report or not – be you heard it here, it does not.
Your ability to get a loan could still be hurt by credit counseling, however. Your current lenders may report you as late, because you're not paying what you originally owed or because your credit counselor is not sending your payments in on time. Late payments do hurt your credit score. Your credit score it not the only consideration – your income and savings are massive indication of whether you can pay back debt.