Credit Scoring with Brian Linnekens

Credit Reporting is one factor that keeps almost all Americans on their toes.
Although it’s a simple process and a simple reporting yet people are scared to death
at the mere mention of a credit report observed Brian Linnekens. There are many
myths that have made their way into the public domain via word of mouth. Myths
don’t have any solid ground yet people are scared because of ignorance as to how
credit reporting is done. Once individuals know the process and the fact that credit
reporting and credit scores are for the befit of the common people and can be used
to increase their individual borrowing capabilities it becomes quite easy to manage
everyday finances that have become sort of burden for the average American these
Experts like Brian Linnekens suggest people to at least have a look at their credit
scores at least once a year. As major credit reporting agencies provide a copy of your
credit score every year space them out so that you have an even chance of checking
your credit score every four months that will ensure that you are not ignorant of your
financial health. Having a mere look at your credit report is not going to take you
anywhere. You need to be able to tell the facts from the myths that surround credit
reporting suggests Brian Linnekens.
People keep wondering why they are not qualifying for a debt with a low APR in
spite of settling all previous debts where some problems persisted. Well the truth is
that settled debts don’t get dropped from your credit report. Late payments and
bad debts are not dropped instantly from the credit report even though they have
been settled amicably. The late payments and bad debts are there on the credit
report for a good seven years. Even worse a bankruptcy mark will be there for ten
years on your credit report.
There are many who believe if they stop using the credit card their credit score will
shoot up. This is not the case you may use cash for all your purchases but that is not
going to make any difference to your credit score. Don’t stop using credit instead
use it responsibly. Making your payments on time will surely give you an advantage
and you are sure to receive a benefit in your credit score if you start using your
credit card more responsibly.
Closing on a credit card can do more harm than good. Agencies involved with credit
reporting need to see a low credit utilization which is the ratio between the credit
you are using and the credit that is available. Thus closing a credit card will reduce
this ratio as you are not decreasing the outstanding credit but you are closing on the
available credit.
Don’t be afraid to make inquiries about your credit rating advises Brian Linnekens.
It hardly affects your credit score if you are making soft inquiries for personal
reasons. But if a bank or a financial institution is making an inquiry then there is a
small effect on your credit score. The effect is small but it is measureable. Thus the
best option is to make a soft inquiry if you are in a doubt about your credit score.
A high income is does not affect your credit score. Since credit score is a measure
of how you manage your credit thus income plays a negligible part in the credit
scoring. However Brian Linnekens says that if you have a fat paycheck make sure
you manage your credit in the best possible manner as it will surely help in a better
credit scoring.
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