Don’t believe these credit card myths

A low credit score pulls down the chance of availing credit from bank. Each lender has a different set of requirements and criteria for lending. More and more people have finally learned how to take control of their finances and credit scores are finally improving on a national level. We were ultimately able to get them removed from this account and get it re-reported to the credit bureau to save them this cost but it was not without a lot of jumping through hoops. Other than paying on time Investopedia suggests it’s also important to pay every fee connected to the credit card no matter how trivial it is (e.g. library fine, traffic ticket, etc.). This information is recorded by the agencies in your credit report.

“I was surprised that these misconceptions exist because credit scores and credit reports are now widely available”, said Jeanine Skowronski, a credit card analyst at Bankrate.

Know your FICO score and how much it can help or hurt youFinally, all prospective homebuyers should know their FICO score, which is the credit scoring model most lenders use when making decisions. But FICO, the score most used by creditors, says payment history is the largest factor, accounting for 35 percent of a FICO score.

All this credit-related data contained in your credit report is subject to an advanced statistical analysis to arrive at your credit score. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 USA states.Bankrate develops and provides web services to over 100 co-branded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, AOL, CNBC, and Bloomberg.

“It’s easy to say that you’re going to throw all of your extra money toward debt payments”, said Katie Brewer, a certified financial planner in Rowlett, Texas, who works with millennials. Instead, “get your credit report as clean as possible”. A borrower with good credit stands a high chance of being approved for any kind of loan. You do not need to carry a balance on your credit card to improve your score; it’s OK and even good to pay the bill in full each month.

The number of consumers under age 30 with a credit card balance rose to 20.7 million in the second quarter of 2015, according to TransUnion. If you are applying for a gold loan, you are assured of disbursal, even with bad credit, since the customer offers gold as security against default.

It’s important to look closely at your lender options and the fine print on the mortgages you’re applying for. If it isn’t looking like the terms are not working in your favor, don’t despair.

Homeownership can be an excellent long-term financial decision, but there are a few things you need to know before you apply for a mortgage. If you want to win the game, you have to pay attention to the score.

Most at risk for confusion over credit are millennials and retirees. Plus, it’s good to keep this separate from your emergency fund. It needs some patience and perseverance, but the results of your credit discipline will be tangible in months, creating life-long conditions for faster and hassle-free access to credit.