Credit myths and misunderstandings
In this market the banks are ratcheting up what they consider to be good borrowers. What use to suffice at a 630 credit score now they want a 700 minimum? With this development we need to look at the issue of credit and what you need to do about it.
We Pontiffs at The Carrigan Group deemed it necessary to come to the aid of our clients and the industry. We have designed a system and a package that will help you analyze your credit and help repair your credit so that you are in a better position in this ever changing market.
Why do you need to fix your credit and why do you need credit at all. Here are just some of the myths and misunderstandings of credit.
1. Hey I paid that card off, why is it still showing a 30 day late on my report?
The credit reporters job is to report to the industry when a creditor reports you late, it does not matter if you pay the credit card off, if you were late three months ago you still are late. They will not take that off unless it is a mistake and the creditor agrees.
2. I have credit matter of fact I have LOTS of credit many of t hem are empty too.
Having too much credit can be the same negative as having not enough. Also you don’t always want to close all your accounts but we can advise you on that.
3. I use my credit wisely and have no lates but my cards are not completely maxed out but close, why is it a negative?
Coming close to the maximum balance is a real no-no. Don’t max out your cards they carry negative effect too
4. Credit numbers don’t matter if I am not buying a house.
It matters for EVERYTHING getting a car, getting a good rate on your credit cards, the limits on your credit cards, GETTING or KEEPING a JOB! Even getting a cell phone, or even opening a gas account for your home or apartment.
As you can see there are many things that affect you if you have bad credit, but on the flipside good credit can help you even more. So in this market it is crucial you fix your credit. Don’t fall for the scams who really don’t fix your credit, free credit report isn’t real free and not a real credit report. Contact us we can help and were nice people too, after all we are Pontiffs!
Well those were helpful tips now to stand by them. As much as i try to pay my cards off, its just the same issue over and over again. i own my own car i work full time and go to school full time. all of my money pays of my car goes towards my credit card then is spent for my classes, what a cycle. Im definitely not closing accounts just working on paying them off!
Posted by: Jessica Campa | June 01, 2009 at 05:53 PM
I recently closed 3 credit cards leaving one open. My credit score was 830, according to Elway Toyota when I purchased my car last year. The finance rep. said he never saw one so high. After reading your article, I see closing these cards has changed my score to the downside. Thanks, I will see about reopening.
Posted by: Kevin Treglia | October 11, 2008 at 06:13 PM
I recently closed three credit cards retaining one. I see now that that was a mistake. However, my credit score as per "Elway Toyota" before closing was 830. The highest they ever saw, but now I see my actions have changed that to the downside.
Posted by: Kevin Treglia | October 11, 2008 at 06:11 PM