Credit Score Education

CREDIT SCORE EDUCATION                            (877) 254-6900

Credit Score Education is valuable for anyone who plans on using credit. The cost of borrowing money is much greater if your credit scores are lower. Most people have no idea how the whole credit scoring system works.

Here are some popular myths

and misconceptions about the credit scoring system.

Myth #1 about Credit Scores: "I have never missed a payment on anything, I should have excellent credit scores."
 
FALSE

Many times, a lack of good credit can hurt your scores as much or more than having bad credit.


Myth #2 about Credit Scores: "Paying off collection accounts will improve your credit score."

FALSE

The mere fact that you have a collection account on your credit report hurts your score. It doesn't matter if the collection account has a balance or not, your scores are affected the same.

Myth #3 about Credit Scores: "I paid off several auto loans, I should have excellent credit scores."

FALSE

Unfortunatly, only "open and active" accounts will contribute to your FICO Score. Once an account is closed, the points from that account will be removed from your credit score. When an auto loan is paid off, the account is closed and your score will drop.


It is important to have some form of credit score education. We all are graded using a credit scoring system but for some reason, our school system never touches the subject of credit score education.



What you NEED TO KNOW about your FICO Scores

Only Open and active accounts will influence your FICO Score. If you don't have any "open and active" accounts, you will not have a credit score at all.

Build a Credit Team

Since each one of your open and active accounts is contributing points to your credit score, I like to think of each account as a player on your team. If you have one open and active account, it's like having one player on your team. Your not going to score many points with only one player on your team. Same thing with your credit scores. It is much better to have several accounts contributing points to your credit score instead of just one.

There are Five Factors that influence your FICO Score

Payment History 35%
Balance 30%
Length of History 15%
Types of Credit 10%
Inquiries 10%


Maximize your FICO Score

A successful plan to maximize your FICO Score will address all five factors: payment history, balance, length of history, types of credit and inquiries. Before putting a plan into action, it is important to get a solid credit score education. Making the wrong desicion can cost you months of even years.

Talk to a Credit Expert

Pur knowledgeable credit experts will help you decide what strategies will get you to your credit score goal in the shortest amount of time possible. We might recommend that you utilize one of the services that we offer, such as rapid rescore, credit repair or inquiry removal; or we might just give you some good advice to get you going in the right direction.

Call now: (866) 979-1099

Learn more about Credit Scores


Thank you for reading about credit score education.