Скачать или смотреть I'm clearing up credit myths - PART 1

Credit myths that we need to clear up 💯 (Part 1). Having too many credit cards is not an issue, having too many credit cards with balances is a real issue. Don't believe the hype, ladies and gentlemen!

Myth #1: Carrying a balance is good for my credit.
Over half of borrowers believe a debt helps credit. It all depends on your credit usage ratio, the outstanding debt divided by available credit. After payment history, credit usage is the second most significant credit score element. Carrying a balance costs more in interest and takes longer to repay. Using your card develops credit, but you don't need a monthly balance.
Keep credit usage low by using credit cards consistently and paying the bill in full each month.

Myth #2: Minimum payments are good enough.
Minimums are simply that. The issuer's required payment amount is sufficient for payment history, the single most essential credit score element. Minimum payments hurt debt-to-credit ratio. By paying the minimum each month, you'll stay in good standing with the credit card provider. You'll pay more interest and be in debt longer.
Paying the whole debt before the statement closure date avoids interest, fees, and improves credit.

Myth #3: The number of credit cards I have affects my score.
90% of respondents think the number of cards they have affects credit score, which may be why most individuals shut accounts they don't need or have high interest. Nearly 65% of your FICO score is set by criteria that may be accomplished by many cards (myFICO)—a sensible move if you know how to utilize them effectively. Unless you're a new credit card user, it's not required to limit your applications.

Myth #4: One late payment won’t damage my credit score.
Nearly 14 percent Americans don't pay their bills on time, according to a poll. Payment history accounts for 35% of a consumer's credit score. Credit providers may forgive missing payments. Even if you dispute the late charge, your credit will be affected until the issuer removes it. Consider paying less than the minimum acceptable? Reconsider. An on-time payment that's less than the minimum lowers your credit score and makes it harder to qualify for future upgrades or lines.
Auto bill pay prevents late or missing payments.

Myth #5: Credit limit increases are a trap.
When you get a credit boost, the issuer earns more interest. Using the credit is required. People that max their cards have problems with credit limit increases. Keeping spending and payments the same won't harm your credit (or pocketbook). Debt-to-credit ratio improves your credit score.
Requesting a raise creates a credit inquiry. Automatic increases don't affect your credit record. #credit #creditfacts #creditscore #creditcards #debt

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