Credit Secrets and Myths
Credit Secrets and Myths
Author: Rook Davis
While it goes without sayiing that good credit is something everyone should have, many people are mystified by what the term 'good credit' actually means.
Rather than wait until you are looking to get a loan (in other words, buy a car or a house) to find out what your credit looks like, consumer should be proactive in learning about their credit ahead of time. If nothing else, learning about your FICO score and monitoring it on a scheduled basis will go a long way to getting good credit.
Your FICO score is actually compiled from the various scores as calculated by the individual credit bureaus and reported to the Fair Isaac Corporation. As you might expect, a higher score is better. A good credit score is usually anything over 670, but a score in the 700-850 range is ideal. Each credit bureau calculates your score differently, but generally they are pretty close in range.
A better score saves you money on loans by getting you better rates form lenders.
How do you improve your score? By understanding what is used to calculate the score: pay your bills on time, manage your revolving debt and don't borrow too much. One factor that's included but out of your hands is the length of your credit history.
The most important thing to remember is that many people who have 'bad' credit start looking at fast credit repair methods, often even hiring services that supposedly can erase bad credit. Don't believe it.
Many of these services will simply take your money and do nothing. There is no magic 'voodoo' that a company can do for you that you can't do for yourself, which is why I reviewed the Credit Secrets Bible some time back.
Services that promise to fix your credit or legally remove bad credit are just looking to scam you. Educate yourself about your credit and save yourself the headache.
Article Source: http://www.articlesbase.com/credit-articles/credit-secrets-and-myths-596143.html
About the Author:
Rook Davis writes about money, credit and business in his blog, Rook's Money Blog , where he reviewed the Credit Secrets Bible and also discusses various scams you should avoid.
