6 Credit Score Secrets

Ken: Who would not want to improve their credits score? I'm going to tell you Daria, it’s becoming more and more importantly now because you know why? I’ll tell you why is because the credit standards are being tighten so much that a good part of that is you better have a good credit score we’re not going to give you money, we’re not going to just lend you money if can just breath like before which is why we are in the trouble room. Daria: We've talk to you before about being in credit crunch and you need to have an impeccable credit to get money. Now even people and companies with impeccable credit are finding it difficult because the banks don’t want to lend because the banks aren’t being lent to by other institutions. Ken: Exactly. We’re going to tell you some, I'm not sure there are secrets but stuff that you may not be aware off. Canceling a credit card could hurt your credit score. Daria: Yes, it makes no sense to me folks but come join me in my confusion. It seems to me the less credit card you have floating around there the stronger your credit report should be. No for some reason they seem to believe that if you close a card you could have problems somewhere and so they lower your fico score so just them cut if you don’t want. Ken: Or put them aside and don’t use them. Daria: But if you not going to use them, you know you'll never going to use them cut them up and throw them away. Ken: It’s estimated that about 15% of your credit score is dependent on your credit card history. So it’s important part. Don’t apply for too many cards. “Well I got a bunch of cards so I can get a bunch of loans and stuff.” Don’t forget well you may not know it because that’s why we call it a secret is that when a credit card company goes into your credit report to investigate and that report, that inquiry stays on for whole year and people all of sudden went looking and you'll say “why are all these people looking for credit reports?” Daria: Exactly. Are these people in people, is that why they go out looking for money from pillar to post? Also know that a large chunk of your fico score is base on your history of over 30 days due. If you tend to push the envelope as long as you can or because you have to that shows up on your credit report and that is a huge chunk of your fico score. Ken: You want to talk chunk almost 30% grab you. Use only about 30% of your available credit like you can borrow $5,000.00 in one card and $10,000.00 because here’s the deal how much— Daria: No, no g ahead finish this and then I've got a caveat. Ken: I'm just saying don’t use all your available credit because about 30% of your score is how much you have available and how much you use. What were you going to say? Daria: I was going to say don’t use more than 25% of that available line of credit because if you got more than that you can be in trouble one paycheck away from no job, no payments. Ken: Don’t ever fuzz your credit score in an application by the way. Nowadays it is way too easy to check. Daria what do you think if I'm a cash purchaser, shouldn’t I still have a credit card? Shouldn’t start building some kind of even if I get a credit card make a payment, make a purchase on the credit card and pay it off it starts a history. Daria: Let me put it to you this way. Did you ever try to rent a car with cash? You can't do it. Ken: $3 or $4,000.00 for the cash maybe. Daria: You want to practically buy the car before they let you take it off the lot. They actually won't even let you do it. You do need a credit card for something in your life. Ken: Emergencies too. Daria: Exactly. So everybody should have a credit card but we don’t need to have ten in our wallets, we don’t need to have five in our wallets. Two or three should do the trick get one anyway with cash or no cash. Ken: Fico score is important don’t abuse it. Daria: No it’s more important than ever before.