Part 23:
As part of series of articles (blogs)
regarding Credit and Credit Score, here we
go:
 Disclaimer:
Every effort has been made to make these
articles as complete and as accurate as
possible, but no warranty or fitness is implied.
The information provided is on an “as is” basis.
The author shall have neither liability nor
responsibility to any person or entity with
respect to any loss or damages arising from the
information contained in this book.
The author is not engaged in professional
services. If professional advice or other expert
assistance is required, the services of a
competent professional person should be sought.
To a creditor, numerous inquiries may indicate
several attempts to obtain credit and therefore, a
possibly unstable financial condition.
TIPS:
·
If you are buying a home sometime
soon, don’t be tempted to open a store charge card
to receive discounts. Though these discounts can be
huge, sometimes up to 25% of your purchases on the
first day, you will be subject to a credit inquiry
for a charge card. This could have a negative impact
on your credit score (e.g., due to excessive number
of inquiries).
·
Allow a creditor to request a credit
report only when you have made a definite choice in
the purchase of a product.
·
If you apply for a new credit card and
get approved, this would be a new card that causes
your average history length to go down.
·
If the lender sees a
recent (e.g., within
last two months or so) inquire or several inquiries
on your credit report, they will consider it as a
red flag. He or she wants to make sure that you were
not awarded another credit card or loan that has not
been reported or shown on your credit reports yet.
Therefore, a lender might ask for and request an
explanation and supporting documents. This could
delay your loan approval.
·
If you check or request your credit report yourself,
it will not impact your score regardless of how many
times you check. Therefore, it is suggested that you
get a copy of your credit report from all three
credit bureaus, at least once a year.
-
If you are buying a home sometime soon
and you suspect some problems with your credit, make sure to
review your credit reports at least 10-12 months
prior to purchasing your dream home. If you believe
there is nothing negative in your credit
history, still make sure to
review your credit reports at least 2-3 months
prior to purchasing your dream home. This allows you
to clean up some items, if possible, before the
lender pulls up your credit reports and quote you
the interest rate, etc.
 HOW to overcome the problems with your credit
history and credit score?
Knowledge, education, awareness, practice and
discipline are the essential keys to being
successful on any subject. The book,
"Credit Score Tips and Tricks",
provides you information, tools, techniques to
educate yourself and manage your credit report &
credit score, and therefore manage your finances
effectively at no additional cost.
I have decided to bring and share with you,
chapters or sections of my book,
Credit Score Tips and Tricks,
as series of
articles here. This is the number
23 of such a
series.
I also created and manage a GROUP in ActiveRain,
Credit Reports and Credit Scores, Please
feel free to join and share your thoughts and
experiences.
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