Credit Scoring with Brian Linnekens

1
Credit Scoring with Brian Linnekens
2
Credit Reporting is one factor that keeps almost
all Americans on their toes. Although its a
simple process and a simple reporting yet people
are scared to death at the mere mention of a
credit report observed Brian Linnekens. There are
many myths that have made their way into the
public domain via word of mouth. Myths dont have
any solid ground yet people are scared because of
ignorance as to how credit reporting is done.
Once individuals know the process and the fact
that credit reporting and credit scores are for
the befit of the common people and can be used to
increase their individual borrowing capabilities
it becomes quite easy to manage everyday finances
that have become sort of burden for the average
American these days.   Experts like Brian
Linnekens suggest people to at least have a look
at their credit scores at least once a year. As
major credit reporting agencies provide a copy of
your credit score every year space them out so
that you have an even chance of checking your
credit score every four months that will ensure
that you are not ignorant of your financial
health. Having a mere look at your credit report
is not going to take you anywhere. You need to be
able to tell the facts from the myths that
surround credit reporting suggests Brian
Linnekens.
3
  People keep wondering why they are not
qualifying for a debt with a low APR in spite of
settling all previous debts where some problems
persisted. Well the truth is that settled debts
dont get dropped from your credit report. Late
payments and bad debts are not dropped instantly
from the credit report even though they have been
settled amicably. The late payments and bad debts
are there on the credit report for a good seven
years. Even worse a bankruptcy mark will be there
for ten years on your credit report.   There are
many who believe if they stop using the credit
card their credit score will shoot up. This is
not the case you may use cash for all your
purchases but that is not going to make any
difference to your credit score. Dont stop using
credit instead use it responsibly. Making your
payments on time will surely give you an
advantage and you are sure to receive a benefit
in your credit score if you start using your
credit card more responsibly.   Closing on a
credit card can do more harm than good. Agencies
involved with credit reporting need to see a low
credit utilization which is the ratio between the
credit you are using and the credit that is
available. Thus closing a credit card will reduce
this ratio as you are not decreasing the
outstanding credit but you are closing on the
available credit.
4
Dont be afraid to make inquiries about your
credit rating advises Brian Linnekens. It hardly
affects your credit score if you are making soft
inquiries for personal reasons. But if a bank or
a financial institution is making an inquiry then
there is a small effect on your credit score. The
effect is small but it is measureable. Thus the
best option is to make a soft inquiry if you are
in a doubt about your credit score.   A high
income is does not affect your credit score.
Since credit score is a measure of how you manage
your credit thus income plays a negligible part
in the credit scoring. However Brian Linnekens
says that if you have a fat paycheck make sure
you manage your credit in the best possible
manner as it will surely help in a better credit
scoring.   Article Resource - http//www.brianlinn
ekens.com/2013/06/25/credit-scoring-with-brian-lin
nekens/