The title of this article actually features a big mistake. The mistake is the idea that you only have 3 credit scores and it is one of those credit myths which resurfaces over and over again. In truth while you do only have 3 credit reports, one from each of the 3 major credit reporting agencies (Equifax, TransUnion, and Experian), you really have hundreds of different credit scores.
It is that time of year again, the time of year when a pile of tax related documents begin to show up in your mailbox. You may receive a W-2 form from your employer, charitable contribution statements to use for tax write-offs, and even mortgage interest statements if you are a home owner. However, there is another far less desirable tax form which will be finding its way into millions of people’s mailboxes this year as well – the 1099-C.
Credit cards, as we have already covered in parts 1-4 of our Credit Cards 101 series, are extremely powerful tools which you can put to work for you on your journey toward better credit. Yet not only do credit cards have great credit building potential (assuming you manage the accounts properly), but they also feature some other great benefits as well. For example, you may not realize it but your credit cards represent the safest and most secure form of payment you carry in your wallet.
Your credit scores can exert a tremendous amount of influence over your financial wellbeing, in some instances even more than your income. Don’t believe me? Just ask anyone with a great job who has ever been turned down for a mortgage application due to bad credit. People with great incomes and bad credit get denied for financing every single day.
You probably already know that achieving good credit is important. You are smart enough to be reading this article after all. Yet
Welcome back to part 4 of our Credit Cards 101 series. We have already covered in depth how properly used credit cards have the ability to help you start building credit from scratch or to rebuild previously damaged credit reports. Credit cards alone are not going to be a cure-all for your credit problems, of course, but they can be an important component in your overall credit restoration plan.
When it comes to credit cards an often overlooked credit improvement method is the authorized user strategy. Here is a deeper look at how the authorized user strategy works and how you might be able to benefit tremendously from asking a loved one for a favor.
Welcome to Part 3 of our powerful series, Credit Cards 101. In parts 1 and 2 of this series you have already learned some important information about how properly managed credit card accounts can be very effective tools to help you build better credit. Of course, while well managed credit card accounts can potentially be great for your credit scores, credit card debt can actually wreak havoc upon your credit scores very quickly. For best results (both financially and from a credit score standpoint) it is important to develop the habit of paying off your credit card balances in full each month.
No one likes to feel judged, but that is exactly what your credit reports and scores are designed for – to help others judge you. Specifically, your credit is routinely relied upon by many different businesses in many different industries to judge whether or not they wish to do business with you. Good credit can make your life much easier in more ways than you probably realize.
Most people understand that your credit is important whenever you apply for a new loan or credit card. If your credit contains certain red flags such as low scores, collection accounts, public records, or other derogatory information then
Credit cards have the ability to make or break your credit scores. In Part 1 of our Credit Cards 101 series we have already covered just how important it is that you keep your credit card balances paid off monthly. Credit card debt has the ability to harm your credit scores even if you make all of your monthly payments on time.
Yet credit cards are not nefarious either. It is ultimately up to you whether your credit card accounts will help or hurt your credit and finances. In fact, by never revolving a balance from month to month you can turn your credit cards into powerful, credit building tools.