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Is your credit score struggling because of your debts? Continue reading to learn how to improve your credit score within FOUR months Why is a credit score important? Why do three-digit letters effect our ability to get a loan, to apply for housing, your light bill and even determine if you are eligible to receive a cellular phone without a down payment? As much as credit scores burden us, it helps lenders know one thing. Can they trust that you will pay your bills when you say that you will? FICO is a credit scoring model that predicts whether a borrower will default. The FICO formulas need at least one account on your credit report that has been open for six months and one account updated in the past six months (it can be the same account). If your credit history is too thin, or you’ve stopped using credit for a period, there might not be enough current data in your file to create a regular credit score. Things happen in life and sometimes we all into debt which impacts our credit score. To increase our credit score, many of us make many errors and believe in many myths that will not help our credit scores but may hurt it even further: here are some common credit score myths; 1. Closing your credit accounts will improve your score, and they should be read closed by the customer so that your score isn’t hurt. Sounds very logical right? One of the things lenders look at when you submit a credit application is your credit history, the younger your credit history, the less they trust that you can pay your bills. The calculation of your credit score factors the age of your oldest accounts and the average age of all of your counts. Therefore, closing accounts may affect your credit score. Furthermore, lenders aren’t looking to see who closed your account. They only care about your actual credit score 2. You don’t have to use credit to get a good credit score The credit scoring formula is designed to judge how well you handle credit over time. There’s no way to judge your responsibility as a bill payer if you’re only living a cash-only lifestyle 3. You can hurt your credit score by checking your credit report You can burn yourself only when you ask a lender to check your score for you because it generates the term “hard inquiry.” With free credit website such as creditkarma.com, you will have no problems checking your credit multiple times a year 4. You can hurt your credit score by shopping around for the best rates False! When you’re buying a home or house, credit scorers ignore all mortgage and auto-related inquiries within the first 30 days. Don’t’ be afraid to keep shopping until you find the best deals. 5. Bankruptcy will make it impossible to get credit False! In fact, you can get a mortgage in early as six months after you file for bankruptcy. It just depends how well you start paying your bills on time after the bankruptcy. Repairing your credit scores One of the overlooked problems that impact our credit score is hard inquiries in our reports. Removing hard inquiries could increase your credit score by as much as 30 + points. Unfortunately, it would take a very long time to do it yourself. Therefore you will have to find an agency to help you. Shop around for the best price that will work best for you, but it is worth spending a little bit of money to help you increase your credit score. The agent below may be able to help you increase your credit score within four months! Robinson Francois 678-467-6136   References Turner, A. (2017). Between debt and the devil: money, credit and fixing global finance. Princeton: Princeton University Press. Weston, L. P. (2005). Your credit score: how to fix, improve, and protect your credit for life. Indianapolis, IN: Prentice Hall Professional Technical Reference.

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