Credit Rating Scores-Myths

The first thing I want to talk about when it comes to credit rating scores a big question is if I have a credit card I don't use should I get rid of it?

I am here to tell you not to get rid of the credit card. The reason is because you have had the card for a while so when you take into consideration that your credit score in many cases goes by time you really shouldn't get rid of the card. At the end of the day your rating is over all higher because of the time you have in with the card.

One thing to consider is that your card shouldn't be maxed out and you should have never missed any payments because these are actually negative aspects.

OK, so now you have a negative of $700 that has been there for 4 or 5 years. So should you pay it and close the account?

Since you are thinking about paying to delete something and have all negatives wiped of your account you need to make sure it represents your credit score. Do not close your account though. An account in good standing does wonders for your credit where no account does nothing to help with credit rating scores. So keep the account and it will help your credit score. Just be discipline and don't use the account.

The next thing I want to talk about when it comes to credit rating scores is opening new accounts. Well to be honest the last thing you want to be doing when trying to increase your credit score is apply for credit.

Every time you apply for credit it really is a knock against you. So if your credit is already suffering then all black marks will seriously effect you. Your most current behavior is what is looked at closely by creditors so applying for more credit will seriously effect your credit rating scores for the worse. So you will be doing absolutely no good by trying to apply for credit cards that may have lower interest or something like that. Especially since there is no guarantee that you will get them.

It used to be that if you had your name on someone else credit card as an authorized user it would help with your credit rating scores. Well as of 2009 the credit bearuas have now put in a formula to make this not happen. It used to be that it really was a fake way to build your credit and the credit score companies put an end to that. You have to be the active person when it comes to building your credit. So, while this may have been a good idea it really makes no sense anymore if you think it is going to help your credit.

The final myth I want to talk about is while high credit rating scores are great, its not all you need when applying for credit. The thing is you have to have the ability to pay back any loan being applied for. The credit score determines a good credit but employment tells us whether or not you can pay everything back. People get turned down everyday for loans even if they have good credit. Once determined they have too much credit already then there is a good chance they wont get the loan they are looking for.

It really makes no sense taking short cuts when it comes to building credit rating scores. You may notice a few good things in the short term but through time you will notice a lot of things that will devastate you. So by doing things properly it may take a little longer but it will be a much better payoff in the end.

Something else you can do is talk to people who are in a similar position as you are. You can find these people at workshops or on several forums on the Internet. There are several people who are always willing to share in their success. The nice thing is their good stories can help you get yourself in better shape.

There really are a lot of myths when it comes to credit rating scores.  The best thing to do other then listen to myths or rumors is either consult an expert or get your hands on some great products.

While bad credit can be devastating there is always a way out if you want it bad enough.  You can find some of the best products available on the internet by taking a look at my blog which can be found by clicking Credit rating Scores.