Free creditreport Detroit

That free experiment was quickly free creditreport Detroit shut down, but the secret was free creditreport Detroit out. Pressure from consumer advocates and lawmakers finally persuaded the FICO creators -- a company named Fair Isaac, now known as FICO -- to reveal later that year the 22 factors, grouped into five categories, that went into creating its scores. But 10 years later I'm still hearing many of the stupid myths about credit and credit scoring that prevailed 10 years ago, plus some that have sprung up since. Their prevalence is keeping free creditreport Detroit people from understanding one of the most important numbers in their financial lives.

Credit scores are used: Failing to understand credit scores and how they work, in other words, really can put a dent in your financial life.

Here are the seven most dangerous myths that need to be dispelled: Myth No 1: "If you handle your finances responsibly, your credit scores will take care of themselves." Fact: A credit score is not a financial-health score. It doesn't measure your income, assets or financial savvy. There are some behaviors that may be good for your wallet that aren't good for your scores. report credit fraud Keep in mind that credit scoring formulas have one primary purpose: to free creditreport Detroit help lenders gauge the likelihood you'll default, based on how you handle credit.

If you stop using credit or use it in a way the formulas don't like -- using only one card, shutting down a bunch of accounts or maxing out your cards, even if you then free creditreport Detroit pay them off in full -- your scores could suffer. 2: "free creditreport Detroit Checking your credit hurts your credit scores." free creditreport Detroit Fact: Checking your own credit reports and scores does not affect your scores. A credit check could hurt you if you asked a friend at a bank or car dealership to pull your credit reports. Such transactions probably would be coded as "hard" inquiries, or as applications for credit, which could ding your scores. creditscore But checking your own credit is otherwise a non-event.

This persistent myth is particularly destructive, because it discourages people from knowing what's going on with their credit reports and scores. Many reports contain serious errors that result in your being turned down for a loan or paying a much higher interest rate than you deserve. You need to visit AnnualCreditReport.com at least once a year to view your free credit reports from the three bureaus and dispute any serious errors. If you'll be in the market for a major loan, such free creditreport Detroit as a mortgage or an auto free creditreport Detroit loan, you'd be smart to buy your FICO scores from myFICO.com to see how lenders are likely to view your application and get free creditreport Detroit tips from improving your numbers. 3: "Asking for lower limits will help your credit." Fact: Having sizable credit limits is a good thing for your scores, as long as you don't use them to run up debt. Lenders like to see a big gap between your available limits and the amount of credit you're actually using. A lower limit free creditreport Detroit reduces that gap, which can be free creditreport Detroit bad news for your credit scores. annual credit reporting Of course, if you can't trust yourself not to use your available credit, the damage to your credit free creditreport Detroit scores may be the least of your worries. Otherwise, though, you probably should leave your credit limits alone. 4: "You need to carry a credit card balance to have good scores." Fact: You don't free creditreport Detroit need to be in debt or pay a penny of interest to have good credit scores. Your credit reports and scores don't "know" whether free creditreport Detroit you're carrying a balance or paying it off in full every month.