Credit Scoring with Brian Linnekens

Credit Reporting is one factor that keeps almost all Americans on their toes. Although it’s 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 don’t 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.

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 don’t 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. Don’t 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.

Don’t 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.