Millions of people misunderstand how it works, a good credit record.


Before accepting your application for installment loan, a lender will check your creditworthiness. His working tool is your credit record. The latter receive each day millions of data on as many citizens from creditors and suppliers with whom they do business.

Thus, your credit report is updated very often. Some studies have shown that one in four cases with errors. Now, it is your credit report that a lender will give you a loan or a mortgage, determine the interest rate that you will pay based on the risk you represent.

Many myths and urban legends circulating about credit files. Here is a list.

False. Check his record is not the same as doing a credit application. On the contrary, more often you check your file, the more you master the content, the more you correct the false information and even fraud. Also: when the tax authorities or the police consult your file, it has no impact.

False. This good habit accounts for about 30% of your credit score. The accumulation of more debt or high debt, close to or above the capacity standards repayment, is considered a time bomb by lenders and creditors.

False. All specialists repeat it: you have to pay the balance of his credit cards in full by the deadline indicated on the statement. Otherwise, you are considered a careless borrower since you borrow on a map to 19% rather than a personal margin of 8%.

False. Even if it’s 24, a delay is a delay. The credit is powered computers; you had 2 or $ 2 million.

False. A credit report is built based on your payment history. Since my paid cash purchases are not listed, they can contribute positively or negatively to your score. It might, therefore, be preferable to use a credit card and simply pay off the balance before the due date. In addition to potentially reap the benefits (point systems, guarantees) offered by the issuer and does not pay interest charges, you demonstrate sound management of your payments.

False. It is listed on your record for years. And you can not do change, especially for delays or defaults. Only incorrect information, they affect the credit history or your personal information, are removed or corrected with supporting evidence.

False. These firms sometimes depend on different creditors to update your file. So check both folders. Experts suggest every one to two years.

False. Even the rich are denied loans. The credit rating is not attached to your income (salary, investments, etc.) but depending on your credit history. Only the lender will consider your income, especially for large loans.

False. You will be assigned an R9 rating (worst; R1 is the best). That’s all. It will be on your credit report for seven years. But several bankrupts rebuild their credit in the first year after the bankruptcy discharge. Good credit habits quickly enhance your odds.