Top Credit Questions Answered Part 3: Your Credit Report
written by Credit-HQ ExpertIt’s hard not to be aware that there is such a thing as a credit score. The television advertisements for companies that will help you get a “free credit report” are nonstop. If you have a few questions about your credit score, that is to be expected. Let’s discuss some of the most common questions.
Your Credit Report Copy: Is it true that just asking for a copy of my credit report will drive down my credit report?
Actually, that is completely false. You can get a free copy of your credit report twice a year from each of the three major credit reporting agencies and it will never hurt your credit score. Your request for a copy of your credit report is a soft inquiry that will show up on your copy of the report but not on the copy that your creditors see. If anything, you should be encouraged to review your credit report frequently so you are aware of how your credit stands.
Credit Inquiries and Your Score: Should I Worry About How Credit Inquiries Drive Down My Credit Score?
No because even credit inquiries that do affect your score represent under 5% of the all of the elements that go into figuring up your score. If you have a strong credit report, that figure is even smaller. It is difficult to tell how much a credit inquiry will affect your credit score. It affects everyone differently.
But it still is good to limit how many new credit card, insurance or cell phone accounts you open. If you are trying to get a mortgage, keeping the number of credit report inquiries low is good credit strategy. Even though the effect of credit inquires is low, even little fluxuations can make a difference.
Can a Divorce Hurt My Credit Rating?
Many times when you get married, you add your new husband or wife to your existing credit cards. The problem is that account is still in your name and if the account is abused in some other way, that will bring down your credit rating.
A divorce by itself will not hurt your credit rating. But your ex may still be able to exceed the credit limit on it or run up the balance, which is hard on your credit rating. Moreover, if you expect your ex to make the payments on a credit account that is attached to your credit history and he or she doesn’t make that payment, that will hurt your credit rating directly. This makes a good case for doing a review of credit accounts when you come to that place in your marriage is headed to divorce. Close any joint accounts and if you have added your spouse to your accounts, take his or her card away so it is your account only from now on.
The best way to share a credit account is to take out a joint account that is in both of your names. That way, if one spouse takes out of the marriage the responsibility for that account, missing a payment hurts both of your ratings. It is also wise to maintain some separate credit accounts when the marriage is healthy and doing well. You don’t want to be left high and dry if your disgruntled ex cancels all of your credit card accounts.
Fixing Credit Score Problem: What can be done about the double whammy of a bad credit score and a lot of debt?
One step that can help you really make some progress on your debt is to use a debt consolidation service to get all of your debt into one credit account. That one step can help to lower your monthly payment and your interest rate so you can finally start seeing the huge amount you pay on debt each month actually begin to bring down your indebtedness.
Another option to make more progress on your debt is to call the credit card companies you owe and ask them to lower your interest rate. If you explain to them that you are considering bankruptcy or default, they would far rather help you pay off the debt than see you default so they have to eat the debt.
Balance transfers and using a second mortgage to get your interest rates down are also viable options to give you the breathing room you need to start getting some control over out of control credit debt problems. But above all, keep making at least the minimum amount due on time and don’t open any new credit accounts. These steps taken together will eventually bring up your credit score. But it will take some time.
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