A couple of credit misconceptions

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A couple of Credit Misconceptions

Whenever you wish to begin creating credit, don’t merely get the very first card which you discover. This write-up will clarify what can count and what does not count for creating your credit. There are lots of various elements which go into credit but establishing credit takes particular elements.

The very first misconception concerning credit is that utility bills will assist you to develop a great credit score. Utility bills don’t go on your credit report. These bills can assist whenever you are seeking to acquire a mortgage. When you have small credit but can show a stable payment history, you’re able to acquire a mortgage. Your utility bills also as rent payments may be utilized to show proof with the stable payment history. Activities like these can assist in creating great monetary habits for college students if they’ve to understand to pay the bills on time and have cash budgeted for them each and every month. What counts towards your credit are any credit accounts like student loans, automobile loans, and credit cards.

The second credit misconception is that no credit is much better than poor credit. This isn’t usually the case. Poor credit does signify which you have a payment history. This isn’t the case with any credit and creditors will shy away from this much more than somebody with no credit. When you have no credit whatsoever, you’ll nearly most likely not have the ability to get an apartment in the event you wanted with out a co-signer. Poor credit may be corrected and some info may be gleaned concerning the person’s monetary history from this whilst the individual with no credit has absolutely nothing with which a business extending credit can frequently function with.

The third misconception about credit is which you ought to assist out buddies with credit. To go back towards the prior paragraph, let’s appear in the definition of a co-signer. In the event you don’t have sufficient credit, you’ll need a co-signer. A co-signer guarantees a loan or perhaps a credit card so if the individual with no credit doesn’t pay the bill, the business who extended the credit will go following the co-signer.

There are lots of stories which you are able to read on-line of individuals co-signing for buddies in great faith only to have their own credit demolished. When you have great credit, you would like to guard that cautiously. Make sure to assist buddies who you realize pay their bills on time simply because what they do will probably be a reflection on your credit. You don’t wish to need to rebuild your credit consequently of somebody else’s inactions or inabilities to pay his or her bills.

Hopefully this write-up on a couple of credit misconceptions has helped you understand what can count towards creating your credit together with why you should establish credit. You need to guard your credit wisely and if a buddy ever asks for assist, comprehend why you need to determine yes or no.

Comments: 12

  1. Jordon March 13, 2013 at 10:56 pm Reply

    I want to get a frequent flyer credit card but I already have 3 credit cards with generous limits. I don’t need these credit cards and I would like to cancel them and have this “possible credit” to go towards the new card. I heard once that canceling a credit card has a negitive effect on your credit score. Is this true? If so, how do I switch credit cards and avoid affecting my credit score in a bad way?

  2. Emanuel October 10, 2013 at 5:39 pm Reply

    I have several credit cards. Most of them have a zero balance. I do notice the credit card companies keep sending me blank checks wanting me to take advantage of low interest rates theyre offering.
    Will the financial troubles have any effect on my credit cards? If so, what?

  3. Holli November 8, 2013 at 12:55 pm Reply

    Why on earth would two people agree that the husband should spank his wife whenever she does anything he doesn’t like unless they needed some kind of justification for acting on a sexual fetish?

    I mean, really…why can’t the wife punish the husband if he does something “wrong” as well? Why is this a one way street?
    And spanking her? Why not taking her credit card away for a day or something?

    …and turning it into a “lifestyle”? There’s just something really unsettling about this. Parents who spank their children don’t consider spanking their children their lifestyle.

    I’m sorry, this is not something I can accept as a respectable way of life…this notion that the guy has any right to infantilize his grown wife and can do whatever he pleases is sickening.

    Not to mention these people freaking post videos of themselves “disciplining” their partners online.

    Someone give me one good reason that this is not just a way of acting out sexual fetishes.

  4. Myron January 2, 2014 at 10:36 am Reply

    I have a lot of friends that give credit to god for every thing that happens to them in their lives…no matter what it is.

    A friend of mine just graduated college got a job a couple of years ago making good money. Because of this job, she was able to get a nice house and car. She thanks god for everything she has. She says if it weren’t for god, she would not have the great job and house she has.

    How can she give credit to god when if it wasn’t for busting her butt in school, she wouldn’t have the nice job, house, and car? If god did it for her, why would she have needed to even go to school?
    According to some of the answers so far, it is because god answers all prayers. So if she would have just prayed and not gone to school then she still would be where she is at today?
    Ray said, “If it was not for God, she could have had bad health and have not the ability to do those things she wanted to do.”

    What about those who are devout Christians and get sick?

  5. Milo January 18, 2014 at 11:15 am Reply

    I am in tenth grade right now and i have decided i want to be a marine biologist. I’ve picked out what college in my area I would like to attend and it is one of the top in the country. I have talked to my guidance counselor at school briefly and have taken almost all of the math and science classes offered at my school already. What should i do next?

  6. Yuko February 22, 2014 at 4:36 am Reply

    I received what appears to be an unofficial 1099 from the IRS… It refers to “Overpayed Tax Interest” and says that I need to file it as miscellaneous income on my tax return. However, It only contains a fraction of the information needed on the 1099. It’s not even formatted the same way. So, what do I do? I don’t want to get charged $50 for missing information.
    Note: Underneath all the tax ID info and stuff it says”If you are required to file a tax return, report this interest as income on your return.”

    That’s where my confusion is. It would seem to be telling me to file this with my return, but its not giving me all the information I need to fill out the paperwork.

  7. Nilsa February 22, 2014 at 4:36 am Reply

    I make an internet cartoon and I’m releasing DVD’s soon. However, one of the cartoon styles is where one of cartoon characters reviews movies. In the review he show clips of the film.
    I wonder if it is legal to put these cartoons on my DVD? I state clearly at the start of each review what company owns the movie and it’s clips are the intellectual property of and at the end it says Copyright to “whoever”. I give credit where credit is due but I need to know if it’s legal to make money off these DVD’s if it has clips of other movies?

  8. Pat February 28, 2014 at 5:18 am Reply

    I bought a car about a year ago, finances at the time where very stable. I lost my job and had to move. With the move I ended up spending a lot of money. Just a couple days ago the engine on the car seized up. I guess it wasn’t rebuilt properly. I still owe a few grand on this car, my job now doesn’t pay nearly as good as I was getting paid. I talked to my friend who is also my mechanic he said it will be anywhere from $2,000 to $3,000 to fix my car depending on how well I can get a deal on a decent engine. I am somewhat mechanically inclined so I may attempt to do this myself but even doing that it will still cost me anywhere from $1,000 to $1,500. Or I could get one of my other friends do this job for me, which would be splitting the difference between having a mechanic and having myself do it.

    I did recently pick up a cheap car that will hopefully make it through winter for me. So I have time to save up money to fix this car.

    That’s the background of what is going on. My question now is:

    What other options would I have, what type of penalty incurs if you give the car back to the bank?

    My job currently will take me a few months to come even close to saving that much money.

  9. Renay April 2, 2014 at 5:59 pm Reply

    I want to marry my girlfriend, but I’m in debt a few thousand dollars and don’t have the best credit. I’m fixing my credit, but I don’t want her to inherit it. What can I do? I don’t want to wait 3 years to get out of debt to marry her

  10. Bruna April 8, 2014 at 2:38 pm Reply

    Does cancelling a credit card or a store card affect my Credit History. If so, how?
    Well, I have been having all my card for the past 6 years and I always pay off the full amount when due every month and no defaults 🙂

  11. Marlyn May 18, 2014 at 6:10 am Reply

    Would Ron Pauls idea of backing the dollar with gold make our dollar too strong? I mean ALL Americans want a strong/stable dollar for sure, BUT, what are the short/long term effects of such a policy? I’m sure the short term effect would be a “tad” bumpy as the financial/comsumer end of the economy adjusted to the new found buying power of a gold backed dollar. Coupled with the termination of the IRS/Federal Reserve & reduction in federal bureauocracies the dollar’s value would likly shoot to the moon! I’m sure the “bumpy” ride at first would soon smooth out, BUT, what about the long haul??? Would the dollar get to be so strong that other goods producing nations could not afford to trade with us? If that be the case would America have to go back in to a manufacturing/production economy instead of our current service oriented economy? So many variables here that it’s boggling my mind. Any body got some input into this topic, ESPECIALLY regarding the long haul effect on our economy???

  12. Mollie May 29, 2014 at 5:20 am Reply

    I filed in April of 2006. I viewed my credit report a couple of years ago, and I remember saying something about it going off of my credit in 2016. Is this when I can file again? 10 years? Or is it 7?

    My intention was to never have to file again, but I got sick and have tons of medical bills from the last 3 years.
    I take that back. (my memory if awful). I filed in April of 2004 NOT 2006.
    This also means my Credit Report said the bankruptcy would come off 10 years from when I filed (so that means 2014 not 2016).

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