We all know how important it is to maintain a good credit score. Having a good score will allow you to get better rates for a loan, as well as make it easier to own a car, for example. But then there’s the mystery behind what affects your score. In other words, what counts and what doesn’t? For example, did you know that factors such as your marital status or salary have no direct effect?
You’ve probably heard that any inquiry into your credit will ding your score, and that’s not necessarily true. When you’re evaluating whether to apply for a loan or credit card, what you want to do is keep an eye out for a “hard” or “soft” inquiry. Soft inquiries are used for credit card pre-approval or pre-qualification for a mortgage. These inquiries won’t negatively affect your credit score, unlike hard inquiries.
For those of you struggling with your debt or going through bankruptcy, credit counseling services aren’t going to damage your FICO score either. If you think about it, credit counseling is a plus as you’re taking the steps to become more financially responsible.
Payment and spending habits, your credit limits, these are the things that will make a difference with your score. If you’re concerned about what’s on your report, don’t forget you can check your report free by visiting www.annualcreditreport.com.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with a Miami insurance attorney or bankruptcy attorney and receive a free consultation. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.