it might be a stupid question but just wantet to know if its good even though its showing the high credit..
2007-01-22 10:34:07 · 7 answers · asked by rache0116 3 in Business & Finance ➔ Credit
I am a professional credit advisor and I wish I would get more questions like this from my clients. It is certainly not a stupid question.
As a general rule the answer is yes. However, because credit reporting agencies are not interested in accurate information or complete information, just information they can sell to anyone with as little as a dime (yes, a dime), all the information they have on you may not be correct. That is one reason (among many) why you should review your credit report often.
It also depends on how you paid them off. Many people make the mistake of going to a debt consolidation company that offers to reduce your monthly payments by half or more. If you have done this then you will find that your credit is in very bad shape. You may have paid off all of your loans and maybe even in record time, but what you didn't see behind the scenes is damaging your credit.
Here is how it usually works with these "companies". If you are lucky enough to find one that is legitimate (do your due dilligence) and they don't take your money and run, they are going to hurt you to help you.
They ask you to bring in all of your credit card bills and such then tell you that they are on your side, these evil credit companies have taken advantage of you, but don't worry, in a week or so we will have restructured your bills so your payments will be much less. Then you go home and sleep like a baby because you think all of your problems have finally been solved.
Now let me tell you about their secret. Let us say that you owe Visa $10,000. These shysters call up Visa and say, "You know what, you are never going to see that 10 grand. Ever. Our client just has too many bills to pay and too much debt. So you can lose all of it to bankruptcy or you can take this deal. The deal is $2500 made in 25 monthly payments of $100. Take it or leave it."
Now, if you are Visa, what are you going to say. Of course you are going to take the $2500! But you are going to be mad as hell about it. So Visa reports you to the credit bureaus as a $7500 charge off. Unfortunately, you are unaware of this because the scam artist that is making this deal for you isn't going to tell you. He is going to make similar deals with all of your creditors and the results will be the same with all of them.
Now you know the truth behind these kinds of businesses.
I find it funny that lenders will support these kinds of businesses as legitimate when they harm your credit. Yet, when it comes to credit restoration, a business that helps you return your credit to your control, they will do everything in their power to make you believe they are not legit. Could it be that by having a higher credit score they have to charge you lower interest rates? Damaged credit means higher interest rates. Hmm...
Check your credit often. Do your due dilligence.
If you have any questions regarding your credit issues, you may email me at nebula7693@yahoo.com
2007-01-22 11:00:56 · answer #1 · answered by nebula7693 4 · 0⤊ 1⤋
It is not a stupid question. I would suggest looking at it from a different perspective. If you pay off all your debt, you have the amount of the payments to save and make purchases with cash. At that point, who cares about your credit score? You don't need credit.
2007-01-22 11:47:51 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes - its very good. Its even better withth e high credit limit showing because that shows you can borrow money and pay it back - just what a lender is looing for...
2007-01-22 11:15:58 · answer #3 · answered by sdmike 5 · 0⤊ 0⤋
asking this question does not make you stupid, thats what we are here for is to try and help others. I'm not sure but if you pay all your bills on time you should show you have good credit. hopefully someone else could help you more than I did. good luck. and remember you are not stupid
2007-01-22 10:44:01 · answer #4 · answered by misty blue 6 · 0⤊ 1⤋
Yes..Another aspect to look at is the number of late payments, if any, that you had. More late payments = Lower credit score
2007-01-22 10:37:19 · answer #5 · answered by tchem75 5 · 0⤊ 1⤋
Sure. But a continuing record of payment according to agreed terms, and keeping your account balances low, is better.
2007-01-22 10:38:04 · answer #6 · answered by Anonymous · 0⤊ 1⤋
yes it is to answer yor question. keep your revolving cards at 30% of the allowable or less and your scores will get very high
2007-01-22 10:47:29 · answer #7 · answered by golferwhoworks 7 · 1⤊ 0⤋