You Can Keep Your Good Credit During This Recession - If You Know The Score

How Do You Keep Your Good Credit During This Recession?

Don't wreck your credit score-know how the system works.

RISMEDIA, August 9, 2010
"With the same amount of money, you can make decisions that kill your credit score or ones that keep your score - or at least give you the ability to rebuild your score quickly later," he said. "Most people have wrong or little information about how the system works, and that's a big reason scores go down when difficult decisions are made during a recession."

Johansson advises major financial institutions and consumers on the FICO credit score model used by most lenders in deciding the borrower's risk and interest rate. He described THREE COMMON MISCONCEPTIONS that needlessly lower credit scores.

MISCONCEPTION #1: Paying late didn't hurting my credit since I'm caught up now.

MISCONCEPTION #2: Dollar Amounts Matter in Credit Scores.

Johansson emphasized the importance of paying all your bills on time, every time. However, he says that if you must pay late and want to avoid damage to your score, pay the accounts that report to credit bureaus first. You can find this information by getting a copy of your credit report.

MISCONCEPTION#3: Closing Credit Card Accounts Helps Your Score.

Don't Make a Bad Situation Worse.

Johansson emphasizes- "good credit is an important part of financial security and must be considered when making the best long-term decisions. Having the right information is necessary to make good choices - now more than ever."

for additional information:
http://rismedia.com/lowes/8355/9632