Three Myths About Credit Reports

A credit data provider, Think Credit Reports is a website that offers consumers the convenience of ordering their reports online. Operating from Valencia, California, Think Credit Reports works with all three bureaus to provide credit monitoring and educate consumers about their reports.

While some believe that paying off debts is a sign of good credit, a credit report is actually a reflection of an individual’s entire payment history. Making timely payments over time establishes good credit and is the main measurement metric. Regardless of whether a debt is paid in full, late and missed payments will continue to factor into the overall credit score and remain on a report.

In addition, closing or canceling a credit card does not boost a person’s credit standing. In fact, having multiple credit lines open reveals a person’s ability to manage debt. Conversely, opening up several credit cards at once does reflect negatively on a credit report.

Lastly, checking a personal credit report does not lower an individual’s score. This is known as a soft pull, and individuals and credit counselors can obtain a report to check credit standing without being penalized. However, hard pulls initiated by retailers and other merchants seeking to issue a line of credit do harm a person’s credit score.

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Ways to Improve a Credit Score

Think Credit Reports is a credit data provider operating for more than 5 years in Valencia, California. The company, which can provide data from the three major credit bureaus, offers a range of services, including free quarterly updates for premium account holders. While it is important to obtain data from providers like Think Credit Reports, it is also important to take action to maintain a score when it falls to a low number. The following are some ways to improve a low credit score.

Pay attention to credit card spending, and keep balances low. Using a range within about 10% or lower for the limit for the card is suggested. Furthermore, even if a person pays off a card each month, the lower the spending amounts, the better the rating.

-Do not stretch usage across several different cards. When a person owes varying small amounts on a number of cards, it can reflect poorly in a credit report. It is best to use only a couple different cards for most spending purposes.

-Do not try to revoke good debt from the past. Good debt refers to outstanding balances that have been paid and taken care of, meaning that old debts can actually contribute to a better score. It is inadvisable to strike a debt from the record just because it has already been paid off.

-Do not avoid paying off simple bills and debts in favor of saving money for a large purchase, like a home. Rather than sitting on a large sum of money, it is better to spend time paying off debts and regularly making payments on time for an extended period so that any prospective deals on a large purchase are not negated due to bad credit.

These are just several of many methods of improving credit scores. Visit www.thinkcreditreports.com for more information.