Over and over we read about credit scores; what can we do to fix them and what is it that we do to hurt them. Everybody has a story to tell and stories will travel. By the time the story gets told 20 times, what we should or should not do with credit cards or cash advances may not be the real truth to solve our problems. The wisdom passed along becomes stretched and distorted through its various retold versions. Big myths don’t solve debt or credit score problems.
If you believe cash advances will help your credit, you will want to keep reading.
Some people are follow the understanding that the fewer credit cards they own the better off their credit score will be. Not having credit cards or only having a few and not using them do not lead to better credit. Your credit score rates your money management skills. How well do you utilize credit? The more you use your credit in a positive manner, the better your ranking will be. The credit agencies would like to see 2 or 3 different credit cards on your report. Use them often, manage them well and make on-time payments to see your score rise. The credit score will reflect your responsibility and let other creditors know that you manage debt well.
Another myth which tends to debunk people’s efforts would be to completely pay off credit cards each month to increase their score. Yes, it does help, but it is not always realistic for most people’s purchases. Use other credit cards to get the balance lower than 20% of your limit. If you cannot afford to pay it all off, you do have options which will help in the long run as well. Try to use credit cards with lower interest rates and pay them off as soon as possible.
Most people think that their credit score is only made up from credit cards, loans and mortgages. There is a bit more to the score though. No credit check loans like cash advances and payday loans, boast about their lending money with no credit bureau check. These loans will not use your score against you to loan money, but people forget that the consequences of not paying back their short-term loans. The actual loan will not build your credit but the defaulted one will tear down your credit. This is done by the collection agency which takes over the collections practice. There are some utility companies which report into the credit bureaus as well. Good reports will only boost your score while missing utility payments will hurt. It is crucial for you to keep all your payments and money transaction on the positive spectrum in order for your credit to not fall to the wayside.
The more you know, the better your finances will be. Don’t take all stories as truths and be careful about myths presenting themselves as the whole truth and nothing but the truth. Loans can help, even the cash advance short-term ones, but it is how you manage the payoff which will matter the most in the long-run.
