Credit reporting Macon

Having too many credit accounts can negatively affect your credit score, but canceling them may not improve it. To measure your ability to manage debt, credit bureaus look at the amount of credit you’re using compared with the total amount you have available. So closing unused accounts reduces your untapped credit and may make you appear overextended.

Closing your oldest accounts is even worse credit reporting Macon because the longer a credit reporting Macon line of credit is credit reporting Macon open, the more history you’ve accumulated. If you do close an account, consider closing your newest one and transferring any balance to an older one. When a lender makes an inquiry about your credit, your score has the potential to drop up to five points. For this reason, some borrowers are afraid that comparison-shopping for a mortgage or auto loan will result in multiple deductions. free 3 in 1 credit report The score is set up to take into account that even though you are only looking for one credit reporting Macon loan, multiple lenders may request your credit report (i.e. For that reason, all mortgage or auto inquiries made in the 30 days prior to when you choose your loan will not affect your score. To determine your score, the credit agencies also look back at any auto or mortgage inquiries that were made in the credit reporting Macon past two years (but are older than the 30 day window). If there are any within that 2-year window, all of the inquiries that fall into credit reporting Macon a normal "shopping period" are counted as just one inquiry when determining your score. free credit report site

The length of the "shopping period" varies depending on the version of the FICO scoring formula used by your lender and can be either 14 credit reporting Macon days (older versions of the scoring formula) or 45 days (newer versions of the scoring formula). Here's an example: Say you are applying for a loan and are talking with credit reporting Macon four lenders.

If you choose a loan within 30 days of those first credit pulls, the inquiries will not affect your score. The score then looks at the past two years of your credit report. Say you applied for credit reporting Macon a car loan a credit reporting Macon year ago with three lenders. If your current lender credit reporting Macon is using the older version of the scoring credit reporting Macon report, all three inquiries will count as only one inquiry, as long as they occurred within 14 days of each other. online credit report

Your credit score is a measure of your past performance, not your current debt load. Paying off your credit cards and settling any outstanding loans will certainly help, but if you credit reporting Macon have a history of late or missed payments, it won’t undo the damage overnight.