Fact or Fiction? 5 Myths About Credit Scores To Watch Out For

Fact or Fiction 5 Myths About Credit Scores To Watch Out For

There are plenty of misconceptions out there about credit scores. Many of which can severely damage yours, if you’re not careful. We have compiled 5 myths about credit scores so you don’t fall victim and end up with a negatively impacted score.

5 Myths About Credit Scores To Watch Out For

1. Closing a credit account will help my score

You might think that closing a credit account shows responsibility. What’s actually happening, though, is you are decreasing your overall credit limit. When you spend money you end up closer to your spending limit, which does not look great to lenders or the credit bureaus. If you really want to close an account, remove a newer one. Thirty-five percent of your FICO credit score is based your credit history, including the average length of credit history across all of your accounts. Removing an old account decreases the average length of your credit history, which is why you should eliminate newer ones first.

2. When you pay off a negative record, it’s taken off your report

If only you could get rid of a negative record that easily. Unfortunately, things such as collection accounts and late payments remain on your report for seven years from the date they were first delinquent. In the end, when you pay off the account, it only shows up as “paid.”

3. All three credit scores are the same

There are three major credit bureaus: Experian, Equifax and TransUnion. Each of these bureaus will give you a different credit report that will have a different score. Not all information is sent to all three and they don’t share information with each other, which is why they often show different scores. This is why it’s a good idea to take advantage of the free credit check you get once a year from each of the major bureaus so you can make sure there are no errors in any of the reports.

4. Not having a credit card means you’ll have good credit

It’s actually quite the contrary. Having credit cards and being able to manage them plays a big role in calculating your score. Having these accounts helps you build credit history as well, which is something else you need to help boost your credit score. Creditors and lenders like seeing that you have and can manage credit cards. When you don’t have any, they will likely see you as a higher risk than those who do have credit cards.

5. Co-signing has no risks

Perhaps a child or a family member has asked you to co-sign for them on something because they don’t have enough (or have very poor) credit history. You offer to help them because you don’t have anything to worry about, right? Not true. If they fail to make their payments on time, your credit is going to take the hit along with theirs. Once your name is on the loan, you take on all the risks that come with it. Even if it’s someone you know and love, be cautious when co-signing if you have good credit.

Do you have anymore myths about credit scores you’d like to add? To enlist the help of a trustworthy, effective credit repair company, call us today at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Should I Carry A Credit Card Balance?

Should I Carry A Credit Card Balance

When you use your credit card on a regular basis, you’re faced with the decision of how you should pay it off each month. You can either pay it off in full or just make the minimum payment. But you’ve probably wondered if you should carry a credit card balance. Does doing so help your credit?

Should I carry a credit card balance?

There’s really no need. Even though it does get you some points, it doesn’t do too much to help your credit. What it does more of is put you at risk of not paying off your credit card and increases your interest each month. That doesn’t mean it’s bad to have a balance, because sometimes life just works out that way. If you do have a balance, however, it’s best to try to keep it under 10%, as keeping it here will get you the maximum points possible. Even if that isn’t many points.

That being said, you do have options when it comes to how you pay off your credit card.

Pay the whole balance

This option is the one we most highly recommend you try to do first, if you can. If you are in a position to do so, definitely pay off your entire balance to avoid any interest. However, wait until the statement comes in so the bureau can see that you’ve been utilizing your card. Then, go ahead and send in your payment. On time.

Pay the minimum balance

If you are unable to pay off the whole balance at once, you can always pay the minimum balance. This one is easy on your wallet at first, but later, not so much. Thanks, interest. Regardless, this option is extremely helpful if you’re a little tight on money for the month. If you can’t afford to pay off your whole balance, then you can simply pay off your minimum due and it will be considered an on-time payment. The only downside is you will have just a little extra to pay next month because of, yes, interest.

Pay it off as you go

Say you use your credit card to make a payment on Monday and sign into your account on Wednesday. When you sign into your account, that’s when you’d likely pay off your balance.

This option might really help you keep on top of your finances, but be aware that if your balance shows zero every time the cycle ends, your credit bureau is going to see your account as “not being utilized,” even though that’s not the case. So, yes, you’re being responsible and paying off your card on time, but you’re also not helping your credit score because the bureau has no actual proof that you’re being responsible.

Do you have anymore questions about whether you should carry a credit card balance? Let us know! To enlist the help of a trustworthy, effective credit repair company, call us today at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How Often Should I Check My Credit Score?

how often should I check my credit score

You know your credit score is a key part of having a strong financial future. It helps you get great interest rates for loans, lower finance charges on your credit card, and so much more. With so much riding on a credit score, we’re answering the question, “How often should I check my credit score?”

How Often Should I Check My Credit Score?

You should check your credit score at least once a year, unless you have a reason for reviewing it for other reasons. Each credit bureau offers you one free credit report for the year, so definitely take advantage of that. Checking your score annually allows you to make sure the information on each of the three reports is correct. The bureaus do not share information with each other. Which means it is always possible that one of the credit reports could have a mistake even if the others do not.

Reasons to check your credit score more often

If you apply for credit for something such as a mortgage or a car loan, lenders are going to pull your report to check your score. Doing so will help them determine whether or not they can give you the loan and at what interest rate they can give it to you. In this case, it’s not a bad idea to check your credit score on a regular basis. Now, when it comes time to apply for  the loan, there will be no surprises. Soft inquiries don’t hurt your credit, so you don’t have to worry about pulling your credit report too often.

Another reason to check your score more often would be if you’re trying to improve a bad credit score. By checking your score regularly, you can see how you’re doing and see what is helping you improve your score the most so you know what you need to keep doing. You can sign up for one of these credit monitoring services to help you check in on your credit report.

It is very important to monitor  your score on a regular basis to make sure nothing has drastically changed. Especially when you think you may have been a victim of identity theft or had your information compromised in a data breach. If you are a victim of identity theft, it’s important to know how identity theft affects your credit score. It is also important to know the steps to take if you’ve been the victim of identity theft.

If you’ve recently divorced, you will want to make sure your ex-spouse is making their share of the payments or, in general, is not hurting your credit. Also, if you’re in the job market, employers might check your credit as a part of the employment process.

How often is too often?

Checking your credit score every day might be a little too often. Although it is possible to do so, it will only potentially lead to obsessing over it. You will never see any major changes overnight. Besides, lenders understand that small, insignificant changes will happen daily as things update. They know the important ones happen over longer periods of time. Daily checks also won’t help you see the trends in your score. Giving it more time to have significant changes will allow you to see any trends. Small changes are only meaningful in a credit score when you are right on the line between the good and bad sides of the credit score range. Otherwise, if you are sitting comfortably within a range, small changes won’t have much impact.

Have you ever asked, “How often should I check my credit score?” Is there anything else you’d like to know? Give us a call today at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How Long Do Inquiries and Bad Credit Stay On Your Report?

How Long Do Inquiries and Bad Credit Stay On Your Report

How Long Do Inquiries and Bad Credit Stay On Your Report?

You’ve always been so careful, but now there’s a bit of bad credit on your report. The first thing you likely want to know is how long that new dark spot will stay there. And if you check your score, will that inquiry sit on your report? If so, how long will that be on there? How long do inquiries and bad credit stay on your report? Well, it depends.

How long do inquiries and bad credit stay on your report?

Inquiries

Inquiries stay on your credit report for two years. But, the good news is, they only impact your score for the first year. And that’s only if it’s a hard inquiry, which is when a lender pulls your report to check your credit for an application. Some examples are when you apply for an auto loan, mortgage or credit card. Keep in mind, though, each of the applications will count as a separate inquiry.

What about soft inquiries? These are inquiries that are not being reviewed by a lender. Instead, they are when you check your own credit, credit check made by businesses to offer you goods or services, or when a business you already have an account with checks your score.

It’s good to know, however, that inquiries don’t account for much in the overall breakdown of what makes up your FICO score.

But, seeing as they do still somewhat impact your score, here’s some further reading on how many hard inquiries affect your credit score.

Bad Credit

Most negative information will remain on your credit report for seven years, although there are exceptions.

Credit Accounts

This information stays on your report for seven years from the date it was first reported as late. If the account is closed, the entire account will be removed after those seven years. However, if the account remains open, the negative information will be removed, but the account will remain on the report past the seven years.

Collection Accounts

Collection accounts remain on your report seven years, plus 180 days from the date the account was delinquent leading up to when it was placed for collection. After this time, it must be removed. This is regardless of when it was paid or placed for collection.

Want to know more about how many points will a collection affect your credit score?

Public Records

Chapter 7, 11 and 12 bankruptcies remain on your report for 10 years from the date they were filed. Chapter 13 bankruptcies are a bit different. They can stay on your report for up to 10 years, but often times reporting agencies will take them off seven years after the filing date.

Check out this page for more information on what happens to your credit when you file for bankruptcy.

Tax liens can very negatively affect your score, especially if you don’t pay them off. They remain on your report for seven years from the date filed, but will stay indefinitely if not paid.

Lastly, paid judgments can remain on your report for seven years from the date they were filed. However, if unpaid, they can either stay for seven years or the governing statute of limitation, whichever is longer.

Want to know more about how long inquiries and bad credit stay on your report? Let us know! To enlist the help of a trustworthy, effective credit repair company, call us today at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Do I Have To Go Into Debt To Get Good Credit?

do i have to go into debt to get good credit

Do I have to go into debt to get good credit? This is an interesting question. Going into debt can help you build good credit, but only if you go into good debt, not bad debt. If you go into bad debt, that will only hurt your score, so here’s what it means to have good debt that can help your credit.

Do I Have To Go Into Debt To Get Good Credit?

Good Debt

What exactly is good debt? It’s a bit strange to think that debt could ever be considered “good.” But it can. Good debt is debt that increases your net worth and helps you generate value. It allows you to leverage your wealth, manage your finances more effectively, buy things you need, and handle unforeseen circumstances such as home or vehicle repair, sudden illness, or unemployment.

Taking Out a Mortgage

It’s tough to pay for a home in full, with cash, which is why most people can’t afford it. Borrowing money to pay for a home allows you to pay back the loan over time in the hopes that the home will increase in value, so if you choose to sell later on, you could potentially see a profit. On top of this, the interest you pay to the bank or mortgage company is usually tax-deductible, so while you are paying a bit more to borrow the money, you will save on your tax bill.  Residential and commercial real estate can also be a great source of rental income, so it can be considered good debt to borrow money to invest in this way.

Investing to Increase Future Earnings

Typically, a person has more chance at a greater earning power the more education they’ve received. Of course, just receiving a higher education is not a complete guarantee of wealth and success. But taking out a student loan is almost always a smart option. Whether it be for technical school or college, the loan is seen as an investment that will pay for itself.

Borrowing for a Business

Unfortunately, your business endeavor won’t always get off the ground based on great ideas and hard work alone. Small business loans or seed capital are quite often necessary to building and sustaining a profitable commercial enterprise. Borrowing money to build wealth is yet another way to take on good debt to create future value.

Bad Debt

Contrary to good debt, bad debt doesn’t increase wealth and is used to purchase goods or services that have no lasting value. While there’s nothing necessarily wrong with buying non-essential items, they can put you into debt very easily if you’re not careful. This can happen quickly if you purchase high-priced luxury items that you don’t need or that far exceed your income or ability to pay off in a timely manner.

Any form of debt that carries a high interest rate can also be bad debt. The most common form of bad debt is making only the minimum payments on your high-interest credit cards while keeping balances on your accounts each month.

Also try to avoid borrowing money from questionable sources like payday lenders and finance companies. This can be considered a form of bad debt as well.

Good Debt Can Have Bad Parts

It’s important to know that even good debt can have a negative impact when:

  • The interest rate is variable or higher than otherwise available.
  • You’re not taking advantage of various tax breaks on a mortgage or home equity loan or line of credit.
  • You have too much secured debt, and your assets could be put in jeopardy.
  • You carry too much debt into your retirement years, when your income is reduced.
  • Your monthly debt payments take up more than approximately 36 percent of your gross monthly income.

In theory, you do have to go into debt to get good credit. Only, it’s not the crippling debt most of our minds go to first. It’s taking out loans and paying them off. The loans that will help add value to your future are the debts you want to be paying off. But, make sure your paying them off on time!

Is there anything else you want to know about what it means to go into debt to get good credit? Let us know! We at Go Clean Credit are here to help! Call us at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Good Credit Score, Turned Down For A Loan? What To Do Next

good credit, turned down for a loan

Good Credit Score, Turned Down For A Loan?

Good credit score, turned down for a loan. Oh no! You’re at a loss; this just doesn’t make sense. What does this mean? What do you do now? Don’t worry, here’s what might have happened, and here’s what you can do to work things out.

Good Credit Score, Turned Down For a Loan? Here’s What To Do Next

Your income is too low.

One reason you might have been turned down for the loan is because your income is too low for the amount you want to borrow. If you’re looking at purchasing something that costs too much in relation to what you’re making, the lender could deny you. To solve this problem, make sure you reported all sources of income to the lender. This includes side businesses and second jobs – anything you do to bring in money is considered.

Your debt-to-income ratio is too high

When you’re applying for a loan of any type, your bank is going to carefully examine your debt-to-income ratio, or your DTI. This is a measure of how much you’re paying out on a monthly basis in relation to your income. To figure out your DTI, add up your monthly payments (including rent/mortgage, auto loan, and minimum credit card and student loan payments) and divide that number by your gross monthly income.

Lenders generally like to see a DTI of 36% or less. If your DTI is higher, or if taking on this new loan will put you above the 36% mark, you could be denied the loan. Banks tend to see borrowers with a DTI of 36% or higher as a risk as they may be in over their head and might miss payments.

Paying off your debt is the best way to reduce your DTI and make the loan application process much smoother.

You’re self-employed or have an irregular income

Banks typically like to see a strong history of income or employment before granting a loan. So, if you have a traditional office job, you’ll have nothing to worry about. It’s people who have an irregular income or who are self-employed that are going to find it more difficult to get approved for a loan.

This is again because lenders don’t like making risky loans. Even if you have a perfect record when it comes to paying your bills, they’re still going to worry that you’ll lose your income. Therefore, you’ll get denied.

If you have an irregular income or are self-employed, then make sure you have records of your income and employment. And have tax documents ready as well to show that you’re a good earner. This can help ease the mind of the bank and maybe help get you that loan.

There’s an error on your credit report

This one is quite often the silent killer. If there’s no other obvious reason as to why you’ve been denied the loan, then check your credit score. Sometimes just a small mistake in your credit score can keep you from getting approved for a loan. So go through your report to look for any mistakes and get them fixed as quickly as you can.

Good credit score, turned down for a loan? Do you have more questions about why it’s happening to you? Let us know! Go Clean Credit is here to help! Call us at 1-866-991-4885!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.