Does Paying Your Bill On Time Equals Good Credit?

Pay The Account In Full

Consumer thinks that their credit scores are rated higher if the consumer pays their account off from the creditor. The creditor should love to see a customer that pays on time in good faith. Wrong answer! The average consumer doesn't understand how credit is rated within the FICO algorithm system. First, the lender wants the consumer to have bad credit scores because it gives the lender the opportunity to make more money off of the consumer. A lender charges a higher interest rate for bad credit scores and it is legal under the government laws. As soon as a consumer pays off an account, the credit score drops. Now, is something wrong with that picture.

Transferring 0% Interest Rate Credit Card

The customer opens their mail to receive a credit card that guarantee a "Zero Interest Rate for a year". The banks decide to help the customer by sending a credit card to trap the customer into more debt as they make more money off the customer. The banks are so smart as they keep us in debt by letting the customer thinks that they are helping them. The customer pays their account on time and has never been late. The lender decides to do the customer a favor by sending a "zero interest rate for a year".  The customer thinks that this is a great deal to save money and to pay off the credit card. "WRONG ANSWER" The customer has been set up by the lender. RIGHT ANSWER. "DON'T FALL FOR IT"  Everything the lender does is profit for them. They know that the customer is not going to pay off a $10,000 balance on a credit card within a year. The lender charges the customer a transfer fee and gives the customer a "Zero Interest Rate for a year." Now the credit card is at "Zero Interest Rate" before the regular interest rate changes after a year. After the balance has been transfer, the customer closes the other account. The truth is the credit score takes a large hit on points for paying off the account and the customer has lost more points for transferring the balance to the new account at the maximum credit limit.

Credit Score Below 600

All Applicants with credit scores below 600 may still have the opportunity to purchase an affordable home. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

 

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