Reason why I call it a wrong notion is since you already have a credit card open for some time now; it would have been taken into consideration by the credit score FICO algorithm. Since Length of credit history is one important component of your credit score rating , it would have given you an overall higher rating as you have a very high utilisation for some time now nor are you maxing out the credit limit.

Second credit score myth is ‘I have a negative of 500 $ on a credit card, and it is been there for almost 5 years, should I pay and close it’

Since you are thinking of paying for deletion you should have the negative deleted from your credit score report. But DO NOT CLOSE YOUR ACCOUNT. Reason is once you close your account after paying; the history would no longer be that beneficial to you for a higher credit score as much as if it were open.

Third credit score myth is if you want to increase your credit score, you should open a new account. This is the worst affecting myth. Your current credit behaviour is most observed in your credit score. Your current enquiries for new credit card will be prominent in all these credit reports. So if your strategy was to open a new credit line thereby increasing the credit limit and improving your credit score, the harm caused by recent enquiry would be much more than any nominal benefit you could have got by this activity.

Fourth myth of credit score improvement is you can put your name on the credit card of an unrelated person as Authorised user, whereby you don’t access his card but since you are mentioned as an authorised user you will benefit from any positives accrued on the credit card over last two years. Reason why I call it a myth is because you are no longer going to get benefit. This is considered as a malpractice as a lot of credit repair companies have unduly exploited it and from 2009 onwards, the FICO scores have devised ways to identify such activity. So no use having your name as authorised user on someone else’s card.

Fifth myth is that credit score is all that you need to get good credit. No, this is not the case. You need to have the paying capacity for the amount of loan you apply for. Credit score determines that you have a good credit record but your loan capacity would be determined by your sources of income, your employment history and your declared taxable income. There have been cases when people have been rejected a loan based on the criteria that their taxable income was not up to the mark to get that huge loan.

One thing you should avoid is using short cuts to increasing credit score. In the short run you might get some leverage but in the long run it would only affect your credit score adversely. Nothing can be more devastating than finding your used strategy and extra hours of work put to improve the credit score has been wasted.

One advise would be to talk to similar people with similar issues and a unique place would be the forums or boards where people help each other and share their success stories and ideas. Here you would also find that the common myths of negatives on your credit score  and the ongoing controversies are addressed by some key experts.

Myths related to credit score are immense. Some feel that people who are not having a credit score are the ones without any bank ready to pay them. That is not the case. Some people who do not prefer to take loans and buy on their own accounts, especially the Business community are the ones who are having no credit files.

Some feel that if there are some negatives on your credit score, the existing employer might ask you to leave. This is not the case, there haven’t be any such cases till date.

Please do not fall prey to identity theft because of some myths that you have to reveal your personal details for a particular transaction. Only banks tend to ask for certain particulars from you. Please do not reveal your passwords or credit card details to anyone else who might misues it.

Gladwyn Riggs is a well known expert in the specialised field of Credit Score improvement. He has come up with an amazing Hand Holding Guide for Rapid Credit Score Increase.

If you’ve still got old credit cards lying around that are still open, you’ll want to make sure they’ve been cancelled before you apply for new credit accounts. This is because the open credit card accounts will show up as available credit, and will reduce the amount of credit open to you from other lenders.

Make sure you pay back your credit card every month, without delay. Even small issues can set your credit rating back months or even years. Make sure you are at least up to date with the minimum repayment schedule, so that there aren’t any problems at all. However, it is best to try and pay back as much of the debt as possible, so if you’ve got any savings, use them to pay off debt early while you can.

Don’t keep applying for credit once you’ve been rejected once. Every time a lender checks through your credit file, a note will be left on your report. If checks are being made all the time, there will be numerous notes left and this will damage your credit report.

Talk to your lender; this may sound obvious, but far too many people simply try to avoid talking to their lender in any way possible. The fact is, if you can’t pay off your credit card debt, the best thing to do is to go and talk to someone who may be able to arrange a new payment structure with you. This may damage your credit rating slightly, but will be much better than going into further debt and potentially getting a county court judgement (CCJ).

Apply for an expensive (high interest) credit card, and make small payments onto it. Don’t use it too much and don’t rely on it as your sole source of spending power. Consistently paying it back and avoiding the high interest rates will allow your credit rating to improve rapidly.

Check your credit report for any errors that may have occurred; these can be things like old contracts for mobile phones that were assigned to a different address. Some of these errors are unbelievably easy to solve, so checking your credit report is one of the first things you should do once you’ve been rejected.

Clearly, there are dozens of different ways to improve your credit rating, but those listed above will help you greatly in the short term.

UK Credit Secrets, the best-selling UK credit repair publication is helping thousands affected by the economic downturn rebuild their credit rating in as little as 30-days without the help of outside agencies and credit repair companies, to enable even those with bad credit rating get their finances back on track. Offering guaranteed car finance, guaranteed bank accounts, credit cards to help build up credit ratings and other poor credit financial products.

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