CNN just felated credit industry with report on how to "improve"

[PeaceProgProsp]

your credit rating. This was a CNN-produced story (Fred Katayama (sp?) reporting) on my normally pretty decent unaffiliated local news.

(1) They said don't make frequent inquiries into your credit history because that lowers your rating.

If that's true, it's stupid. Since when would wanting to know your rating hurt you? I believe the truth is that if companies look at your history and then refuse you credit, it hurts your rating. However, it shouldn't hurt your rating if YOU look at your rating (unless, of course, you deny yourself credit as a result, right?).

(2) They said don't cancel credit cards because you lose your built up credit history. They said keep the cards but pay them off.

(3) Then they contradicted this by saying that it takes a long time to improve your credit rating.

If #2 were true, then you could improve your credit rating by canceling your bad cards.

In fact, #2 was a total lie. Last I heard, banks lower your rating if you have a ton of available credit and advice that you get rid of extra cards.

However, banks report the number of card holders to the public, and the higher the number is, the more their stock is worth, so they make it hard for you to cancel your cards. If that number went down, the bank stock would take a pounding on Wall St.

Apparently, the banks are also getting CNN to tell lies for them in an effort to prevent people from canceling their credit cards.

[Melodybe]

1. Citibank is in kahootz with AOL, both are Saudi owned.

It is disgusting isn't it?

[Nashyra]

2. #1 is true

everytime you make an inquiry it goes against your credit rating. Does not make sense but it is true. Also my mortgage banker who I have done over 30 refinances with in the last 3 years has said the same thing, do not close your accounts just keep them at zero.

[eyesroll]

3. actually...your own inquiries and promotional inquiries don't count

Request your own credit report once a year; once every 6 months if you've had trouble. This won't count against you.

If you receive "You're pre-approved for a loan!" junk mail (don't we all?), chances are, the mailer made a promotional inquiry on you. These are done without your knowledge or consent, and aren't counted either way toward your credit score.

It does count when you have someone inquire on your behalf -- because the bureaus see this as you're trying to obtain more credit. If you do this too often, they see it as you're trying to get lots and lots of credit and may have difficulty paying it all back. But a normal pace is fine -- if you buy a car, or refinance your mortgage, or switch from an MBNA to a Citibank card, these all take inquiries, and the creditors see this as normal and it doesn't hurt your score.

(I got an "understanding your credit score" brochure from the credit union when I applied for a mortgage there a few years ago.)

[Shopaholic]

5. I think #2 is true also--

You shouldn't have too many cards but if you've had a good history with a card--you shouldn't cancel it or close the account--because then you lose your history. I think if it's one you never used and then you closed it it probably wouldn't impact your scores one way or another. The credit ratings in this country are BS. Do you know now that the insurance industry is partially basing your insurance rates on your credit scores? That's fine for me because I've got great credit scores but why the hell should you have to pay triple the price that I do because your credit isn't as good? I mean, a lot of people will sacrifice a lot to make sure their house & car insurance is paid up. I don't know which "industry" is worse--the insurance folks or the credit people! Nazi's all.

[Ms. Clio]

8. Yes, from what I've read, #2 is true

Pay off, but keep open, your long-standing accounts with a good history.

[bluedog]

4. CNN sucks...............Affiliated with Fox news.(FL)

in my area ..I heard this morning that CNN was going to one of its affiliate stations in Florida..here its channel 13....well channel 13 is a FOX network......never knew that before...........no wonder they are starting to spew the same crap FOX does...

[mbee]

6. Look at your credit card statement and more times than not they have

P.O. Box numbers for their address. When I want to cancel my account by sending a certified letter I have to get the street address and so I think they do this purposely. If you ever want the name of the principal and the street address of most any company just call your local public library and they'll give you the information you need.

[Ms. Clio]

7. Also, use no more than 25% of all your available credit

Or it will affect your credit score, according to what I've read.

And if you are late on a payment to one creditor, all your other creditors may raise your interest rates.