Marvin Nathaniel Smith JR is a credit advisor/credit coach who is very knowledgeable about credit. Conduct effective credit analysis to help people gain insight into their finances. It is a credit counselor that provides guidance on how to determine a credit score.
Credit coach Marvin Nathaniel Smith JR wrote his book The Psychology of Credit, for which he became Amazon’s best-selling author.
He also runs his company DKR Group Funding, where he gives users free advice on analyzing their creditworthiness. Marvin pointed out some of the myths people have about a credit score.
- Annual impact on creditworthiness of income
Annual income has no impact on creditworthiness as income is not linked to an individual’s credit report. Marvin Nathaniel Smith JR says there is no correlation between annual income and creditworthiness.
- Repeated Credit Checks Harms Your Worth
The credit advisor says it is a big myth that frequent credit checks will affect your worth. He says it’s not true.
- Closing old credit cards increases creditworthiness
The opposite is true, that is, closing old credit cards lowers creditworthiness by increasing the credit utilization rate.
- No Credit Impact When Applying for New Credit Cards
Applying for a new credit card is a difficult investigation and a prospective lender will analyze the credit report to verify creditworthiness.
- A person has only one credit rating
This is incorrect as different credit bureaus may offer different scoring models. Hence, a person can have different credit scores.
- There is no way to improve a bad credit score.
Marvin Nathaniel Smith JR says that a credit score reflects a person’s previous financial status so that a person can improve it by building a good credit history.
- Marital Status Merges Credit Points
Credit Advisor says not true at all. Marriage does not match credit scores, and a person always has a unique credit score based on their financial conduct.
- Credit Card Overuse
Many people overuse their credit cards which is a huge mistake in calculating their creditworthiness. Marvin Nathaniel Smith JR says that a person should keep their balance below 30% to improve their credit score.
- Bad Credit
Closing old credit cards and opening new cards lowers a person’s credit score and lowers a person’s credit score.
- Don’t check credit reports every year
People who don’t check their credit reports are often victims of identity theft. As a result, your credit score will go down.
- Misunderstanding of the starting interest rate
Many people do not understand the starting interest rate when they open a new credit card and end up choosing interest rates that are not worthwhile for them.
- Paying Minimum Payments
Paying Minimum Monthly Payments means that a person is doing himself a favor and also affects their creditworthiness.
- Late payments
Late payments also make a person an unreliable borrower. Marvin Nathaniel Smith JR Says Credit Is Downgraded.
- Failure to Check Monthly Bills
Many people do not check their monthly payments and have no idea what balance they owe. In addition, they also fall victim to loan fraud.
- Opting for Cash Advances
Opting for cash advances also lowers your credit score. Creditors typically charge a higher APR on cash advances and some extra transaction fees.