How To Avoid Mistakes On Your Credit Report

We have developed eight effective strategies for preventing mistakes on your credit report. We wish you much success.1) Beware Of Debts & Credit You Don’t UseJust as it is very easy to apply for a store credit card, it is also easy to forget you have it. It is important to remember that the account will remain on your report and affect your score as long as it is open. Don’t make the mistake of having credit lines and cards you don’t need. It makes you look more risky from a lenders point of view.Also, having many accounts you don’t use increases the odds that you will forget about an old account and stop making payments on it, resulting in a lowered credit score. Keep only the accounts you use regularly and consider closing your other accounts. Having fewer accounts will make it easier for you to keep track of your debts and will increase the chances of you having a good credit score.However, realize that when you close an account, the record of the closed account remains on your credit report and can affect your credit score for some time. In fact, closing unused credit accounts may actually cause your credit score to drop in the short-term, as you will have higher credit balances spread out over a smaller overall credit account base.For example, if your unused credit limits amount to $2,000, and your regularly used accounts also have a credit limit of $2,000, you have $4,000 of available credit. If you close your unused accounts and owe $1,000 on the accounts you use regularly, you have gone from using one-fourth of your credit ($1,000 owed on a possible $4,000) to using one-half of your credit ($1,000 from a possible $2,000). This will actually cause your credit risk rating to drop. In the long term, though, not having extra temptation to charge, and not having credit you don’t need will help you budget.2) Avoid Having Many Credit Report InquiriesAn inquiry is noted every time someone looks at your credit report. Don’t make the mistake of allowing too many inquiries on your credit report, as it may appear that you have been rejected by multiple lenders. This means that you should be careful about who looks at it. If you are shopping for a loan (finding the lowest interest rate based on your credit), shop around within a short period of time, as inquiries made within a few days of each other will generally be lumped together and counted as one inquiry.You can also cut down the number of inquiries on your account by approaching lenders you have already researched and are interested in doing business with. By researching first, and approaching second, you will likely have only a few lenders accessing your credit report at the same time, which can help save your credit score.3) Don’t Mistakenly Over-Use Online Loan Rate ComparisonsOnline loan rate quotes are easy to obtain. Just type in some personal information and within seconds you can receive a quote on your car loan, personal loan, student loan, or mortgage. This is free and convenient, leading many people to compare several companies at once in order to get the best possible loan rate. The problem is that since online quotes are a fairly recent phenomenon, credit bureaus count each quote as an inquiry. This means that if you compare too many companies online, your credit score will suffer.This does not mean you shouldn’t seek online quotes for loan. In fact, online loan quotes are a great resource that can help you get the very best rates on your next loan. It just means that you should carefully research companies and narrow down your choices to only a few lenders before making inquiries. This will help ensure that the number of inquires on your credit report is small, and your score will remain strong.4) Don’t Make The Mistake Of Thinking You Only Have One Credit ReportMost people mistakenly speak of having a “credit score” when in fact credit reports often include three or more credit scores. There are three major credit bureaus in the United States that develop credit reports and calculate credit scores, as well as a number of smaller credit bureau companies. In addition, some larger lenders calculate their own credit risk score based on information in your credit report. When improving your credit report, you should not focus on one number. You should contact the three major credit bureaus and work on improving all three credit scores.5) Don’t Close Multiple Credit AccountsMany people make the mistake of closing multiple credit accounts in an effort to improve their credit score. If you close an account you need (for example, if you close all your credit card accounts), then you may find yourself in the position where you need to reapply for credit. Not only is this inconvenient, but the inquiries from credit companies can actually hurt your credit report. Additionally, credit bureaus will actually look favorably upon your credit report if they can see that you have a (good) long-term credit history. For example, don’t make the mistake of closing a credit card account you have had for the past 10 years, as this may actually hurt your credit report.lf you have credit accounts that you don’t use, or if you have too many credit lines, then by all means pay off some and close them. Doing so may help your credit score, as long as you don’t close long-term accounts you need. In general, close your newest accounts first, and only when you are certain you will not need that credit in the near future.Closing your accounts is a bad idea if:A) You will be applying for a loan soon. The closing of your accounts will make your score drop in the short-term and will not allow you to qualify for good loan rates.B) Your debt to credit ratio increases. For example, you owe $10,000 now and have access to an extra $5,000. However, after closing some accounts you are only left with $1,000. This brings you closer to maxing out your credit and in turn hurts your report.6) Don’t Assume Only One Action Will Improve Your Credit ReportAn example of a common mistake that some debtors make is believing that paying off a credit card bill will boost their score by 50 points, while closing an unused credit account will result in 20 more points. Improving your credit report is certainly not this simple. How much any one action will affect your credit score is impossible to gauge. It will depend on multiple factors, including your current credit score, and which credit bureau is calculating it. In general, the higher your credit score, the more small factors – such as one unpaid bill – will affect you. When repairing the score on your credit report, you should not equate specific credit repair actions with numbers. The idea is to do as many things as you can to improve your credit report.7) Having No Loans & No Debt Will Not Improve Your Credit ReportSome people make the mistake of believing that owing no money, having no credit cards, and avoiding the whole world of credit will help improve the score on their credit report. In reality, the opposite is true. Lenders want to know about your past ability to handle credit, and the only way they can tell is by the score on your credit report. Having no credit at all can actually be worse for your credit score than having a few credit accounts that you pay off on time. If you currently have no credit accounts at all, opening a low balance credit card can actually boost your credit score.Think of your credit report like a basketball game. The player who scores many points in every game is considered to be a great player, and will receive higher financial rewards than those who only score a few points. Those who don’t even play basketball have no scores to “report” to the game officials. In the world of credit reports, the debtor who scores the most points is someone who pays off their credit accounts every month. They will receive financial rewards through easier access to loans and lower interest rates, while those who have no credit accounts have a very low credit score.8) Never Do Anything Illegal To Repair Your Credit ReportIt seems pretty obvious, but plenty of people make the mistake of lying about their credit score or even falsifying their loan applications because they are ashamed of a bad score. Not only is this illegal, but it is also completely ineffective at repairing your credit report. Your credit score is easy to check and, not only will you not fool lenders by lying on your credit report, but you may actually face legal action as a result of your dishonesty.

S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

CRISPR Stocks: Will Concerns Over Risk Inhibit Gene-Editing Cures?

Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.