Credit Repair

3 Most Common False Assumptions About Bad Credit Repair

There are several false assumptions about bad credit repair because of which many people never manage to make any serious attempt in the right direction to improve their credit score and they just keep wondering why they are having a low score. Following is a brief rundown on three such false assumptions.

“Credit Bureau Agencies Can Never Make A Mistake”

In reality, credit bureau agencies can and they do make mistakes, very often. There might be several wrong or incomplete entries on your that might be hurting your eventual FICO score. Besides that, it is also important for you to keep in mind that these agencies make entries on your report on the basis of the information provided by your creditors and other parties that you are having financial transactions with. If those parties provide wrong or incomplete information, credit bureaus will put the same information on your report; they do not verify which reports are correct and which are not. It is completely your responsibility to check your credit report from time to time (at least once a year) and find out if all entries on the report are correct and complete. If you find out any mistakes, you must file a dispute immediately.

“Every time you pay a debt in full, 50 points are added to your credit score”

False formulas like this are very popular with many people. In reality, there is no straight formula as such. It is very important for you to understand that your credit score is calculated by taking into account a wide array of factors and values. There is a complex algorithm to do this calculation. Though paying off your debts is a great strategy for bad credit repair, it is very difficult to say exactly how many points it will add to your overall credit score. So, you are recommended not to fall prey of such false calculations and just keep your focus on making the repayment on all your debts, dues, and bills in a timely manner. The health of your FICO score depends on your good financial behavior.

“Credit Card Companies Provide 100% Protection From All Types Of Fraud”

Another common false assumption about bad credit repair is that there is no need to worry about identity theft or other such frauds at least as long as credit card transactions are concerned, as credit card companies provide complete protection against such things. The truth is that all these companies do is to assure you that they will not hold you accountable for fraudulent charges, but if you become a victim of identity theft, it will not only have a serious negative impact on your credit score but it will also cost you a lot of money in other ways. When it comes to protection against such fraudulent activities, it is again your responsibility. You will have to be very careful while you use credit cards to make purchases, especially when you are using it over Internet. Make sure the URL address of the website you are transacting on starts with https. The “s” with http is an indication that the site is secure to make financial transactions.

Overall, you are advised to be aware of the reality and not to base your strategies for on such false assumptions.

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Posted in Credit Repair, Fix Your Credit | 2 Comments »

2 Responses to “3 Most Common False Assumptions About Bad Credit Repair”

  1. sauncy says:

    Very informative article about false myths of credit score. We have to be vigilant about the developments of the score as it is collectively calculated from all the sources. This can be a clerical mistake, or a wrong entry given by the creditor and many other factors. And it was my previous thought that as soon as I pay a single installment of the debt points are immediately added to my credit score but by reading this my misconception is cleared. So is a slow process nothing will change all of a sudden. Be careful while using your credit card as it will lower the credit score as well as you can lose your money by using fraudulent means. Online transaction using credit card looks pretty simpler but security is a major threatening aspect as many fraud cases are there. so please check whether the transaction done from the secure site and is maintaining the confidentiality. i am still a victim of losing my money by paying though credit card with a insecure transaction. And above all this will lower the credit score.
    Very wonderful information is provided in this article.

  2. Albert says:

    Really a good blog. A good credit score depends upon the person, who is using credit card and the way of its usage. The first point given in the article is very informative. We can not make a blind trust on credit bureaugelies. It’s our duty to check the entries present on the report, we should always maintain a record on our own and then can cross check the credit report of the bureau and keep an eye on our credit score because wrong or incomplete entry can damage your score. For getting a good score, the most important tip is to be punctual for your payments. But it does not mean that if you are giving your payments in full then you will get some exact number of points. There are a certain criteria of calculating the points so it will be good if you do your payments in a timely manner and your credit score will improve itself. Identity theft is really a thing to worry. It is a very common way cyber crime. Credit card companies give you assurance in case of frauds but they will not protect you in case of identity theft.

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