Posts Tagged ‘credit repair myth’

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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Bankruptcy

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Bankruptcy
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Credit Repair

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