Credit Score Misconceptions You Must Stop Trusting Today
Credit and Debit Cards Both Affect Credit Score
No! For a transaction to have any effect on your credit score, its type has to be credit. Transactions you do with your debit card do not increase or reduce your credit score.
Credit Score Lowers after a Lot of Missed Payments
Even a single payment that you have delayed while repaying the debt will appear on your credit history and will affect it negatively. Keep in mind your payment history is the biggest percentage of your credit score.
Good Earning Means Good Credit Score
Good earning might mean better potential to return the loan but your credit score is only affected by the factors stated above. How much you earn does not matter when credit bureaus calculate your credit score.
A Credit Repair Company Is Optional
Almost every service you use in life is somewhat optional. However, doing things on your own can result in mistakes. Think about a first timer trying to fix main electric board in the house. Similarly, credit repair companies have professionals who understand the sensitive details of credit repair.
Lexington Law Firm Has the Credit Repair Professionals You Need
You can try to take on this situation yourself but it is a dangerous route. You might not understand the very fine and minor details that can completely ruin your credit rating. Sometimes, people spend years trying to fix things on their own only to realize in the end that they were on the wrong road from the beginning. Let our professionals handle these matters for you and here are the benefits you can expect.
40 Points Increase in Credit Score
Up to a 40-point increase in credit score is possible with our service because we have done that several times for our customers.
Stress Free Living
Calculations, calling the many different departments for credit help, understanding the industry jargon, etc. can be a lot to handle. Let us take care of things while you live your life stress free.
Free Credit Checks
We will help you access your credit history and get the most precise credit score without any costs involved.
We take every situation as a new situation. We have professionals we will dedicate to your case and they will be speaking to the credit bureaus and wherever needed on your behalf.
Do Not Fall For These Common Credit Score Myths
High Income Means You Are Safe
This is simply not true! Just because you make top dollars does not mean you will have a stellar credit score. Credit bureaus do not look at your monthly or yearly income. They are rather concerned with how well you repay your debts. So, if you have a modest salary, but you are paying off your debt, your credit score is likely to be high.
Missing a Single Payment Won’t Make a Big Difference
You have to believe us when we say it will make a difference. Even one missed payment can escalate into a serious issue.
Debit Cards Can Strengthen the Credit Score
Do not be fooled by this myth. It is called your credit score for a reason, and not your debit score. So, debit and prepaid cards that you take out will not affect your credit history.
You Can Handle It all by Yourself
Obviously, you can! That being said, you will make plenty of mistakes if you go it alone. This is because you may not even know how seemingly trivial things could affect your credit score. This is where a professional credit repair company in Los Angeles could be very helpful as they have plenty of tricky up their sleeves for improving your score – something many consumers don’t know.
The Connecticut Credit Union Association (CCUA) is a non-profit trade association founded in 1935 to represent and provide services to credit unions throughout Connecticut. Our mission is: “To achieve excellence in the Core Service Areas of Government Relations, Education and Human Resource Development, Credit Union Services, Compliance, Member/Public Relations and Communications.”
The Top Credit Misconceptions
Credit Score Takes Time to Go Down
You might think you have to make a lot of mistakes before there is a significant effect on your credit score but you are completely wrong. Your credit score can take a hit within a few months.
High Income Means High Credit Score
Your income does not have any impact on your credit score. It’s not about how much money you make but more about how well you manage the money. A person who makes only $3000 a month can have a better credit score than a person making $10,000 every month by managing their finances well.
Debit Cards Can Improve Credit Score
In simple words, it is your credit score, not debit score. Any prepaid and debit cards you take out will have no effect on your credit history.
It Is Best to Repair Credit on Your Own
Yes, credit repair companies charge you for their services, but keep in mind that their services are invaluable. A lot of the things your credit repair company will do can be done on your own but who will tell you what you have to do? You don’t want to go on a “hit and a miss” spree with your credit score. A professional repair company can do things within days that you will complete in months. They save you time and can look into things that you might not be aware of.
Components That Make Up Your Credit Score
Now that you know how credit scores can affect you, you may be interested to know how you could maintain and improve your credit score to turn your life around.
When it comes to improving and marinating a good credit score, the great news is that there are lots of things you can do to get your finances in control. These are the five key components of your credit score.
- Your payment history
- Owed debt or available credit
- Length of credit history
- Types of credits
- Nature and number of credit inquiries
To determine your average credit score, the major credit bureaus consider all of these five variables. Keep in mind that they are record all your positive and negative events whether they are related to your car loans, credit cards, or home loans.
The available credit element indicates your financial health. It is not a good sign if you have exhausted all your available credit limits. If you have a diverse combo of different types of credits, it helps improve your score.
And do not think that you will have the best credit score if you have recently received your social security number as a brief credit history is not favorable.
Last but not least, do not apply for too many loans since high volume of credit inquiries isn’t good for your credit history or your credit score.