You must have read a myriad of articles on the credit report and how does the score is being ascertained from the same. Also, when you consult the professionals providing with the credit score repair services, you can learn how it works. Despite learning from various resources, there are numerous myths about the credit score prevailing, believing which can affect your credit score adversely.
To safeguard yourself from such misconceptions, go through the below-given article and accelerate your score.
1. One Score For One Person: There are three credit reporting bureaus namely Equifax, Experian and TranUnion. People often believe that the score generated from all the three agencies is same. However, that’s not the case.
The creditors and banks send your data to these bureaus. It is not necessary that all the creditors send your details to all the bureaus. Hence, it is evident that your details with the agencies will be different that shall generate non-identical credit scores.
So, next time when you check your score, bear in mind, it will not be the same with all the bureaus.
2. Free Report, Free Score: People are still unaware of the fact that you can get one free report from each bureau in a year. However, it doesn’t mean you can get free scores as well. The agencies charge some specific amount to provide the score.
To get an approximate idea of the score, you can use various tools and websites that provide these services in exchange; you are asked to provide them with your information.
3. A Good Job Means Good Score: You have a good job and a great potential to earn. This very fact will not increase your credit score for sure. Your credit score is made up of your past payment performance, your credit mix, and such other interconnected factors. It nowhere considers your occupation and income. Even if you earn millions of dollars a month, it will have no better impact on your report unless you manage your bills and debts timely.
4. Your Score is Your Spouse’s Score: If you think that your score and your spouse’s score will be the same, then probably you need to resolve your misconception. The credit report is more or less like your driver’s license. When the police give you a ticket for exceeding the speed limit, it doesn’t mean your spouse will also have to pay the fine.
The same way, your payment history and your report have nothing to do with your partner’s record. However, when you have taken a loan jointly, it will reflect the same way in both the reports for that particular item which will stay there for seven years. So, next time when you see your score, don’t believe that your spouse has the same score.
5. Divorce Changes The Report Status: When you have a joint debt in the name of you are your spouse, it will reflect the same way in your report. If your partner stops paying mortgage installments and the creditor asks you for the same, you have no option but to pay it to secure your report.
To change the scenario, you can go to the creditor and ask to change the name of debt holder or else you can take another loan to pay an existing one.
We believe you must have gone through the above article and won’t follow these myths. Remember, avoiding the misconceptions will not suffice for a good credit score. To boost your score faster, you should make sure to get the best credit repair service.