Believe It Or Not: The Credit Score Version
Nowadays, people value their finances a lot. One of the most fundamental part of which is the credit score. Whenever you are applying for something, the offices and agencies actually take time to look into your credit scores. These credit scores may come from your previous and present bank accounts, insurance companies, lenders, credit unions and other firms of such. However, statistics show that majority of the society is still half blinded by the real meaning of a credit score. Some are facts while others are just hearsay Here is a rundown of what they consider as myths when it comes to credit scores. Let us identify which ones are real and which ones are not.
The first myth says that most credit bureaus use various ways in calculating a credit score. This is one of the most common. But the truth is that, the only difference is the term they use to call the computing system. The formula itself is the same for all major companies. The second myth says that you can fix your credit score by just paying all your existing debts. How convenient would that be right? However, that is not the case. Yes it would be better to settle your credits but your past accounts will remain intact. The credit history will reflect on your current standing. This will show how you are as a payer. The third myths says that closing down previous accounts will enhance your credit report. This is downright pointless. Closing ancient accounts would not even have a tinge of effect on your credit score. But opening them up would cause major damage. Having numerous accounts that are not going all too well is definitely bad news for the credit companies. And last but not the least, the fourth myth says that for a minimal fee, a loan company can cure your sick credit score. Wrong again. No credit bureaus are capable of fixing your problem for you.
The only way up here is not to look back to your poor credit history but rather show the credit companies that you have learned from the past and that you are now ready to become responsible in handling your account in the future.