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Watch Out For Typical Credit Score Myths

By Brian Anderson
Published: Thursday, July 1st, 2010

82821228According to credit and credit score experts, consumers must constantly update themselves of the trends and issues regarding credit scores. More importantly, consumers should be fully aware of the truths and mistruths about credit scores, especially those availing of credit cards for the first time. Consumers must take the responsibility of knowing the basic facts about credit and credit score. The lack of knowledge of such information apparently can lead to many inconveniences.

One common myth, for instance, that consumers must know is that staying debt-free does not totally automatically entitle a consumer to a perfect credit score. Maintaining a good-paying job, similarly, does not ensure one of getting a good credit score. Thousands, if not millions, of people have come up with complaints of why their credit scores have plummeted despite the fact that they rarely or have never had any debts, and many people are puzzled why their credit scores are low despite their seemingly good job. The rationale for this is: not taking any loans completely undermines the essence of credit in the first place. Credit agencies base credit scoring on the consumers’ ability to responsibly and punctually pay their loans. The key is always the consumer’s credit history. A consumer with good credit history can be largely positive of having a good credit score.

Many people believe they only have one credit score. This is a myth; in fact, the credit reporting agencies which calculate a person’s scores may come up with differing results. This is because each agency and bureau calculates one’s score using slightly different methods. Another factor to these differing scores is how varied the information these bureaus contain about a person.

Another myth is that spouses share the same credit scores. With the exception of joint accounts, two married people still have respective credit scores that do not affect each other. If the couple does open joint accounts, late payments from one of the partners may affect the score of the other. It would be of worth to note that joint accounts often present themselves as aggravating obstacles in the event of a divorce. The best way to avoid such burdens is to close any joint accounts the couple may have prior to divorce.

One of the most prevailing myths is that credit scores may be availed for free once every year. Consumers are still obliged to pay a fee to view their credit scores. Some people opt to sign up for a credit-viewing service which they will have to pay for.

Consumers may already have inklings that fixing problematic credit scores are not a walk in the park. The idea that credit scores may be fixed easily is a myth proven by millions who have experienced having their credit scores down. Credit agencies and bureaus always keep records and the process is commonly tedious because it involves the Law.

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