Credit

Credit Score Fact & Fiction

We have to care about so many things day to day-so does your credit score really need to be added to the hefty list? Yes! Read on to find out why you should care more about and care more for your credit score.

We have to care about so many things day to day-so does your credit score really need to be added to the hefty list? Yes! Read on to find out why you should care more about and care more for your credit score.

A myth is an untrue idea that’s passed around. There are many untrue ideas about credit scores that people adopt as fact. Understanding what is true and what is not is important when your credit score is at stake.

In the first place, the common uses of the credit score should be understood. Credit scores are used to determine how much can be loaned to you. In turn, your credit score will factor into what percentage your interest rates are for credit cards or car payments. The ease of renting an apartment or getting a cell phone may even rest on your credit score.

Ok, now let’s get down to the fictional “nitty-gritty!” People are often unaware that one person can actually have more than one credit score assigned to them. It’s commonly thought that people only have one definitive score. With three major credit bureaus, however, you may have three different credit scores. Each bureau calculates a score differently (though the variation is minimal). Scores used by a lender will depend on the bureau used.

Another faulty notion people have about credit scores is that getting paid a high salary will help with credit repair. It doesn’t matter how much money you make, your credit score only depends on credit history, not on the money you are currently making. It makes sense because it doesn’t matter how rich a person is, if they default with their creditors, their credit will be bad-and likewise their credit score.

Along those lines, people often think that credit repair happens by paying a huge sum to a creditor at one time. People will do this in a quick attempt to improve their credit score. However, credit repair happens over time. A huge sum of money will help a little, but long-term, consistent payments are a better way to help your score out.

So after reading some fact and fiction on credit, you may be motivated to find out exactly what your score is. Sometimes people think the number can be accessed easily and for free. Though it is relatively simple to obtain your credit score, it’s not free. It usually costs 15 dollars each time you request your score.

Furthermore, experts recommend checking on your credit report once a year. The credit report is free to obtain. It is a reporting of the standing of your credit, as opposed to the actual number. So make sure you know the facts when discussing and researching your credit score. Understanding the common misconceptions can save you hassles in the end. Being informed on your credit always is a good idea.

Nitro Credit focuses on credit repair, credit help, improving your credit score, and credit restoration. We’ll help you have a clean slate and the confidence of good credit.