Poor Credit Rating

Welcome back!

Credit score is a rating that is calculated to reflect your credit history. This figure will be between 300 and 850 with the average American having a score of 670. Higher credit score means you are more responsible in paying back your loans, credit cards, mortgage etc. If you score below 620, you can face problems in getting loan or credit you need. Credit score is very important so we should understand what factors impact it.
Myth 1: You have one credit score

This is not true you have three credit scores each from Equifax, Experian and TransUnion. They all use the same formula to calculate your number. There would be around 50 points of difference in your credit score between three agencies as the information they have about you may differ.

Myth 2: You can penalized for checking your score

In reality there is no negative impact on your score if you check your score. You should check your score at least twice a year and more then this if you are looking for credit or loans.

Myth 3: Credit Counseling Hurts Your Credit Score

Your score is calculated in the way that it ignores any reference to credit counseling that may be in your file.

Myth 4: Your credit score can be repaired by paying off your debts

Your credit score is based on your history not on your current debt. Paying off your debts
will surely help a bad history but it can not repair the damage already done.

Myth 5: Personal information and income impact Score

Your score is not based on your employment status, age, sex or income so it does not affect your score. Your score is totally based on how you handle your credit and loans.