Poor Credit Rating

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1. Myth: In order to get the rectification in your credit report personally, the credit bureau need 30 days for either removing or correcting the wrong item.

It is an inexpensive yet time consuming method. If you are trying to do major purchases like car or home, then dealers or lenders have direct contact with credit bureaus through credit report provider. One thing to be noted is that credit report can be updated in less than 2 hours through a “Rapid Re-Score” which costs not more than $25 per trade line per credit bureau. It means a wrong item on all three bureaus will cost $75 to correct that account. After verification the credit report will be soon updated with a correct credit score.

2. Myth: If you will pay your credit cards off each month, the credit report will show zero balance along with the highest credit score.

It is not complete so. When you use your credit card each month and also pay off the bills on time, the credit report will not show zero balance but the score will be affected because of the ration in between usage and credit limit

3. Myth: You cannot get genuine offensive items removed.

There are various steps to obtain genuine offensive items erased such as bargaining with the lender to solve the wrong items every month until they exhausted of wasting the time and materials to check and erase it.

4. Myth: If you have bad credit, a bank won’t give you a loan.

Purchase a Certificate of Deposit (CD), if you want to reconstruct your credit. After that the bank will permit to borrow against CD and will do monthly payments.

5. Myth: Closing credit card accounts will help my credit score.

The credit bureaus run a ratio of usage to maximum limit of revolving accounts (credit cards) and this percentage will be used as a substance of your credit score. Keep the accounts open if you do not use them any more as its closing will reduce the existing credit.