You might think you have credit report and scores all figured out. But what you think is right may actually be affecting your credit score. Read on to find out the myths around all three credit reports and scores.
Overdues are NOT okay, not even once in a while
In 2009, the The Credit Card Accountability, Responsibility and Disclosure (CARD) Act was passed. It required lenders and similar institutions to lessen the penalties for late payments and overdues. This got the people to thinking that making a late payment every once in a while will not affect their score when they get a cheap credit score report. This is very untrue.
While the penalties, fees included, for a late payment is less harsh than it was before the said Act was passed, it did not lessen the damage of a late payment on one’s credit report and score. Late payments can still negatively affect an individual’s credit score. In fact, on-time payments play a very big role on your credit report with about 35% attributed to your credit score. So be sure to pay those bills on time and never think that one late payment will not have an adverse affect on your credit score because it will.
Marriage will NOT improve your credit report and score
Some people think that upon getting married, their credit score will improve because their partner’s credit score is very good. It’s not like addition where 5, being your partner, plus 3, you, equals 8. These scores cannot be added together. You should know that when you get married, you will have a credit together with your partner but you will still maintain your own.
Lisa, had a good credit score report. Her husband had a very good score so she decided to focus on her husband’s credit score. She started using his name for all of their credit related activities. They got divorced. So what happens to her credit report and score? She is left to start all over again. She has not had much, if any, credit activities under her name so she will have to start rebuilding it.
That is why it is important to never neglect your credit history even after marriage. Remember that it is your own record.
Simply calling the credit bureau for an error on your report is NOT good enough
Most people think that once they find an error in one of their credit reports, all they have to do is call the bureau concerned and the rest will be taken care of. This fictional solution is pure fantasy. Calling the credit bureau is not enough. You should not only contact the bureau in question but inform all three credit reporting bureaus. The best thing to do is provide information why the error is an error. You must furnish proof and send a hard copy by mail. Do not forget to keep a copy for yourself too.
You should send a dispute request to all three bureaus even if it only appeared in one report to make sure that it does not appear again. You should also do a follow-up until the corrections have been made. Chances are, actions will not be taken to correct the error until you become persistent.