Credit Repair Assumptions

People around the globe have not much idea about improving the credit score

. They have some very wrong assumptions that are actually opposite to the actual scenario. Instead of improving they are lower their credit scores. This lack of knowledge is responsible for many Credit Repair scams. And is the reason behind the declining number of credit points.

There are many ways by which we are destroying our credit scores either intentionally or unintentionally. If you think that paying your bills by mail ensures that the bill gets paid, you are living in the dark ages. Paying bills online not only gives you an immediate confirmation number or email letting you know your transaction was paid, it also lets you know the time it was paid. Paying by mail takes at least 7 to 10 business days to get to its destination, and you actually have a much higher chance of identity theft than paying online through a secure server.

Another important point that people should be careful is that making too much inquires will increase your chances to have a bad credit score. Instead of opening new accounts left and right, choose one that you want to inquire about and only open a new one after 6 months time.

By paying the minimum bill you are actually improving your credit score. Just keep your outstanding balance as low as possible. You do not want to have the credit balance close to your maximum credit limit. So, if paying the minimum payment is making your outstanding balance 50% or more than the maximum amount you can use credit for then it will definitely hurt your credit, not help it.

Low interest rate seems to be attractive and easy but at the same time you need to look forward for the terms and conditions inherited in it. Be careful when opening up new credit lines. Do not open a new credit line just because it has lower interest rates. Having more than one new account opened in 6 months time will lower your credit because every credit line opened means a new credit inquiry.

Also, a lot of people have the wrong assumption about paying bills. While paying your bills on your due date will keep you from getting lower credit scores, it does not increase it. If you want to improve your debt ratio, and thus your score, go online and pay off your bill before the bill is even generated on paper.

Having a lower maximum credit limit on your credit line will not improve your credit score. Also closing the credit cards you don't use don't help your score either. If you close your credit accounts they don't count towards the age of your credit line. This will usually reduce your score, so if you want to close any credit lines close the newer lines first. So by keeping in view some of the above listed facts and tips you can actually save your credit score. (Credit Repair)

by: Bob K Anderson

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