Credit Repair in Dallas: Truths and Misconceptions on Credit Scores

There are occasions where debt is unavoidable. A sudden home repair, expense or a medical bill can send an individual from a good credit score to blemishes of repossession, bankruptcy, and other records that can affect one’s credibility and ability to borrow money in the future.

This can happen to residents of Dallas, Texas. A sudden tornado, for example, can take financial security away from families and force them into financial turmoil. Of course, there are means by which they can avail of credit repair in Dallas, but these will take into consideration credit scores. Liz Weston, writing for MSN Money, explains certain misconceptions about credit scores:

All about credit cards

Credit cards are very useful mediums for lenders to learn of a person’s credit score. The number of credit cards one owns reflects in a credit score one’s capability to pay off debt. It is wrong to think that too much credit accounts would harm one’s score. Irresponsible handling of credit, however, can affect scores tremendously.

Lenders once feared people with lots of available credit would rush out and charge up a fortune, only to default. Credit score scientists have discovered, however, that people who have handled credit responsibly in the past don’t tend to go ape overnight. Having many credit lines is now considered a good thing, because lenders who have reviewed your financial situation have entrusted you with these accounts.

Medical bills and credit

Another great misconception people have is the idea that medical debt is handled separately from credit reports; it is, in fact, the opposite. According to Stephanie Steinberg of Daily Finance, medical collections are similar to any other collections when an agency gets the bills. Weston says:

Keep track of all medical charges, and follow up if your insurance hasn’t paid a provider. There’s no requirement that you be notified before a medical account is turned over to collections.

Payment

Finally, paying off debt is a good parameter for credit, contrary to popular belief. It only shows that the person has an ability to pay off debt. Steinberg supported Weston by saying that a person can pay the balance in its full amount and still create good credit.

These tips can help anyone build good credit scores. Those who are still confused with the technicalities can contact services for credit repair in Dallas, TX, such as Credit 360 Consulting, to have credit score details explained better.

(Info from Credit score myths that need to die, MSN Money, July 5, 2013)

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