Maintaining an average credit score is essential because it plays a pivotal role in the lives of everyone from their bills all the way to their purchases. As a matter of fact, some employers use people’s credit score to determine whether they are responsible. For this reason, all US citizens are encouraged to try being at par with the standard credit score set by Fair Isaac Co-operation (FICO), a credit scoring company in the US. FICO set 695 as the average credit score approved and recognized by the Consumer Financial Protection Bureau as the conventional score.  The people living below the definitive standard, they are charged higher interest rates as a guarantee to the lenders/loaners that they will pay their dues. Failure to pay the dues could lead to bankruptcy that could contribute to poor credit card history, which is hazardous for the credit card owner.

Identity theft

Nonetheless, there are other there are other factors that could contribute to a person’s prohibition from acquiring loans and credit.  These are identity fraud and identity theft. Identity fraud involves one credit account, while identity fraud involves numerous accounts opened in one’s name. If an individual’s credit card is swindled, chances of them having to pay bills that are not theirs are severe. To counteract this problem, the victim should raise an alarm to the card issuers when they notice any suspicious activities with their credit cards because ignorance on the matter could accumulate debts on their side that could make their credit score history to drop by as many as 110 points.

Credit Repair and Restoration

Reaching out for help would emancipate the process of credit repair which is vital in maintaining a good credit history. Credit repair agencies wipe out the negative report from your credit card through the credit report agency dispute process. Credit repair, nonetheless, only removes ill information from one’s credit and thus is less efficient when compared to credit restoration because if conducted frequently, it could leave a person in a state where they cannot get credit because they lack or have a minimal credit history.

Credit Restoration

The process performs nearly the same task only better. Whereas credit repair serves to rid the negative report from the credit, credit restoration corrects the information on the report, while expounding on how and why your values fluctuate or are low using reason codes.

Debt transfers

Transferring debt to a 0% interest credit card lowers the interest rates levied on your credit when being loaned. Reducing the cost makes it easier for a person to clear their debts, especially during their introductory period where no interests are charged although the amount owed still remains the same. This is advantageous to an individual’s credit history because it not only curtails the penalties but is also affordable. However, the benefits for this transaction are similarly lessened in the process. This transaction is solely accessible to people whose credit score is average. Living below the value could only mean living on loans that might end up burying one in debt.

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