Credit report is very important for you and so you should learn the actual facts about it. Given below are some common misconceptions about credit score. Learn them and do the correct things to improve your own score.

If you think that your debt is closed when you have paid off the total amount, then you are wrong. A collection account is closed only after seven years of opening it. Your account status only changes to paid collection when you settle your debt.

Do not think that regular payment of the bare minimum amount provides you a good credit score. Your credit score also depends on the outstanding amount against your name. So pay off your total debt at the earliest.

You should carefully scrutinize each and every data of the credit report and not only your credit score. Correcting the errors of credit report is a lengthy affair and so you should not wait to correct it only when you are about to apply for loans.

Online shopping is not always as dangerous as you might think. However, never enter your personal information or any information regarding your credit card in http sites. Only https sites are safe and secure for online transaction.

Credit and debit cards are not exactly the same. There is a difference in the way in which they work. In debit card, money is instantly debited from the bank account. In credit card, however, you need to pay later. So you are able to report and resolve fraud, in case it happens, without making any actual payment.