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Lets take a look at some common misconceptions regarding credit scores and the mighty credit rating.

Misconception: A low credit score will prevent you have qualifying for credit. Clarification: While a bad or low credit score will make a potential creditor look twice it is not the be all to end all. If they can see that you make enough money or have little debts and you will be able to pay the monthly instalments, chances are you will be fine. If worse comes to worse you can always secure a loan or credit product by putting equity towards it (though that can be risky).

Misconception: A bad credit score stays with you forever. In Truth: That is just not the case. Okay so you hit some bad times and you didnt pay some bills on time, maybe even some go to collections. Thats life and can happen to anyone. You can always turn things around by paying those bills off, pay everything on time with some to spare and in less than a year your credit score will be right back up to snuff.

Misconception: Credit scoring is an invasion of privacy. In Truth: There are strict codes of conducts and laws that prevent just anyone from accessing your credit information and when they do they typically a Yes, No or three numbers. Other financial institutions like bank etc. Have the ability to pull a full credit report that details information such as credit payment history number of credit products, employment and so on. They only time when such reports are necessary are the time where you are applying for mortgages or large credit products.

Credit rating has become a buzz word over inflated by commercials and instilling a fear in people. There really isnt anything to fear. Any damage to your credit rating can be undone on less than 12 months 9in most cases) even if you claim bankruptcy your credit rating will start to recover after 2 years.