Frequently Asked Questions
FAQs
Frequently Asked Questions
1. Why did my credit score drop even though I paid all my bills on time?
Many consumers are shocked to discover that paying bills on time is only one factor used in credit scoring. High utilization, excessive inquiries, account closures, reporting errors, debt collection activity, and changes to your credit mix can all impact your score—even when you've never missed a payment. That's why understanding how credit actually works is often more important than simply paying your bills.
2. Is it true that some debts may be inaccurate, uncollectible, unenforceable, or eligible for cancelation and forgiveness?
Yes. Not every debt is automatically valid or collectible. Consumer protection laws provide rights that allow individuals to request verification, challenge inaccuracies, dispute improper reporting, investigate ownership of debts, and explore available hardship, settlement, discharge, or forgiveness programs. Understanding the nature of a debt is often the first step toward determining the options available.
3. Could your credit profile be worth more than your paycheck?
For many successful entrepreneurs, investors, and business owners, access to credit has helped create opportunities that far exceed earned income alone. A strong credit profile can influence access to financing, business capital, real estate opportunities, and other financial resources. The question isn't whether credit matters—it's whether you're using it strategically enough to unlock its full potential. With your 720 or higher credit score you can access up to $250,000 unsecured. With your 800 credit score you can access up to $1,000,000.
