Below are the six most common credit score repair myths. Let’s go over each false myth so that you won’t be confused by the incorrect data that may be out there.
1 – Checking your credit score lowers your score – This is the number one credit repair myth out there. Contrary to common belief, you may check your own credit record as repeatedly as you want. This is not going to negatively impact your score. This is known as a “soft inquiry” and will not decrease your score. If you apply for a loan and the mortgage company pulls your credit that is thought of as a “hard inquiry” and will decrease your score rating by a couple of points.
2 – You need to hire a credit repair company to fix your score – credit repair companies can not make the credit reporting agencies get rid of or change the information for your report. Credit repair companies will regularly take your money without turning on their promises. They can not do anything you can not do yourself. Your best guess is to learn to restore your own credit and keep on with that plan.
3 – Shopping around for credit impacts your rating – Most scores will not be affected by multiple inquires from student loans, automobile loans, or mortgage companies within a short timeframe. Most credit ratings will consider these as a single inquiry, and will not have much effect on to your score. When you are ready to apply for financing, make sure to fill out application from different creditors all inside 30 days.
4 – If I build sufficient excellent credit, it’s going to offset my adverse credit – Any quantity of bad credit will harm your credit ranking and significantly reduce your chances of getting approved for a loan. When a mortgage officer looks over your credit document to approve you for a loan, they are going to focus at the adverse credit and decide whether or not you are going to be a good risk. The excellent credit score won’t offset the bad credit.
5 – There are items corresponding to bankruptcies, foreclosures, and liens which are impossible to remove from the credit report – Bankruptcies can stay on your credit report between 7 to 10 years. Everything on your credit file may also be removed when you give it enough time. As old debts are paid off and new money owed is paid on time, your credit will slowly begin to improve.
6 – Credit can be repaired immediately – If you get an offer that is too good to be true, it regularly is not true. There are firms that charge hundreds to thousands of dollars up front and promise to fix your credit score in a few months. One of the tactics is to use a brand new social security number for you, which will look like you are beginning over with a clean slate. However, this is obviously illegal and other people interested in operations like this can be sent to jail.
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