If you want to buy a car or a house, you already know that your credit is the factor that can make or break the deal. While researching how to improve or repair your credit for a successful purchase, keep something in mind: There are a lot of myths circulating on the internet regarding credit repair.
Take a look at the 5 most common to learn to differentiate between myths and facts.
1. Credit Repair Companies Are Not Legitimate
Repairing the credit on your own requires a lot of patience, despite patience. So if you’re not into repairing credit on your own, you can always hire a credit repair company to do it for you. Some people might have doubts about these companies, but we’re here to tell you that they are legitimate. Credit repair companies will deal with fixing any inconsistencies or inaccuracies in your report.
2. Opening Many Credit Accounts Will Increase Your Credit Score
Biting off more than you can chew in the case of credit cards can often result in disaster. Keeping up with all the due dates is challenging, and you will often find yourself missing or being late with your payments. Missed or delayed payments will have the opposite effect on your credit score than the one you were expecting.
3. Paying off Your Loans Early Will Increase Your Credit Score
Pre-payments don’t affect your credit score at all! Paying off your installment debt early won’t fix your credit score. It would be better for you to keep the debt open and pay it off regularly each month. In this way, you’re building a credible history of on-time payments.
4. Negative Items Can Be Put Back on Your Credit Report
This is one of the biggest myths circulating on the internet! Once a negative item has “served its purpose” and disappeared from your report, it can’t be put back and affect your credit score.
5. Bankruptcy Is the Only Option
No, it isn’t. Declaring bankruptcy may rid you of your debts, but it won’t clean your credit history. Remember, credit repair can be a slow process requiring much patience and attention. If you need the help of finance experts, we are here to help. Contact us today.