Below are the six most common credit restore myths. Let’s go over each false impression so you won’t be perplexed by the incorrect information 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 credit score. This is known as a “soft inquiry” and will not decrease your credit 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 credit score rating by a couple of points.
2 – You need to hire a credit repair company to fix your credit – credit restore companies can not make the credit reporting agencies cast off or change the information for your credit report. Credit repair companies will on a regular basis take your money without turning in on their promises. They can’t do anything you can’t do yourself. Your best wager is to learn to repair your personal credit score and keep on with that plan.
3 – Shopping around for credit impacts your rating – Most credit 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 credit 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 good credit, it is going to offset my bad credit score – Any quantity of poor credit will harm your credit score and considerably reduce your chances of getting approved for a loan. When a mortgage officer looks over your credit file to approve you for a loan, they’ll focus at the poor credit and decide whether you’ll be a good risk. The excellent credit will not offset the bad credit.
5 – There are items such as bankruptcies, foreclosures, and liens which are impossible to take away from the credit record – Bankruptcies can stay in your credit report between 7 to 10 years. Everything in your credit record may also be removed if you provide it enough time. As old money owed is paid off and new money owed is paid on time, your credit will slowly start to improve.
6 – Credit can be repaired straight away – If you get an offer that may be too good to be true, it regularly is not true. There are firms that charge fees from hundreds to thousands of dollars up front and promise to fix your credit in a couple of months. One of the tactics is to apply for a brand new social security number for you, which will seem like you are starting over with a clean slate. However, that is obviously illegal and people with operations like this can be sent to jail.
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