If you have less than perfect credit, the good news is that there are ways to improve it. It’s important to watch out for incorrect information as you work toward repairing your credit. Here are some of the 10 most common credit repair myths that you may hear:
Don’t assume the information on your credit report is 100% accurate. Mistakes are common, and it’s important to review what’s on your credit report regularly to make sure you recognize all charges.
Paying off old debt may help to improve your credit score, but it’s not going to go away altogether right away. Negative items remain on your credit report for seven years even if they’re paid off, and bankruptcy can remain on your credit for ten years.
If you allow a single payment to go more than 30 days past due, your credit score is affected in a short amount of time. The longer payments are past due, the more they can harm your credit. Once a debt is in collections or charged off, it can seriously harm your credit score in a matter of months.
Tradelines are updated every 30 days. If you’re making positive changes such as paying off some of your credit cards and removing inaccuracies, you’ll be able to start seeing results within a few months.
Closing accounts you’re not using can actually hurt your credit score because it reduces the total amount of money that’s available to borrow. It can also reduce the overall age of your credit, which can also cause your score to decline.
A bad credit score can make it harder to get approved for credit. You may still be approved for credit, but you may have to pay a higher interest rate or obtain a secured card while you rebuild.
The purpose of credit repair is to identify inaccurate items. Legitimate derogatory items can’t be removed from your credit report.
Just because you’re not looking for a new loan or credit card doesn’t mean that your credit doesn’t matter. Other industries such as cell phone companies, landlords, and insurance companies may use the information on your credit report to decide if they want to do business with you.
While some mistakes in handling your finances can’t be fixed right away, there are still actions you can take that can help improve your credit. Pay your bills when due and try to keep your credit card utilization below 30 percent.
Legitimate credit restoration companies are not scams and can help you navigate the world of credit. When you work with a reputable company like Dovly, you will have the guidance of experts to help you take control of your finances and improve your credit. Contact Dovly today! Try it risk-free with our free membership tier.