This is a sponsored post for CreditRepair.com. All opinions are 100% my own.
Let’s be honest for a minute. There’s a good chance your knowledge of credit, credit scores, and credit repair is pretty small. Chances are you know that FICO has to do with credit, but what do the letters even stand for?
Most of us know good credit helps us get better deals on loans, and bad credit means we end up paying a higher interest rate. Beyond that, it’s a pretty murky subject.
We aren’t going to get into the nitty-gritty of credit and the algorithms used to determine your score. That’s not going to do any good. Today our goal is to make sure you know what is going to help your score, what will hurt it, and when it’s time to call in the experts like the professionals at CreditRepair.com.
The Truth About Credit
Here’s what you need to know about credit. Your credit score is used in a variety of applications; it’s not just limited to getting a loan on a new car or house. In fact, if you have great credit, you’re more likely to get great deals on car insurance. Your credit score may even be used as a determining factor if you land that dream job or not.
Also Read: How to Raise Your Credit Score in 30 Days
The truth about credit is this: strive for great credit, and opportunities increase. Neglect your credit, and life, quite literally, costs more.
So how do you get there? You start out by ignoring these often perpetuated credit myths.
6 Credit Myths That Somehow Stick Around
Pay off Your Debt to Improve Your Score
There is a little bit of truth to this one, but it all boils down to what debt you’re paying off and how much debt you had to begin with. Your credit utilization rate is based on how much revolving credit you have available, and how much you have used. Getting that rate to 30% or less will help your credit.
Paying off Debt Removes it from my Report
Credit accounts stay on your report for up to 10 years. A misused account (one where you were regularly late and behind on payments) will remain on your report long after you have paid it off completely.
My Spouse has Good Credit; So Do I
People often assume that when applying for a joint loan that the higher score is used. But if the scores are significantly different, the lower score is going to bring down the average and may end up hurting your borrowing abilities.
Every Credit Pull Hurts my Score
There are three credit reporting companies: Experian, Equifax, and Transunion. You can check your credit report from each one every year with no effect on your credit score. Furthermore, there are two types of pulls: soft and hard. A soft pull is making sure that you are who you say you are; a hard pull digs a bit deeper. Too many hard pulls in a short period of time can end up hurting your score.
Credit Repair Gives me a Clean Slate
Sometimes there are mistakes on your credit, sometimes you have made mistakes and caused blemishes. Credit repair companies can help to remedy these. You cannot, however, wipe everything from your credit report and start over new. Credit repair will get you back on the right track; staying on the right track over time will improve your score.
A New Credit Card Improves my Score
More access to credit leads to a lower credit utilization rate, which is a good thing. However, each credit card application is a hard pull on your credit, and we know that too many of those can hurt your score. Furthermore, too many new cards open in a short period of time, can cause red flags and mean your score takes a hit.
Also Read: With Bad Credit You May Be Unable to Rent An Apartment
Why You Might Need an Expert Like CreditRepair.com
There is a lot that goes into your credit score. Some things, like making sure you pay your bills on time, are easy enough to do on your own. But there are times when you have to call in the experts to get your credit back on track.
This is where CreditRepair.com comes into play. They help you develop a healthier relationship with your credit. That means they are with you from start to finish. It’s not a one-time cleaning; it’s an ongoing process of repairing and improving your credit.
In the end, you can enjoy better rates that are only available to those with better credit. After your credit is repaired, you are left with the skills needed to keep your score from dropping again in the future.
