Top Credit Score Myths Revealed

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 Top Credit Score Myths Revealed

Are you interested in getting your credit reigned in? The first thing you will need to do is get educated on what impacts your FICO score. This is difficult to  grasp with all of the myths about credit floating around.Top 7 Myths

1. The more money I make, the higher my credit score will be

Employment status or income is irrelevant to your credit score, however, some lenders may take that into account to determine if you are able to repay the loan. Changing jobs or constant layoffs could raise concern.

2. Bad credit will prevent me from obtaining a loan

This is false because there is an entire market on bad credit loans “sub-prime” or (high-risk) lending. The interest rate will be considerably higher so it is wise to first pay down outstanding debts if at all possible to save yourself literally thousands of dollars in interest on a new loan.

3. Bad credit will haunt you forever

If you obtain the services from a reputable credit repair company like Credit Solutions you will be on the fast track to credit repair. Late payments, bankruptcies, collections, or foreclosures will typically remain on your credit report for seven years without credit repair. It is wise to procure services in order to speed this up cutting it down from seven long years to less then a year is common among credit repair customers.

5. My Employment history determines credit

Employment history is completely irrelevant to your credit score, however, some lenders may utilize this information to determine the potentiality that you will default on a loan.

6. Pulling my own credit will negatively impact my score

The only time that credit inquiries impact your score are “hard pulls”. The ones used by a lender to determine your credit worthiness to get a loan . Checking your own is a soft pull and has no negative impact to your credit at all. Credit inquiries however account for ten percent of your score. So if you are shopping for credit it is wise to know your own score first. This is where credit monitoring comes in and can be had on average for $20 per month. If you are currently in credit repair ask your agent what he or she recommends.

7. Obtaining to many credit cards will hurt my score

Submitting a lot of credit applications in a short time frame can have negative impact to your score. However, a diverse credit profile is preferred and ones with multiple cards if used responsibly wont necessarily hurt your credit. It is when responsibility and management waivers or when the balances escelate to being near maxed out. This will create a high debt to credit ratio and your score will suffer.
What does a credit repair company do?

Credit Solutions will start by checking your report for errors. They will then discuss the errors with you and from there will work on your behalf to determine, dispute, and delete.

Stay away from companies that charge per deletion or want a large upfront sum. Credit Solutions offers plans starting at $49 a month which is less than a small cup of coffee from a fast food restaurant per day.