Improving credit score may not be as easy as it seems. The Federal Trade Commission lately asserted that companies bragging and making false claims of easy credit repair sound too good to be true. One needs to invest in time, patience and stay committed to the finance management plans to improve on credit scores.
Consumers must be aware of the facts, myths and ongoing scams when it comes to credit repair. Some of the most widespread myths are listed below:
Some people think that paying their debts will immediately shoot up their credit scores, which is totally wrong. Credit reports are records of one’s expenditure pattern. They are not impressed with who you are at present unless you settle all the dues and make sure to repay consistently in future too.
Another myth prevalent amongst masses is that attending credit counseling will destroy their scores. No, it does not.
Never ever think that canceling credit cards will improve your scores. Experts agree that with at least two or three more accounts, creditors feel that you can manage your debt.
No, too many inquiries on the items you buy do not take a toll on you score. Earlier, it did, but with time, creditors have understood that people shop more now.
Do not be misled by people in thinking that checking your own credit report could be negative. There are hard and soft pulls. Since personal requests fall under soft pulls, they do not ill effect your score. However, due to this wide spread myth, there are some companies who claim to provide credit reports as perks.
Another misconception amongst people who pay bill timely is that they need not check their reports. A recent FTC report shows that one out of every four consumers identified errors on their credit report. As high as 80 percent of all the credit reports have errors from wrong date of birth to the mention of the accounts you never applied for. So cross checking is a must.
It becomes nearly impossible for a client to keep a track of so many aspects. In that case, a credit repair software is recommended which not only provides factual information but also helps through creditor dispute letter.