5 Demystified credit repair myths every debtor must be aware of

Do you have bad credit and are you looking for ways to repair it without putting much extra effort? If answered yes, you must be aware of some particular credit terms like credit repair. Credit repair is nothing but restoring your credit score and emerging creditworthy to obtain favorable lines of credit in the near future. Apart from the easy and effortless ways to improve your credit score, there are some credit repair myths too that are believed by most people who are looking for credit repair services. If you too are someone who is geared up to repair your credit, you must first be aware of the credit repair myths so that you’re able to boost your credit score without taking any wrong decisions.

Myth No. 1: You need a third party organization to repair your credit

Truth: While a credit repair firm can help you out, it is just possible to repair your credit on your own. Most studies show that among 90% cases of credit repair are all due to mistakes that are committed by the credit bureaus. By disputing the erroneous information, it is quite possible to boost your credit score on your own. Before taking help of a pro to repair your credit, think twice as this can easily be done on your own.

Myth No. 2: Credit scores are always the same from all credit bureaus

Truth: You must be aware of the three credit bureaus, TransUnion, Experian and Equifax. But if you’re misled into believing that the score that you obtain from all the credit bureaus is all the same, you’re grossly mistaken. Each store, agency or bank with whom you deal will use different credit bureaus. It may happen that your grocer uses TransUnion while your dentist uses Experian. Therefore, as you pull out a copy of your credit report from all the three credit reporting agencies, you will get a different score. Differences can often be as good as 80 points.

Myth No. 3: Checking your credit score may cost you some points

Truth: This is partially a myth as checking your credit online by signing up with the website of any of the three credit bureaus will not hurt your score as this will be considered as “soft inquiry”. Unauthorized checks by companies including the credit repair firms may also not hurt your score. On the other hand, if you’re applying for loans from companies and they want to check your credit score, this will cost you some points.

Myth No. 4: Shopping around for loans may hurt adversely affect your credit score

Truth: You, as a debtor, must be aware of the fact that most credit bureaus will classify credit checks within a 12 day period to be a single inquiry. This rule has been designed specifically so that the people can shop around for a reasonable loan without putting their credit score at stake. Thus, if you go to a lending institution on two consecutive days, the credit bureaus will consider this as one single enquiry.

Myth No. 5: Credit repair only deals with removing erroneous information

Truth: Sure, credit repair does involve removing all the erroneous information but that doesn’t mean that it is all about removing the wrong information. You also have to keep on paying off your high interest debt and lessen your debt burden so that you can boost your credit score and become creditworthy.

Thus, if you’re keen on repairing your credit score, you must make yourself aware of the myths mentioned above. Stay aware of all the credit terms so that you are not hoodwinked by the financial institutions.