Credit Repair Myths You Should Know About

Chances are you have heard of credit repair but don’t understand what it’s about. There is a lot of information going around on the web regarding credit and credit repair. There is also a lot of misinformation, deliberate or inadvertent. The trick is to know which of the information is true and which is not. Here we will discuss some of the misconceptions and myths about credit repair so keep on reading.

Paying off your debts will remove them from your report.

Paying off your loans may increase your https://bluewatercredit.com/credit-score/but the negative item will remain on your credit report. What’s more, any accurate negative information of this kind will be in your report for up to seven years, which is a long time. The only way to remove negative information in as little as months is if it is inaccurate or incorrect, had it validated, or you paid your creditor to have it removed.

Attempting to open multiple lines of credit will help your credit standing.

When you apply for new credit, the financial institution you applied to will check your credit standing and score. This is what is known as a hard inquiry. Multiple hard inquiries mean that you are trying to get many lines of credit and a large amount of borrowed money. Possible lenders will see this as a sign of financial instability and a high risk of non-payment. You will then be seen as a high-risk borrower and most lenders will hesitate or refuse to lend you money.

Having zero balance on your credit card will improve your credit score.

Having zero on your monthly credit card balance shows that you are a good borrower by making full and on-time payments. Yet it does not improve your credit score. It simply maintains the status quo. Ironically, maintaining a low balance on your credit card can improve your credit score by reducing your credit utilization ratio. Just make sure that the balance is no more than 30% of your available credit.

It’s better to repair credit without professional help.

Of course, you can initiate the process of credit repair and then take care of all documentation on your own. All the services that professional credit repair companies offer you can legally do on your own. But this requires a lot of knowledge from a legal and financial standpoint. It also requires a lot of patience and a certain amount of finesse, especially when speaking with your creditors.

This is why it’s almost always a good idea to have professional assistance in credit repair. If you’re thinking that credit repair companies are a scam, then this is one myth that we should also bust open. Granted that in any line of work or industry there are organizations that take advantage of others but most of these are properly licensed in doing credit repair business. Blue Water Credit, as the top credit repair specialists in California, has a great track record over many years in the business. Secure your credit standing and scores by dialing (916) 315-9190 and speaking with our expert analysts. You can also go to https://bluewatercredit.com/ and schedule your consultation.