Looking for some credit repair advice? The local Credit Rumor Mill is NOT the place you want to look. We’re here to clear up some bad credit myths and replace them with great credit advice. Let’s goooo!
1. Don’t check your credit, it could negatively impact your credit score.
Um, wrong. In fact, you should definitely check your credit score. Each of the three credit bureaus, Equifax, Experian, and TransUnion, is required to provide you with one free credit report per year. You can pull a report from one company once every four months, which results in continuous credit monitoring. If your credit has been compromised, you may get free reports because of a breach. Also, many credit card companies and banks offer free reporting as part of your member benefits. So, take advantage and start keeping an active eye on your credit.
2. Don’t accept calls from collection agencies or talk to your creditors if you fall behind on payments.
So wrong. Rumor is, if you talk to your creditor, it confirms your debt. Very untrue. The debt is yours unless you can prove otherwise. However, calling your creditor if you don’t think you can make your minimum payment or pay on time might actually help you. Many creditors will waive late fees and not report a payment as late if you have a good history as a customer. Creditors are also currently working with people who have been impacted by the pandemic.
3. Close your credit card account after you’ve paid it off.
Still wrong. If you’re in over your head and are struggling to pay off account balances, it can be pretty tempting to close them afterwards. But both the length of your credit history and your percentage of total utilization impact your credit score. If you want to keep improving your credit score, don’t succumb to temptation and close your credit card accounts. Focus on the high credit score goal and make those payments on time.
4. Transferring credit card debt from one card to another is a good way to save on interest.
Wrong, wrong, wrong. While this strategy MIGHT work for some, it’s undoubtedly a trap for others. Most credit card transfers have an associated fee. This fee may even be equal to the interest you would pay. Transferring to zero interest cards also encourages excessive spending because it makes it look like you have more money available than you do. You should be trying to pay off any credit card balances before you pay any interest or transfer fees, and try to start with the ones that have the highest interest.
Hope we helped clear up some silly credit myths for you. If you’re interested in raising your score or need some help with some pesky negative items on your report. Give us a call and it’s ASAP Credit Repair to the rescue!