Credit Repair Myths Revealed

Trying to restore or repair your credit score can be a huge pain. It could take a lot of time, years even, to fully repair it. Of course, you will also need to put in a lot of effort into the project. I know some claim they have increased their credit score by 50 or more in just 6 months under the right circumstances and doing the correct steps. That’s why you need to avoid these myths so your way to a better credit score is clear.

Paying your debts clears them from your credit report

This is a longstanding myth that many people still believe today. Paying your debts will not dissolve these items from your credit report. The negative credit will remain some for as long as ten years. Now, this doesn’t mean your credit score will not increase. Some creditors may see this as a positive, that you have been paying your loans. But some may see the negative connotation on the report and see that you have these “bad debts” on your record.

Closing all your old accounts will improve your credit score

Typically, closing old accounts don’t do a lick of good toward your credit score. What they can do, however, is to damage your score more than you expect. Closing accounts will decrease the amount of your available credit by shortening your credit history. The longer your accounts are in existence, the better since they can be proof that you are a seasoned borrower and your previous creditors have trusted you enough to let you borrow from them. It also keeps your utilization rate low, the lower the better.

Opening new credit card accounts increase credit rating

Contrary to popular belief, opening a lot of credit card accounts does not help in improving your credit score. It has the opposite effect to what you want. Financial institutions see these new accounts on your report and will likely think about why you need so much credit. They will see you as a high-risk borrower since they will be seeing a lot of credit inquiries on your report.

Bankruptcy is the best and only option available

Wrong! Though bankruptcy is an option, it is not the only one. It should only be considered as a last resort. Yes, this provides a quick fix to whatever your credit woes are as of now, but it will damage your credit rating so much that it could take a good long time for it to recover. Don’t just blindly leap. It’s better to speak with a certified credit counselor so you can explore all your other options before you dive into this one.

Credit repair companies are a scam

This is not true. Of course, in any market, some operate in less than legitimate terms. And some are well-respected in the business and completely legit. 

Reputable companies like Blue Water Credit will have a certified credit analyst evaluate your report and discuss any concerns you might have with the process. They will correct all inaccurate information about you do all the disputes on your behalf. To get in touch with our trained analysts, head out to https://bluewatercredit.com and schedule a consultation.