CREDIT MYTH – 365 CREDIT HACKER

CREDIT REPAIR

Myths

IF YOU KNOW BETTER YOU WILL DO BETTER!

Credit Myths

Myth: Maxing out your credit cards is okay as long as you pay it off.

Truth: High credit utilization (using a large portion of your available credit) can negatively impact your credit score.

Myth: Authorizing a credit repair company to handle your credit is the only way to improve your credit.

Truth: Many credit issues can be resolved through DIY efforts and understanding credit laws.

Myth: Your income level determines your credit score.

Truth: Checking your own credit score through authorized means does not impact your credit score.

Myth: Closing old credit cards can improve your credit score.

Truth: Closing old credit cards can negatively impact your credit score by decreasing your credit history and increasing your credit utilization.

Myth: Paying off old debts will automatically improve your credit score.

Truth: While paying off old debts is beneficial, it doesn’t immediately impact your credit score.

Myth: Paying only the minimum on your credit card is okay.

Truth: High credit utilization (using a large portion of your available credit) can negatively impact your credit score.

Myth: Bankruptcy will ruin your credit forever.

Truth: While bankruptcy negatively impacts your credit score, it’s not a permanent stain. Over time, responsible credit use can help rebuild your credit.

Myth: Disputing errors on your credit report is a waste of time.

Truth: Disputing inaccurate information on your credit report is crucial for maintaining a good credit score.

Myth: Checking your credit score hurts your credit.

Truth: Checking your own credit score through authorized means does not impact your credit score.

Myth: Paying only the minimum on your credit card is okay.

Truth: Paying only the minimum can lead to high-interest charges and take longer to pay off debt, potentially damaging your credit score.

Myth: You need a credit card to build credit.

Truth: While credit cards can help build credit, there are other options like secured credit cards or installment loans.

Myth: Bankruptcy will ruin your credit forever.

Truth: Income is not a factor in calculating your credit score. It’s based on payment history, credit utilization, length of credit history, credit mix, and new credit.

Myth: You need excellent credit to buy a house

Truth: While good credit is beneficial, there are mortgage options available for people with less-than-perfect credit.

Myth: Only making on-time payments is enough to build good credit.

Truth: While on-time payments are essential, maintaining a low credit utilization ratio, having a mix of credit accounts, and a long credit history also contribute to a good credit score.

Myth: You need to carry a balance on your credit card to build credit.

Truth: Carrying a balance can actually hurt your credit score. It’s better to pay your credit card balance in full each month.

Myth: Only people with bad credit need to check their credit report.

Truth: Everyone should check their credit report regularly to monitor for errors and identify potential fraud.

Myth: You can't build credit if you're young.

Truth: Young people can start building credit by using secured credit cards or becoming an authorized user on a parent or family member’s credit card.

Myth: Credit scores are the same for everyone.

Truth: You can have multiple credit cards, but managing them responsibly is crucial.

Myth: You can only have one credit card.

Truth: You can have multiple credit cards, but managing them responsibly is crucial.

Myth: Your credit score will never recover after a late payment.

Truth: While late payments negatively impact your credit score, it’s possible to rebuild your credit over time with responsible credit use.

Myth: You need a perfect credit score to get a loan.

Truth: While late payments negatively impact your credit score, it’s
possible to rebuild your credit over time with responsible credit use.

Myth: Credit repair companies can remove legitimate debts.

Truth: Legitimate debts cannot be removed from your credit report through credit repair.

Myth: Only adults can have credit.

Truth: Young people can start building credit by using secured credit cards or becoming authorized users.

Myth: Pre-approved credit card offers are guaranteed approval.

Truth: Pre-approved credit card offers don’t guarantee approval. You still need to meet the lender’s criteria.

Myth: Closing unused credit cards will save you money.

Truth: Closing unused credit cards can negatively impact your credit score by decreasing your credit history and increasing your credit utilization.

Myth: You can't build credit without a job.

Truth: While having a job can help build credit through regular income, there are other ways to establish credit.

Myth: Only traditional banks offer credit cards.

Truth: There are many credit card options available from various financial institutions, including online lenders and credit unions.

Myth: You need a cosigner to get a credit card.

Truth: While a cosigner can improve your chances of approval, it’s not always necessary.

Myth: Your credit score is based on your spending habits.

Truth: Your credit score is based on your credit history, not your spending habits.

Myth: You should avoid applying for multiple credit cards at once.

Truth: Applying for multiple credit cards within a short period can negatively impact your credit score due to multiple hard inquiries.

Myth: You can't do anything to improve your credit score.

Truth: There are many steps you can take to improve your credit score, such as paying bills on time, keeping low credit utilization, and disputing errors.

HAVING THE WRONG INFO CAN EFFECT EVERYONE!

In today’s digital age, inaccurate credit information can significantly hinder your financial progress. Take control of your credit narrative and unlock opportunities with our DIY credit repair solutions.