4 Common Credit Myths

The media, newspapers, internet are full of information, but sadly, much of the information concerning credit is inaccurate. Let’s check out some common credit myths:

Credit Myth: “FRCA scores are locked in for six months, and they change every six months.”  That’s a total myth because actually, the FRCA score is based on the data that was available right then and there, exactly when you pulled the report.  In other words, it’s dynamic, and constantly changing.  The calculation is recalculated every time that the credit score is pulled, so it’s not good for any set length of time.

Credit reports for lending, depending upon the lender, sometimes have a period of time that the lender will utilize the same credit report without pulling it again.

Credit Myth:  “I don’t need to check my credit report if I pay my bills on time.”  This one can really hurt people! The reality is that nearly eighty percent of files contain errors, so whether you pay your bills on time or not, you do need to check your report for errors, as well as check your report for any potential identity theft.  After all, these errors are usually the fault of either the data furnishers or the credit ratings agencies themselves, and in no way reflect your own financial discipline and responsibility.

Credit Myth: “Checking your own credit report harms your credit score.”  When you’re dealing with potential clients, you will definitely hear this concern voiced a few times. This is a teaching opportunity, because there is a difference between a hard inquiry and a soft inquiry.  A hard inquiry is one that is done by a lender to evaluate whether or not they want to give you new credit.  That is the type of inquiry that will hurt your score; or that will affect your score.  However, you yourself can pull your credit report as much as you want, and it won’t affect your credit negatively at all. That’s a “soft inquiry,” and you want to make it clear to potential and current clients alike that this will not result in any damage to your credit score!

Credit Myth:  “Consolidating into a low interest credit card will increase your score.”  Unfortunately, the interest rate of your cards has no effect on your score at all. This is because of the communication ecosystem that the Credit Ratings Agencies run: this is data that simply never gets passed along and thus never has a chance to affect your credit score either way.

P.S.   DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! 

Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com

Leave a Comment

Your email address will not be published. Required fields are marked *

The reCAPTCHA verification period has expired. Please reload the page.