Credit repair is a popular topic in the world of finance. People with poor or no credit often look for ways to improve their credit score and get back on track. But, there’s so much misinformation about repairing credit that it discourages people from opting for credit repair even when they sorely need it. Getting advice from a professional credit repair company like Trifecta Credit Solutions in Philadelphia, PA, can be a great help for people with credit issues.
This blog post covers some of the most commonly held myths and facts about credit repair and gives you an overview of what you need to know if you’re interested in getting started!
Checking Credit Score
Myth – Checking your credit counts as an inquiry that negatively affects your credit score.
Fact – You can check your credit score from any credit reporting agency and get a free credit report from different bureaus once a year. This will not affect your score.
Checking your credit can be beneficial by helping you identify where any errors may have occurred and other helpful information that might help if you decide to apply for something in the future.
Closing the Credit Account After Paying Off
Myth – You should close the credit account after completing all payments.
Fact – It is wise to keep the account open because this will increase your average age of accounts and will help boost your score.
Making the payments on time for several months or years and keeping an old account gives you a longer track record as someone who pays their dues on time.
Talking to Lenders or Collection Agencies
Myth – You should avoid collection calls and talking to the lender if you fall behind on payments.
Fact – If you are having trouble making payments, it is essential to tell your lender because this will help them determine the best course of action.
Collection agencies typically buy old debts for pennies on the dollar, and they want to resolve your account as quickly as possible so that they can close out their files. Don’t ignore their calls; be upfront and honest about your situation; it is the best course of action during tough financial times.
Transferring Credit Balances
Myth – By transferring credit card debt from one card, you will save a considerable sum on interest.
Fact – This strategy only works if you carefully calculate the costs for both cards and move to the lower-interest card. However, moving to a low or no-interest card also entices you to spend more because you think you have more money on your hands. In short, you must remember to pay all credit balances before paying any interest or transfer fees.
If you want to know more about credit repair solutions and ways you can improve your credit score in Philadelphia, PA, then Trifecta Credit Solutions is at your service. Avail of our business credit and credit monitoring service to get your score back on track. Schedule a free credit repair consultation now!