6 Credit Myths That Somehow Stick Around



Pay off Your Debt to Improve Your Score

There is a little bit of truth to this one, but it all boils down to what debt you’re paying off and how much debt you had to begin with. Your credit utilization rate is based on how much revolving credit you have available, and how much you have used. Getting that rate to 30% or less will help your credit.


Paying off Debt Removes it from my Report

Credit accounts stay on your report for up to 10 years. A misused account (one where you were regularly late and behind on payments) will remain on your report long after you have paid it off completely.


My Spouse has Good Credit; So Do I

People often assume that when applying for a joint loan that the higher score is used. But if the scores are significantly different, the lower score is going to bring down the average and may end up hurting your borrowing abilities.


Every Credit Pull Hurts my Score

There are three credit reporting companies: Experian, Equifax, and Transunion. You can check your credit report from each one every year with no effect on your credit score. Furthermore, there are two types of pulls: soft and hard. A soft pull is making sure that you are who you say you are; a hard pull digs a bit deeper. Too many hard pulls in a short period of time can end up hurting your score.


Credit Repair Gives me a Clean Slate

Sometimes there are mistakes on your credit, sometimes you have made mistakes and caused blemishes. Credit repair companies can help to remedy these. You cannot, however, wipe everything from your credit report and start over new. Credit repair will get you back on the right track; staying on the right track over time will improve your score.


A New Credit Card Improves my Score

More access to credit leads to a lower credit utilization rate, which is a good thing. However, each credit card application is a hard pull on your credit, and we know that too many of those can hurt your score. Furthermore, too many new cards open in a short period of time, can cause red flags and mean your score takes a hit.


Why You Might Need an Expert Like Square One Credit Management.


There is a lot that goes into your credit score. Some things, like making sure you pay your bills on time, are easy enough to do on your own. But there are times when you have to call in the experts to get your credit back on track.


This is where Square One Credit Management comes into play. We will help you develop a healthier relationship with your credit. That means they are with you from start to finish. It’s not a one-time cleaning; it’s an ongoing process of repairing and improving your credit. In the end, you can enjoy better rates that are only available to those with better credit. After your credit is repaired, you are left with the skills needed to keep your score from dropping again in the future.



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