Understanding your credit report can be confusing. When looking for answers, some of things you will hear will be credit report myths that need to be debunked. Here are five of the most common myths you should be aware of:
Checking my credit is unnecessary if I pay on time
Many people think that just because they pay their bills on time, they don't need to check their credit reports. However, your credit information can become compromised due to an error or even fraud, and the fastest way to catch these credit issues is by regularly checking your reports.
I will hurt my credit score if I check my own reports
The difference between a hard check and soft check is the reason why checking your own credit reports will not impact your score. A hard credit check — also called a "hard inquiry" — is used by lenders and creditors to review all of your credit information. Several hard pulls can impact your credit negatively. However, a soft pull — also called a "soft inquiry" — does not.
Paying off a debt removes it from my credit reports
Borrowers are often frustrated to learn that after they have paid off a debt, it isn't automatically removed from their credit reports. Negative entries generally aren't removed for seven years and as many as 10 years for serious delinquencies, foreclosure or bankruptcy. If you believe there are inaccurate negative items on your credit report, notify the credit reporting agency immediately.
Only one entry per debt will display on my reports
