Beacon Credit Repair-3 Myths To Avoid

A lot of beacon credit repair myths are getting spread around in the financial community and frankly some of them are just plain outdated credit repair information. Sometimes even the lenders themselves can give you the wrong advice when it comes to beacon credit repair and it can get very confusing. But the bottom line is bad information can cost you good credit no matter who you get it from.

Here are 3 beacon credit repair myths to avoid like the plague.

Checking your credit report will hurt your credit score
How many times have you heard that one. The truth is that checking your own credit report and credit score counts as a soft inquiry and does not go against your score. However, if a lender or creditor is checking your credit report, this is considered a hard inquiry by the credit bureaus and will generally lower your credit score.

Closing old accounts will improve your credit report score
Here is another one. Sometimes even lenders will tell you to close your old, inactive accounts as a way to improve credit score. In most cases, closing old accounts will actually have the opposite effect with the current FICO credit rating system.

Canceling old credit accounts can actually lower your credit score because it makes your credit history appear shorter. If you want to reduce your levels of available credit, it's better to reduce or close new accounts instead. Applying for new credit, also is more likely to lower your credit score.

You need to check more than just FICO credit score rating
If you ever hear this from anyone, highly consider it a red flag. All of the three major credit bureaus offer FICO credit score ratings using the formula developed by Fair Isaac. Even though each one gives the scores a different name you only need a FICO credit score rating from the big three credit bureaus.

In conclusion, beacon credit repair myths can cost you good credit no matter who you get it from, but by avoiding these three beacon credit repair myths, you can repair bad credit or keep your current good credit from going to bad credit.