The 3 Biggest Misconceptions About How to Improve Credit Scores

When it comes to your own personal finances, therecredit report. These are known as, hard and soft
are certain things you will either never do or will stopinquiries. A hard inquiry will be made by a company to
yourself doing. Why? Because you believe it will effectwhich you have applied to for credit. This will effect
your credit score. If you really want to know how toyour credit score. However, a soft inquiry may consist
improve your credit score, then you need to stopof you wanting to check your own credit report or a
listening to many of the rumours and horror stories.company wishing to obtain information for marketing
So what are the 3 biggest misconceptions when itand promotional purposes. A soft inquiry will have no
comes to Bad Credit and improving your credit score?effect whatsoever on your credit score.
1) Shopping around for Credit will lower Your Credit3) You are unable to fix Bad Credit - All forms of bad
Score - this is not strictly true. Firstly, if you arecredit can be repaired. Yes i agree, in some instances,
shopping around for credit cards, then, yesit may take a lot longer. However, you are always able
unfortunately, every single search made by ato once again build a positive credit rating. It is a
prospective creditor will appear on your credit report.question of educating yourself correctly and
This, in turn can have an adverse effect on your creditunderstanding what potential lenders expect from you.
score. However, when it comes to mortgages, homeIn addition you need to be aware of certain things you
equity loans or any type of personal loan (e.g. car loan,are able to do, when it comes to removing adverse
debt consolidation loan), you can apply for a loan toitems from your credit report.
various lenders. As long as all your loan inquiries areIf you have Bad Credit or need to improve credit
made within 14 days of each other, then this will onlyscores then please don't be held back by things you
appear on your credit report once.have heard. Always make sure that you have the
2) Whenever you check your Credit Report this willcorrect information to hand. Time and time again
lower your score - Once again not strictly true. Therepeople make the same mistakes when it comes to
are two types of inquiry that will be noted on yourworrying about their credit rating.