My FICO logo $$$$$$$$$$$ 9876 5432 1234 5678 CREDIT CARD KELLY SMITH 11/26 My FICO logo
SCORE
Skip Navigation
  • Why FICO
  • How It Works
  • Pricing
  • Education
  • Community
  • Support
  • Member Dashboard
  • Log In Log Out
  • Start Plan
 
  • Why FICO
  • How It Works
  • Pricing
  •  
  • Education
    • Credit Education
    • Credit Scores
    • What Is a FICO Score?
    • FICO Scores vs Credit Scores
    • FICO Scores Versions
    • New FICO Scores
    • How Scores Are Calculated
    • Payment History
    • Amount of Debt
    • Length of Credit History
    • Credit Mix
    • New Credit
    • How to Improve Your Score
    • How to Build Credit
    • Credit and Financial Counseling
    • Credit Reports
    • What's in Your Report
    • Credit Bureaus
    • Inquiries
    • Errors on Your Report?
    • Blog
    • Calculators
    • Loan Savings
    • Vehicle Payments
    • How Much Can I Borrow?
    • Should I Consolidate My Credit Cards?
    • Know Your Rights
    • Identity Theft
    • FAQ
    • Glossary
  • Community
  • Support
  • Member Dashboard
  • Log In Log Out
  • Our Products
    • Ongoing Credit Monitoring Track your FICO® Score & identity
    • One-time Credit Reports Be prepared for important transactions
  • How Can We Help
    • Monitor Credit & Identity
    • Mortgages
    • Credit Cards
    • Auto Loans
  • Credit Education
  • Community
  • Support
  • Our Products
    • Ongoing Credit Monitoring Track your FICO® Score & identity
    • One-time Credit Reports Be prepared for important transactions
  • Credit Education
  • Credit Scores
    • What Is a FICO Score?
    • FICO Scores vs Credit Scores
    • FICO Score Versions
    • New FICO Scores
    • How Scores Are Calculated
    • Payment History
    • Amount of Debt
    • Length of Credit History
    • Credit Mix
    • New Credit
    • How to Improve Your Score
    • How to Build Credit
    • Credit and Financial Counseling
  • Credit Reports
    • What's in Your Report
    • Credit Bureaus
    • Inquiries
    • Errors on Your Report?
  • Blog
  • Calculators
    • Loan Savings
    • Vehicle Payments
    • How Much Can I Borrow?
    • Should I Consolidate My Credit Cards?
  • Know Your Rights
  • Identity Theft
  • FAQ
  • Glossary

Estimate your FICO® Score range

Answer 10 easy questions to get a free estimate of your FICO® Score range

Estimate for Free

Get your FICO® Score for free

90% of top lenders use FICO® Scores

Get Access Now
No credit card required

7 Common Credit Repair Myths Debunked

If you’re someone with debt, and your credit score isn't where you want it to be, you may wonder: what if you’ve been doing the wrong things to enhance your credit score? Misinformation about credit repair is everywhere, and the Federal Trade Commission (FTC) is busting more and more credit repair scams each year.

Myth #1: Credit repair can erase poor credit

Most importantly, no legitimate credit repair service can remove negative information from your credit report if that information is accurate.

Credit repair isn’t simple, and if you have poor credit, you’ll have to work on it to improve your creditworthiness– there’s no erasing it. If any information in your report is truly incorrect or outdated, you have the right to have that error investigated and corrected.

Myth #2: You can't try to repair credit on your own

Professional help is available to improve your credit score, but believe it or not, you can do it on your own. If you want to tackle the challenge, start here:

1. Review your credit reports

You can get free credit reports from each one of the three main bureaus, through a website called AnnualCreditReport.com. Go over your reports, because you may find inaccuracies like the following:

  • Incorrect personal information (name, date of birth, Social Security number, or address)
  • Accounts that don't belong to you, or were opened fraudulently
  • On-time payments that were reported as late
  • Accidentally duplicated accounts
  • Outdated debt accounts or debt accounts in dispute

2. Challenge inaccuracies

If you see a mistake and you need to get it rectified, contact the credit bureau by mail or online and submit a formal dispute letter. You might need to have supporting documentation on hand, such as canceled checks, receipts, and payment confirmations. Usually, the credit bureau will respond within 30-45 days.

Myth #3: Paying for a credit repair service guarantees results

While credit repair services can be helpful, there are no guarantees that you’ll get the results you want. Legitimate credit repair services only help you identify and dispute inaccurate or outdated information – they won’t scrub any bad credit for you. So, stay realistic, and remember that credit repair is a process that takes time.
Additionally, be aware of companies that make unrealistic promises or demand upfront fees.

Myth #4: Closing old accounts helps repair credit

Closing accounts that have a poor credit history might seem like a smart move, but you must look at the big picture – when you close an account, access to the account’s credit limit is eliminated. This can bump up your all-around credit utilization ratio, which is the amount of credit you're using on all your cards, compared to the total credit available.
If you're not actively using an old account, keep the balance low or pay it off in full each month. If you're not using an old card but want to keep it open, look for options with no annual fees to avoid unnecessary costs.

Myth #5: All credit repair companies are scams

Not all credit repair companies are scams, but some are – and it’s important to know how to distinguish them from legitimate companies. If you’re interested in a credit repair company, ensure that they’re licensed in your state and accredited by reputable organizations like the Better Business Bureau (BBB). You can also look for membership in professional associations like the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

Additionally, remember that legitimate companies cannot guarantee specific credit score increases or the removal of accurate negative information. Federal law prohibits credit repair companies from charging upfront fees for their services. Research the company's reputation on platforms like BBB, Google Reviews, and Trustpilot. And remember to trust your instincts – if something seems too good to be true, it probably is.

Myth #6: You must wait for negative items to fall off your credit report

It's a common misconception that all negative items on your credit report will automatically disappear after a few years. Negative information, such as late payments, defaults and collections, generally remain on your credit report for up to seven years, but for other types, the expiration date can vary. For example, Chapter 7 bankruptcies can stay on your report for as long as 10 years, but Chapter 13 bankruptcies typically stay for seven years. However, it’s important to note that as the negative item ages the impact on score will lessen (assuming no new negative items are reported). A recently reported late payment will have a larger effect on your score than one that is several years old. The best thing you can do is be proactive and review your credit report frequently so you can identify and address potential issues.

Myth #7: Credit repair is a quick fix

Credit repair is a gradual process that takes time. It often takes months to see significant changes, so set your expectations realistically. With informed decisions, your credit standing may be on the road to healing in several months.
While understanding credit repair myths is the first step in improving credit scores, the next step is the hardest – making smart financial decisions and improving as much as possible. Whether you’re getting professional help or going it alone, you can feel good knowing that there are ways for you to get back on the right track.

Estimate your FICO® Score range

Answer 10 easy questions to get a free estimate of your FICO® Score range

Estimate for Free

Get your FICO® Score for free

90% of top lenders use FICO® Scores

Get Access Now
No credit card required

Page footer

Products

  • Home
  • Why FICO
  • How It Works
  • Pricing

Learn

  • Education
  • Community
  • Support
  • Blog

Company

  • About Us
  • Terms of Use
  • Your Privacy Choices privacy choice icon
  • Privacy Policy
  • Affiliate Program
  • Accessibility

Get Our App

  • Download iOS app on the App Store
  • fil_get
    Get Android app on the Google Play Store

Follow Us

  • Twitter
  • Facebook
  • Instagram

Credit Education

  • Credit scores
  • What is a FICO Score?
  • FICO Score versions
  • How scores are calculated
  • Payment history
  • Amount of debt
  • Length of credit history
  • Credit mix
  • New credit
  • Credit reports
  • What's in your report
  • Bureaus
  • Inquiries
  • Errors on your report?
  • Calculators
  • Know your rights
  • Identity theft
  • FAQ
  • Glossary

Copyright ©2001- Fair Isaac Corporation. All rights reserved.

IMPORTANT INFORMATION:

All FICO® Score products made available on myFICO.com include a FICO® Score 8, and may include additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.