A person's credit score matters for a number of different reasons, namely that it will often affect the price that a person will receive on his loans. If a person has too low a credit score, he can expect to be charged a high rate of interest from a lender. Many people seek to improve their credit scores, but a number of myths pervade the practice of credit score repair.
Negative Information Stays on Your Report Forever
In fact, the longest amount of time that negative information can stay on your credit report is seven years -- save for a bankruptcy, which can stay on up to 10 years. After this time has expired, the information is struck from your report and can't hurt your score anymore. In fact, some credit reporting bureaus remove this information before they're legally required to do so.
A Rise in Income Means a Rise In Credit
Although a rise in your income may make you more creditworthy in the eyes of lenders, it will not actually improve your credit. This is because credit reports are composed of information related solely to your lending practices. There is no section on the credit report that has anything to do with income. Therefore, making more money can't directly fix your credit.
Paying Off Debts Will Always Improve Your Score
One of the surest ways of bringing up your credit score is by paying off debts. In most cases, bringing a debt up to date will make your score climb. However, in some cases, if the debt is old enough that it has already left your credit report -- meaning it is older than seven years, usually -- paying it off may, perversely, cause it to return to the report and bring your score down.
Credit Can Be Improved Quickly
The biggest myth about repairing credit is that the process is a quick one. Just like repairing a relationship in which you have broken the other person's trust, restoring your credit rating -- the trust credit reporting bureaus have in you -- will take time. After paying down debts, your next move is to take out new credit and pay it off on time. After several months, your score will start to climb again.
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