Credit Repair Myths You Need to Stop Believing

Don’t let misinformation cost you money—or your credit score.
When it comes to credit, there’s a lot of bad advice out there. From TikTok “credit hacks” to outdated financial rules, myths about credit repair can hold you back from real progress. At Money Tree Financial Services, we’re here to bust those myths wide open and put you on the path to financial freedom with clarity and confidence.
Here are the top 5 credit repair myths you need to stop believing—starting today.
Myth #1: You Can’t Fix Your Credit Until Everything Is Paid Off
The Truth:
Paying off debt is helpful, but it’s not the only way to improve your credit. You can start repairing your credit by addressing late payments, disputing inaccuracies, and using existing credit responsibly—even while carrying some balances.
What to Do Instead:
Focus on on-time payments, reducing credit utilization, and addressing errors on your report. A strategic plan can make a difference before you’re debt-free.
Myth #2: Closing Credit Cards Will Improve Your Score
The Truth:
Closing accounts can actually hurt your score—especially if it reduces your available credit or shortens your credit history. The longer your credit history, the better for your score.
What to Do Instead:
Keep old accounts open (even if unused), and manage them responsibly. Only close cards if they come with high fees or encourage overspending.
Myth #3: Credit Repair Companies Can Erase Accurate Negative Info
The Truth:
No legitimate company can remove accurate, negative items from your credit report before they’re due to fall off—typically after 7 years.
What to Do Instead:
Focus on disputing errors, negotiating with creditors, and adding positive credit behavior. Rebuilding takes time, but it’s absolutely possible with consistency.
Myth #4: Checking Your Credit Hurts Your Score
The Truth:
Checking your own credit (a soft inquiry) has zero impact on your credit score. It’s only when a lender pulls your credit for approval (a hard inquiry) that it can affect your score slightly.
What to Do Instead:
Monitor your credit regularly using tools like Credit Karma or paid credit monitoring services. Awareness is key to improvement.
Myth #5: Credit Repair Is a One-Time Fix
The Truth:
Credit repair isn’t a “set it and forget it” process. It’s a long-term commitment to changing habits, improving money management, and staying proactive about your credit health.
What to Do Instead:
Think of credit repair as part of your financial wellness journey. Use it as a springboard to build wealth, protect your financial identity, and achieve long-term goals.
Break Free from the Myths and Build Real Credit Confidence
Repairing your credit isn’t about tricks or shortcuts—it’s about facts, action, and the right support. At Money Tree Financial Services, we offer expert guidance, dispute assistance, credit education, and ongoing support to help you rebuild and rise.
Need help with your credit?
Let’s create a plan that works—backed by experience, not myths.
Responses