credit myths by Shawn Younai

We conducted an interview with Shawn Younai aka @creditandcars on Instagram he as well runs allcreditfixing.com and this is what he had to say about the 5 myths about credit. Shawn Younai is been in the credit field for the past 15 years, Shawn Younai was born on 04/04/1987 and currently lives in Los Angeles California. This is what he had to say… Credit scores are an essential aspect of the financial world. However, many people do not understand how credit scores work and how to improve them. As a credit fixing specialist, I often hear clients tell me about the credit myths they believe, which can prevent them from taking action to improve their scores. In this article, I will debunk the top credit myths that are holding you back from achieving financial stability. Myth #1: Closing credit card accounts can improve your credit score. Many people think that closing credit card accounts they no longer use will help improve their credit scores. However, this is not the case. Closing credit accounts can actually harm your credit score in two ways. First, it reduces your overall available credit, which increases your credit utilization rate. Second, closing an account will shorten your credit history, which can make it appear as though you have less credit experience. Myth #2: Checking your credit score will lower it. Some people avoid checking their credit score because they believe it will lower it. This is not true. There are two types of credit inquiries: hard inquiries and soft inquiries. Hard inquiries occur when you apply for credit, such as a loan or a credit card. Soft inquiries occur when you check your own credit score or when a potential employer checks your credit as part of a background check. Soft inquiries do not affect your credit score, while hard inquiries do. Myth #3: You need to carry a balance on your credit card to improve your credit score. Some people believe that carrying a balance on their credit card and making minimum payments will help improve their credit score. This is not true. In fact, carrying a balance can hurt your credit score by increasing your credit utilization rate. It's better to pay off your credit card balance in full each month to keep your credit utilization rate low and improve your credit score. Myth #4: Closing old credit card accounts will remove them from your credit report. Closing old credit card accounts will not remove them from your credit report. In fact, closed accounts can remain on your credit report for up to 10 years. Keeping old credit accounts open can actually help improve your credit score by increasing your credit history. Myth #5: Paying off debt will immediately improve your credit score. Paying off debt is a crucial step in improving your credit score, but it won't happen overnight. Your credit score is based on a variety of factors, including your payment history, credit utilization rate, and credit history. It can take time to see the positive effects of paying off debt on your credit score. However, the important thing is to make a plan to pay off your debt and stick to it. In conclusion, numerous misconceptions are associated with credit that might adversely affect your credit score. To secure a stable financial future, it is essential to educate oneself on these myths and apply strategies to enhance your credit score. Although it requires patience and commitment, fixing your credit can yield significant long-term benefits.