These misunderstandings can lower scores and sometimes delay loan approvals. Here are some of the most common myths we see.
Myth #1: Paying a collection automatically removes it from the credit report
Many borrowers believe that paying a collection will remove it from their credit report.
In reality, most collections can remain for up to 7 years, even after payment.
This is where we provide value. Our team works to challenge accounts that may be inaccurate, outdated, or improperly reported. We pursue removal opportunities and have a strong track record of successfully removing collections and negative accounts for our clients.
Myth #2: Closing credit cards improves scores
Borrowers sometimes close credit cards thinking it will improve their credit.
However, this can negatively affect:
• Utilization ratios
• Credit age
• Overall scoring models
In many cases this can lower a borrower’s score before underwriting.
Myth #3: Borrowers should avoid checking their credit
Clients often think reviewing their credit will hurt their score.
Checking their own report is a soft inquiry and does not impact scoring.
Encouraging borrowers to monitor their credit early helps avoid surprises during pre-approval.
Myth #4: Carrying balances improves credit
Some borrowers intentionally carry balances believing it helps their score.
Higher balances can increase utilization and reduce mortgage scores, which can impact loan qualification.
Myth #5: Credit improvement happens overnight
While some improvements can happen quickly, most meaningful changes require strategy and time.
Early credit review allows us to identify opportunities and help borrowers become mortgage-ready sooner.
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
