Credit Myths Archives - Hatch Credit

12 Things We Wish Everyone Knew About Credit

Posted on 17 June 2025 by Morgan Mortimer

Understanding credit doesn’t have to feel overwhelming. At Hatch Credit, we believe that with the right knowledge and support, anyone can build a credit report they’re proud of. Here are 12 truths about credit that we think everyone deserves to know.

1. Your credit report tells a story lenders use to judge you

Credit isn’t just a score. It’s a detailed record of how you’ve handled debt, and lenders use it to make decisions about your future. Whether you’re applying for a loan, a job, or an apartment, your report matters.

2. Even accurate items can be removed

Fair doesn’t always mean flawless. If a negative item is outdated, unfair, or unverified, it can be challenged and possibly removed. That’s where Hatch Credit comes in, helping your report better reflect who you are today.

3. You have three credit reports, and they’re often not the same

Experian, Equifax, and TransUnion each keep their own version of your credit history. That means one report could have errors the others don’t. Checking all three is important.

4. Payment history matters the most

Late payments are the most influential factor in your credit score calculation, especially if they’re recent. If you’re getting ready to apply for credit, consider if any of your late payments are challengeable for being unfair or unsubstantiated. Hatch Credit can help.

5. Not all credit scores are created equal

Lenders may use FICO, VantageScore, or even a custom model. Your score can vary depending on the source, but the fundamentals like on-time payments, low balances, and a healthy mix of credit still apply.

6. Collections don’t automatically mean you’re stuck

Collections can hurt, but they’re not permanent. Inaccurate or unfair accounts can be disputed, and even legitimate ones can be taken off of your credit report. Consider the dates, the balances, and note any discrepancies to improve your chances of removal.

7. You can check your credit without hurting your score

Soft inquiries, like checking your own credit, have no impact on your score. It’s a smart habit and the first step to understanding where you stand. Knowing what’s on your credit reports is half the battle, if you haven’t seen yours recently, it’s worth the time.

8. Hard inquiries fade, and not all of them should be there

Hard credit pulls however can affect your score temporarily, but they drop off over time. Hard inquiries usually stop impacting your score after just 12 months. If you didn’t authorize a hard inquiry, it is possible to get it removed.

9. Your credit utilization is a moving target, not a fixed label

Utilization reflects how much of your available credit you’re using. It changes as your balances change, and keeping it low can boost your score. Depending on your debt, consider getting utilization under 50%, 30% and 15% for the best impact to your scores.

10. Medical debt is treated differently from other kinds of debt

Medical bills now get special treatment in credit reporting. Some are excluded from reports entirely, and paid medical collections may not hurt your score. And unexpected medical bills are often a reason we see customers miss other obligations. If you miss payments due to medical emergencies, that can be shared with the bureaus and help with keeping your reports clean.

11. Disputing errors is your legal right, not a loophole

The Fair Credit Reporting Act gives you the right to challenge any item that isn’t fair, accurate, or verifiable. This isn’t gaming the system, it’s your literal right. We built Hatch Credit to help folks leverage these rights in a simple, affordable, and approachable way.

12. You don’t have to figure this out alone

Credit can be confusing, but you don’t have to navigate it solo. Hatch Credit is here to support you every step of the way, with tools and a team that care about your progress.

You deserve a credit report that tells the full story, the real story. Let us help you write the next chapter. Check out hatchcredit.com today to learn more about how we can help you.

CREDIT REPAIR

Busting the Top Credit Myths We’ve Heard at Hatch Credit

Posted on 10 June 2025 by Morgan Mortimer

At Hatch Credit, we talk to people every day who are working hard to build and protect their credit. And guess what? We hear a bunch of the same credit myths come up over and over again. Let’s tackle the most common we’ve heard from our Hatch Credit community. And, let’s finally set the record straight.

📅 Myth #1: Items must stay on your credit report for 7 years.

This one’s everywhere, and we totally understand why! The Fair Credit Reporting Act (FCRA) says that most negative items can’t stay on your credit report for more than seven years (or ten years for bankruptcies). But here’s the key, the FCRA doesn’t say they have to stay for that long, it only says they can’t stay for longer than that.

That means items like collections, late payments, and other negative marks can be removed earlier, and especially if they’re inaccurate, unfair, or can’t be verified by the credit bureaus. At Hatch Credit, we’ve seen countless examples where clients’ credit reports were cleaned up well before the seven-year mark.

For example, Alex W. had a collection account reporting on his credit report. By working with Hatch Credit to challenge the validity and fairness of the item, Alex got the collection removed in just a few months, long before the seven-year clock ran out.

💸 Myth #2: Paying off a collection account will instantly boost your credit score.

Hatch Credit customer Jamie N. recently shared, “I paid off a collection last year thinking my credit score would jump overnight, but nothing happened. I didn’t realize the paid collection would still be reported on my credit and continue to drag my score down.”

Jamie’s story is a common one around here, we hear it from tons of our community. Paying off a collection is a responsible move, and we definitely recommend doing it (plus it stops those annoying collection calls). But it doesn’t always result in an immediate score increase. That’s because paying the debt just changes the information in the collection, marking it paid, but the collection (even paid) is still there on the report, hurting your credit score.

To truly improve your score in a meaningful way, the best approach is to get the collection removed from your report entirely.

🔍 Myth #3: Checking your own credit hurts your score.

Maria R. told us, “I was so worried about pulling my credit because I thought it would drop my score. Turns out, checking your own report doesn’t hurt at all, and it actually gave me more confidence to work on my credit.”

This one causes so much unnecessary worry. When you check your own credit report, it’s considered a soft inquiry, and it does not hurt your score. In fact, it’s a good idea to check your report regularly to make sure everything is accurate and up-to-date. When you sign up for Hatch Credit we pull all three of your credit reports with you and walk you through what’s on each of them. With no harm to your credit score.

📊 Myth #4: You only have one credit score.

Ben M. came to us confused: “I checked my score on Credit Karma and it was 680. Then when I applied for a loan and the lender pulled a 650 score. How can they be different?”

This one comes up so often it was one of our very first blog posts. The reality is that you have dozens of credit scores, depending on the scoring model (think FICO vs. Vantage) and what lenders are looking for (think credit card vs car loan vs mortgage). That’s why your score might look different depending on when and where you check it.

📝 Myth #5: You can’t remove accurate items from your credit report.

This myth trips up so many people. Just because something on your credit report is accurate doesn’t necessarily mean it’s fair or verified. Hatch Credit believes your credit report should be an honest, just, reflection of who you are as a borrower.

A great example came up in a recent product review from Laura S., “I was in the military and missed a payment while I was deployed. Sure, it was accurate, but I didn’t feel like it was who I am as a borrower. Hatch Credit helped me challenge it and it did come off my report.”

Let’s Keep Busting Those Myths

Credit doesn’t have to be confusing. At Hatch Credit, we’re here to help you understand the system, challenge what’s unfair, and build the credit you deserve.

Visit hatchcredit.com to learn more and start your journey toward a fairer credit report today.