The top 10 Myths of Credit Repair revealed below.

1. Credit Repair is Illegal:
This by far, is the number # 1 myth and the furthest from the truth. The laws of the (FDCPA) Fair Debt Collections and Practices Act and the (FCRA) Fair Credit Reporting Act, are strongly written in your favor with regards to repairing, managing, and rebuilding your credit. It is important to mention that the Credit Bureaus want you to believe that if a negative item on your credit report is accurate and verifiable, then it cannot be removed or deleted for 7 years, “10 years for Bankruptcies,” or the date of last account activity. The truth is…if you dispute an item…regardless of how true, accurate, or correct it is and the Credit Bureaus can’t verify it within 30 days, “It must be Deleted,” in accordance with the LAW.

2. You Can’t Do It Yourself:
Credit repair is certainly something that you can easily do on your own without any help whatsoever and very little effort. All you need is a elementary understanding of the law, properly formatted letters, and time. It’s actually estimated that anywhere from 75% to as many as 90% of all consumer credit reports contain ERRORS. Find the error, no matter how small, and you can have a negative item Removed and Deleted.

3. Paying Off Negative accounts makes them Positive:
That’s exactly what the Credit Bureaus want you to believe!!! The truth of the matter is… paying off a negative account such as a; Collection account, a Charge off, a Repossession, or a Satisfied judgment doesn’t raise your Credit Score…1 Single Solitary Point. It remains very negative and the only thing you actually change is the date of last activity. So if you paid a collection account today that’s been on your credit for 6 years 9 months and it was scheduled to come off in 3 months time as it reached it’s 7 year limit…that’s right!!! You Guessed it, that 7 year time limit starts over from the day you paid it off.

4. Checking your credit lowers your score:
This is yet another myth. Anytime you make an inquiry into your own credit profile it does not impact your score at all. Checking or Inquiring about your own score is known as a Soft Inquiry. Other forms of Soft Inquiries that don’t affect your credit score are those made by companies looking to Pre approve you for products. Hard Inquiries are Inquiries by companies which you authorize to pull your credit while trying to get approve for either a mortgage, credit card, loan, or other type of financing or product approval.

5. You only have one credit score:
There are 3 major credit bureaus. Equifax, Trans-Union, and Experian. All 3 Credit Reporting Agencies’ posses their own credit scoring system. So instead of having just one score you actually have 3. When you apply for credit with most lenders they take the average of your 3 scores by throwing out your lowest and your highest score and keeping your middle score.

6. Not all Negative items can be removed:
If proper procedure is followed correctly, any item can be Removed and Deleted from your credit profile. Some items may take longer than others, but everything can eventually be Removed. It simply comes down to patience, organization, persistence, and education.

7. Searching for the best interest rates or deals lowers you Credit:
Searching for the best Interest rates or deals when buying a home or financing an automobile used to pull down you score dramatically, because those Inquiries used to count separately. The law has since been changed to allow consumers to shop for Mortgages and Auto loans with 10 different companies or for 14 days, whichever comes first. So if you have your credit ran by 10 different Auto lenders within 14 days it will only count as 1 inquiry on your credit report. The same applies for a Mortgages, but unfortunately Credit Cards have yet to be included in that legislation.

8. It takes years to Clean up your credit:
This is yet another myth which discourages 10’s of millions of people from repairing and rebuilding their credit. Even if you have the worst credit known to mankind kind it can be repaired relatively fast if you utilize the proper procedure, due diligence, and organization. On average even those with 400 credit scores are able to completely rebuild their credit profiles in 12 months or less. Just remember…after you remove the negative items, you have to build positive credit in its place.

9. Deletions are temporary:
Many people are under the false impression that even if you get an item deleted off your report it will simply come back. This myth can easily be true, but there are ways to prevent that from happening. By law once an account has been deleted it’s suppose to disappear forever, but unfortunately your debt is often sold from your original creditors to multiple collection agencies. So, even if you manage to get a negative account deleted from your original creditor. It may be placed back on your credit report by a collection agency that purchases the debt and attempts to collect on it. Don’t worry though, because you can prevent it from reappearing by writing a simple letter to the collection agency that purchases your debt.

10. Privately Owned Corporations:
Yes, you read that correctly. The 3 largest Credit Bureaus being Equifax, Trans-Union, and Experian are all Privately Owned Corporations. They have no Governmental powers or Federal jurisdiction. They are simply regular companies who collect your information, sell your information, trade your information, and then make huge unbelievable profits in the process. They are simply in business to make a profit. Cleaning and Repairing your Credit forces them to launch investigations which are time and profit consuming, naturally that forces them to lose money. In Summary; They don’t want you or anyone else Repairing or Cleaning up your credit, because it doesn’t increase their $$$PROFITS$$$.

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