Avoid The 7 Most Common Credit Repair Myths!

Credit repair is not hard and the very best way to improve your
credit report score is to do it yourself
Let’s take a look at 7 of the most common myths you’ll come
across and examine them all in detail
Credit Repair Myth 1: If I declare bankruptcy, I can begin my
credit report all over with a clean slate
Many bankruptcy attorneys do not adequately understand or
explain the effects of bankruptcy to their clients When you
file for bankruptcy, every credit account that you decide to
include in bankruptcy will become an “included in bankruptcy”
account
Additionally, a bankruptcy filing and bankruptcy discharge
listing will appear in the court records section of your credit
report Because so many negative items are attached to the
bankruptcy, it becomes difficult to remove all traces of the
bankruptcy If at all possible, you should avoid bankruptcy at
all cost
Credit Repair Myth 2: There are negative listings, such as
bankruptcies and foreclosures, that are impossible to remove
from the credit report
There’s no type of negative credit listing that can’t be removed
from a credit report by you Negative items, such as bankruptcy
or unpaid debts, are certainly more difficult to remove from the
credit report, but this has more to do with the operational
systems of the credit bureaus than with the severity of the bad
credit item
For example, judgments and tax liens are severely negative
listings, yet are easier to remove
Credit Repair Myth 3: When I pay off a past-due account, such
as a charge off or a collection account, it will show “paid” and
will no longer be negative
It is quite difficult to restore your credit without somehow
satisfying your outstanding debts However, paying an
outstanding, delinquent debt you will change the account status
to “paid collection,” “paid was late,” or “paid was charged off”
- which will still stand out as a very negative credit listing
Sometimes paying off a debt can actually hurt you This is one
of those occasions These type of collection accounts are
allowed to stay on your credit report for a “maximum” of seven
years
When you have outstanding debt, it is almost always prudent to
seek professional credit repair help so that you may settle your
debts while creating a reasonable possibility of deletion of the
negative listing at the same time
Credit Repair Myth 4: If I build enough good credit, it will
offset my bad credit and make me credit worthy
Because, I was only late a couple of times Any amount of bad
credit is devastating to your chances of being approved by a
credit grantor Most credit grantors never actually look at your
credit report A computer pulls your credit report, rates your
credit standing, indebtedness, and stability, then spits out an
acceptance or denial
Even one or two slow payments will usually trigger a credit card
or personal loan denial The slightest amount of negative credit
will cause the interest on an auto loan to skyrocket You will
probably find that even a little bad credit, regardless of how
much good credit you have, is an unacceptable barrier to credit
approval on request for large amounts of credit – like a
mortgage loan
Credit Repair Myth 5: If I succeed in deleting a negative item,
it will just come right back on my credit report
The credit bureaus have cleverly spread this myth through the
news media and government agencies In truth, the credit bureaus
will often temporarily delete a negative listing if they haven’t
heard from the credit grantor after approximately thirty days
If the credit grantor reports late, say after six weeks, and
then verifies the negative listing, the credit bureau will often
reinsert the negative listing on the credit report
This is often known as a “soft delete” Usually, though, the
creditor simply fails to respond and the negative listing is
permanently deleted If the item is verified by the credit
grantor, either before thirty days or after, the account may
still be challenged again at some future time
Credit Repair Myth 6: Requests or Inquiries for credit reports
can’t hurt my credit score
At the end of each report will be a log of all inquiries into
your credit report An inquiry notation is made each time
someone requests a copy of your credit file from that credit
bureau Every company that receives a copy of your credit
profile will be listed under this inquiry section of your credit
report
Lenders don’t like to see a lot of inquiries on a credit report
Excessive inquiries can result in a credit denial as easily as
bad credit But, not all inquires are viewed negatively
Credit Repair Myth 7: Credit repair is too complicated to do
myself I would have to hire an attorney
In some cases involving a difficult situation, an attorney can
be of great assistance An attorney can also help with
clarifying the finer points of your state’s laws
However, you can accomplish most if not all of the legal and
negotiation-based methods in this report yourself by becoming
familiar with your federally given rights and how to enforce
them, as well as other creative methods employed credit repair
companies, or an attorney
If you have a bad credit history, it can (and probably will)
cost you tens of thousands of dollars more in higher interest
payments over the life of a loan Because you’ll be charged much
higher rates than you would be with a good credit rating In
almost every case you will be able to improve your credit score
You can easily repair your credit, yourself
If you choose to do your own credit repair – which is highly
recommended – there are some very good credit repair ebooks
available that will walk you step by step through the entire
credit repair process But the credit bureaus, credit repair
companies and lawyers want to keep this credit repair process a
secret You Can Get Started Today!

Tags | attorneys, bankruptcies, credit, delinquent, discharge, foreclosures, myth, operational, records, severity, systems, unpaid