| If you've done any searching on the Internet for | | | | beware of any who make promises as to results! |
| information pertaining to "Credit Repair," you've no | | | | As stated above, it's not always possible to restore |
| doubt found that there's a great deal available. | | | | your bad credit history to perfect status, and no one |
| Unfortunately, there's also a lot of misinformation as | | | | should be making any promises to that effect. |
| well. | | | | Beware of any company that does! And while an |
| Let's take a look at some of the most common | | | | agency will in all likelihood be able to improve your |
| misstatements you'll come across and examine them | | | | credit score, if any agency makes this promise, be |
| in detail. | | | | sure it's accompanied by a money back guarantee. |
| MYTH #1 | | | | Otherwise, look elsewhere. And don't forget to ask |
| "Credit repair doesn't work!" | | | | for references and follow up on them. |
| While it's true that credit repair is more "art" than | | | | MYTH #4 |
| "science" that's not to say it doesn't work. If you | | | | "You have to hire a credit repair agency or lawyer to |
| undertake to repair your bad credit score, there's | | | | fix your credit" |
| never any guarantee you can restore it to "perfect" | | | | Going back to the analogy above, you can always |
| status. But sometimes you can, and in almost every | | | | hire someone else to cut your grass (or to do just |
| case you can at least affect some improvement in | | | | about anything else) for your. And if fixing your own |
| your credit score, and often major improvement at | | | | credit seems an intimidating task, you might prefer to |
| that! | | | | hire a credit repair company to do it. |
| First of all, credit reports for the most part are filled | | | | But it's not really necessary that you do. First of all, |
| with errors. While there seems to be no general | | | | credit repair agencies aren't cheap. You can expect |
| agreement, it's estimated that anywhere from 1/3 | | | | to pay anywhere from $2,500 to $5,000 or more. |
| (Attorney General of NY) to as many as 90% | | | | Plus, you'll be paying a high fee for something you |
| (Charles Givens Organization) of credit reports | | | | can just as well do for yourself, which brings us to |
| contain errors. | | | | myth #5. |
| Removal of erroneous negative information alone will | | | | MYTH #5 |
| go a great way toward improving your credit score. | | | | "It's too difficult or complicated to fix your own |
| But there's more to the story, which brings us to | | | | credit" |
| myth #2. | | | | A credit repair company isn't going to do anything for |
| MYTH #2 | | | | you that you can't do for yourself! Credit repair isn't |
| "Negative information that can be verified cannot be | | | | rocket science. It involves writing letters to credit |
| removed" | | | | bureaus and to creditors. If you're able to write a |
| This is one of those statements that are "almost" | | | | letter, put a stamp on it and mail it, you're able to |
| true, but taken literally is misleading. As is often the | | | | repair your own credit. |
| case, the inclusion (or exclusion) of one seemingly | | | | "Given the proper knowledge, you can fix your own |
| small word makes the difference in a truthful | | | | credit" |
| statement, and one that's not (or not necessarily) | | | | This statement IS true! You're entirely able to repair |
| accurate. | | | | your own credit, given the proper knowledge. And |
| Let's take an analogy. Suppose it's the middle of | | | | given the proper knowledge, you can fix your own |
| summer, and your grass has grown unusually high. | | | | car, repair your own plumbing, or for that matter |
| Let's also suppose that you own a lawn mower, it's in | | | | perform brain surgery. |
| good working condition, and has plenty of gasoline in | | | | While fixing your own credit is relatively simple and |
| the tank. | | | | straightforward, you do have to know how to go |
| Now let's say that you're sitting on your couch and | | | | about it. Essentially it involves getting a copy of your |
| say to yourself "My grass will get cut today because | | | | credit report and writing letters to the 3 major credit |
| I 'CAN' go outdoors anytime and cut it." | | | | bureaus disputing negative information in your file. |
| So will your grass get cut? Not necessarily! Just | | | | But there's a right way and a wrong way to do it. In |
| because you "can" go outdoors and cut your grass | | | | fact even some of the high priced credit repair |
| doesn't mean it's going to get done. You can repeat | | | | agencies get it wrong, which brings us to myth #6. |
| this statement to yourself all day long, but your grass | | | | MYTH #6 |
| isn't going to get cut until you actually go outside and | | | | "You improve your credit score by getting all the |
| DO it! | | | | negative items on your credit report removed" |
| Likewise, because a negative item on your credit | | | | It's possible to get all the negative items on your |
| report "can" be verified doesn't mean it will be. | | | | credit report removed and actually see you credit |
| According to the Fair Credit Reporting Act, a credit | | | | score go DOWN as a result! The reason? Your credit |
| bureau must investigate and verify "within a | | | | score depends on a number of factors, one of which |
| reasonable period of time" any item in your credit | | | | is the length of your credit history. In some cases, |
| report that you dispute. If the "information is found | | | | you're better off to NOT remove some negative |
| to be inaccurate or can no longer be verified, the | | | | items on your report, especially if they involve a few |
| consumer reporting agency shall promptly delete such | | | | late payments in the distant past, but show timely |
| information." | | | | payments during recent years. |
| Now in this context "can be verified" clearly means | | | | While the "nuts and bolts" of credit repair is beyond |
| verified by the credit bureau's investigation of the | | | | the scope of this report, there are a number of |
| item, and the "reasonable period of time" has been | | | | sources of good information online. If you have bad |
| established (by subsequent rulings) to be 30 days. So | | | | credit, there are 3 major points you should keep in |
| if the credit bureau doesn't complete its investigation | | | | mind: |
| of the disputed information within 30 days, or if for | | | | 1. If you have a bad credit history, it can (and |
| some reason the creditor fails to respond and verify | | | | probably will) cost you many tens of thousands of |
| the information, by law the disputed data must be | | | | dollars in higher loan interest over the years, as you'll |
| deleted from your credit file. | | | | be charged much higher rates than you would be |
| MYTH #3 | | | | with good credit. If your credit is really bad, you may |
| "Credit repair agencies are all scams" | | | | not be able to get a loan at all! |
| It's true that there ARE a good many unscrupulous | | | | 2. The situation isn't hopeless! In almost every case |
| credit repair agencies. But there are also some | | | | you CAN improve your credit score. You can easily |
| corrupt police officers, lawyers, and politicians. Yet | | | | do it yourself or find a reputable agency to do it for |
| we don't label all members of these professions as | | | | you. But in any case, GET IT DONE! |
| "corrupt." | | | | 3. If you choose to repair your own credit |
| If you're looking for help to repair your bad credit | | | | (recommended) there are good books and eBooks |
| you do need to be careful and do your "homework" | | | | available that can walk through the process. Get hold |
| when selecting an agency. There are many honest | | | | of one and get started NOW! |
| credit repair companies that are not "scams." But | | | | |