Credit repair myths can get in the way of credit repair.
Do you have a poor credit report and are your borrowing requests mostly turned down by lenders?
If this is the situation with you, then you must be in serious need of credit repair.
Credit repair is not a hard process but there are various credit repair myths which can get in the way and confuse people who are actually ignorant of the best course of credit repair.
The best way to improve your credit report is to do it yourself.
But make sure that you're not fooled by any misinformation. Have a look at the most common credit repair myths and how you can avoid them.
1. There are negative listing that can't be removed
Many people are of the opinion that there are certain negative listings such as bankruptcies and foreclosures which are impossible to remove from their credit report. But actually this is not the fact.
There exists no type of negative credit listing that can't be removed from your credit report. Yes, negative items pertaining to bankruptcies and unpaid debts are certainly very difficult to remove from your credit report, but it's not impossible.
This has more to do with the operational systems than with the severity of the bad credit system.
Once the debt is past its age limit you can ask that it be removed from your report.
2. Building good credit can offset the bad
people think that since they were late payers only a couple of times,
building enough good credit will help them offset bad credit and make
them creditworthy. But this is not the actual fact.
Any amount of bad credit adversely affects your chances of getting approved for new lines of credit. Even one or two late payments can trigger a loan denial. You will probably see that even a little bad credit can prove to be detrimental while creditors are approving your requests.
If the credit that is derogatory is in the last 2 years it will certainly have an impact. The older it becomes the better your credit will look.
3. As you pay off debt, it gets removed from your credit report
Your entire credit history is showed in the credit report. All debts, even if you have paid them off are included. Any negative credit information can remain on your credit report for years. For example a bankruptcy can stay on your credit report for 10 years.
Thus, even if you pay off some debts, it is not that they will be removed from your credit report.
This one of the biggest credit repair myths. Once the debt is past the age it is required to stay on your report your can dispute that and have it removed. Considering the system was not put in place to favor the consumer, most likely that information will stay on your report and you will have to dispute it to remove it. Most bad debt can be taken off at the seven year mark.
4. Declaring bankruptcy can help you begin rebuilding your credit report
There are many bankruptcy lawyers who do not clearly explain the consequences of bankruptcy to the financially stressed consumer.
As you file bankruptcy, all the credit accounts that you decide to include will thereby become included in the bankruptcy account. A bankruptcy filing and the discharge listing will appear in the "court records" section of the credit report.
As there are many negative items related to bankruptcy, it is difficult to remove all traces.
Sad to say but professionals in almost every field do not fully make you aware of all the consequences of your actions. Full research is needed when you are considering bankruptcy. If you are financially stressed, most likely your credit is already full of negative marks. Bankruptcy can either wipe those debts clean or get you on the path to a more manageable debt load.
Thus, if you are keen on improving your credit, your best course is an aggressive credit repair strategy.
This is perhaps the best choice for you if your loan offers are being
turned down and improving your score is the main objective. Avoid believing in the above mentioned myths and informing yourself of the true facts of credit repair.
If you can avoid bankruptcy and find a way to manage your debt through other means this will result in a cleaner credit report.
Credit repair can be work but it can result in a job well done!!