|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"
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
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
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
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
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
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!
About the author:
Vincent Dail has written several articles on credit repair and
debt elimination. Visit: Raise
Your Credit Score Yourself And Credit Repair
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