Top 5 Myths and Truths about Credit Repair

Top 5 Myths and Truths about Credit Repair

Myth #1- When a consumer pays off past-due accounts, such as charge offs or collections, it will show as "paid" and no longer impact the credit scores

Truth- Paying off past due accounts from the past can do more harm then good to your credit. Negative items are allowed to remain on your report for 7 years from the last activity date. So if you have an account that's close to being removed its better to dispute it then to start the clock from ticking again and pay it off.

Myth #2- Negative items that have been removed through credit repair can resurface on your report again and start causing harm.

Truth- The media has blown this myth out of proportion. The truth is the credit bureaus will often temporarily delete an item because they have not heard back from the credit grantor in 30 days. If the credit grantor then submits verification outside of the 30 days, it can be reinserted. However we can intensify the challenge process again with another round of letters to get the item removed for good.

Myth #3- Credit Repair companies can only dispute 5 negative items at a time because the credit bureaus consider it frivolous.

Truth- We have had success disputing 25 plus negative items at one time with no issues at all. Most national companies only dispute 5 items during 90 days, which can make their process much longer then ours. This is designed to continue to get you to pay their monthly fee for years. Stay away from national companies and meet your credit repair company face to face.

Myth #4- The only thing a credit repair company can do is dispute inaccurate items which I can easily do myself.

Truth- While you can dispute inaccurate items online, most consumers don't follow through and one attempt most likely will lead to not getting good results. A good credit repair company can and will use the law on their side to get the results you desire. You also need to make sure you are provided and education on credit during the process. What good is having items removed if you haven't been provided any tips and advice on how to maintain your revamped credit?

Myth #5- The Credit Score I get on the internet is the same as my FICO score that a lender will pull when applying for credit

Truth- While many consumers believe that the monthly pay sites that monitor credit and provide a "credit score" are the same scores a lender will review. This is so false and when in fact that it's the website (that I will not name) version of what they think your score is. FICO (fair issac) is the only company that can issue a credit score and cannot be purchased on line by most sites.

photo by:

Comments are closed.