Common Credit Repair Myths And Realities

2019/02/25

Credit repair is the process that allows you to get the wrong entries on your credit report removed or rectified. Besides that, the process also includes various techniques and strategies that you implement in an attempt to increase your credit score. However, there are certain misconceptions about it that you must be well aware of.Following is a brief rundown on some of the most common credit repair myths and the realities behind the same.

You Must Hire A Credit Repair Agency To Get Things Fixed:

The most common credit repair myth is that people often assume that repairing their credit is a highly technical task and they have no other option but to hire an expert professional to assist them with the process. This is not true at all. In fact, there are others also who think it is legally mandatory for them to hire a credit attorney for this task.

Such assumptions are baseless. If you notice some errors in your credit report entries, there is a simple procedure to file a dispute with the credit bureau to get those errors corrected. You can do this online by visiting the official website of the credit bureau – be it Equifax, Experian or TransUnion.

Just Making Timely Payments On Your Debts And Bills Will Take Care Of Everything:

There are two types of people in this regard. Some people assume that if they are paying their bills in time, they do not need to do anything else to improve their credit situation. On the other hand, there are also people who have this assumption that making late payments doesn’t matter much. Both the assumptions are wrong; the later is more damaging. Timely payment is just one of the five major factors that are taken into account to calculate your credit score.

Other factors that you must work on include how fast your outstanding debt balances are reducing, how many queries you are sending for new loans, how old your credit history is and what percentage of the credit limit you are using.

Credit Reports Are Always The Same (Regardless Of Which Credit Bureau Has Prepared It):

Another common credit repair myth is that credit reports prepared by all credit bureaus reflect exactly same entries. This is not true. Whether it is TransUnion, Experian or Equifax, they all prepare your report without communicating with each other, which means the difference are quite likely. It is possible that a credit report from two of them reflect all correct entries, but the report from the third one contains errors. In such cases, you will have to file dispute with that credit bureau only.

There are several other credit repair myths also. For example, many people have the misconception that inquiring and checking credit report affects their score negatively. It is again not true; in fact, the US laws allow you to request the credit bureaus to send your credit reports free of cost to you at least once every year. Besides that, it is strongly recommended that you check your credit reports thoroughly at least every six months, as it will get you an accurate picture on how efficiently you are moving with your finances.

Photo Credit : Badcreditrating.org.uk

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