4 Common credit repair myths and truths

You may need to repair your credit record if you are not satisfied with your present score.
However, you should know about the right steps to increase your score. Reading through this article will make you aware of the myths and truths about credit repair. It will help to repair your credit record and increase your score successfully.

Credit repair – Myths and realities

Here are 4 myths and truths about credit repair.

1. Myth: You need to take professional help to repair your bad credit record.

Truth: It is not mandatory to take professional help in order to repair your credit record. You can very well do it yourself. Order and check your credit reports at regular intervals to find any inaccurate negative items; if any, dispute it by writing a letter to the specific bureau. Along with it, pay your bills on time and check whether or not the accounts are marked closed when you pay off the debt.

2. Myth: Inquiries hurt your credit record negatively.

Truth: Inquiring and checking your own score doesn’t affect your credit report negatively. It is regarded as a soft inquiry. Your credit report may get negatively affected when several lenders pull out your reports in order to decide whether or not to approve your loan request. However, multiple credit inquiries over a certain period are treated as only 1 inquiry by the bureaus.

3. Myth: Negative items cannot be deleted from your credit report.

Truth: You can very well dispute inaccurate negative items in your credit report by following the correct procedure. However, accurate negative entries will stay in your report for a certain time. As for example, a Chapter 7 bankruptcy will stay in your report for 10 years.

4. Myth: Credit repair companies are all scams.

Truth: Not all credit repair companies are scams; all you need to do is consider certain factors while choosing a company. For example, beware of promises to remove the negative entries from your report at once. Along with this, make sure that you don’t choose a company on the basis of the special services offered. In addition to this, check Better Business Bureau records to know whether or not there are complaints against the company.

If you take professional help to repair your credit record, then you should know that as per CROA (Credit Repair Organizations Act), a credit repair company cannot charge you for the services it hasn’t offered. Moreover, a company should provide you with the copy of the contract before you sign it. Even if you sign it, you have every right to cancel it within 3 days. However, it is advisable that you go through the agreement carefully before signing the dotted line.