Maybe you've been recently turned down for a mortgage or auto loan. Or maybe you were approved, but don't want to pay thousands of dollars on high interest. Whatever your specific situation is, fixing credit reports is always a good ides. All kinds of creditors, employers, landlords and insurers are scrutinizing your credit file in order to evaluate your application. The growing necessity of your FCIO makes having a good score a simple necessity.
Here are 3 popular misconceptions about credit repair that deter most people from trying to raise their score.
Myth # 1 Times is the only cure.
Wrong! Time is NOT the only cure. And instead of waiting passively for certain negative items to fall off your record, you should take action. There are so many things (dispute, negotiation, validation of debt, lawsuits etc) you can do in order to boost your credit score fast. Certain strategies (the Rapid Rescore Dispute) can even bring changes to your report within 48 hour period. The "time rule" applies only to certain type of negative items-chapter 7 bankruptcy, foreclosure, repossession. There is not much you can do here, but wait till the punishment period is over. Everything else, however, can be changed in your favor or completely deleted from your record.
Myth # 2 Only the experts know what should be done.
Wrong! Anybody could be a credit expert given the proper knowledge. Credit repair is no rocket science-the only thing required is knowledge about the inner workings of the credit system and the various loopholes in it. How is your FICO calculated? Which are the two most crucial factors for your credit score? How to request validation of debt for negative items on your report? How to convince credit bureaus, collection agencies and original creditors to remove negative items from your record? How to use the 623 Dispute Strategy? What are your legal rights according to the Fair Credit Reporting Act? The more you know about the credit system, the better your chances to raise your score FAST.
Myth # 3 You don't stand a chance against collection agencies and debt collectors.
Wrong! Collection agencies an debt collector might sound threatening and intimidating, but they are more bark than bite. In reality collection agencies often have poor documentation to prove the validity of your debt. They also have very little money tied in the collection (they usually pay pennies for every dollar that you owe). Under the Fair Debt Collection Practices Act collection agencies are forbidden from making harassing phone calls, threatening to garnish your wages, seize property or take you to court. Any violation of FDCP act gives you the legal right to sue them. Knowing these facts will help you realize that you have more leverage with collections than you think. Settle for 20% or less and promise to pay ONLY if the agency removes the negative account from your report.
Fixing credit reports is not that hard. Credit tricks and little known secrets will take you to the desired destination faster than you ever thought possible. Once you start thinking outside the box, you'll be surprised to find how easy credit repair actually is.