Credit Repair... Is it really possible?
There are several credit repair myths out there, but which ones are real and which ones are just plane untrue? In this post, I will examine 4 common Credit Repair myths to shed some lite on the whole thing!
MYTH # 1:
If you have negative or derogatory accounts, a credit repair company can get them removed.
Although some negative or derogatory accounts can be removed from your credit report, a few of them cannot. Before you pay a fee to any company, make sure you "get in writing" their guarantees of what they can and cannot do for you.
If any company states that they can remove all negative items, RUN!
MYTH # 2:
If you are delinquent on an account and call the creditor to close that account, it will help your credit score.
Sorry, this one is not true either! Inactivity and/or delinquency will damage your score. FICO (Fair Isaac Corporation) has information that tells you what is in and not in a credit report.
Unfortunately, your PAYMENT HISTORY accounts for 35% of your credit score, and closing the account will not change your payment history.
MYTH # 3:
If you add a statement to your credit report (up to 100 words), it will raise your credit score.
If you cannot get the three major credit reporting agencies to remove inaccurate information or mistakes, you can opt to add a statement on your credit report.
Unfortunately, FICO usually does not see or use it in determining your credit score. Even though adding a statement might make you feel better, the effort may not be worth it.
MYTH # 4:
You cannot do anything on your own about improving your credit score!
This myth is absolutely FALSE! There are several things you can do to improve your credit scores:
Of course, the most important is to PAY OFF YOUR CREDIT CARDS AND ACCOUNTS in a timely manner. There are no shortcuts to living up to your responsibility to repair what you agreed to repay!
But, if you see errors on your credit report, you can make requests to have these removed. If you provide the proper documentation to prove you either did not incur the debt or that you have repaid the debt, it will be removed.
To contact the 3 major credit bureaus, click on the links below:
Want to read more about credit repair directly from the source, the Federal Trade Commission has some good advice on How to Repair Your Credit.