Yup, there are some myths. Some may shock or even anger you, but it is a message that must be told. For example, you probably think you can’t do it yourself and you NEED a professional agency to do it for you. That couldn’t be further from the truth. I did it and so can you! Let’s dive into some of the most common myths people have about credit repair.
Myth 1: I need help…I can’t do it myself
We need help once in a while and why not, but credit repair and debt consolidation is not one of those areas, it is an area where you can do it by yourself. Back in the days when I saw my credit report for first time I saw some “bad marks” on it (you know some late payments and stuff) I start freaking out and I remember thinking “there is no way I can do this by myself I will need some professional help” nevertheless I did it myself, how? easy I got educated that is the key. And now you are going to get the best education possible on this subject, about how to consolidate your debt, repair your credit, maintain your credit score etc… While I was studying my credit report I realized some big mistakes by either the creditor, the credit bureau and even both!!. This were not mine at all. I found several mistakes in multiple accounts and by doing some research it turns out that anywhere from 75% to 90% of the credit reports contain errors.
Myth 2: You can not fix your bad credit.
Absolutely wrong. Having a bad credit does not mean that you can not fix it, it may take some time to fix it, but you can repair it, get positive lines of credit and have a new start, get your self in the right track to good credit. I remember how with a 520 credit score I was turned down for a credit card at Banana Republic in front of everybody during a very important Holiday, yeah pretty embarrassing but remember if I could do it you can do it too. It is just a matter to get educated and my videos will show you how to get the education you need to repair your credit.
Myth 3: You Only Have One Credit Score
In reality, you have three credit scores, one from each of the major credit reporting agencies. All three will give different scores, so when applying for credit one company may use one company and another place a different one. It’s always good to know your score from all three bureaus. They can vary by as much as 50 points.
Myth 4: Your score will decrease if you check it.
There are different types of inquiries: soft inquiries and hard inquiries, the hard inquiries are the ones that will affect your credit score and these are done from the companies you wish to get the credit from, the other inquiries do not affect your credit score and those are the inquiries where you just want the information for promotional purposes.
Myth 5: Your score will be lower if you are shopping around for a Loan.
Another very common myth, if you are looking for credit (mortgage, car loan, home loan) from several vendors, these inquiries will appear on your credit report just once, nevertheless this only applies if the same kind of inquiries are made within 14 days of each other. Just remember that this does not apply for credit cards.
Myth 6: The Only Way To Improve My Score Is To Remove All Negative Items
This is a partial truth, because as a matter of fact erasing your bad marks is just one part of the whole solution, what will boost your credit score is building “positive credit”. Can you still remember those days were you were turned down from a credit card company because you did not have credit? actually what they were trying to say is that you have not built “positive credit” with credit card companies.
“How to reduce your credit card interest rate with one simple phone call” this is free advice
It is more simple than you think, here is what you have to do: Get your telephone, dial their number and ask them to reduce your interest rate!!! just like that, by the way, tell them that you have sitting in front of you a credit card with a lower interest than the one they are offering you. Maybe a zero percent rate for the first 6 months, which after that period will turn into an 8% rate. If you have a higher rate this technique will help you to lower it. Tell them that you are thinking of transferring your balance unless they decrease your interest rate, if you don’t get a deal with the operator ask to talk with the supervisor, in most cases the threat to leave them is the key.
Before declare bankruptcy go to Miguel Pancardo site and get his excelent free report on debt consolidation and credit debt consolidation in his website. This article, The 6 Dirty Secrets About Debt Consolidation The Banks Dont Want You To Know. has free reprint rights.
