Myths and realities about how to repair your credit
Your credit report is extremely important in generating your credit score. In spite of the importance of credit report, many people are unaware of how credit reports can be damaged or repaired. Myths and misconceptions about credit repair are quite prevalent. You should be aware of credit repair facts so that you don’t face trouble later on regarding your credit reports and scores. Here are 5 myths and facts about credit repair.
1.Credit can be repaired in no time The companies which offer you provisions of repairing your credit instantly are mostly scam companies and can make you end up in trouble. These companies usually obtain a new tax identification number for you, which is legally reserved only for businesses. This new number has no credit report on it, that is, it is blank. But if you use this number instead of yours you, may fall in legal trouble and be charged for fraud. Moreover, your personal information can be stolen for identity theft.
2.You are unable to fix bad credit Despite all the advertisements about credit repair process and credit repair agencies, there are some who believe that bad credit can’t be truly repaired. This is an absolute misconception. All negative items can be dealt with though it may take a long time and regular repayment of debts. In addition, you should take care to pay off all your older debts and stay current on the new debts for your credit score to improve with time.
3.You cannot check your own credit report Contrary to what many people believe you can actually check your own credit report and that too free of cost from the three major credit bureaus Experian, Equifax and Transunion. If you do it through a proper government agency, many places allow you to check your credit once or more annually. You can also sign up with certain credit monitoring agencies and pay a certain sum of money in order to check your credit report.
4.Credit repair agencies have Government authority It is a prevalent idea that credit repair agencies are empowered with governmental authority. In reality such empowerment does not exist. Credit repair agencies and credit bureaus and like any other private businesses that deal with buying and selling of products to generate profit. No special authority is bestowed on them.
5.Enquiries have negative impact on credit report Inquiring about your credit score is known as soft enquiry. This does not affect your credit score negatively. However, if multiple creditors pull out your credit reports in order to approve your loan request, it will affect your credit score negatively.
You should know that you can repair your credit report by two ways. The first way is by disputing the inaccurate negative items on your credit report and the second way is by adding more positive information to your credit report in order to offset the negative ones.
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