Discover The Truth About Credit Repair

Exclusive summary about credit repair by Dave Robinson and Jason A. Martin

If you have bad credit, then you may be tempted to hire a company that tells you that they can give you an entirely new credit file, or remove bad marks from your credit report-whether or not they’re true.

First of all, beware of any company that tells you they can remove true marks from your credit report. Generally, a credit repair scam that tells that it’s possible will try to bombard the credit reporting agencies with inquires and hope that they won’t respond in the given time-period.

A company that is truly concerned about helping you to repair your credit will never pressure you or try and trick you into signing a contract with them. The only way to build a good credit report is to pay your bills on time, not extend your credit limits, and be careful not to apply for too many credit lines.

Credit Repair Myths and Facts

There are no secrets to repairing your credit. Many shady credit repair agencies would love you to think the contrary. Negative items can be removed from your credit report and you can do it yourself.

Fact: You can remove negative items from your credit report. According to the FCRA, you have the legal right to dispute any piece of information with a credit bureau. Upon doing so, the credit bureau then has 30 calendar days to investigate the item(s).

Myth: Collection agencies can call you anytime and do as they please. Never speak with a collection agency over the phone.

Fact: Paying a collection account will not improve your score. As far as credit scores go, a paid collection account is the same as an unpaid one. Your official credit score is called a FICO score. – Age of overall credit file. – Number of accounts delinquent. – Negative items: liens, bankruptcies, repossessions, etc. – Amount of your credit being used (utilization). – New account under six months old (which hurt your credit).

Myth: You must pay any bill that comes to your home from a collection agency. By sending a validation letter to a collection agency they must, by law, cease all collection activities until they can validate the debt.

Posted in Debt Resources. Tagged with bad credit, build a good credit report, collection account, collection agency, credit file, credit repair, credit repair myths and facts, credit repair scam, credit report, credit reporting agencies, credit reports, credit scores, fcra, FICO score, pay your bills on time, repair your credit, repairing your credit, validate the debt.