Yeah, these myths have been spread very fast, and there are some trues you really need to know, one of the best examples is that you need a professional agency to do it for you, even though they can help you do it, you can do it for yourself. I did it so can you!, our next step will be to revel the truth from some of the most common myths about credit repair and debt consolidation issues.
Myth 1: I can't do it by myself, professionals needs to handle this situation.
You may need help in many areas of your life, but credit repair and debt consolidation is not one of them, believe me you can do it, if I did it you can do it too. I still remember the first time I saw my credit report and realized I had some late payments, a judgment and some other stuff, in that moment my first thought was "I need immediate help with this" after getting some good education on the topic I was able to do it all by myself and now I am going to give you the best education possible on these topics (debt consolidation, credit repair, and debt management) so you can face this problem by yourself. After I had my credit report in my hands I started noticing some huge mistakes, some of these mistakes were from the creditor, some others were from the credit bureau, and after making some more research I realized that anywhere from 75% to 90% of credit reports contain errors.
Myth 2: You Can't Fix Bad Credit
Not at all, having a bad credit rating does not mean you can't fix it, it may take you some time to do it, but you can definitely do it. There are several avenues to repair your credit, build positive lines of credit and returning to the good credit path. One of my most embarrassing stories occured when I was applying for a Banana Republic card and I was denied in the middle of a very important Holiday. Improving your credit is just a matter of getting the right education on the right topics and with my videos you will get all the education you need.
Myth 3: You Only Have One Credit Score
You have 3 credit scores, not just one. Each one of these credit scores is from the major credit reporting agencies. All 3 will show different scores, that is why when applying for credit one company may use one report while another company may use a different one. It is always a good idea to get the reports from the 3 different bureaus because they can have serious diferences.
Myth 4: Your score will decrease if you check it.
There are two types of inquiries that will appear on your credit report: hard and soft inquiries. Hard inquiries are from companies you wish to get credit from. These will affect your credit score. Soft inquiries are usually when you check your credit report online or from companies obtaining your information for promotional purposes. Soft inquiries don't affect your score.
Myth 5: Shopping Around For a Loan Will Lower Your Score
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 true, because "erasing" your bad marks is just one piece of the credit repair puzzle, remember that while removing "negative items" will help you in your credit score, just building "positive credit" will take your score further. Remember when you were denied from a credit card company because you did not have credit? the truth is that you did not have positive credit built up with credit card companies.
Free advice about credit cards: "How To Reduce Your Credit Card Interest Rate With One Simple Phone Call"
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.
Myth 1: I can't do it by myself, professionals needs to handle this situation.
You may need help in many areas of your life, but credit repair and debt consolidation is not one of them, believe me you can do it, if I did it you can do it too. I still remember the first time I saw my credit report and realized I had some late payments, a judgment and some other stuff, in that moment my first thought was "I need immediate help with this" after getting some good education on the topic I was able to do it all by myself and now I am going to give you the best education possible on these topics (debt consolidation, credit repair, and debt management) so you can face this problem by yourself. After I had my credit report in my hands I started noticing some huge mistakes, some of these mistakes were from the creditor, some others were from the credit bureau, and after making some more research I realized that anywhere from 75% to 90% of credit reports contain errors.
Myth 2: You Can't Fix Bad Credit
Not at all, having a bad credit rating does not mean you can't fix it, it may take you some time to do it, but you can definitely do it. There are several avenues to repair your credit, build positive lines of credit and returning to the good credit path. One of my most embarrassing stories occured when I was applying for a Banana Republic card and I was denied in the middle of a very important Holiday. Improving your credit is just a matter of getting the right education on the right topics and with my videos you will get all the education you need.
Myth 3: You Only Have One Credit Score
You have 3 credit scores, not just one. Each one of these credit scores is from the major credit reporting agencies. All 3 will show different scores, that is why when applying for credit one company may use one report while another company may use a different one. It is always a good idea to get the reports from the 3 different bureaus because they can have serious diferences.
Myth 4: Your score will decrease if you check it.
There are two types of inquiries that will appear on your credit report: hard and soft inquiries. Hard inquiries are from companies you wish to get credit from. These will affect your credit score. Soft inquiries are usually when you check your credit report online or from companies obtaining your information for promotional purposes. Soft inquiries don't affect your score.
Myth 5: Shopping Around For a Loan Will Lower Your Score
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 true, because "erasing" your bad marks is just one piece of the credit repair puzzle, remember that while removing "negative items" will help you in your credit score, just building "positive credit" will take your score further. Remember when you were denied from a credit card company because you did not have credit? the truth is that you did not have positive credit built up with credit card companies.
Free advice about credit cards: "How To Reduce Your Credit Card Interest Rate With One Simple Phone Call"
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.
About the Author:
Before hring a professional to help you with your finance 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 Deadly Myths In The Debt Consolidation. is available for free reprint.
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