CREDIT MYTH ... Disputing a credit report is easy. Any consumer can do it themselves.
•· Disputing a credit report is easy. Getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000 the 3 major credit bureaus paid a fine of 2½ million dollars for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Short of sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration. Restoring your own credit is like repairing your own transmission or representing yourself in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of your inexperience and realize that it will probably take you longer and you probably will be less effective than a professional.
CREDIT MYTH ... If I build enough good credit, it will offset my bad credit and make me creditworthy.
• Any amount of bad credit is devastating to your chances of being approved by a creditor. The approval is almost never in the hands of a human sitting across a desk from you. It is a computer achieving a point total. The slightest amount of negative credit will cause an auto loans interest rate to skyrocket. Generally, even a little bad credit (regardless of the amount of good credit) will cause you to be declined.
CREDIT MYTH ... Nonprofit organizations like Consumer Credit Counseling Service (CCCS) can help me restore my credit.
• Nonprofit debt counseling services assist people who are over their heads in debt and are seeking an alternative to bankruptcy. CCCS are funded and controlled by credit grantors and credit bureaus. When you are working with CCCS your creditors will often note this on your credit report. This is a huge red flag for prospective credit grantors - treated the same as Chapter 13 bankruptcy. Some of the very worst credit reports that we see are or have been participants in the CCCS or similar programs.
CREDIT MYTH ... It is illegal for creditors to take off a negative-listing on my credit report. The law requires that these items remain on the credit report for at least seven (7) years.
• When you speak to credit grantors, collection agencies, or credit bureaus, their typically under-educated staff may tell you all manner of such pseudo-legal nonsense. The law "limits" negative information from appearing longer than the legal seven (7) year maximum. The credit grantor or credit bureau may choose to delete the item whenever they see fit.
Have you ever stopped to think what having BAD CREDIT is costing you? How much have you paid in additional fees due to your poor credit rating?
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