Here are 10 Credit Repair Myths That Everyone Should Know
1. CREDIT REPAIR IS VERY EXPENSIVE
A reasonable assumption, but not true. Recent studies indicate that consumers with high credit score can save up to $500 per month vs consumers with lower scores., so considering how much bad credit can cost spending a small monthly fee for a couple of months to fix your credit is not expensive. Do you still think that it is not worth it to fix your credit? There is no need to pay thousands, actually, you select a low monthly plan with Lexington Law and get started.
2. CREDIT REPAIR IS NOT LEGAL
From a simple constitutional perspective, every consumer has a fundamental right to defend him/her when accused of anything. A Credit Report is basically a way of accusing you of being a bad credit risk and therefore worthy of paying high-interest rates. Until consumers understand that it’s their right to fight back, creditors and their inaccurate credit reports will continue to charge unfair high-interest rates, deny your ability to own a home and quite possibly stop you from getting that dream job you have waited so long to get.
3. THERE IS NOT ENOUGH TIME TO REPAIR CREDIT
Repairing credit can be time-consuming if you don’t know how to do it. On the other hand using a right and affordable credit repair company such as Lexington Law can be very helpful and can save you a lot of time. There’s no reason to take a more time away from your busy schedule to deal with the complexities of credit reporting. However, the right company such as Lexington Law can help you import your credit report, identify inaccuracies, and help you improve your overall score by providing you legal experts that you can work with!
4.CREDIT REPORTS ARE SIMPLE AND ACCURATE.
Maybe, a long time ago; our Credit Reports were designed to be simple and accurate. But, unfortunately, with the growing reliance upon Credit Reports, the demand for this information has made the business quite sophisticated and rather impersonal.
According to recent reports, as many as 79% of consumer credit files contain errors and inaccurate items. Inaccuracies, especially ones that are harmful to your credit scores, can lead to higher interest rates on loans and credit cards or denials for new credit.
Understand an individual’s Credit Report is complex and time-consuming. The other concern is that it’s open to interpretation. Automation or online correction may one day prove to save the day; however, technology hasn’t quite produced a simple and automatic way to render an accurate and consistent analysis of a consumer’s credit history.
5. A PERSONAL EXPLANATION HELPS IMPROVE REPAIR OUR CREDIT REPORT
Maybe there was a time when an actual person would read a statement on our Credit Report and possibly consider that statement into their interpretation of our Credit History.
Most statements are never read by potential creditors for they are only concerned about one’s actual Credit Score. They don’t care if you lost your job. You have admitted being a greater credit risk and you are not one to take responsibility should a crisis occur. You show that you’re not one to save an adequate emergency fund and if something goes wrong; you are a bad credit risk.
6. I SHOULD JUST FILE BANKRUPTCY
As far as Bankruptcy goes, while it may appear to be a viable option and one that is becoming more and more popular, most people don’t understand how destructive this can be to one’s financial future.
7. Credit Repair is difficult and Something I Can’t Do Myself
Yes, you can do it yourself. It may not be as hard as you think but it is not an easy process as well.
On the other hand using a right and affordable credit repair company such as Lexington Law can be very helpful and can save you a lot of time. There’s no reason to take a more time away from your busy schedule to deal with the complexities of credit reporting. However, the right company such as Lexington Law can help you import your credit report, identify inaccuracies, and help you improve your overall score by providing you legal experts that you can work with! Don’t wait, at least give it a try!
8. LOW CREDIT SCORE HAS NO AFFECT ON INTEREST RATES I WILL PAY
Whether you are going to get a comfortable and reliable vehicle for your family, or you are going to splurge on a shiny new sports car, it’s important to make sure that you have your credit in order before you try to get a loan. Everyone knows that your credit score is going to be a huge factor when you are trying to get a vehicle.
Some companies may require that you put down a much larger down payment if you have a poor credit score. Those who do not have the cash for a down payment now may not be able to get a loan at all. If they are able to qualify for a loan with bad credit, they are going to have to deal with high-interest rates on the loan. This is going to cost you many thousands of dollars over the life of the loan! Instead of simply dealing with those high costs, you can take steps to begin to fix your credit score.
In the example of a car loan, you will be paying a substantially higher interest rate if you have a low credit score. Those who have a score around 500 to 599 will pay an interest rate of around 14.8 percent. On a $22000 loan for 36 months, this means your monthly payment is going to be around $762! With a score of 620 to 659, the interest rate drops to around 10.9%. When you hit the 720 range, it can drop to about 7.1 percent.
As you can see, the higher your score the better your rates are going to be. Individuals who have less than perfect credit will find that getting a loan is going to be difficult whether they are getting an auto loan, a home loan or a personal loan. Bad credit can be a huge burden, so it’s important to do more now to protect and improve your credit score.
9. THE BEST WAY TO REMOVE NEGATIVE ITEMS IS TO JUST PAY YOUR DEBT
Just because you pay your debt, doesn’t always mean that the late payment history will be removed from your Credit Report. In fact, negative credit is allowed to stay on the Credit Report for a maximum of seven years, with the exception of a Bankruptcy which may remain on the Credit Report for ten years.
By paying an old debt, all you will change is the account status which will go from “delinquent” to “paid, but late”- which will still stand out as a very negative item on your Credit Report.
10. IT TAKES 7 YEARS TO REMOVE CREDIT ITEMS OR SOME NEGATIVE ITEMS CAN NEVER BE REMOVED FROM A CREDIT REPORT.
According to Fair Credit Reporting Act, you can dispute any information on your Credit Reports that you believe is inaccurate, incomplete, unverifiable or outdated.
If the credit bureau or the creditor is unable, unwilling or unavailable to verify that a credit item is accurate and timely, it must be removed from your credit report.
However, If you feel a negative credit item is 100% accurate and timely, you do not have the grounds to question this item with bureaus. Only the passage of time can assure bureau removal.