Before you go out to hire a good credit repair company, it would be good idea to become aware of a few popular myths. Most people fail to benefit from credit repair services owing to erroneous beliefs and unfounded fears.
Myth #1 - Anyone can repair credit because it's easy
Well, credit repair is definitely not easy, though anyone can indeed learn it if there is ample time and motivation to do so. This is a long drawn out process involving sustained and persistent correspondence with the credit bureaus, which takes time and plenty of effort.
If you are willing to open a credit repair agency, it will be worthwhile for you to learn the ropes; otherwise, it's often wiser to hire a reputable credit repair agency or agent to do the job for you for a fee.
Myth #2 – Money spent on a credit repair agency is wasted
Yes, this holds true if you can do the job yourself. Most people, in spite of knowing what it takes to repair credit, prefer to hire an agency. This is because – as mentioned earlier – this process is far too cumbersome to be handled by oneself.
I always compare this with a chauffeur or cleaning agency; it's not that you cannot drive yourself or clean for yourself – but hiring someone to do this leaves you free to pursue other tasks.
Myth #3 – It's considered illegal for any other person to repair your credit
Nothing can be further from the truth! Credit repair is a task like filing your taxes, for example. You can assign a person or an agency to do this on your behalf. This is definitely not illegal.
Credit repair businesses are ratified by national level regulatory bodies such as the ECRA (Ethical Credit Repair Alliance) and the BBB (Better Business Bureau) and these are legitimate businesses.
Myth #4 – Credit scores and credit reports cannot be influenced or changed legally
Once again, this is a dangerous myth. Your credit report represents the history of all your financial transactions. You will be amazed to learn that as many as 95% of the reports have some or other errors on it.
The credit score is a number that measures your creditworthiness. The first step in the credit repair process is to check and eliminate all the erroneous entries in your credit report. As soon as these are removed, your credit score will improve drastically. All this is not only legal, but also advised by all credit repair professionals as well as the US Government.
Myth #5 – Negative remarks will always remain on your credit report
This is a very popular and fearsome myth. Yes, it's true that serious negative entries such as bankruptcy will stay put on your records for 10 years. However, all the negative entries that have been entered erroneously will be removed once you dispute these in writing.
If these negative items were not true and you can prove these as false, they will be removed forever. If these are correct, they will definitely remain on your credit report until you feed in sufficient positive remarks to overshadow the negative ones.