Repair Your Credit Profile

Hello-

There is a lot of misinformation out there these days about how to erase bad credit and repair your credit profile.

Today, I wanted to clear up some common myths about bad credit.

Every year, you can request the credit reports from the three agencies:  TransUnion, Experian, and Equifax.  The purpose in acquiring these reports is to check to ensure there are no errors contained therein.

* The myth that you cannot repair your credit is false.  By writing to each agency and requesting that problems be looked at, error corrections can be achieved.  According to the Fair Credit Reporting Act, the credit agency has to investigate any disputed item you bring to their attention.  Once this information is verified, the item can be removed.

* The myth that you need to invest thousands of dollars to fix your bad credit is false.  The notion that the only way to erase bad credit is by seeking the services of a credit repair agency is nonsense.  While there are accredited agencies that can assist you in improving your credit, it does not come cheap.  You can just as easily begin to repair your own credit by writing to the three agencies as well as the credit card companies in an effort to improve your credit score.

* The myth that bad credit will remain on the three agency reports is also false.  If you have fallen into debt and cannot pay a particular credit card company, the bad credit will remain on the report for seven years.  And if you file bankruptcy, it will be indicated on the agency reports for ten years.

* The myth that collection agencies can demand payment of a delinquent bill by calling you or your employer is false.  Collections agencies are the bane of society.  If you are contacted by a collection agency requesting payment for a bill that has not been paid, send them a letter requesting they cease and desist from contacting you.  Sometimes it is better not to pay a bill that is long past due since it will only be placed on the three agency’s report for seven years.

* Another myth is that an inquiry made by a company can reduce the FICO score.  This is incorrect.  What does reduce the FICO score is if you apply for several credit cards in a relatively short period of time, max out your cards or have late payments attributed to a certain account.

The bottom line is that bad credit can be fixed.  It will take some sacrifice on your part and may also entail contacting the credit card agencies as well as the credit card companies in an effort to show that you are willing to pay down your debts.  There are many avenues you can explore to achieve a high FICO score.  You can check the Fair Credit Reporting Act online that will offer the tools and resources you need to pay down your debts, repair bad credit and, in some cases, erase bad credit as well.

Thanks for reading.

-Adam

Technorati Tags: bad credit, credit, credit profile, erase bad credit, profile, repair, repair credit

Technorati Tags: bad credit, credit, credit profile, erase bad credit, profile, repair, repair credit