Credit repair can be a difficult process that can impart many doubts and misconceptions. Among the most damaging misconceptions are those surrounding the credit bureaus, creditor practices, and how to effectively erase unfairly reported or information. If credit repair is a top priority, don’t consult the rumor mill for information. Review the points below to get your facts in order.
Misconception #1: The credit bureaus are government agencies.
Many consumers hesitate to question the credit bureaus because they mistakenly connect them to the federal government. In actuality, TransUnion, Experian, and Equifax are for-profit organizations with no government affiliation. They collect their money by charging fees to consumers, businesses, and lenders for credit report information. Don’t fear administration backlash on the road to credit repair. Just as the so-called “bureaus” maintain the right to report your credit information, you have a similar right to question it.
Misconception #2: The credit bureaus purposefully place mistakes on my credit report.
Credit repair can be frustrating, especially when you are trying to erase unfairly reported or inaccurate information. While the credit bureaus may seem like the culprit, demonizing the middle man is often the wrong course of action. The bureaus’ job is to report the information provided by your creditors. Their business is to collect money for that information, regardless of its contents. Based on these practices, you may begin to see that the bureaus have no incentive to intentionally lower your credit score. If you are searching for the root of your credit report mistakes, consider questioning the original creditor first. They may have more specific answers to your questions. In that regard, a credit repair law firm like Lexington Law may be well positioned to assist.
Misconception #3: Creditors don’t care about your credit report.
Inaccurate credit reporting is bad for business, a fact that has not escaped the collective minds of successful companies. While your credit information may have been handled poorly or even carelessly, it’s unlikely that your creditor will ignore attempts to resolve the situation. Call your creditor’s customer service department, and ask them to correct the error. Their cooperation may surprise you.
Misconception #4: Every credit mistake must go through the dispute process.
If initial credit repair attempts fail, what’s next? Many people believe credit repair can only be accomplished through a long and arduous dispute process. In reality, most credit repair issues can be resolved without disputing anything. Instead, request that your credit companies demonstrate that they have maintained and reported your accounts and information in accordance with the applicable consumer protection statutes. For example, under the Fair Debt Collections Practices Act (FDCPA), third-party debt collectors must document that the debt was ever owed, that they now own the debt, and that you are obligated to pay it. If they cannot or will not provide this information, they must remove the negative citation from your credit report. No legal battle, no dispute process.
Misconception #5: Working with a credit repair advocate will hurt my score.
Many consumers believe that asking for help implies guilt. This misconception couldn’t be further from the truth. If you care about your credit health but are having trouble navigating through the process, you have a right to seek advocacy. Working with a credit repair law firm will not hurt your credit score—in fact, the right advocate may well help you accomplish the opposite.