The Dirty Secrets About Debt Consolidation The Banks Don’t Want You To Know

Mar 08, 10 The Dirty Secrets About Debt Consolidation The Banks Don’t Want You To Know
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by Miguel Pancardo

These myths have been spread very fast; and there are some true ones that you really need to know about.

Myth 1: I can’t do it by myself.  I need a professional to handle this situation.

We need help once in a while.  However, credit repair is certainly something that you can do on your own.  When I first looked at my credit report back in January 2007, I saw some late pays, a judgment, and some other “not so good” marks on my credit report.  I screamed, “I’ve got to get a credit agency to help me with this!  There’s no way I can do this myself!”  Or, so I thought.  How did I do it myself?  I got educated.  And now, you are going to get the best education on how to repair, rebuild, and maintain your credit score.  After some time of taking a more in-depth looking into my credit report, I noticed some huge mistakes made by either the creditor or credit bureau.  These were not my mistakes, but the mistakes of “The Man.”  I found mistakes on multiple accounts, ranging from multiple late pays, wrong
accounts, to closed accounts, when in fact they were open.  Turns out, it’s estimated that anywhere from 75% to as many as 90% of credit reports contain errors.

Myth 2: Your bad credit can’t be fixed.

Wrong.  Just because you have bad credit doesn’t mean that you can’t repair it.  It may take longer to fix, but it is repairable.  There are many fast ways to restore your credit, build positive lines of credit, and get yourself back on the right track to good credit.  If you think a 520 is bad-it is.  I was turned down for every credit card I applied for.  I even got denied at Banana Republic in front of 20 people at Christmas time.  Yet, if I can do it, then so can you.  It’s a matter of becoming educated.

Myth 3: You just have one credit score.

In reality, you have three credit scores, one from each of the major credit reporting agencies.  All three will give different scores, so when applying for credit, one the credit agency may use one reporting agency, while others use either of the other two.  It’s always good to know your score from all three bureaus.  They can vary by as much as 50 points.

Myth 4: Checking Your Credit Will Lower Your score.

There are different types of inquiries: soft inquiries and hard inquiries.  The hard inquiries are the ones that will affect your credit score and these are done from the companies you wish to get the credit from.  The other inquiries does not affect your credit score and those are the inquiries where you just want the information for promotional purposes.

Myth 5: Your score will be lower if you are shopping around for a loan.

This is one of the most common myths.  Remember that if you are looking for credit from several vendors (mortgage, car loans, home loans, etc…), all these inquiries will appear in your credit report just once.  Remember that this just applies if the same kind of inquiry is made within 14 days.  The only exceptions to this rule are credit cards.

Before hiring a professional to help you with your finance, visit Miguel Pancardo’s site and get his excellent free report on debt consolidationLearn how to get out of debt in his on website.

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