The 6 Most Common Myths That Nobody Explains To The People Who Are In Debt.
The myths spread faster than the trues, that is why I am going to explain some of the most common myths in the credit repair area, one of the biggest myths is that you need a professional agency to manage your debt problems, this agencies can help you nevertheless they charge big fees for something you can handle yourself pretty well.
Myth 1: I can’t do it by myself, professionals needs to handle this situation.
We need help once in a while why not, but credit repair and debt consolidation is not one of those areas, it is an area where you can do it by yourself. Back in the days when I saw my credit report for first time I saw some “bad marks” on it (you know some late payments and stuff) I start freaking out and remember to think “there is no way I can do this by myself I will need some professional help” nevertheless I did it myself how? easy I got educated that is the key. And now you are going to get the best education possible on this subject, about how to consolidate your debt, repair your credit, maintain your credit score etc… while I was studying my credit report I realize about some big mistakes by either the creditor, the credit bureau and even both!!. This were not mine at all, I found several mistakes in multiple accounts and making some research turns out that anywhere from 75% to 90% of the credit reports contain errors.
The Myth number 2: Your bad credit can’t be fix.
Not at all, having a bad credit rate does not mean you can’t fix it, it may take you some time to do it, but you can definitely do it. There are several avenues to repair your credit, build positive lines of credit and returning on the good credit path. One of my most embarrassing stories occur me when I was applying for a Banana Republic card and I was denied in the middle of a very important Holiday, improving your credit it is just a matter of get the right education on the right topics and with my videos you will get all the education you need.
The myth # 3: One credit Score is all you have.
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 company may use one company and other place a different one. 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 two types of inquiries that will appear on your credit report: hard and soft inquiries. Hard inquiries are from companies you wish to get credit from. These will affect your credit score. Soft inquiries are usually when you check your credit report online or from companies obtaining your information for promotional purposes. Soft inquiries don’t affect your score.
Myth 5: Shopping Around For a Loan Will Lower Your Score
This is one of the most common myths, remember that if you are looking for a credit from several vendors (mortgage, car loans, home loans, etc…), all this inquiries will appear in your credit report just once but remember that this just apply if the same kind of inquiry is made within 14 days, the only exception to this rule are credit cards.
Myth # 6: If I remove all the negative items my credit score will improve.
This is a partial true, because as a matter of fact erasing your bad marks is just one part of the whole solution, what will boost your credit score is building “positive credit”. Can you still remember those days were you were turned down from a credit card company because you did not have credit? actually what they were trying to say is that you did not have build a “positive credit” with credit card companies.
Free advice about credit cards: “How To Reduce Your Credit Card Interest Rate With One Simple Phone Call”
Is more simple than you think, and here is what you have to do: Get your telephone, dial their number and ask them to reduce your interest rate!!! just like that, by the way, tell them that you have sitting in front of you a credit card with a lower interest than the one they are offering you. Maybe a zero percent rates for the first 6 months, which after that period will turn into 8% rate. If you have a higher rate this technique will help you to lower it. Tell them that you are thinking in transfer your balance unless they decrease your interest rate, if you don’t get a deal with the operator ask to talk with the supervisor, in most cases the threaten to leave them is the key.
Before hring a professional to help you with your finance go to Miguel Pancardo site and get his excelent free report on debt consolidation canada and how to get out of debt in his website.
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