If I earned one penny for every time I heard this … “credit repair don’t work” or “that mess isn’t real” – oh you’d better believe that I’d be rich! The truth is … most people are afraid of credit repair as a result of various misconceptions that have been lurking around for so many years.
For example, one of the biggest reasons, in my experience, that people are afraid of credit repair is because many of them think, for one reason or another, that it’s illegal. Along those same lines, and often times, due to bad experiences – either directly or indirectly – they feel that credit repair is just one big scam. But the truth is … credit repair is absolutely, positively, 100% legal. According to the Fair Credit Reporting Act, which is a legislation put into effect in order to regulate the Credit Bureaus, consumers have the right to challenge ANY information on their credit reports in which they suspect may be inaccurate, unverifiable, obsolete, or incomplete. So as long as a consumer’s credit repair pursuits are carried out within these means, then it is perfectly okay, 100% legal, and is certainly no scam.
Another big reason that many people, in my experience, have been afraid of credit repair is because often times, they know that some of the accounts reporting on their credit report may, in fact, be theirs. Knowing this, how in the world could they attempt credit repair on something that they know belongs to them? Wouldn’t that be immoral, unethical, and not to mention ILLEGAL?! Not necessarily! It is extremely rare that I see a client who does not have at least one thing on their credit report in which is either suspicious or flat out, not theirs. Furthermore, there are more than 20 different parts of the credit report and/or a specific account that can be challenged. So the truth is, consumers need to obtain a current copy of their credit reports (yes, all three) and take the time to thoroughly inspect each account that’s reporting (or have them professionally audited if they’re not sure how to audit the credit report themselves) so that if anything is found to be inaccurate, then it could be challenged.
The third reason that some people are scared of credit repair is because they have been under the misconception that if they pull their credit report, then their credit score will go down. This is a huge MYTH! The truth is, consumers can pull their own credit reports as much as they want to. This is considered a “soft” pull. And a soft pull does not affect the credit score.
The Credit Bureaus themselves are another major reason that people are so afraid of credit repair. Many of my clients were under the impression that the Credit Bureaus are government entities and how many average Joes do you know have the guts to stand up to the government. Well the truth is, Credit Bureaus (“aka” credit reporting agencies), ARE NOT in any way, shape, form, or fashion setup as a government entity. They are private corporations just like any other average business corporation, who’s sole job is to collect and report financial information about YOU, the consumer.
Finally, the last, but probably the most common, reason that many people are afraid of credit repair is due to the bad rap that Credit Repair Organizations (CRO’s) themselves, have earned for the industry as a whole. By time most of my clients have finally reached me, they have been ripped off by some bogus Credit Repair Company making false promises & guarantees in addition to illegal, unethical, and immoral practices. It’s really very sad! However, the truth is … birds of this feather, does not all flock together! There are quite a few CRO’s out there, such as my company, in which are practicing legally, morally, & ethically in order to help consumers the right way and without ripping them off.
In conclusion, yes, credit repair may seem scary at first, especially if you’ve been under the spell of so many of these misconceptions and/or have fallen victim to illegal and unethical credit repair practices. However, just remember that credit repair is necessary. In fact, I’d like to consider it an obligation. Everyone needs to audit their credit reports every once in a while and while you’re at it, if you find anything suspicious or inaccurate, you must challenge it or else you’ll eventually pay for it, one way or another.