| There are multiple credit myths and rumors that | | | | major credit reporting companies. |
| surround the realm of credit reporting. Some are urban | | | | Myth: Trying to get stuff removed from your credit |
| legend, and have become so widely disseminated that | | | | report is illegal. |
| they are taken as gospel; others are deliberately | | | | Again, this is just not true. There are illegal and unethical |
| encouraged by lenders to terrorize or cajole debtors | | | | ways to tamper with your report, but many people |
| into compliance. | | | | have incorrect or outdated items on their report and it |
| The following is a compilation of the most common | | | | is perfectly legal to try to have those removed or |
| credit myths concerning your credit file, and the reality | | | | updated. The steps to accomplish this are easy, and |
| that all consumers should be aware of. | | | | you can do it yourself so don't waste money on a |
| Myth: Credit reporting companies are subsidiaries for or | | | | "credit repair" company that claims it can restore your |
| working on behalf of the federal government. | | | | credit for a huge fee. |
| This belief is fostered by the fact that creditors make | | | | Myth: Credit Reporting agencies are required by law to |
| such a big deal about "registering" you as a debtor | | | | keep negative items on your report for at least seven |
| with a credit reporting agency that the power of the | | | | years. |
| agency itself becomes inflated. In fact, credit reporting | | | | Actually, the Fair Debt laws state that after 7 years |
| companies are nothing more than mega businesses | | | | credit reporting companies are required to remove |
| and their true subsidizers are the banks and finance | | | | adverse reports - and nowhere does it say that these |
| companies. | | | | can't be taken off earlier. The credit reporting agencies |
| Myth: If you pay a bad debt, the negative report will | | | | perpetuate this myth themselves so people will not ask |
| automatically be removed from your credit | | | | them to remove stuff. |
| immediately. | | | | Myth: Credit reporting agencies strive to keep accurate |
| This is a tactic used by unethical bill collectors to get | | | | reports. |
| you to pay your debt, and 9 times out of 10 it is a flat | | | | In what alternate universe? Again, a credit reporting |
| out lie. You can occasionally make an agreement with | | | | agency is not an agent of the government, and has |
| a creditor to pay a debt on the condition that it be | | | | little interest in helping anyone out or motivation to be |
| removed or marked paid as agreed, but this should | | | | accurate. They are in business to make money, and |
| always be in writing, and they must put in writing that | | | | they make it from the lenders. |
| they will contact the credit reporting agency, request | | | | They have a vested interest in reporting whatever the |
| the update, and follow through until it is done. | | | | creditors tell them because the creditors pay them to, |
| Myth: You have to sign up for a credit monitoring | | | | and they double dip by selling this personal and private |
| service to get a free credit report. | | | | (and often inaccurate) information to other lenders and |
| This one is just ridiculous, and has been picked up by | | | | agencies as well. They have no vested interest in |
| hundreds of companies trying to sell "credit protection" | | | | removing items, or in helping you at all. |
| packages. They offer you a free credit report through | | | | Now that you know what credit myths to watch out |
| their website and then sign you up for a monthly | | | | for, you can take steps to review your credit and |
| automatic charge for an overpriced, basically useless | | | | begin to correct any discrepancies. Unfortunately, |
| "credit alert" program that you can duplicate simply by | | | | credit reporting agencies do hold a lot of power over |
| taking reasonable precautions. Don't be fooled. You | | | | the average American citizen, and it falls to you |
| are entitled by law to a no strings attached, once a | | | | personally to make sure that you are not being taken |
| year, completely free report from each of the three | | | | advantage of or wrongfully portrayed. |