The Myths of Instant Credit Repair

Each year more people become aware of the importance of a good credit score, and those with bad credit attempt to re-establish it. Repairing impaired credit takes time, and there is no such thing as instant credit repair. Nevertheless a whole industry of credit repair specialists has been spawned to take advantage of consumers eager to repair their credit in the speediest manner. Some so called specialists blatantly tout for business by breaching legal guidelines of how they must operate, and use scaremonger tactics to convince consumers it is difficult to repair their own credit.

Myfico describes raising your credit as akin to losing weight, and advises “it takes time and there is no quick fix.” The speediest repair one can hope for is thirty days, but only if credit is damaged due to nothing more than erroneous reporting by creditors. The fact is that only reported errors can be removed from credit reports, and these must be removed within thirty days. All factual reported information will remain on credit reports for seven years, with bankruptcies remaining for ten. As one works to re-establish a good credit reputation old information will have less bearing on credit, as long as new credit is used in a responsible manner.

Repairing errors on credit reports can easily be done by the individual, simply by contacting the credit bureau which issued the report which contained errors. Some credit repair companies perpetuate the myth that it is a long and difficult process for individuals to tackle themselves, and some openly state that it will involve paying an attorney or accountant to deal with credit bureaus. This is not true but it allows them to push their own services which are often charged with a hefty up front fee or with monthly fees. Consumers are further led to believe that accurate information can be removed, which is actually illegal.

Some credit repair companies sell information on how to repair credit. There is absolutely no need for anyone to pay for this information as there are credible financial sites available on line which will explain how to repair credit. The Fair Isaacs Corporation responsible for the FICO credit score also provides free information on credit repair through Myfico online.

One of the best ways to repair damaged credit is to use credit responsibly. However many with bad credit are denied credit unless they can obtain it at exorbitant rates from sub prime lenders. A far better strategy to repair credit is to use secured credit cards to re-establish a good credit history. This method won’t provide an instant repair but it is often possible to transition from secured to unsecured credit within a year.

The biggest myths about credit repair are initiated by credit repair companies who want to sell their services. The thing to remember is they can do nothing which you cannot do yourself to repair your credit, which can be done without paying a fee. There is no quick fix solution to repair credit but by remaining current on all obligations and using credit wisely then the impact of negative credit will lose influence over time. It is possible to restore good credit within six months to two years in most cases, providing no further negative activity is recorded.

Source: Myfico & My Credit Shot