Myth #1

When I pay off a past-due account, such as a charge-off or a collection account, it will show "paid" and no longer be negative. Wrong!
When it comes to most consumer credit, negative information is allowed to stay on your credit report for a maximum of seven years. Think of it as a clock. This seven year clock begins ticking on the "date of last activity," or when the last action took place on the account. By paying an outstanding, delinquent debt, you will change the account status to "paid collection," "paid was late," or "paid was charged off"-- which will still stand out as a very negative listing.
Furthermore, you will create a new date of last activity on the day you settle the account. The seven year clock will reset and begin all over again. If a creditor proposes a settlement on a debt that is legitimately yours and you are willing to pay, you must get a guarantee IN WRITING from the creditor that ANY and ALL derogatory information regarding that debt will be removed. Otherwise, you've paid the off the debt, but you're really no better off.

Myth #2

If a negative item is successfully deleted from my credit report, it will just come right back on my report. Wrong!
The same law that requires its' removal prohibits the deleted item from being placed back on. The credit bureaus have very cleverly spread this myth through the news media and government regulators. In truth, the credit bureaus will often temporarily delete a negative listing if they haven't heard back from the credit grantor after approximately thirty days. If the credit grantor reports in tardy, say after six weeks and verifies the negative listing, the credit bureau will often reinsert the negative listing on the credit report.
This is known as a "soft delete." If the dispute was handled correctly and legally as our affiliated attorney will handle all of your disputes, they can only do this by law if they notify you in writing within 5 days of putting the item back on your report. If they don’t, it’s a violation of the FCRA and you could potentially sue them for $1,000. Never dispute an inaccurate and negative item in your credit file using the credit bureaus Online Disputing System (E-OSCAR). By using their online dispute system, you have no proof of the dispute or a paper trail that certified return receipt requested would give you if you. Visit our Online Resource Library for more information.

Myth #3

There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report. Wrong!
Bankruptcies, foreclosures, and tax liens come off just like any other derogatory item that is incorrectly reported, obsolete, or that cannot be verified. This is where the Fair Credit Reporting Act comes into play. Be it bankruptcy, repossession, or failure to meet an obligation, the law requires the bureaus to delete information in a timely fashion. Remember, credit bureaus don't tell future creditors what happened in your life that caused you to declare bankruptcy. They merely label you.

Myth #4

Disputing a credit report is easy and any consumer can do it themselves. Wrong!
Although it is true that any consumer can dispute credit report errors themselves, getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. Remember, the credit bureaus are primarily interested in protecting their profits. Investigating your challenge consumes these profits. The credit bureaus will do everything in their power to discourage consumers from making progress with their credit restoration. You must decide if you are willing to take the time and assume the risks of doing it yourself. Again, never dispute an inaccurate and negative item in your credit file using the credit bureaus Online Disputing System (E-OSCAR). Visit our Online Resource Library for more information.

Myth #5

The credit bureau allows me to submit a 100-word explanation as to my side of the story, so this means that creditors will read my statement and take it into consideration. Wrong!
No known creditors consider the information submitted in your statement. This statement only verifies some of the negative items on your report. The 100-word explanation should be the first thing deleted from your credit file. Anybody can lose their source of income, fall upon hard times, or become ill. The simple truth is, no credit bureau can predict what your financial position will be in 7 years, but if you don't go through the process of "Credit Audit and Verification" and remove those inaccurate and negative items from your report, any credit bureau can hurt your chances of getting the credit you rightfully qualify for and deserve!

Myth #6

The credit bureaus are a branch of the government, infallible, or otherwise above reproach. Wrong!
They are not government agencies. In fact, Credit bureaus have no legal authority what so ever. Of course they hire people who try and make you believe they do, but they're no different than any other private company. All three major credit reporting companies are listed on the New York Stock Exchange! They store information that's reported to them by subscribers, and then in turn, sell that same information back to them. They're sales people, and the product they're selling is your credit information. They are also one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes. A recent survey by an independent research group revealed that 79% of credit reports contained some kind of serious errors or mistakes. The prevalence of errors has lead to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.

Myth #7

I can create a totally new credit file by getting a federal tax ID number or changing a few numbers on my social security number. Wrong!
This fraudulent scheme has proven to be complex, difficult and illegal. Lying on a credit application is a criminal offense and with the linking of computer systems, it is virtually impossible to get away with. It is in your best interest to hire professional and competent representation to confront the credit bureaus.

Myth #8

If I build enough good credit, it will offset my bad credit and make me creditworthy. Wrong!
Any amount of bad credit is devastating to your chances of being approved by a creditor. The approval is almost never in the hands of a human sitting across a desk from you. It is a computer achieving a point total. The slightest amount of negative credit will cause an auto loans interest rate to skyrocket. Generally, even a little bad credit (regardless of the amount of good credit) will cause you to be declined.

Myth #9

Nonprofit organizations, like Consumer Credit Counseling Service (CCCS), can help me restore my credit. Wrong!
Nonprofit, but do not read "Not for Profit", debt counseling services assist people who are over their heads in debt and are seeking an alternative to bankruptcy. Many debt consolidation companies are in hot water these days as they are being sued by numerous attorney generals, the FTC, and the IRS who is investigating their supposed "non-profit" status. CCCS, the largest of these outfits is funded and controlled by credit grantors and credit bureaus.
When you are working with CCCS, your creditors will often note this on your credit report. This is a huge red flag for prospective credit grantors and treated the same as Chapter 13 bankruptcy. Remember Myth # 1 and date of last activity (DLA)? For this reason, some of the very worst credit reports that our affiliated attorneys have seen are from Chapter 13 bankruptcies or have been participants in CCCS or similar programs.

Myth #10

It is illegal for creditors to take off a negative listing on my credit report. Wrong!
The law requires that these items remain on the credit report for at least seven (7) years. That is the statute of limitation, not the gospel. When you speak to credit grantors, collection agencies, or credit bureaus, their typically under-educated staff may tell you such pseudo-legal nonsense. The law "limits" negative information from appearing longer than the legal seven (7) year maximum. The credit grantor or credit bureau may choose to delete the item whenever they see fit but usually as a result of a direct challenge.
Unlike our legal system, the bureaus take no oath to be ethical or truthful. Based on the fact that you have no moral obligation to support any business venture or corporation, let alone a corporation with the power to destroy your financial life. NACRA’s “Credit Audit and Verification” process is the right step to take in order to clean up your personal credit file, thus, improving your credit score .
The credit bureaus would hang on to every piece of credit information on you forever if it weren't for the Fair Credit Reporting Act. In essence, the credit bureaus actually practice credit repair based on the fact that they can remove negative items after seven years. Why would it be wrong for you to do the same thing sooner?