Rampant Myths About Credit Reporting

Whether you realize it or not, there is a tremendous battle going on aimed at shaping your opinion. On one side you have the credit bureaus with a massive public relations campaign to discourage consumers from attempting to restore their credit by telling them it is impossible. They do this by limiting their acknowledgment to those methods strictly outlined in the Fair Credit Reporting Act, such as the dispute method and the consumer statement.

[Excerpted from Fresh Start: The Authoritative Guide To Consumer Credit Repair. Three more sections conclude Chapter One by thoroughly covering all the changes as a result of the most recent laws going into effect.]

On the other side you have consumer rights groups pushing for more reform. And sometimes in the middle, but most often leaning toward the side of the bureaus, you have the Federal Trade Commission. If that weren't enough, you still have outside voices (attorneys and credit repair services) whose motives are purely financial and at time such motives and ignorance add more fog to an already cloudy landscape.

The result is a lot of conflicting and confusing information. It is very easy to get bogged down in this information glut. But you don't have to muddle in the mire. This article strives to shine a bright beam of truth to dissipate this fog of misinformation--so that you can begin pursuing a clear path, able to discern the good and the bad offered you from both sides.

As evidence of this ongoing credit war, consider these great myths about the credit reporting industry. Each of these statements below is false. Nonetheless, many consumers still believes that one or more may be true.

Myth: The information on a credit report cannot be changed.

Fact:  Exactly the opposite is true. The Fair Credit Reporting Act requires that items be removed if they are not fully 100% accurate OR can not be verified within 30 days. Also, anything a creditor is responsible for reporting and confirming, a creditor can change.

Myth: Requests (inquiries) for credit reports can't hurt them.

Fact: At the end of each report will be a log of inquiries. An inquiry notation is made each time someone requests a copy of your credit file from that credit bureau. Any company that receives a copy of your credit profile will be listed under this inquiry section of your report.

Lenders don't like to see a lot of inquiries on a credit report. Excessive inquiries can result in a credit denial as easily as bad credit. But, not all inquires are viewed negatively.

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