Rampant Myths About Credit Reporting, Continued

The following is a continuation of our article, Rampant Myths About Credit Reporting.  We hope that this information is helpful in your quest to get rid of debt and credit problems.  Be sure to take advantage of the outstanding Fresh Start consumer credit repair system so that you can clean your financial slate.

Myth: When I pay off a delinquent account such as a charge-off or collection account, it will stop hurting my credit, because it will then be shown as paid."

Fact: As hard as it might be to believe, sometimes paying off a debt can actually hurt you. This is one of those occasions. These type of collection accounts are allowed to stay on your credit for a "maximum" of seven years.

[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.]

However, this does not mean that you never pay these debts. While discussing negotiating with creditors covered in Chapter 4, you will read how to include in your negotiated settlement a provision for how it is to be reported. To not do so can severely hurt your chances of restoring your good credit.

Myth: Credit reporting agencies are empowered with governmental authority.

Fact: Absolutely Not! Rather, they must adhere to the government authorities and laws overseeing their operations. Credit bureaus are like any other business. They buy and sell products and services to turn a profit. No special authority exists.

Myth: Bankruptcy is a "Fresh Start."

Fact: Unfortunately, many attorneys don't clearly explain the devastating effects to one's credit when filing bankruptcy. This goes for all types of bankruptcy including Chapter 13, also referred to as the wage earner plan.

Bankruptcy is not a clean slate. Every account included in the bankruptcy will be so noted in your credit file. Additionally, there will be a court record generated that will also be added. Avoid bankruptcy if at all possible. The time table and the odds of completing credit restoration are greatly extended due to the number of negative entries that are associated with such filings.

Myth: Some types of credit information (such as bankruptcies, judgments and foreclosures) are impossible to remove.

Fact: Although it is true that some types of information can be more difficult than others to remove, each of these negative entries have been removed thousands of times, using a multitude of creative methods.

- CONTINUE TO PAGE 3 -

-or-

READ THE PREVIOUS PAGE OF THIS ARTICLE

[BACK TO THE TOP OF THIS PAGE]