Top 10 Credit Myths & The Real Answers

truthAfter 30 years in the finance & mortgage industry, I’m still sometimes surprised at what some people believe about credit. For instance, even though there is a heightened awareness of credit and credit scores these days, due to all the TV ads from companies selling credit reports & scores, many are still unaware that a credit report is really only a series of “allegations” that are unproven and undocumented. Just because a creditor says something negative about you and the credit bureau puts on your report, doesn’t mean that it’s “gospel truth” and many federal laws give you the right to challenge the “accusation.” Many believe that if an item on their credit report is true, it can’t be removed, but that’s NOT true! There are many ways to legally delete an item even when it’s “factually true.”

I’m really interested in this! How do you go about getting things off legally? Do you need to spend the money on a lawyer?

So how does one go about having the items removed? Can it be done on your own or does it require some repair service?

Never pay a service! Do not change SSN to avoid bad credit, that is fraud and is frowned on by the courts. Most, if not all, of these service are doing or advising you to do things which are illegal or can get you in deep trouble with the courts.

The processes for removing information depends on whether it is Erroneous information or accurate.

Accurate negative data can only legally be removed under 2 conditions, 1 is if it exceeds statutory rules, generally 7 years from the last status update. Therefore, some credit agencies will keep sending updates and you can challenge this.

However, any information you challenge, the reporting agency has 30 days to respond. If they fail to, then you can demand the credit agency remove it.

If the information is erroneous and the challenge with the credit bureau returns the same results, then you have to deal with the reporting agency and threaten them with a lawsuit. Here is where paying a lawyer may be advisable.