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10 Myths of Credit Reporting One Must Know - part 2 of 5

By
Real Estate Agent with The Real Estate Marketplace TX# 584631

I’ve been working with credit challenged families for about 4 years now.  What I’ve discovered is there are common threads of thought the public has about the credit reporting sector.  I’ve compiled these perceptions into 10 MYTHS of Credit Reporting one must know:

Check out Myths 1 and 2 here:  10 Myths of Credit Reporting One Must Know - part 1 of 5

Myth #3

There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.

Fact

There is no type of negative listing that I have not seen removed. The credit bureaus have cleverly spread this myth through the news media and government agencies in an attempt to discourage repeated attempts. Also, the time limit associated with items staying on your credit report are MAXIMUM's, there is no law that states these items MUST stay on your report for any length of time at all.

 

Myth #4

Disputing a credit report is easy . . . Any consumer can do it!

Fact

Disputing a credit report is easy. Getting RESULTS from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000, the three major credit bureaus paid a fine of $2,500,000 for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration. Restoring your own credit is like repairing your own transmission or representing yourself in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of inexperience and realize that it will probably take you longer and you will be less effective than a professional.

Comments (3)

Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

It seems to me that trying to repair your own credit would also be a lot like trying to sell your own home.  If you are not aware of the regualtions and rules of what needs to be done, doing it yourself will cause you an infinite amount of stress and headaches.  Best to get with a truster professional to get you through this difficult process. 

Great information Ron.

Feb 17, 2012 02:19 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ron, good point "Disputing a credit report is easy. Getting RESULTS from the credit bureaus as a layperson is amazingly difficult"

Like anything else, it is easy for those who do it for a living, but not so easy for those that do not know how to go about it.

Feb 17, 2012 09:07 AM
Ron Cooks
The Real Estate Marketplace - Killeen, TX
Texas Real Estate, Ft Hood/Killeen Homes for Sale

Brenda & George - exactly the public in general have been wooed into believing outside assistance is not only necessary but the companies that help the consumers are full of sharks out to make a quick buck and show no results.  I'm not a conspiracy theorist, but these multi-billion dollar behemoths serve themselves well, by feeding the propaganda machines.

Feb 19, 2012 02:25 PM