Credit repair myths

Many people hire ‘credit repair agencies’ every day without knowing what they actually do for them. The truth is anyone can start a ‘credit repair’ business without any credentials or certifications in the credit industry because the only service that is provided is issuing massive dispute letters to the credit reporting agencies each month. Not only can consumers do this themselves both electronically and through the mail, but disputing accounts without proper documentation is a ‘hit or miss’ situation. Many times disputing derogatory accounts will damage a credit profile and scores by reactivating the accounts reporting date which will invite collection activity by the creditor or collection agency. Consumers need to understand that there is should always be a strategy when disputing information on credit reports as well as rehabilitating or enhancing one’s credit profile. The majority of consumers suffering from personal credit issues have experienced past financial hardhips that was the cause of their credit problems. So the focus needs to be on resolving bad debt and properly managing good debt through maintaining positive monthly activity on 3-5 open lines of credit each month. A good message to all consumers….’Financial discipline weighs ounces but financial consequenes weigh tons’.