Many people think that getting a clean credit report is difficult and expensive. But these are just popular fallacies, and they’re just a few of the myths that credit reporting agencies proliferate.
The Federal Fair Credit Information Act was passed in 1971 to protect consumers. However, it is not rocket science to realize that credit reporting agencies are in business for a profit and if they have to spend time and effort investigating a dispute, they are losing some of those profits. This leaves them with little incentive to assist you in your credit repair process.
You may well ask, “Why should I worry about having a clean credit report?” Questions to ponder are; Do you want to get your loan? Do you want the best possible rates for your loan? Is it important to you to get the lowest possible loan rates? There are many more great reasons why you should have a clean credit report, but these give you a general idea.
The average American citizen has a credit score of 677. If your credit score is below 677, cleaning your credit report could mean the difference between getting your loan approved and being rejected. If your loan is rejected, that credit inquiry can have a negative effect on your credit rating, further lowering your credit rating. If you could get a clean credit report and achieve a credit score of 720, then based on the financial position of the average American, you could save around $ 5,000 a year in payments! What would you do with an additional $ 5,000 (tax-free) a year?
Despite what the credit reporting agencies want us to think, it is possible to repair our credit. It just depends on the time and money you want to invest to complete this task. For example, you can wait for it to go away on its own. This is not a good option because it can take 7-10 years, sometimes never! Another strategy is to hire a law firm to help you with this. Unfortunately, this is usually the most expensive method. Another approach is to use software packages to help you with this task. For a small down payment, they will guide you through the process so you stay in control of what happens at each stage.
Regardless of which method you choose, you will need to do a bit of groundwork to get a clean credit report. For example, if you use a lawyer, you still play an important role in the process, copying letters and sending them to lawyers, etc. – however, you are the one paying someone else to do this for you. If the attorneys can remove even a single negative item from your report, they will consider it a successful exercise. If you choose a self-directed software package, you still have an important role to play, however, since it is not much bigger than what you would be doing with lawyers, and it will almost certainly be cheaper, faster and more effective, for example, you don’t have to re-send letters to attorneys at every stage of the process. So would you rather work a little on your own with better results for your credit score, or pay a law firm per month and risk having just one item taken away from you?
Before choosing your method of obtaining a clean credit report, do your research and find which method will be most effective for you. If you are looking for a credit score of 720, you will receive the best rates from the lenders and with a higher credit score you will save money on a monthly basis. With so many good reasons to clean up your credit report, what are you waiting for? Start cleaning up that credit score and enjoy getting your loans approved – and at the best rates!
