The 6 Dirty Secrets About Debt Consolidation The Banks Don’t Want You To Know.
Yup, there are some myths. Some may shock or even anger you, but it is a message that must be told. For example, you probably think you can’t do it yourself and you NEED a professional agency to do it for you. That couldn’t be further from the truth. I did it and so can you! Let’s dive into some of the most common myths people have about credit repair.
Myth 1: I can’t do it by myself, professional’s needs to handle this situation.
We need help once in a while and why not, but credit repair and debt consolidation is not one of those areas, it is an area where you can do it by yourself. Back in the days when I saw my credit report for first time I saw some “bad marks” on it (you know some late payments and stuff) I start freaking out and I remember thinking “there is no way I can do this by myself I will need some professional help” nevertheless I did it myself, how? easy I got educated that is the key. And now you are going to get the best education possible on this subject, about how to consolidate your debt, repair your credit, maintain your credit score etc… While I was studying my credit report I realized some big mistakes by either the creditor, the credit bureau and even both!!. This were not mine at all. I found several mistakes in multiple accounts and by doing some research it turns out that anywhere from 75% to 90% of the credit reports contain errors.
Myth 2: Your bad credit can’t be fixed.
Not at all, having a bad credit rating does not mean you can’t fix it, it may take you some time to do it, but you can definitely do it. There are several avenues to repair your credit, build positive lines of credit and returning to the good credit path. One of my most embarrassing stories occurred when I was applying for a Banana Republic card and I was denied in the middle of a very important Holiday. Improving your credit is just a matter of getting the right education on the right topics and with my videos you will get all the education you need.
Myth 3: You Only Have One Credit Score
The reality is that you have 3 credit scores; they are from the major credit reporting agencies, all 3 show different scores, so when applying for credit one company may use a different report than others, it is always good to check your credit score through the 3 bureaus, because scores can vary a lot among them.
Myth 4: If you Check Your Credit This Will Lower Your Score.
There are two types of inquiries that will appear on your credit report: hard and soft inquiries. Hard inquiries are from companies you wish to get credit from. These will affect your credit score. Soft inquiries are usually when you check your credit report online or from companies obtaining your information for promotional purposes. Soft inquiries don’t affect your score.
Myth 5: If you are shopping around for a Loan your score will be lower.
This is one of the most common myths, remember that if you are looking for credit from several vendors (mortgage, car loans, home loans, etc…), all these inquiries will appear in your credit report just once but remember that this just applies if the same kind of inquiry is made within 14 days, the only exception to this rule are credit cards.
Myth 6: The Only Way to Improve My Score is To Remove All Negative Items
This is a partially true, because “erasing” your bad marks is just one piece of the credit repair puzzle, remember that while removing “negative items” will help you in your credit score, just building “positive credit” will take your score further. Remember when you were denied from a credit card company because you did not have credit? the truth is that you did not have positive credit built up with credit card companies.
“How to reduce the interest rate on your credit card with just one phone call”
Here is a little sweet trick: Get your telephone, dial your credit card company number and ask them to drop your interest rate! It’s that simple! just tell them that you have in front of you a credit card with a lower interest rate, it may be they are offering you a zero percent rate for the first 6 months and after that period they will charge you 8%, tell them that you are thinking of transferring your entire balance to this new company if they don’t decrease your interest rate, chances are that you will get a better interest rate then the one you have right now, be extremely kind with the operator, but if you can’t get a deal ask to talk to the supervisor, remember that the key part is to threaten to leave them.
Before hring a professional to help you with your finance go to Miguel Pancardo site and get his excelent free report on debt consolidation and credit debt consolidation in his website. Unique version for reprint here: The 6 Dirty Secrets About Debt Consolidation The Banks Don’t Want You To Know..
categories: Finance,debt,credit,loans,management,money,help,selfhelp,howto,how to,finance,personal finance,money,banks
