Yup, there are some myths about debt consolidation that the banks don’t want you to know. 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 Myself

We need help once in a while and why not. Credit repair and debt consolidation 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 remember to think “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 or both!!.

These were not my mistakes at all, I found several mistakes in multiple accounts and some research indicated that anywhere from 75% to 90% of the credit reports contained errors.

Myth # 2: – You cannot fix your bad credit.

Wrong. Just because you have bad credit doesn’t mean that you can’t repair it. It may take longer to fix, but it is repairable. There are many fast ways to restore your credit, build positive lines of credit, and get yourself back on the right track to good credit.

If you think a 520 is bad-it is. I was turned down by every credit card I applied for. I even got denied at Banana Republic in front of 20 people at Christmas time. Yeah, no fun. If I can do it, so can you. It’s just a matter of becoming educated.

Myth #3: – You just have one Credit Score.

You have 3 credit scores, not just one, each credit score is from the major credit reporting agencies – all 3 will show different scores, that is why when applying for credit, one company may use one report while another company may use a different one. It is always a good idea to get the 3 reports from the different bureaus because they can have serious differences.

Myth #4:  – Checking Your Credit Will Lower Your Score

There are different types of inquiries:

• - soft inquiries
• - and hard inquiries

The hard inquiries are the ones that will affect your credit score and these are done from the companies you wish to get the credit from. The other inquiries does not affect your credit score and those are the inquiries where you just want the information for promotional purposes.

Myth # 5: – Your score will be lower if you are shopping around for a Loan.

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. However, remember that this applys if the same kind of inquiry is made within 14 days. The only exception to this rule are credit cards.

The myth # 6: – Removing negative items is the only way to improve my score.

This is a partial 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. Do you remember when you were denied a credit card because you did not have credit? The truth is that you did not have positive credit built up with the credit card companies.

Free advice about credit cards: How To Reduce Your Credit Card Interest Rate With One Simple Phone Call

Here is a sweet little trick: Get on your telephone and 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 that 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 than the one you have right now. Be extremely kind with the operator, but if you can’t get a deal ask to talk to their supervisor. Just remember that the key is to treat them with respect.

Before declaring bankruptcy go to Miguel Pancardo’s site and get his excellent free report on debt consolidation Toronto. This and other unique content ‘finance’ articles are available with free reprint rights.

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Other Related Articles:

• How Living Within Your Means Can Make Life More Enjoyable
• Credit Scores – Are Your Credit Scores Worthless?
• Debt Relief Review – “Debt Free in Three”
• Credit Repair Review – “37 Days To Clean Credit”
• How To Be Debt Free – Finally

If you’ve ever been in a money jam you may have considered employing credit counselors or debt consolidators in a bid to cure you of your money problems. Money problems can be caused by recessions, inflation, high interest rates and bad money decisions. Everyone wants your money because they know you will give it to them if they have something they think you want but not necessarily need.

You may need help but there are a lot of other people and companies out there that also know you need help. But like anything else, some credit or debt related companies are better than others. You cannot escape the fact that you still need to do your due diligence.

There are some credit counseling agencies and debt consolidators that can actually help get people out of debt.  But there are also others who are simply trying to get money (that you don’t have) without helping you at all.

One thing you should know is that there is a difference between credit counselors and Debt Consolidators. For one thing credit counselors work for you while debt consolidators mainly work with your creditors, although they are there to help you get out of debt also.

Credit counselors will help you get out of debt and stay out of debt.  That means that they will help you realize where you went wrong on the financial road and then help you get out of debt.  After that, they will put you on a budget and offer services that can help you stay out of debt and live a financially stable life.

Debt consolidation companies are different, though not entirely.  As mentioned, they also will help you get out of debt, but by working with your creditors, they will help to combine all of your debts into one large debt with where you only make one monthly payment.

This means that debt consolidators try to secure some type of loan on your behalf which will enable your creditors to be paid off and you will pay the loan company instead.

Because of the services they provide, many people would rather go with a credit counseling service.  That’s because they need someone to help them stay away from the mindset that got them into debt in the first place.  You will find many credit counseling services and doing proper research will help you find the right counselor for your situation.

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Other Related Articles:

• What Can Good Credit Counselors or Debt Consolidators Do For You – Part 2
• How To Be Debt Free – Finally
• How To Repair Your Credit – Understanding The Necessary Steps – Part 5
• How To Repair Your Credit – Understanding The Necessary Steps – Part 4