Tag Archives: myths about debt consolidation

Myths about debt consolidation

‘The Myth’ was a rather rubbish movie starring Jackie Chan you might never have heard of (go ahead, Google it). But there are some myths about debt consolidation that you might have heard of quite a lot. These myths end up spreading like wildfire and obviously most of them have a lot to do with the field of credit repair. Let me try and address these misconceptions as easily as I can. The first of these is that you have to get the services of a professional agency in order to manage your debt. And while you can do so (for a price), you don’t absolutely have to. You can always get the job done yourself.

If you were to order your credit report, you’ll have a ready reckoner about your debt close at hand. The first of these is that there might be some errors and flaws in this credit report. Now some of these mistakes could have crept in from the creditor, some might have put in there by the credit bureau, and upon closer inspection you might realize that a large portion of your credit report contains errors. You’ve seen them because you are worried about your credit situation; no one else will care about it as deeply as you do. You can fix your bad credit yourself. It might take time, but you can do it and get some fresh credit lines if you need them.

Here’s another misconception. You don’t have one credit score, you have three. Each one of these is compiled by each of the major credit reporting agencies. All 3 of them will reflect different scores, and so one company might end up using one credit company’s report while someone else will call upon the other credit company for a report. Get all three of these since there can be major discrepancies between these three scores, so view them side by side to understand the differences.

Here’s another myth; making a request for this credit report will not affect your score. If a company you wish to get credit from makes a request, you will find your score is affected. Likewise, looking around for a loan will not lower your score. This does not apply to looking for credit cards though, so keep that in mind.