It is crazy how much wrong information is out there about your credit. The trick is knowing the truth. Our friends over at Credit Repair Austin are going to go over three of the most popular credit myths.
1: The Amount of Debt You Have Will Affect Your Credit
Myth: “It was only $100. It can’t affect my credit that much.”
Fact: This is simply not true. If you have an outstanding bill for $100 or a $1,000,000 it counts as a collection on your credit report. And a collection is going to affect your credit score a whole lot. Fortunately, if you have a $100 collection, it is easy to pay off and start the credit healing process. Now, if you have a $1,000,000 collection… it might be a bit more difficult.
2: I Never Even Got A Bill
Myth: “How can this be on my credit report? They never even sent me a bill even though I gave them all of my information.”
Fact: It might not make sense, but a bill is not necessary for a company to expect to be paid. It is up to you to know when your bills are due and to pay them on time and in full.
3: If I Pay It Off, It Won’t Show Up Any More.
Myth: “This bill is paid, why is it still on my report???”
Fact: Just because you pay off a bill does not mean that it will automatically get taken off your credit report. Luckily you do have a right to an accurate credit report. So, after you pay off a debt, make sure that you check your credit report to make sure that it has come off. If it is still on your report, dispute the line item and it will usually be removed.Legally, you have the right to fair and accurate credit reporting. If you paid off a collection, it should technically report as “paid collection with a zero balance”. You can still dispute this line item and it is likely to be removed.
If you are in or around Austin, Texas, a great resource for you in your quest for better credit is Credit RX America – http://creditrxamerica.com. They are super helpful and you only pay for what they are able to remove.
Here is Their Info:
Credit Rx America Credit Repair
100 Congress Avenue
Austin, TX 78701