Before starting your credit repair project you must overcome a very common psychological barrier. I'm not talking about the fear of dealing with your credit report. I'll assume that you can handle the moment of terror many people feel when sitting down with a copy of their credit report. The real credit repair barrier is much more subtle.

Things Are Not What They Seem

There is a widespread misunderstanding about credit repair that if you can recognize the information reported it is accurate. This is far from the truth. It is true that credit reports should accurately represent your payment, or non-payment history. But this is only partially correct. The information the credit bureaus provide must conform to a litany of regulation, much of limits not only the time they are allowed to report information, but the circumstances in which they are allowed to report.

Your Rights

What does this mean? It means there may be many derogatory items on your report that stem from real events, but should not legally be on your report. Millions of consumers proofread their reports with absolutely no knowledge of the reporting rules that may allow them to remove a significant number of damaging items. This is a major issue.

The Cost of Misinformation

I have seen an amazing number of people achieve more than a hundred point increase in their credit score by simply consulting a credit repair expert to help them identify the derogatory items that should not be on their report. I believe that there may be over one hundred million people in the United States who are paying premium interest rates on car loans, credit cards, and mortgages because of the errors on their reports.

The Silent Credit Killer

There is virtually no publicity about this problem. On the contrary, there is a widespread public perception that most credit repair efforts are futile and even of questionable legality. This is an economic travesty, as millions of people who could easily improve the quality of their life through a round of intelligent credit repair are dissuaded by misinformation.

Free Your Mind

Before starting your credit repair efforts you need to eliminate all of your pre-conceptions about credit reporting accuracy. Forget about looking only for the unfamiliar derogatory information. You cannot afford to assume that anything on your report is accurate just because you have a recollection of the event involved. You need to educate yourself or hire a legitimate credit repair service to intercede on your behalf.

Credit Repair Laws

The body of law which provides the credit reporting guidelines that all national credit reporting agencies must adhere to is called the Fair Credit Reporting Act (FCRA). Beyond the FCRA itself there are thousands of Staff Opinion Letters which clarify the intent and practical application of the law. An informed credit repair effort must utilize all of this information. Remember that your credit score is not to be taken lightly. This is truer today than ever before. A lazy attitude about your credit score will take money out of your pocket.

Collections Are Misunderstood Too

And there is more. Many people who have had legitimate credit issues in the past are now being confronted by collectors. The same lack of information that devastates so many people's credit scores applies to their legal rights in dealing with collection situations. The body of law that governs the collection industry is called the Fair Debt Collection Practices Act (FDCPA). The FDCPA provides consumers with powerful collection defenses, virtually none of which are known by the very people who could benefit the most.

Take Action Now

A little bit of credit repair information can pay amazing dividends. You can either educate yourself or consult a credit repair expert. If you are going to try it on your own make sure to invest time in the learning process. It's not hard, but will take some effort. One of my favorite books on credit repair by one of the most prominent exponents of the do-it-yourself movement starts by warning you not to take any action until reading the entire book; it is 500 pages long.

Spread the Word

The credit crisis has made it exceedingly clear; the time has come for consumers to understand their legal rights. Credit repair has the potential to offer significant and even life-changing benefits. If you have experienced the potential of intelligent informed credit repair, spread the word.

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.