Credit Restoration Myth #12: Paying Old Debts Removes Negatives

(Note to consumers:  This is the twelfth in a
series regarding common misconceptions about credit repair or credit
restoration.  The information contained is deemed to be accurate, but
not guaranteed.)

Whoa…what made you think that? Paying old debts gets you to be debt free…but does not necessarily improve your credit score.

It is important to understand this distinction. The creditors nor the bureaus have any vested interest in having your credit report be cleaned up. As mentioned in previous articles, the bureaus make the most money from your troubles. The creditors make the most money when your scores are lower, as they can charge you higher interest rates and fees. So there is no incentive to paying old debts except to get out of debt!

Credit Bureaus will most often remove negative credit information that is not verifiable.  But it is important the WAY it is requested. You need a credit restoration specialist to assist you with this task.

If you are in this type of situation, our Credit Concierges can help.  Call us today to get started on your personal path to financial freedom!