Myths of Credit Repair pt. 8

I have heard this myth from many different people, some of them in the mortgage and real estate field. I have even seen a couple self-proclaimed credit gurus write about this in their articles and blogs. It's no wonder that it's a widespread myth!

Myth #8 - If I build enough good credit, it will offset my bad credit and make me credit worthy.

Any amount of bad credit is devastating to your chance of being approved by a creditor. The approval is almost never inthe hands of a human sitting across the desk from you. It is a computer achieving a point total. The slightest amount of negative credit will cause an auto loan interest rate to skyrocket. Generally, even a little recent bad credit (regardless of the amount of good credit) will cause you to be declined.

Next time: will credit counseling help me restore my bad credit?

Scott

Scott Swinford is an Executive Consultant for the US Consumer Credit Restoration Association and a Certified Mortgage Planning Specialist in Northwest Indiana. If you have any questions, you can send email to scott@USCCRAonline.com.