Active Credit Repair
Consumers May Benefit from Consistent Credit Repair Services
One of the essential components of credit repair is your ability to remain consistent in your efforts to keep your credit report accurate and your credit score as high as possible. Lenders today are looking for scores of 730 and above when making lending decisions at the best rates. It is in every consumer’s best interest to work on keeping their credit reports accurate and up to date.
Why Consistency Matters
There is a heavy emphasis for consumers to monitor their credit history reports and every consumer has a right to check in with their reports annually at no charge. There is also opportunity to request free credit reports when you are denied credit. Your credit score does not come free with your reports but it is your history that is what really needs special attention.
Most consumers will look at their credit history at least once a year or when they need financing but that may not be enough to generate the highest credit score possible. In the interest of time management, it may be wise for consumers to Read more…
6 Red Flags of a Credit Repair Scam
With an increased focus for consumers on repairing their credit, it makes sense that there are increased efforts on behalf of less-than-reputable ‘credit repair’ companies to market their services to unsuspecting consumers.
The Sad Reality
So many people have suffered through debt and other financial problems that led to a poor credit rating, the national economy felt the punch, especially in light of the housing market crisis. Since the attention on the importance of good credit scores has been steady, more consumers finally feel ready to take their debt to task and finally do something about repairing their credit. There is no longer the deep stigma associated with debt there was in year’s past.
While it is a good sign more consumers are paying attention to their personal finances, it is also creating a vulnerable position for many who are not sure where to start or if they are up to handling the task at hand. They still fear debt negotiations with their creditors or are in need of a ‘quick fix’ to pursue more financing. Both scenarios have paved the way for a so-called credit repair company to easily come to the rescue.
The sad reality is that while many consumers have the best intentions, not all agencies feel likewise. Many are in it for the cash and do not think much about the damage they are causing to consumers when the money is gone but no legitimate credit repair work is done on their behalf. Scam agencies are increasing all the time, promoting credit repair services that are essentially impossible. They make it sound so easy in their aggressive advertising campaigns and many consumers take the bait. Read more…
Why Credit Repair Companies Have Such a Bad Reputation
When you hear or read about credit repair companies from “reputable” sources, you usually see these sources warning you against credit repair. They tell you not to hire credit repair companies and that you’re better off repairing credit on your own. Why have credit repair companies been made into villains? Because many of them are villains.
In 2008, the Federal Trade Commission (FTC) shutdown 33 credit repair companies because these companies violated Federal laws for credit repair companies. When the FTC sues these companies it’s usually because they’ve been making false claims, not delivering on their promises, and taking money from customers upfront. These are all illegal for credit repair companies to do.
It’s Easy to Start a Credit Repair Company
Anyone can start a credit repair company. While there are Federal laws stating what credit repair companies can do once they’re operating, there are no laws or requirements for any individual or company to start doing credit repair. The internet makes it easy for someone to start a credit repair company without even getting a state business license or training. Read more…
What Should You Do When the Credit Reporting Agencies Fail to Respond?
You’ve put forth a lot of work in repairing your credit. You have filed your disputes with the credit reporting bureaus. You figure you have it all taken care of until weeks pass by and you have received no reply from the credit bureaus.
Credit bureaus have the legal obligation to reply to your correspondence within a 30 day time frame. The Fair Credit Reporting Act states that the bureaus must have their investigation completed on your behalf within four weeks. In some cases things do not go as planned. So what do you do now? Read more…
Documentation Key To Credit Repair Success
When you are dealing with a lot of creditor debt, it can seem overwhelming to attempt credit repair on your own. But the reality is credit repair can be done by the consumers themselves. It will take time and effort to get the job done but once credit repair has been successfully achieved, your financial future will be more secured and you’ll be offered better financing deals, interest rates, and insurance premiums.
Preparing to go through the process of credit repair on your own requires a lot of focus and organization. It is important to remember that there is one specific element of the organization process that can make or break your success at credit repair. Read more…
Putting Together a Credit Repair Plan
How did we get anywhere before GPS? Anytime you’re going somewhere unfamiliar, you need directions to tell you how to get there. The same thing goes for credit repair. This is probably the first – and hopefully only – time you’ve ever had to repair your credit. It’s only natural that you don’t know what to do or when to do it. Even after you’ve read the guides, tutorials, and tips, you can still be lost on what steps to take. What you need is a plan. Read more…
Laws to Know During Credit Repair and Beyond
Did you know there are laws that protect your rights before, during, and even after credit repair? Repairing your credit requires you to work with giant companies who have millions more dollars than you. These companies would have complete power over the credit repair process, if the government hadn’t put a few rules in place to keep these companies in check. The law isn’t perfect and some companies find loopholes, but knowing the law can help you get results. Read more…
What Is File Segregation? The Reality of a Credit Repair Scam
We’ve all seen the ads from seemingly reputable companies promising to repair our credit histories and erase all the negatives that are preventing us from being creditworthy to lenders. The companies guarantee there is a fix for bad credit and for those desperate in debt and facing credit issues, the guarantee sounds like the perfect resolution.
The problem for consumers is there is no resolution, let alone an overnight credit fix. Scammers are finding more intelligent ways to lure in consumers and take their money. Not only are the scammers profiting from desperate debtors, they are also placing their customers in danger of engaging in illegal practices. Read more…
Credit Repair Don’t: Dispute Everything On Your Credit Report
When you repair your credit, there are steps you must take to ensure your credit history is correct and always up to date, otherwise it can reflect poorly on your credit score. In order to keep accurate information contained in your report, you may need to file a dispute to the credit reporting bureaus to correct the error. But be cautious – if you try to dispute data by yourself, make sure that is in fact true or your dispute may be dismissed as frivolous.
How Investigations Work
The credit reporting bureaus receive data from creditors on a monthly basis. The information shows how you manage your credit, pay your bills, the amount of credit you are extended and have used, and the type of account you have. The credit bureaus take this information and compile it into a history report. Because the data is managed by humans, there is always a chance some of the information may be reported incorrectly. A consumer has a responsibility to check their information and make sure it is correct. They can do this by order a copy of their credit report and reviewing each detail.
Once a consumer notices errors, they should complete the credit bureaus form for filing a dispute. The information that is incorrect should be reported to the bureau which will then lead to an investigation by the credit reporting agency. The bureau will then contact the creditor with questions about the information being reported. During a 30 day period the creditor must respond with the corrected information, prove the information is being reported as accurate, or they may not respond at all. If corrected information is provided, the credit bureau will change it on the report for the consumer. If the information is accurate, the consumer will be alerted. If the creditor does not reply at all, the information will be eliminated from the consumer’s report. Consumers will receive written correspondence with the results of the investigation that details any action taken. Truth be told, it can be a tedious process.
In the event you were denied credit due to incorrect information being reported, the consumer credit bureau will send a corrected copy of your credit report to anyone that had received a copy of your report within a two year time frame. In order to instigate this action, a consumer must request this be done in writing by the consumer.
Disputing Real Issues
There are some inexperienced agencies that will attempt to file disputes on all of your credit information in the hopes some creditors will not respond and the information will be eliminated, which is discouraged. Only a handful of credit repairing agencies have the expertise and experience to be able to decipher what should be disputed and what should be left alone.
If doing it yourself, remember that the credit reporting agency has the right to refuse an investigation if they feel the dispute is frivolous, so you should be well informed before attempting. If you have several legitimate disputes, you should file them as soon as you have discovered the inaccurate information. However, keep in mind that filing too many disputes in an effort to have information removed can be detrimental to your credit repair success.
Once a dispute is filed, be sure to follow up regularly to ensure the information is correct. Many consumers will make the mistake of doing the initial work and letting the rest fall by the wayside. If inaccurate information remains on your credit report, your score will not improve.
Too Many Disputes Could Be “Frivolous”
If you send too many disputes at one time, the credit bureau can decide these disputes are frivolous and refuse to process the disputes. The law allows them to do this. When this happens, none of your disputes are processed and nothing is removed from your credit report.
The only exception is when you’ve been a victim of identity theft and none of the accounts on your credit report belong to you. Even then, you should have documentation, like an ID theft report or affidavit, showing that the accounts were fraudulently opened. Read more…
Do You Need a Credit Repair Company?
As lenders continue to implement more aggressive qualifications for loan approval, consumers must be diligent in maintaining or improving their credit history and credit score. What may have been considered a good score a few years ago simply will not do the trick in today’s economy if you are shopping for a loan. In some cases your credit may be good enough to qualify for a loan but at higher interest rates than those offered to individuals with even better credit. Lenders are not the only people considering your credit history; insurance companies and employers also consider how you have managed your finances in the past when reviewing applications. If you have bad credit, your first priority to better improve your personal finances is credit repair. There are plenty of ways to achieve this goal with one of your options being a credit repair company. Read more…