Clean Up Credit Report

By: Jerome Repor

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Thursday, 31-May-2012 08:06 Email | Share | | Bookmark
Credit Repair Firms - Professional and Legal Credit Repair

If you have discovered that you have bad credit or are just simply tired of living with a low credit score then you can benefit from hiring a credit repair firm. The main benefit to hiring a credit repair firm is that they are going to handle the credit bureau dispute process, negotiate with any active debt collectors, and clean up your credit report for you.

Frequently a credit repair service is going to be a group of credit attorneys that specialize in consumer credit laws and frequently you will have a paralegal actually perform the work on your case. These companies use the Fair Credit Reporting Act which gives you the right to dispute and challenge any item on your credit report with the credit bureaus.

How Does It Work

You need to send a copy of all three of your credit reports, one from each major credit bureau to the service that you hire. On your credit reports you also need to indicate what items you want to dispute and potentially remove. Now, the credit repair service is going to create and send a dispute letter to each one of the bureaus requesting that they investigate the bad credit items that you have indicated on your credit report.

The credit bureaus will frequently respond to a dispute letter requesting more information. This is an attempt on the credit bureaus behalf to frustrate and get individuals to give up on their credit report dispute. The credit bureaus are private, profit generating businesses, and investigating consumer disputes does not generate any revenue or income for the credit bureaus.

Therefore the credit bureaus try to avoid investigating consumer disputes and only investigate a select few because they are required to by federal law and the Fair Credit Reporting Act. Many people are surprised to hear that the credit bureaus have been fined by the FTC multiple times for not complying with the Fair Credit Reporting Act and investigating consumer credit report disputes.

The credit bureaus hesitancy and frustration generating tactics with handling consumer disputes is what created an alternative in the form of professional credit repair services. It is important to do your homework and proper research to avoid any credit repair firm that requires a large upfront payment, wants to give you a new identity, or wants you to do anything else that sounds unethical and illegal.

Legal credit repair comes in the form of disputing bad credit information on your credit report and some debt settlement for some individuals. The credit repair lawyers and staff will handle all continuing communications with the credit bureaus, however you will receive letters directly from the credit bureaus and you will need to forward this information on to your credit repair firm.

This way you can all stay on the same page and ensure that the firm is only performing pertinent work and not wasting time disputing an item that has already been removed. Professional services have been around since the early 1990s and we encourage you to choose a company with a long established track record.

For more about how to fix credit report and how credit repair firms can help you clean up credit report visit us.

Thursday, 31-May-2012 08:05 Email | Share | | Bookmark
Do Credit Repair Companies Work?

Credit repair companies that promise to work under the Fair Credit Reporting Act and other consumer credit laws to remove any inaccurate, incorrect, and unverifiable information from your credit report do work and legally. However those services that promise to give you a new identity, credit profile, or any too good to be true outcomes should be avoided and viewed with suspicion.

Credit repair companies were created not just to make things easier for consumers but because of a legitimate need for these services. There are many reasons you can have incorrect information on your credit report such as: a collection agency reporting your debt longer than legally mandated, a record-keeping mistake, a lender mistake, a paid account, fraud…

It is reported that one in every four credit reports contains an error. This error on your credit report could be the difference between you getting approved for financing or rejection. Additionally it is reported that employers checking a job candidate's credit record before offering them a position is continuing to rise. In other words more and more employers are checking your credit report before offering you a job.

Congress passed federal law called the Fair Credit Reporting Act which gives you and every US citizen the right to dispute any item on your credit report directly with the credit bureaus. This is the law that credit repair companies will utilize to potentially remove negative information from your credit report.

The debt accounts that are reported to the credit bureaus must be reported following strict federal laws and they must be verifiable. In other words if a collection agency is reporting that you owe a debt of $2000, for example, then if the credit bureaus request documentation or even verification of this account then collection agency must comply.

When you file a credit report dispute or a credit repair firm files a dispute on your behalf you are requesting that the account on your report be verified. According to credit bureau insiders roughly 50% of all credit bureau investigations result in an item not getting verified by a collection agency or lender. If this happens then the credit bureaus must comply with the Fair Credit Reporting Act and remove this item from your credit report.

If you happen to have an item that is verified this doesn't mean you have to just live with it. We encourage you to hire a firm that has professional credit attorneys on staff because they may be able to negotiate with the debt collector, request escalated disputes, and use other legal tools to challenge an item on your credit report.

Why Won't The Credit Bureaus Respond To You

The credit bureaus will respond to you, however a little known secret is that when credit bureaus correct information that they have collected about you they are only spending money. The credit bureaus are private businesses and are profit motivated, just like any private business.

The credit bureaus are spending potential profits when they investigate consumer disputes and instead will try to avoid it. We also feel that Washington has been influenced by the big-money credit reporting generates in our economy because they have given the credit bureaus the power to decide if your credit report dispute is valid before the bureau is required to investigate.

Naturally the credit bureaus use this to their full advantage and it takes multiple communications before a dispute is deemed valid and investigated. If you have a company with credit lawyers on staff you can feel more confident that the bureaus will comply with your dispute requests and as you watch your credit report clean up you will laugh that you ever wondered - do credit repair companies work - end the misery, wasted hard earned money, embarrassment, and expense that bad credit is costing you!

For more about how to fix credit report and how credit repair firms can help you clean up credit report visit us.

Thursday, 31-May-2012 08:03 Email | Share | | Bookmark
Fix Your Credit Report - How To Clean Bad Credit On Your Report

If recently you discovered you have bad credit and are ready to get busy to fix your credit, but are wondering where do you start? Who do you need to contact? Who do I need to pay and how much?

To fix your credit report, you may potentially be paying some outstanding debts. However you should begin with first getting a copy of your credit report from each major credit bureau a total of three credit reports.

Now you need to look at these reports and decide what information you believe is incorrect, and also look for any legitimate outstanding debts. For legitimate outstanding debts you should contact the lender or collection agency and negotiate a settlement agreement.

In your settlement agreement you must negotiate that the lender or collection agency stops reporting your account information to the three major credit bureaus in exchange for your settlement payment. We strongly encourage you to get this agreement in writing and if you neglect to get this agreement you may pay the debt but continue to have negative information about this account on your credit report.

For any incorrect information on your credit report, you need to file a credit report dispute with the credit bureaus. You can dispute information on your report because: it has incorrect balance, incorrect dates, not your account, the account is paid…

You can also dispute an item on your credit report because it is older than seven years. Federal law states that a debt can only remain on your credit reports for a maximum of seven years. According to reports collection agencies regularly violate this federal law and will attempt to report a debt account as long as they can.

When the credit bureaus receive your dispute they will conduct an investigation by contacting the creditor or debt collector that has reported the negative information to that bureau. The credit bureau will request for account verification and confirmation of the dates and amount due, from the lender or debt collector.

If the credit bureau is unable to verify your account then it must erase the bad credit item from your credit report. You need to keep in mind, that just because you remove negative information from one credit report doesn't mean it has also been removed from your other two credit reports.

For example if you remove a charge off on your Experian credit report, you are still going to have to file separate disputes with both Equifax and Trans Union to remove that same charge off but from both of those two credit reports. The point is simply don't forget about bad credit items on your other credit reports make sure to clean up all three of these credit files.

You are entitled to dispute your credit report, according to a federal law called the Fair Credit Reporting Act this law requires the credit bureaus to investigate your dispute. It is a good thing that this law exists, because it is estimated that up to 25% of all credit reports contain a mistake.

You will experience some resistance in getting the credit bureaus to team your dispute valid and thus conduct an investigation into the negative item on your credit report. They are going to require you to jump through some hoops and provide them information that you may have already prior before they will decide your dispute is valid.

You must comply or you can hire a professional credit repair firm to handle the credit dispute process for you. This will require you to forward your credit reports to the firm and communications from the credit bureaus where you will be notified that your dispute is valid with the bureau, and when the credit bureaus finish their investigation often resulting in the removal of an item and a clean credit report. They will notify you through written mail.

However you move chose to more forward take action today and fix your credit report. Stop paying at the cost, embarrassment, humiliation, and difficulty of a bad credit score.

For more about how to fix credit report and how credit repair firms can help you clean up credit report visit us.


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