Does Credit Repair Really Work?

Jim Kemish asked:


Credit Repair and the Great Illusion

Credit repair is a discovery process. The vast majority of consumers in the United States are intimidated by the thought of credit repair. The credit bureaus are viewed in the same light as the Internal Revenue Service; a temperamental and potentially ruthless big brother. Oddly enough, this perception could not be farther from the truth. It turns out that the credit bureaus are quite tame and even reasonable, if you know how to manage them.

Protecting the Myth

Like the Wizard of Oz, the credit bureaus live happily behind the curtain of illusion, benefiting from the aura of power. Let’s dispel the myth a bit to spark your credit repair efforts. The credit bureaus are not government entities, nor do they have any government blessing. They are big business, and exist to make money. And they do a great job of it. They are well managed, well focused, and extremely profitable. And in spite of the fact that they have become indispensible intermediaries and guardians of your precious credit score, any communication from you is an unwanted burden on their bottom-line.

Credit Repair and the Truth

So, what went wrong? If the credit bureaus are doing such a great job of running their operations why are there so many errors in consumer credit files? Why is credit repair even needed? There is no contradiction here. Profitability and competence in no way guarantee an accurate product. In fact, by moderating the effort that goes into quality control the credit bureaus demonstrate their business savvy and bolster their bottom line. Does this seem outrageous? After all, your financial life depends on your credit scores. Shouldn’t the credit bureaus be held to the highest level of accuracy when it comes to such important data? Yes and no.

Legislation Cuts Both Ways

Because of the importance of the product they offer, the credit bureaus have been on the business end of countless lawsuits. In fact, a day does not go by when a non-compliance lawsuit is not filed against one of the three major credit bureaus. The importance of credit repair and the groundswell of consumer concern have not escaped the notice of federal lawmakers. The law that governs the credit reporting industry and provides legal leverage used by professional credit repair services is called the Fair Credit Reporting Act (FCRA). There is much in the way of consumer protection built into the FCRA, but there is just as much protection for the credit bureaus.

Credit Repair to the Rescue

The law simply demands of the credit bureaus that reasonable steps be taken to maintain quality. And here is the essential point for all of those interested in credit repair to be aware of; reasonable steps may be determined by the credit bureaus based on the costs associated with implementation. In other words, if it costs too much to fix, it’s going to stay broken. But, not to worry, you are not without a remedy. Credit repair to the rescue.

Credit Repair and the Bureaucracy

As frustrating as it may be to discover that there such a margin of error allowed in an industry that has so much power over your life, there are ways you can make sure that your credit report shines. All the credit repair tools you need are built into the same tome of law, the FCRA. Many people think of the FCRA as the consumer protection law that was designed to force the credit bureaus to provide more accurate data. It’s not so.

Looking More Closely

A close reading will reveal the fact that the overriding focus of the consumer protection built into the FCRA provides consumers with basic legal rights to rectify credit reporting errors. This is a radical difference from forcing the bureaus to be accurate. The true message of the FCRA is, look out for you, because no one else will.

How Bad is it?

If the FCRA puts so much of the burden of accuracy on the consumer, it means, by inference, that in the absence of consumer participation credit reports are likely contain errors and require credit repair. And that is exactly what has occurred. Fully seventy-five percent of consumer credit reports contain errors. Fifty percent contain errors significant enough to cause those afflicted to pay premium interest rates and even get denied for loan requests.

The Law is Your Sword

Credit repair, as a result, is as an essential process in your life as a regular physical examination or tuning up your car. Credit repair is far more than a credit rejuvenation for those with past credit issues, it is a necessity for everyone. If you don’t have the time to manage the credit repair process on your own, hire a professional. It’s important, it’s your credit, take care of it. Good luck!

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

Curt Dillion asked:


A HOAX? Have you seen the commercials about identity theft wrecking a person’s credit? Well, the truth is that if it happens to you, you can get a brand new social security number from the Social Security Administration. You can be sure that the people who make those commercials don’t want you to know about that!

The following two quotes are from the Federal Trade Commission:

“Your credit repair: self help may be best.”

“Credit repair services have been a big problem for consumers. Credit repair firms typically charge hundreds of dollars for their ongoing services, but don’t deliver on their promises.

The Scam: Everyday, companies nationwide, appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.”

End of Federal Trade Commission quotes.

You don’t need to pay firms or attorneys to send out form letters once a month that get limited results. Credit reporting agencies recognize these form letters, and treat them accordingly. It’s better, cheaper and faster if you do your own credit repair.

Below is a complete advanced strategy that anyone can use to repair their credit. It should be sufficient to for most credit repair situations.

Here are the three simple steps you will use to repair your credit. It’s easy. I’ll go into detail later in this article.

1. Obtain your three credit reports. Each credit bureau must furnish everyone with a credit report once a year, if it is requested.

2. Review the reports and locate the negative items. Reading the information on a credit report takes a little effort, but it’s not hard.

3. Dispute the items that you want removed or corrected.

Repairing your credit is not as intimidating, or difficult, as it might seem. It’s as easy as writing a few very simple letters. The best letters are short and direct. This point is very important, and I want you to remember it: “the best letters are short, simple, direct, AND DO NOT look like form letters.” Never offer any explanations whatsoever, unless you are giving an explanation of a negative entry in a credit bureau file that you have been unable to repair.

Your BIG GUN is “Debt Validation.” It is the primary tool you will use when repairing your credit. If a credit reporting agency does not properly validate a debt within thirty (30) days of your request, they must remove the entry from your file. “The time limit is often the key to success for repairing your credit.”

Credit bureaus are merely big filing cabinets that take in vast amounts of information every day. They don’t have the time or resources to check all of the information which comes in on a daily basis. Frequently, the information is wrong, and they never question it!

Here are some things that they would rather you don’t know.

- Credit reporting agencies are subject to the Fair Credit Reporting Act of 1971 and the Consumer Credit Reporting Reform Act of 1996.

- Each item in your credit file must be proven or it cannot remain in the file. If the credit bureau cannot validate the item, it must be removed from your file, whether it’s true, or not. Validation is not simply, “yep, they said it’s yours.” It takes some actual effort.

- Every negative entry on your report can be denied or challenged at any time. The bureau must reinvestigate and if that item cannot be verified within a “reasonable amount of time”, (30 days) it must be removed from the file. However, they do have an option to deem your request “frivolous” under certain conditions.

- Many times the creditor does not re-validate in the time allowed, or the credit bureau is busy and does not handle your dispute properly. The disputed entry must then be deleted.

- The older an item is, the more difficult validation is. It is possible it cannot be validated because records may no longer exist after a year or two.

- As of September of 2005, all credit reporting agencies must provide one copy of each individual’s credit report every year, upon request. The three major nationwide consumer reporting companies have set up one central website and a toll-free telephone number, through which you can order your free annual report.

To order your free credit reports, go to www.annualcreditreport.com or call 877-322-8228. You must obtain copies of your credit report from all three of these major credit reporting agencies. You should do this every year.

NOTE: These companies ARE ALLOWED to charge you for your “credit score.” They don’t like doing anything for free. But, you DO NOT need your credit score.

A free report is all you need. You only need to see the entries that other people have put in your file. Remove negative entries, and your credit scores will automatically improve.

The Credit Bureaus want you to do everything online. Other than getting your reports online from www.annualcreditreport.com, DO NOT contact the Credit Bureaus online at any time. You must use the postal service for ANY credit repair strategy to work.

When you have received and reviewed your credit report, follow these instructions for any negative entries. Send a very brief letter by certified mail with the following information.”I am disputing this item (or these items) on my credit report. (insert a sentence here which explains why you are disputing the items, ie “you are mis-reporting the information,” or “this account is not mine,” etc.) Please verify and validate it (them).”

NOTE: the word “verify” is a very special and strong legal word. In Black’s Law Dictionary, fifth edition, it is defined, “To confirm or substantiate by oath or affidavit.”

Always use the word verify, in any type of dispute letter. You will probably never go to court over a credit dispute, but if you do, it may be important that you have used the word “verify” in your letters. You will need to make it part of the court record that you asked for verification, and that you know its legal definition.

VALIDATION: A COPY of the original contract with your signature on it is NOT validation. It is no more valid than a copy of a $100 bill, or a copy of one of your checks. Anyone can copy your signature.

There is case law involving The Fair Debt Collections Practices Act, which states that validation of the debt can either be a signed judgment order, or an accounting which is signed and dated by the person responsible for maintaining the account general ledger. Credit reporting agencies should be held to the same rules for validation. I’ve never had to go to court for this, but I have successfully used these validation standards for my own clients.

Back to your own credit repair. When the credit reporting agencies receive your dispute letters, they will check the item, or items, that you dispute, and give a brief reply. They have a total of 30 days from the receipt of the original certified mail you sent to them, asking for verification. Wait until there are only 10 days left, and send another certified letter stating: Your alleged validation is not sufficient to show that I am a debtor to that creditor. Remove the entry from my file.

They will have insufficient time to check it out, and they must remove it from your file. If for some odd reason they do provide sufficient validation, it must be 100% accurate, or they must remove that information from your file.

ALWAYS, ALWAYS, ALWAYS - only communicate with these people in writing thru the mail. An old axiom is “if it isn’t written, it wasn’t said.”

1. Always send certified letters that make them sign a card when they receive your letter.

2. Always keep copies of everything in a special folder, just in case you ever need to go to court.

3. Always demand an updated copy of your file after the negative items have been removed.

About dispute letters:

- You want to make your letters to look “unprofessional,” so that you don’t raise any Red Flags with the credit bureaus.

- Do not use dispute forms or file numbers provided by the bureau.

- Do not use a “fill in the blanks” form letter.

- Do not use a letterhead.

- Instead, send a simple handwritten letter, or a letter printed from your computer.

WARNING: Do not dispute more than three (3) items on your credit report at any one time. Also, wait sixty (60) days before disputing any other items on your report. There are laws in place which allow the credit reporting agencies to deem your disputes as frivolous if they detect that you are trying to eliminate all negative information on your file.

A word about bankruptcy and other legal items in the public records on your credit report. These items are almost impossible to get off your report without using more advanced strategies.

It is unlikely that you will vastly improve your credit score in thirty days as some promise, but you should see some solid improvement in thirty days. Everyone’s situation is different. In some cases that need only two or three corrections, thirty days might do it.

Ian Webber asked:


Speedy Credit Repair



Credit repair does not have to be a long tedious process. There are many things that can be done to boost your credit score right away. It is true that there are some wounds that only time will heal, but that is no excuse to ignore your credit. Become proactive today and I promise dramatic results within 120 days. Are you ready for credit repair in the fast lane? Let’s go!

Get Secured Credit Cards



If a rough patch has left you with no open accounts it’s time for credit repair action. You may not get approved for a regular credit card, but you can open a secured card without fear of rejection. Do it today. Here’s why. Your credit scores are based on both negative and positive information on your reports. Without positive information your credit scores aren’t going anywhere, but get a couple of secured credit cards and your scores will take off. Just make sure to manage your balances the right way.

Managing Balances for Credit Repair



Wow. This is really important. If you do everything else right in your credit repair project, but miss this one thing your scores will go the wrong way, and fast. Here’s the scoop. The latest version of the FICO credit score formula created by the geniuses at Fair Isaac Corp puts heavy weight on your credit cards balances. This is true of all of your credit cards, and doubly true of cards that are less than a year old. If you max out a new credit card you can lose up to 150 points on your credit score. It’s credit repair suicide.

If you’ve read this far, I’ll assume that you really want to crank up your scores, so here is what to do. Use under 20% of the available limit on your cards. Got that? If you have a $1000 limit get your balance under $200 and watch your scores climb. By the way, you can use your cards as much as you want, but if you will need your scores you better get your balances down 60 days in advance because that is how long the creditor can take to report your reduced balance to the bureaus.

Authorized User Accounts Still Work

Here’s a little credit repair magic for you. Call your Mom or any sympathetic soul and ask them to add you to one of their credit cards as an authorized user. Fair Isaac Corp has managed to block brokered authorized user accounts from this benefit, so don’t bother purchasing these accounts online, it’s a waste of money. But legitimate family member authorized user accounts are credit repair gold. Here’s how it works. Once the account shows up on your credit report you will inherit the credit score benefit of the account history of the donors account. Assuming the account balance is low and there is a good payment history you should see a major and instantaneous jump in your scores. That’s credit repair in the fast lane!

Challenge Old Collections

Credit repair rule number one, don’t believe your eyes. This is especially true when it comes to collections. Collectors regularly buy and sell accounts. Most people don’t know that when a collector sells a debt to another collector they are supposed to withdraw their listing from your credit report completely; and I don’t mean listing the collection as paid. They are supposed to remove it entirely. All old collections are worth challenging through the credit bureaus. You may find that most of them just vanish. A nice credit repair outcome indeed.

Rehab Those Defaulted Student Loans

Do you have student loan problems? Are you in default? Are you hoping that years will pass and maybe you will be forgotten? It won’t happen. There is no statute of limitation for the collection of student loans. Over the last five years Sallie Mae has purchased so many collection agencies that they are now the largest collector on the planet. One day they are going to catch up with you, and so will all of the accumulated interest. There is a credit repair solution. Call the Student Loan Ombudsman. They are there to help you understand your rights. They are on your side. Call today: (877) 557-2575.

Call a Credit Repair Pro

Confused? If you want someone to help you understand your credit repair options just pick up the phone. Call a credit repair professional today. They will evaluate your situation and guide you through the process of cleaning up your reports and getting your credit scores in shape. Good luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Ian Webber asked:


Build New Credit Now

The most common credit repair mistake people make is putting off building new credit. If bad financial times have left you without open accounts you must start the rebuilding process now. No matter how successful you are in correcting derogatory items on your credit report if you do not have any open accounts your credit score will not get off the ground. Your credit score is based on both the positive and the negative information on your credit reports. Removing the negative is essential, but without open accounts in good standing the credit scoring formula has nothing to grade you on.

No Excuse for Delay

The logic most people apply in delaying the opening of new accounts as part of a credit repair program is the belief that it would be better to wait. No one wants to get denied. The problem with postponing the task of opening new credit is that it takes time for the new accounts to be an asset. The first few months your new accounts are open will be a drag on your scores. It is best to get started today and to let those new accounts become seasoned. Your credit repair efforts can be very satisfying if you do it right.

Get the Right Type of Credit



If the quality of your credit is not sufficient to be approved for regular credit cards, just get secured cards, they are every bit as valuable for your credit repair efforts. If you are rebuilding your credit from scratch you should get two new secured cards. While we are on the subject it is worth mentioning that not all types of credit are equally beneficial. Focus on building your credit with MasterCard, Visa, American Express, and Discover. Avoid store cards and consumer credit like furniture store loans at all costs when your credit repair project is getting underway. These forms of credit are of questionable benefit and may even depress the scores of those with little credit depth.

Managing Your New Credit

Once you have opened your new credit cards you can pump up your credit repair efforts significantly or you can become your own worst enemy. These new little credit cards can easily make a difference of one hundred points in your scores, in either direction, depending on how you manage them. The FICO scoring formula to a surprising extent hinges on the balances you maintain on your cards. Specifically FICO recognizes card usage in 20% increments. It is handy to be aware that if you want the largest credit repair benefit you should use less than 20% of your available limit. And if you max out one of your new cards you can expect a precipitous breathtaking drop in your scores. If this should happen to you, here is a bit of good news. All you need to do is pay your balances back down again and your score will pop right back up, just as quickly as the creditor reports the new balance to the credit bureaus.

Credit Repair and Installment Debt

Generally speaking, in the long term it is very good for your credit repair efforts to have a balanced mix of credit types. As mentioned above store cards and consumer debt, such as furniture store loans are the exception; if you are making a credit repair effort I suggest you steer clear of these debt types altogether. Once your credit is well established you can feel free to use consumer debt and enjoy the discounts that often come with these new accounts. Automobile loans and mortgages are a healthy counterpoint to well managed revolving debt. From a credit repair perspective both of these credit types should be part of a long term credit building strategy. Unlike revolving debt, which can influence your scores dramatically from month to month in either direction based on your balances, the real impact of these installment loans builds over time as the FICO scoring model give you credit for longevity.

Get Some Credit Repair Help

There are a lot of little details that can make a significant difference in your credit repair success. Unfortunately, not all of these details are a matter of common sense. You need to study up a bit. The credit reporting system and the FICO credit scoring model have evolved into densely complex systems. It is no longer enough to just pay your bills on time and hope for the best. It is not a perfect world and you need to look out for yourself, and it may take some work. Buy a book on credit repair or contact a legitimate credit repair service to light the path for you. You can do it. Good Luck!

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

Jim Kemish asked:


Credit Repair Just For You

The holidays are a time of giving, and a time for reflection. If you have credit issues credit repair might be the perfect gift to give yourself. But how should you get started? You can manage your own credit repair project, or you can hire a reputable credit repair service to do the work for you. Both options are reasonable, but which is right for you?

Starting Credit Repair on Your Own



Managing your own credit repair project can be very rewarding, but it will take some time and effort. Every single do-it-yourself advocate in the credit repair field will tell you the same thing; don’t do anything until you have done your homework. You may do more damage than good. So pick up a good credit repair book and settle in for a nice mid-winter’s read. Proper preparation will avert problems and insure credit repair success.

Get a New Frame of Mind



If you are going to manage your own credit repair project, it is essential that you embrace a whole new frame of mind about your credit report. In a nutshell, don’t believe your eyes. That’s right; it’s time for you to give yourself the benefit of the doubt. One of the worst mistakes you can make is to ignore derogatory items on your credit report simply because they look familiar. The vast majority of errors on credit reports are generated by real events and will look familiar, but should not be reported as a matter of law. As you take the time to educate yourself about credit repair you will understand how common these terrible errors are, and what you need to do to correct them.

Get Organized



Another great tip for anyone about to start the credit repair process is to get organized. You will need to dispute your issues with all three credit bureaus individually, so it is essential to treat each bureau as a separate project. Set up three files, one for each bureau and plan on keeping meticulous records of all correspondence. Examine each report individually and you will notice some surprising differences that you must incorporate into your credit repair efforts. You may be surprised to see that the bureaus often report different account numbers for the same accounts, and even different variations of creditor names. For the best results customize each bureau dispute to match the info they report.

Don’t Give Up



A final word of wisdom for your do-it-yourself credit repair project, don’t give up. If the item you disputed is verified you should re-dispute it. You have the legal right to demand that the credit bureau request proper research by the creditor. If you re-dispute an item raise your voice! As your studies continue you will learn all about your legal rights under the Fair Credit Reporting Act. Most good books on credit repair will point out that the credit bureaus won’t do much for you voluntarily. You must become your own advocate. Prepare to stand your ground.

Brush up On Collection Laws



Another tip of value is to familiarize yourself with your rights under the Fair Debt Collection Practices Act. Most decent credit repair books will include a section on dealing with collectors. If you ever had an account charged-off, or currently have any active collections make sure to read carefully. If you know your rights you can deal with collectors from a position of power, and that can make a world of difference in your credit repair project.

Or Hire a Credit Repair Service



If all of this is too much, if you have enough on your mind already, just hire a credit repair service. Just take the time to check them out, look at their Better Business Bureau rating, consider their years in business, and most important give them a call. I suggest you make a list of questions and have a chat. Hire someone you feel comfortable with and let them guide you through the maze to credit repair success. You can do it! Good luck!

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

Jordan FeRoss asked:


Credit information that is negative, erroneous or outdated can be removed by a credit repair company. They work to offer credit repair services to consumers that want to fix their credit. Having good credit along with a good credit report and a good credit score can help consumers go a long way. If they need products or services, they will be able to get credit. Sometimes people have to go that route if they don’t have the money to get what they need. However, they have to know that the credit has to be paid back in a timely manner.

A credit repair company is a business that can legally help consumers to get credit repair services. Most companies will charge a one time or monthly fee. This is so that the counselor can do the work that they need to do in order to help you with your credit. They are very helpful in getting down to the bottom of helping you to fix your credit. If there are mistakes on your credit report that should not be there, the counselor will work to get them removed.

There are times when a consumer tries to get the erroneous or outdated items removed themselves, but the credit bureaus prefer to give them a difficult time during the process. Even if the consumer is correct, sometimes they are still stuck between a rock and a hard place. It may take several tries before the credit bureau decides to rule in their favor. By then, the consumer gets weary and decides to give up. That’s where credit repair services come in. They work to set up a credit repair program for the consumer.

They will look at the consumer’s credit report and with their assistance, point out the items in question. By law, the credit bureaus have 30 days to respond to the dispute. If it is found that the item should not be there, then by law they are supposed to remove it. However, that does not always happen. Part of the credit repair program involves a credit repair services professional to intervene on the consumer’s behalf and get the credit bureau to remove the questionable items. If necessary, the credit repair company will write a letter on the behalf of the consumer and also provide follow-ups to see if they received the correspondence.

The bureaus will usually heed to the request. The rest of the credit repair process can proceed from there. The credit repairs services professional will lay out a plan for the consumer to follow. They must either make payments to the credit repair company or they can get a debt consolidation loan, provided that they qualify. The consumer has to promise to pay off the loan as provided in the agreement.

Either way, the consumer is indebted to the credit repair company or the lender for making payments on a timely basis. It’s important that they not slack off and miss a payment. This could jeopardize them from improving their credit status. It only takes one missed payment and the rest is history. Using credit repair services effectively can keep them on the right track.

Credit repair services have been an advantage for a lot of people. They have been able to restore their credit when they implement a credit repair program. Once you have a record of timely payments, you will be regarded as someone who has regained their creditworthiness.

Jim Kemish asked:


The Foundation of Credit Repair Success



It’s time to take stock. Where are you today? Are your finances stable enough to make timely payments on your obligations from this point forward? Credit repair can completely transform your credit and even put you on the path to long term wealth. But to be a good candidate for credit repair you must be able to keep up with your existing commitments. There is no point in making the effort if you are still slipping backward each month. If you can commit to timely payments from this point forward you are a candidate for genuine credit repair success!

Understanding the Nature of Credit



Credit repair success can be measured by the changes in your credit scores. Cleaning up all of the erroneous reporting issues from your credit report is essential, but in the final analysis it is your credit scores that will tell the tale. Credit scores are the result of everything on your report. As important as eliminating negative items may be, the presence of positive credit is even more important. In short, good credit scores require the presence of open and properly managed accounts. Managing your accounts for credit repair success is easy if you know how.

Your Accounts and Credit Score Optimization

As odd as it seems, you may make all of your payments right on time, for years on end, and still have awful credit scores. The good news is that a bit of knowledge can turn things around on a dime and lift your scores dramatically. There are two parts to this credit repair secret; type of credit, and account balances. When it comes to your credit scores not all credit is created equal. It is simple; mainstream credit cards, such as MasterCard, Visa, American Express, and Discover are good. Store cards and consumer credit, such as furniture store loans, are bad. If you have store cards or consumer debt you should work on paying it off. Now, let’s chat about managing those good mainstream credit cards for credit repair success.

Revolving Account Management

If you don’t have any good open credit cards, open them now. If you can’t get approved for unsecured credit, just get a couple of secured cards. They are easy to get and you won’t be denied. Once you have your credit cards you are in a position to really get your credit scores moving in the right direction. All you need to do is get the balances under twenty percent of the cards capacity. If you have a five hundred dollar card get the balance under one hundred dollars and watch your scores take off. Conversely, you need to know that a balance near the card’s limit can knock as much as one hundred and fifty points off your score. If you have high balances, don’t worry. As soon as you pay the balances down your scores will pop right back up (just allow time for the creditor to report the new balance to the credit bureau).

Whipping Your Credit Report into Shape



Credit repair rule number one: Give yourself the benefit of the doubt! Don’t believe everything on your credit report just because it is in writing. If there is any chance a derogatory item is erroneous, dispute it! For goodness sake, it’s your credit and it’s important, so get pro-active, or hire a professional credit repair service to manage the process for you. There is plenty of evidence to support an aggressive approach to credit repair. Over seventy five percent of all credit reports contain errors. The majority of these errors cause consumers to pay premium interest rates on the money they borrow. Don’t be victimized.

Two Handy Credit Repair Tips

Once you get into the task of cleaning up your credit report here are two handy credit repair pointers that can help you out. First, legally, collectors are supposed to withdraw their reporting of an account as soon as they sell the account or return it to the original creditor, but they rarely do. Challenge all questionable collections. And, second, credit card issuers have been known to underreport credit card limits. This underreporting has the same impact on your scores as if you had run up your balance. Proofread your reports carefully for accurate credit limits.

Don’t be Afraid to Ask for Credit Repair Help



Reach out! If you don’t have the time to manage the job of credit repair on your own call a pro. A credit repair professional will review every single detail on your report. They will be able to identify your credit score optimization options, find deficiencies in your credit, and dispute all of the questionable derogatory issues in an experienced and efficient manner. Good luck with your credit repair project!

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

Ian Webber asked:


Credit repair has its share of detractors, and perhaps for good reason. The FTC campaign against credit repair scams makes perfect sense. But for every consumer that has been disappointed by a questionable credit repair scheme, there are so many more that have benefited from the service of a genuine credit repair professional. Is it time for the FTC to acknowledge the good guys in the credit repair industry?

The credit reporting system is not perfect. There is no debate about this. The Fair Credit Reporting Act (FCRA) provides the legal process for consumers to correct errors on their credit reports and initiate a credit repair effort if necessary. How common are these errors? How difficult are they to identify and correct?

You may be aware of the often quoted Public Interest Research Group (PIRG) studies which conclude that three-quarters of all credit reports have errors. The Government Accounting Office (GAO) conducted a study of studies on the subject and also identified the severity of the issue. The real need for credit repair arises from the potential economic impact of these errors which translate into higher interest rates and less favorable terms for those affected.

To appreciate the need for credit repair you need only look at the numbers. Each of the three major Credit Reporting Agencies maintains data on approximately two hundred million Americans. Per the Public Interest Research Group studies, about one hundred fifty million Americans have errors on their credit reports. The PIRG studies conclude that although some of the errors will have little or no bearing on the credit classification of the consumer, a full twenty five percent of the errors are likely to result in outright denial of credit.

Twenty five percent represents fifty million people. As large a number as this is, it is only reasonable to extrapolate that there is an even larger group who suffer needless economic hardship from errors without experiencing outright credit denial. Between the two statistics are one hundred million Americans who may be paying premium interest rates as the result of errors; one hundred million Americans who may be paying higher mortgage payments, auto loan payments, and credit card payments. How far does the Fair Credit Reporting Act go to resolve this problem and aid or encourage the credit repair process?

The truth is that the Fair Credit Reporting Act does very little to mitigate the impact of credit reporting issues or support the credit repair process. The average person has difficulty reading a credit report, and beyond the face value of the information on the report lays the vast array of virtually inaccessible legal information that would facilitate their ability to manage the chore of credit repair. This includes the basic guidelines of the Fair Credit Reporting Act itself, reporting period limits, dispute rights, etc., as well as other legislation that may come to bear such as the Fair Debt Collection Practices Act and individual state statutes of limitation.

The complexity of credit repair in and of itself should not be a problem. The tax code is no less difficult and we all manage to get our tax returns done. For that matter, most of us drive automobiles and have no clue about how an internal combustion engine works, much less how to fix one. The real problem is the public perception of the credit repair industry. Imagine if we were regularly persuaded that accountants were unnecessary; how would we get our taxes done? Or if we were told to stay away from auto mechanics; how many of us would be able to repair or maintain our automobiles adequately?

The accuracy of your credit report is important. Your credit score will determine the cost of every dollar you borrow, and its affect will determine the quality of your life. I understand the FTC campaign against bad credit repair operations. And I understand the importance of the media warnings against illegal credit repair schemes. But for all of the good intentions of the FTC, the result of their myopic anti credit repair attitude has been an enormous cost for millions of people that should have been encouraged to seek professional credit repair help.

For all of the bad publicity surrounding credit repair schemes, there are many excellent professional credit repair businesses. The services provided by these credit repair professionals are no less important than services offered by any financial expert and should be sought out by anyone in need of guidance. As important as the FTC warnings against abusive practices may be, it is time for them to acknowledge the good guys that operate in the credit repair field.

Copyright © 2008 Ian Webber. All Content. All Rights Reserved.

John Cena asked:


Some companies advertise that they have a credit report repair Software and also they will teach you credit repair secrets, for a fee of course. There is a lot of free information here, if you know where to look. Before you take a credit repair course or sign up for credit report repair, read the facts and the laws relating to credit repair. In this way you may avoid some disappointment and save some money.

What is credit report repair or software? The best kept “secret” is that creditors and credit reporting agencies (commonly referred to as the credit bureaus) make mistakes. What can you learn in a credit repair course? You can learn the basics of bad credit repair, without paying a penny. If you cannot achieve results on your own, then you may need to hire a credit repair lawyer to help you. If you feel that you have exhausted all of the free options, identify what information that you still need and make sure that the credit repair course or software program that you are considering includes that information.

A secret may be defined as “beyond simple understanding”. Using this definition, credit report program is credit report repair that is beyond ordinary understanding. The average person does not understand how credit scores are calculated. Most people do not know what information is on their credit reports. Many people do not know their rights under the law.

Credit repair is a popular subject. It seems that almost everyone wants learn about credit repair. Books and software programs that claim to contain everything you wanted to know about credit repair are being sold on the internet and in retail locations all over the country. There are some questionable credit repair schemes and some companies suggest action which is illegal. Consumers can learn to repair their own credit, but it takes time and patience. The safest bet when hiring someone to do the work for you is to hire a credit repair attorney. In this way, you can be sure that you will achieve results; they know everything there is to know about credit repair. You can also be sure that a credit repair attorney will not advise you to do anything that is illegal. Most of the popular credit repair lawyers do not charge more than the other credit repair companies and some offer money back guarantees.

The Federal Trade Commission regulates credit repair organizations and states that “certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon consumers, particularly those of limited economic means and who are inexperienced in credit matters.” Under the laws regulating credit repair organizations, any company that advertises secret credit report repair or credit repair in general must provide the consumer with certain information. These regulations do not apply to companies that offer a credit repair course or seminar. Most of these are simply rehashing information that has been available for years. If you look in the public library, you will see that individuals have been writing books about credit report repair for years.

There was an individual who advertised his informational packages on TV. One of his reports was “how to get AAA credit” or something like that. This was not any spectacular secret credit report repair. It was not a credit repair course. He advised consumers to make a $500 deposit into a savings account at any bank. Then, using the deposit as security, apply for a loan. Repay the loan and according to him, you would have great credit. This may be information that the average person does not know. It is similar to the secured credit card programs that so many companies offer. The thing about credit is that, it is harder to get, if you really need it. If you have $500 to deposit into a savings account or a secured credit card program, if you have the money to pay off the debts that you owe, you can improve your credit score over time.

Companies that advertise quick free credit report repair are banking on the theory that you do not know how to review your credit reports for inaccurate information. If you have inaccurate, obsolete, misleading or unverifiable information on your credit reports, then the credit bureaus must delete the information. You must “dispute” the information. In other words, you must notify the credit bureaus about the negative information that needs to be deleted. This is the credit report repair that is often the subject of a credit repair course.

Jim Kemish asked:


Credit repair and Your Payments

You have decided to repair your credit. You need to make sure that all of your payments are made on time from now on. Make sure your finances are organized and that there is enough room in your budget for the occasional unexpected expense. Credit repair requires effort and you don’t want to slip backwards. Credit repair can transform your life; make the right effort and you will be richly rewarded.

Review Your Credit Reports

Get copies of all three of your credit reports. You can get them online at AnnualCreditReport.com for free one time each 12 months. This website is government mandated and is the only place where you can get your reports for free. All of the other websites that advertise free credit reports require you to join a monthly service; there is value in these monthly services, but make sure you know what you are buying. Once you have your reports it’s time to start your credit repair project.

Correct Your Account Limits

Credit repair can be daunting. I suggest you take one manageable step at a time. Begin by proofreading the credit limits on your revolving accounts. A significant part of your credit scores are based on the ratio of your current revolving balances to your credit limits. Many credit card issuers underreport these limits and inadvertently harm your credit scores. Put your credit repair plan into action. If you discover any underreported limits communicate the issue to the creditor and provide a copy of a credit card statement to the credit bureaus.

Eliminate Extraneous Accounts

Examine your reports for extraneous accounts. These can include closed and paid accounts that are reporting as open with balances. You should also look for duplicate accounts. Take your time. Credit repair requires a little patience. A duplicate account with no derogatory information may blend into the background, but can have a negative impact on your credit scores. Duplicate accounts are common occurrences and can be easily rectified with a bit of credit repair. The credit bureaus rather than the creditors most often cause these errors, so a letter to the offending bureau ought to do the trick.

Challenge Collections

The collection industry may be the largest single contributor to credit reporting errors and well worth your credit repair attention. The FTC has made it clear in their elucidation of the Fair Credit Reporting Act that when a collector sells debt to another collector or returns it to the original creditor they should withdraw their reporting of the item. Unfortunately, there is no incentive for compliance and so these erroneous collection accounts continue to report, often for years. Generally speaking, you would be well advised to challenge collections as part of your credit repair project; an easy credit repair task.

Use Debt Validation

If you get a collection letter in the mail open it right away and prepare to respond. For a thirty-day period following receipt of a collection letter you are in the legal drivers seat. Don’t miss this credit repair opportunity. If a stranger knocked on your door and asked for money would you hand it over? I hope not. Don’t give a penny to a collector without validating the debt. You have the right to demand proof from a collector that they have the legal right to collect, and an objective accounting of the amount claimed due; do this within thirty days, and do it in writing.

Know Your Statutes of Limitation

Debts are not collectable forever. If you are embarking on a credit repair effort this is one of the truly important facts to know. Statues of limitation vary based on state and debt type. This information can easily be found on the Internet. Once the statute of limitation has expired a collector can no longer sue you for the debt, and hence cannot get a judgment. Read this credit repair fact carefully. If a debt is beyond the statute of limitation a collector has absolutely no way to enforce collection. This gives you two wonderful credit repair options. You can send them a cease communication letter and you will never hear from them again, or you can contact them to negotiate payment. Once they know you understand your rights they should be happy to settle.

Save for the Future

With all of the effort you are putting into your credit repair project you will want to insure that nothing comes along to send you back to square one. The best credit repair insurance in the world is a healthy saving account. If unexpected expenses arise, and they will, you will not bust your budget if you have some money set aside. Saving also offers some amazing fringe benefits that transcend the obvious, like self-confidence and peace of mind, which can’t be measured, but are definitely priceless. Good luck!

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