Credit Repair and the Credit Bureau Battle

Too Many ErrorsCredit repair serves a real purpose. Credit reporting errors are much more prevalent and costly than most people realize. Over half of all credit reports have errors on them that are serious enough to cause the victim to pay higher interest rates and even to be denied for financing. Credit repair is about finding and correcting these errors, and there is more to it than most people realize.Too Hard to FindMany people dismiss credit repair as a process that requires no more than a cursory scan of their credit reports. Unfortunately, a quick scan of your credit reports will almost certainly leave almost all of the score-damaging errors undiscovered. To tap the real potential of credit repair requires an exploration of the credit reporting guidelines embodied by the Fair Credit Reporting Act (FCRA). An understanding of the FCRA is certain to reveal a number of surprising and correctable errors. And every error caught and corrected is money in the bank.Why Credit Repair MattersYou might be shocked at the potential cost of impaired credit. You pay interest on the money you borrow, and your interest rates are based on your credit. And it adds up. If you have a mortgage, an auto loan, and a couple of credit cards a damaged credit report could be costing you thousands of dollars each year. A small investment of time today can repay you in a tangible way for many years to come.Sneaky Defensive Credit BureausIf you are going to launch a credit repair project you must adopt a somewhat skeptical attitude towards the credit bureaus. It might be handy to understand that the credit bureaus are not government agencies, nor do they have any status other than for-profit businesses. They each manage billions of pieces of data for over 200 million Americans, and they are not perfect. They are interested in maintaining accuracy, but only to the extent that it is not an economic detriment. You should also keep in mind that they often take a stand against credit repair only because it is in their best financial interest to do so.The Problem with the FTCThe FTC in very justified in their campaign against crooked credit repair operations. The only real caveat here is that the FTC operations and press campaigns against scams can be heavy handed and unhappily omit the fact that, as in every industry, there are good guys and bad guys, and there are many excellent credit repair companies capable of significantly transforming your life.How the Bureaus Manage DisputesOnce you decide to get your credit repair project underway you need to be conscious of the fact that you need to work thoughtfully, and even respectfully, within the credit bureau system. It is essential to understand the FCRA and to focus your disputes in areas that you have leverage, but it is equally important to understand that you will face some resistance. The credit bureaus receive mountains of disputes every day and have the right to refuse to process any request they feel is frivolous. They use this right liberally, and you need to be patient; determined, but patient.Collectors and Credit RepairAnother somewhat recalcitrant group of participants in the credit reporting process is collectors. They are governed by the Fair Debt Collection Practices Act (FDCPA), and in their interaction with the bureaus by the FCRA, but there are so few repercussions for failure to comply that an amazing number of errors, intentional and otherwise, slip through the cracks. And the unwary consumer pays the price.Winning the Credit Repair Battle with CollectorsWhen it comes to collectors appearing on your credit report, doubt your eyes. Take the time to understand how reporting period limits work, and how collectors reset them causing collections to report many years past their legal reporting limit. And to defend yourself against any active collectors you will also need to understand how statutes of limitation work. When it comes to credit repair a little homework really pays.Professional Credit Repair Services WorkNot everyone has the time available to master the details involved in credit repair success. Nothing can affect your financial life like your credit. You simply cannot afford to do half the job. It’s your credit, and you owe it to yourself to make sure the job is done right. Either invest in a couple of good books and put in some serious study time, or hire someone to do the job for you. Credit repair is all about the details. It’s not hard to get the results if you do it right. Good luck!Copyright

Winning the Credit Repair Battle

Start Your Credit Repair RightDon’t make the mistake of rushing headlong into the credit repair battle without doing your homework, as you are certain to meet with disappointment. Invest a few hours in the planning stage of the battle and you can insure your success. You credit repair project is too important to make any fundamental errors, most of which can be easily avoided. Let’s look at the key issues that will determine the outcome.Make a CommitmentCredit repair success requires a commitment to timely payments from this point forward. It’s time to take an honest look at your personal finances. Dissect your budget. Examine every expense, from basic overhead to the discretionary items you purchase each month. Bite the bullet, put it all in writing, and exclude nothing. If you discover that you are spending more money each month than you have coming in you will need to make some changes. Credit repair can totally change your life, boost your confidence, and even lay the foundation for long term wealth, but you need to be honest with yourself, starting now.Accentuate the PositiveStart with a focus on the positive. Credit repair success demands the presence of open, well managed accounts. We will get to the more exciting subject of removing derogatory information from your reports in a minute, but in the final analysis it is the positive accounts that will define your credit repair results. You must have at least two open mainstream credit cards. If you do not have any open accounts, now is the time to open them. If you are concerned with your ability to get approved, get secured credit cards. They are the perfect credit repair tool.The Power of Credit CardsCredit card management for credit repair success is not hard, but there are two important issues that can make or break the outcome. First, credit cards are not created equal. Store cards and consumer credit, such as furniture and electronics store credit lines, are dangerous for your credit; the FICO scoring model is biased against these forms of credit. Mainstream cards such as MasterCard, Visa, American Express, and Discover are the only way to go. Second, your account balance relative to your credit limit can swing your score one way or the other by as much as 150 points. Max out your credit cards and your scores will plunge. So watch those balances.Adjust Your AttitudeOnce you have gotten a handle on your personal finances and understand the importance of building and maintaining positive credit it’s time to move the troops into position. Let the battle begin. It’s you against the credit reporting errors that have accumulated on your credit report over the years. If you truly want to win the credit repair battle you need to make an attitude adjustment; give yourself the benefit of the doubt. Don’t believe the information on your credit report just because it is in writing. There are dozens of types of errors that are generated from legitimate issues. This means that an item is not necessarily accurate just because it looks familiar.Challenge CollectionsThe most common and damaging credit reporting error is the illicit collection. You may be aware that collections are bought and sold on a regular basis. You may, however, not know that when a collector sells an account to another collector or returns it to the original creditor they are supposed to withdraw their reporting altogether. Unfortunately, there is no penalty for failure to comply, and so many illicitly reported collections linger for years. Examine all collections very carefully. If there is any question that the collector still owns the debt you should challenge it.Continue the CleanupWhen it comes to other derogatory information on your report, such as late payments, you should continue to give yourself the benefit of the doubt. Late payment reporting errors are extremely common and yet often go unchallenged because consumers recall paying a late fee. This is not an indication of the accuracy of the reporting. Late fees are typically charged when a creditor receives your payment 15 days after the due date. Late payments on your credit report, on the other hand, are not supposed to be reported until you are a full 30 days late.Reach Out for Credit RepairWhen it comes to credit repair, every detail matters. As you get your credit repair project underway it is important to know that there is help available if you need it. Just reach out and ask. Most professional credit repair services offer a free consultation; take advantage. Make the most of your call by writing down your list of questions in advance. Get comfortable, take your time, and do it right. Credit repair success will be yours. Good luck!Copyright