FREE GUIDE TO DO-IT-YOURSELF CREDIT REPAIR
More than ever consumers are worried
about their credit history. No wonder with up to 70% of credit
reports containing errors and many of those very serious errors.
This information, according to the Public Interest Research Group-
(www.PIRG.org) has consumers wondering just how accurate their credit
reports are. Well, have faith, there are steps you can take to rectify
a poor or inaccurate credit history.
Credit Repair Steps:
1.) You must first obtain a copy of all three
credit reports. There are three
national credit bureaus- Experian, Equifax and TransUnion. Most
credit reports cost around $8.00 but If you've been denied credit,
insurance or employment because of your credit reports, you are
entitled to a free copy from the credit bureaus. You have 60 days
after receiving the denial notice to request your free copy. Once
you have your credit reports, go over each one with a fine tooth
comb. Scour the reports for errors such as inaccurate account information,
incorrect home addresses, duplicate accounts and false information.
Many times you will find little errors like limit, balance, date
opened/closed and payment history and fixing those errors can make
a huge difference in how good your credit looks.
2.) Send off your disputes. Once you determine
the errors, highlight each one and attach
a letter and a copy of the credit
report explaining the nature of your dispute. Send off the letters
and a copy of the report to the corresponding bureau.
Equifax
PO Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Trans Union
760 W. Sproul Rd.
Springfield, PA 19064-0390
(800) 888-4213
Do not send Experian disputes to Equifax or TransUnion.
Each credit bureau is independent and does not fix the others
errors. Wait about 30 days to get a response from the credit
bureau reflecting the correction and continue this process until
you have cleaned up all inaccurate, false or outdated or unverifiable
information. Credit bureaus can only report a negative history for
7 years from first serious
delinquency or charge off so be careful to look for outdated information.
3.) Keep a paper trail of everything! Your
proof of all your hard work will be in your documentation so be
sure to keep copies of everything. Send your disputes by certified
mail so that you get a receipt back showing the dispute was delivered
to the bureau. Bureaus receive millions of pieces of mail so don't
think your dispute won't get lost in the shuffle. You may need all
that documentation later if you find the bureau being resistant.
4.) When disputing doesn't work. Some times
you may find that the bureau has determined your information to
be timely and accurate. You may feel differently about it and may
even have a good argument. That is when it is time to turn your
attention to the "source reporting it"- the creditor.
The creditor holds all the power in how they report your accounts
and ultimately they are the one who can remove a negative mark.
Some strategies to dealing with the creditor is to provide them
with a written history of what you believe happened. Maybe they
charged a late fee inappropriately or maybe they agreed to re-age
a late payment but did not follow through or possibly you had an
agreement with them to remove a negative mark in exchange for settling
a debt. All of these reasons need to be dealt with on the creditors
end- not the bureau. The bureau is good for 'spring cleaning"
a report but the real results come from dealing with a creditor.
Follow the same strategy as above getting everything in writing
and keeping good records of exactly who you spoke to and where you
mailed your letters.
5.) Negotiating negative but accurate credit.
Once you have completed all the steps above you may be left with
a few accounts that the creditor or credit bureau is unable to assist
you with. What type of account is that? A collection account owned
by a third party debt
collector. Once a debt has been sold to a collection agency,
the creditor no longer owns the right to settle it. By dealing with
the collection agency in writing you can begin to negotiate
a reduced payoff in exchange for a better rating or a deletion
of the negative account. This can be very effective in wiping out
negative credit. A collection agency is more interested in getting
your money than reporting the debt. They only report it as a tool
to get you to contact them because they know eventually that bad
mark will be in your way of getting a car, home loan or job. Be
careful when dealing with debt collectors by following a few simple
rules.
Get everything in writing especially settlement
offers. If you don't they may cash
your check and leave the nasty mark on your credit. Move onto
someone else within the agency if the person you are dealing with
is impossible. Ask for a superior. Never let the debt collector
know that you are paying off the bill because you are trying to
get a loan. They will have you right where they want you if you
do. Validate the debt
first. Use your rights
under the Fair Debt Collection
Practices Act to question the validity of the debt. If they
cannot prove it- they can not collect or report it- simple as that!
If they refuse to validate it, send
an Estoppel letter. You can also sue
a creditor or credit bureau for violations. Also- do not forget
to check the SOL (statute of limitations
for collectability of the debt- you may not even have to pay it).
6.) Pay off high balances, close unused
accounts (unless the accounts have a history of 10 years or more-
keep those) and be sure to limit
your inquiries. All of this can help you have better credit!
Finally, use our free debtor library
to assist you in understanding debt
collectors and credit bureaus.
It's free and you will be glad you did!
The FTC on Fair Credit Reporting
If you've ever applied for a charge account, a personal loan, insurance,
or a job, there's a file about you. This file contains information
on where you work and live, how you pay your bills, and whether
you've been sued, arrested, or filed for bankruptcy. Companies that
gather and sell this information are called Consumer Reporting Agencies
(CRAs). The most common type of CRA is the credit bureau. The information
CRAs sell about you to creditors, employers, insurers, and other
businesses is called a consumer report. The
Fair Credit Reporting Act (FCRA), enforced by the Federal
Trade Commission, is designed to promote accuracy and ensure
the privacy of the information used in consumer reports. Recent
amendments to the Act expand your rights and place additional requirements
on CRAs. Businesses that supply information about you to CRAs and
those that use consumer reports also have new responsibilities under
the law.
Here are some questions consumers commonly ask
about consumer reports and CRAs - and the answers. Note that you
may have additional rights under state laws. Contact your state
Attorney General or local consumer protection agency for more information.
Q. How do I find the CRA that has my report?
A. Contact the CRAs listed in the Yellow Pages under "credit"
or "credit rating and reporting." Because more than one
CRA may have a file on you, call each until you locate all the agencies
maintaining your file. The three major national credit bureaus are:
In addition, anyone who takes action against you
in response to a report supplied by a CRA - such as denying your
application for credit, insurance, or employment - must give you
the name, address, and telephone number of the CRA that provided
the report.
Q. Do I have a right to know what's in my report?
A. Yes, if you ask for it. The CRA must tell you everything in your
report, including medical information, and in most cases, the sources
of the information. The CRA also must give you a list of everyone
who has requested your report within the past year - two years for
employment related requests.
Q. Is there a charge for my report?
A. Sometimes. There's no charge if a company takes adverse action
against you, such as denying your application for credit, insurance
or employment, and you request your report within 60 days of receiving
the notice of the action. The notice will give you the name, address,
and phone number of the CRA. In addition, you're entitled to one
free report a year (1) you're unemployed and plan to look for a
job within 60 days, (2) you're on welfare, or (3) your report is
inaccurate because of fraud. Otherwise, a CRA may charge you up
to $9 for a copy of your report.
Q. What can I do about inaccurate or incomplete
information?
A. Under the new law, both the CRA and the information provider
have responsibilities for correcting inaccurate or incomplete information
in your report. To protect all your rights under this law, contact
both the CRA and the information provider.
First, tell the CRA in writing what information
you believe is inaccurate. CRAs must reinvestigate the items in
question - usually within 30 days - unless they consider your dispute
frivolous. They also must forward all relevant data you provide
about the dispute to the information provider. After the information
provider receives notice of a dispute from the CRA, it must investigate,
review all relevant information provided by the CRA, and report
the results to the CRA. If the information provider finds the disputed
information to be inaccurate, it must notify all nationwide CRAs
so that they can correct this information in your file.
When the reinvestigation is complete, the CRA
must give you the written results and a free copy of your report
if the dispute results in a change. If an item is changed or removed,
the CRA cannot put the disputed information back in your file unless
the information provider verifies its accuracy and completeness,
and the CRA gives you a written notice that includes the name, address,
and phone number of the provider.
Second, tell the creditor or other information
provider in writing that you dispute an item. Many providers specify
an address for disputes. If the provider then reports the item to
any CRA, it must include a notice of your dispute. In addition,
if you are correct - that is, if the information is inaccurate -
the information provider may not use it again.
Q. What can I do if the CRA or information
provider won't correct the information I dispute?
A. A reinvestigation may not resolve your dispute with the CRA.
If that's the case, ask the CRA to include your statement of the
dispute in your file and in future reports. If you request, the
CRA also will provide your statement to anyone who received a copy
of the old report in the recent past. There usually is a fee for
this service. If you tell the information provider that you dispute
an item, a notice of your dispute must be included anytime the information
provider reports the item to a CRA.
Q. Can my employer get my report?
A. Only if you say it's okay. A CRA may not supply information about
you to your employer, or to a prospective employer, without your
consent.
Q. Can creditors, employers, or insurers get
a report that contains medical information about me?
A. Not without your approval.
Q. What should I know about "investigative
consumer reports"?
A. "Investigative consumer reports" are detailed reports
that involve interviews with your neighbors or acquaintances about
your lifestyle, character, and reputation. They may be used in connection
with insurance and employment applications. You'll be notified in
writing when a company orders such a report. The notice will explain
your right to request certain information about the report from
the company you applied to. If your application is rejected, you
may get additional information from the CRA. However, the CRA does
not have to reveal the sources of the information.
Q. How long can a CRA report negative information?
A. Seven years. There are certain exceptions:
Information about criminal convictions may be
reported without any time limitation.
Bankruptcy information may be reported for 10
years.
Information reported in response to an application
for a job with a salary of more than $75,000 has no time limit.
Information reported because of an application
for more than $150,000 worth of credit or life insurance has no
time limit.
Information about a lawsuit or an unpaid judgment
against you can be reported for seven years or until the statute
of limitations runs out, whichever is longer.
Q. Can anyone get a copy of my report?
A. No. Only people with a legitimate business need, as recognized
by the FCRA. For example, a company is allowed to get your report
if you apply for credit, insurance, employment, or to rent an apartment.
Q. How can I stop a CRA from including me on
lists for unsolicited credit and insurance offers?
A. Creditors and insurers may use CRA file information as a basis
for sending you unsolicited offers. These offers must include a
toll-free number for you to call if you want to remove your name
and address from lists for two years; completing a form that the
CRA provides for this purpose will keep your name off the lists
permanently.
Q. Do I have the right to sue for damages?
A. You may sue a CRA, a user or - in some cases - a provider of
CRA data, in state or federal court for most violations of the FCRA.
If you win, the defendant will have to pay damages and reimburse
you for attorney fees to the extent ordered by the court.
Q. Are there other laws I should know about?
A. Yes. If your credit application was denied, the Equal Credit
Opportunity Act requires creditors to specify why - if you ask.
For example, the creditor must tell you whether you were denied
because you have "no credit file" with a CRA or because
the CRA says you have "delinquent obligations." The ECOA
also requires creditors to consider additional information you might
supply about your credit history. You may want to find out why the
creditor denied your application before you contact the CRA.
Q. Where should I report violations of the
law?
A. Although the FTC can't act as your lawyer in private disputes,
information about your experiences and concerns is vital to the
enforcement of the Fair Credit Reporting Act. Send your questions
or complaints to: Consumer Response Center - FCRA, Federal Trade
Commission, Washington, DC 20580.
Self Help Credit Repair and Debt Validation
Get Credit Expert Kristi Feathers credit and collection book plus free sample
letters. Learn how to deal with credit bureaus and collection agencies the right
way! More>
This free credit repair article is brought
to you by CarreonandAssociates.com.
You may use this article as long as the author tag stays in tact.
Copyright. Do not remove tag.
Do
you need to fix your credit? Hire a pro or Do
it yourself with all the tools a pro would use.
Do
you need to settle your debts? Check out this FREE video
on doing your own debt negotiations the right way!
Too
much monthly debt?
Avoid bankruptcy! Credit counseling can reorganize your debt,
get you out of collections and give you one affordable monthly payment
through counseling or consolidation.
Want
to cut your credit card interest rate? Compare
credit cards for the latest offers and specials.
Considering
bankruptcy? Our
bankruptcy locator will find a lawyer in your zip code that
normally wouldn't give a free consultation and provide you with
one.
Need
to create legal documents or forms?
Use our free tool to find forms and documents in your state.
Do
it yourself credit repair and debt collector strategies Simply
the best self help kit around!
Sample credit
repair letters, discussion forum, knowledgebase with credit
and collection FAQ's, bonus credit ebooks, Ask the Expert, articles,
legal research and more! That's
lifetime access to all the tools you'll ever need to work on your
credit for a one time fee! So if you're dealing with credit bureau
issues, bill collector harassment, or stubborn creditor negotiations,
then this self help service is for you!
Learn More>
Statute
of Limitations
You should always check the SOL on any old or charged off debt before
paying it.
Collection
and UCC codes/laws
UCC and collection laws can assist you in finding out if your state accepts
negotiable instruments and what rules apply to collection agencies and
their state.
Debt
settlement coaching
Absolutely the best debt settlement coaching videos around! Hoffman, Brinker
can teach you how to settle your debts, perhaps reduce the payoff by 60%
and learn everything a professional negotiator knows by watching his engaging
educational videos on debt settlement tips and tactics.
Get immediate help for debt settlements
and consolidation
Credit cards and other unsecured loans can be put into a debt reduction
plan. See
how much you can save!
