- Credit Problems? No Problem!
- Get a new credit file-legally.
- Erase your bad credit.
- We can remove bankruptcies, liens, judgments, and other bad credit from your credit file!
Avoid the Scam
Companies from all over are preying on consumers with less than perfect credit histories. They all say the same thing: "We can fix your credit file so you can get an auto loan, insurance, mortgage, or a personal loan. The truth is, there is nothing they can do that you can't do yourself. After they get your money, up-front of course, they do little or nothing to improve your credit score. Some even disappear, taking your money with them and leaving you worse off than you where before. Self help credit repair is the best way to go.
What to Watch Out For
If you are solicited by one of these companies here are some things to watch for.
- Do they tell you your rights and that you can repair your credit yourself for free?
- Do they ask you to pay for there services up-front?
- Do they not tell you that you can contact the credit bureau directly?
- Do they suggest that you can create a new credit report?
- Do they advice you take any action that seems suspicous?
You can be prosocuted for providing false credit information or misrepresenting yourself. It is a federal crime to make false statements on a credit statement when applying for a loan.
The Facts About Do It Yourself Credit Repair
No one can legally remove information from your credit report that is timely and accurate. However you do have the right to dispute any inaccurate information and request a reinvestigation if it's in your credit file. Doing this will cost you nothing. Anything that credit repair companies can do for you legally, you can do it yourself at little or no cost. For more information on your rights see the Fair Credit Reporting Act.
You are entitled to a free copy of your credit report if you've been denied credit, insurance or employment within the last 60 days. If your application for credit, insurance, or employment is denied because of information supplied by a credit bureau, the company you applied to must provide you with that credit bureau's name, address, and telephone number.
You are allowed to dispute any mistakes or items that are outdated for free. Ask the reporting agency for the form or submit your dispute in writing, along with any supporting documentation. Do not send them original documents.
If the reinvestigation fails to resolve your issue to your satisfaction, ask the reporting bureau to include your version of the situation in your report and in all future reports. Remember, there is no charge for this.
Negative Information in Your Credit File
Accurate negative information will usually be reported for seven years, but there are exceptions to this.
- Bankruptcy information can be reported for 10 years.
- Information reported as a result of an application for employment offering a salary of over $75,000 doesn't have a time limitation.
- Information reported because of an application for more than $150,000 of life insurance or credit has no time limitation.
- Information concerning a judgment or lawsuit against you may be reported for up to 7 years or till the statute of limitations expires.
- Default information concerning U.S. Government backed student loans may be reported for 7 years after certain guarantor actions.
Credit Repair Organizations Act
By law, credit repair organizations must give you a copy of the " Consumer Credit File Rights Under State and Federal Law" before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract. The law contains specific protections for you. Some requirments that credit repair companies must follow:
- They cannot make claims about their services that are false.
- They cannot charge you until they have completed the services they promise.
- They cannot perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees.
- Your contract must specify, the payment terms for services, and there total cost.
- Your contract must provide a detailed description of the services to be performed.
- Your contract must specify, how long it will take to achieve the desired results.
- Your contract must specify, any "guarantees" they offer.
- Your contract must specify the companies name and business address.
Have You Already Been a Victim of a Credit Repair Company?
Many states have strict laws that regulate credit repair companies. Some states may be very helpful if you've lost your money to a credit repair scam. If you've had a problem with a credit repair service, don't be afraid to report them. Many consumers fear that by contacting the government they will only make their situation worse, that's simply untrue. There are laws that are in place to protect you. Contact your local consumer affairs office or your state attorney general. Many Attorney General's have toll free hotlines for consumer use. Check with your local directory assistance.
Need Help? You Can Get Credit
Just because you have a poor credit report doesn't mean you won't be able to get credit. All creditors set their own guidelines and not all of them will view your history the same way. Some may only look at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors to discuss their credit standards.
If you can't resolve your credit problems yourself or you need additional help, you may want to contact a credit counseling service. There are non-profit organizations in every state that counsel consumers in debt. Counselors will try to set up repayment plans that are agreeable to you and your creditors. They will be able to assist you to set up a household budget. These counseling services are offered at little or no cost to consumers. You can find the office nearest you by checking the white pages of your telephone directory.
Do It Yourself Credit Repair
If you have bad credit no one but you can repair it. Do it yourself credit repair may be the best way to go. When you get your credit rating back up you'll want to keep it there. Even when you have good credit it is wise to do a regular check-up. It's usually a good idea to do a check-up if your planning a major purchase like a home or auto that will require a large loan. A check-up, done in advance may speed up the process and provide you with information to make a better informed decision.