Answering Some Common Questions About Credit Repair

Credit repair is one of those topics that most people are not familiar with and many of those that think they are, do not have a correct understanding of what credit repair really is. To help provide an introduction to the concept, provided below are answers to three common questions people have about credit repair.

Is Credit Repair Legal?

Absolutely! All a creditor has to do is report a negative item to a credit bureau for it to be added on your credit reports. They do not have to prove that you did anything wrong and the credit bureaus are not going to contact you to get your side of the story.

By disputing the items in your credit reports, you are asking the credit bureaus to perform an investigation to determine if the negative items on your credit reports are being reported correctly. If they are not, then they must be revised or removed.

In a perfect world, credit repair would not be necessary, but because of the obvious flaws in the credit reporting system, the Fair Credit Reporting Act was enacted to protect your rights against unfair credit reporting. Because of this act, you have the right to dispute any items in your credit reports that you feel are not completely accurate.

How Do Inaccurate Items End Up On My Credit Reports?

There are a number of reasons why inaccurate items could end up on your credit reports. For example, a simple human error such as typing in your Social Security number instead of someone else's could result in their bad credit showing up on your credit reports. Also, mistyped dollar amounts, items reported more than once, incorrect dates, and other errors could results in errors on your credit reports.

Another common reason for credit errors is mistaken identity. It is very common for your credit reports to show negative items from someone else with your same name. This could happen if you have a fairly common name or in some cases, in the case of a son who is named after their father. It has happened many times that someone gets denied for credit only to find out that a bankruptcy or some other serious negative item has been erroneously added to their credit reports because someone else with the same name was not responsible with their finances.

Finally, identity theft is a major source of credit reporting errors. Someone steals your personal information and destroys your credit all in your name.

Can I Save Money and Repair My Credit Myself?

Yes, you have every right to repair your credit yourself. As is mentioned in numerous credit repair articles, anything a credit repair company can do, you can do yourself.

Of course, this is true of almost any service. Just as you have the right to repair your own credit, you also have the right to change your own oil, cut your own hair, or even represent yourself in a court of law. But as is also the case of these services, many people find that is is easier, cheaper, and more effective to hire a professional.

When considering whether or not to repair your credit yourself, also consider what your time is worth. Depending on the severity of your credit problems and the cooperation level of your creditors, effectively repairing your credit reports could involve learning about and analyzing your credit reports, researching the Fair Credit Reporting Act, research the Fair Credit Billing Act, researching the Fair Debt Collection Practices act, writing and sending dispute letters to the credit bureaus, writing and sending dispute letters to your individual creditors, and properly responding to all of these entities.

Many people find that it is simply easier to get help with credit repair than to do it themselves. In fact, a sizable percentage of people who end up using a credit repair company to help them with their credit reports do so after already trying to repair their credit themselves.

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The TransUnion Settlement: A Tool for Repairing Credit

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Credit Repair Company - Choose the Right One

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Credit Reporting - Learn the Facts

A frequent concern of individuals is "how long will a negative listing remain on my credit report?" The answer is seven years. With a bankruptcy or judgment it can stay on your report for up to ten years. Most people feel like this is an undeserved prison sentence they have been given. During this time they can not move into a house or purchase a new car at a reasonable interest rate.

Improve Your Credit Score – Where to start

There are several different factors that go into your credit score and you want to improve your credit score but are unsure of where to start. Since your credit score is based on your credit report, this is where you should start. You need to review your credit report to make sure information is correct and there aren’t any inaccuracies. Fixing errors is one starting point to improve a credit score. As you review your credit report, you should make a list of items you would like to dispute.

Why Avoid Credit Repair Services That Offer Suspicious Solutions

There are many credit repair services out there offering magic solutions. They claim that they can erase your negative entries even if they are legitimate, they claim that they can offer you a new credit history to start over and many other asserts that sound suspicious even to the most naive customer. Though many think that these services can do no harm, there are many reasons why you should avoid them.

Selecting a Law Firm to Assist with Credit Repair

The credit reporting agencies are required by federal law to remove inaccurate information from your credit reports free of charge. However, nowhere in the law does it say they have to make it easy for you. Because the credit reporting agencies can't charge you to remove inaccurate information from your credit reports, they make you jump through hoops... climb over walls... and inconvenience you in any way possible to accomplish this.