Answering Some Common Questions About Credit Repair
James Sampson asked:
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.
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.
Categories: Banking Tags: Credit Repair, Fair Act, Social Security Number
Credit Repair Software
John Chase asked:
Credit Repair Software
Some people believe that credit repair software is a great way to help a person get organized in a journey to a debt-free life. They might also believe that these computer programs offer ways to get organized with bill paying and valuable information for reaching financial goals. But in reality, only an experienced credit repair service can factually improve your credit score.
Selecting a credit repair company to help you improve your credit score is a big decision. A typical credit repair service will cost you a few hundred dollars and will take up to a year to complete their service. Choosing the wrong credit repair company can end up wasting money and perhaps more importantly, your time. Choosing the right credit repair company, however, may be one of the best things you can possibly do for your financial future.
What do you need a credit repair company to do for you?
A good place to start when determining which credit repair company is best for you is to figure out what needs to be done to improve your credit. The process of repairing your credit can involve much more than simply disputing your credit with the credit bureaus. You should make sure to use a credit repair company that can fulfill all of your credit needs.
When most people think of credit repair they think of a process that has become known as credit report repair. When working to repair your credit using credit report repair, a credit repair company is using your rights under the Fair Credit Reporting Act to dispute certain items in your credit reports directly with the credit bureaus. This element of credit repair has helped many people with erroneous, incomplete, or unverifiable information on their credit reports improve their credit scores.
While credit report repair is a good start, many people find that it is not enough. Many leading credit repair companies will also work directly with your creditors using a variety of tactics to get them to stop reporting the negative accounts to the credit bureaus. They may also work with collections agencies and others to get them to stop reporting negative accounts or change the way the accounts are reported. A credit repair company may even go so far as to challenge the legitimacy of a reported debt.
Depending on your current credit situation, you may be best served by a credit repair company specializing solely in credit report repair or one that can also provide a full catalog of credit repair services.
How can I tell if a credit repair company should be trusted?
Unfortunately, credit repair is an industry that has received a bad reputation because of the publicity afforded to credit repair scams. While fraudulent credit repair firms tend to be shut down quickly, it is still in your best interest to learn how to identify the differences between a legitimate credit repair service and a credit repair scam.
An easy way to do this is to know a few of the laws that govern credit repair companies. These laws as defined in the Credit Repair Organizations Act were designed to protect you from credit repair scams while also protecting your right to get help with repairing your credit reports.
Another way you can find out about a specific credit repair company is to look up their BBB (Better Business Bureau) reports. The BBB keeps notes on complaints made against companies. If the BBB report for a credit repair company lists multiple unresolved complaints or an overall low rating, you should be wary of the company. In addition, beware of any credit repair company that does not list credit repair services as one of their offerings in their BBB filing. The BBB has very strict standards for credit repair companies so many fraudulent companies will not report to the BBB that they offer credit repair.
Debt-free living is definitely the goal. A Christian must be wise in the choice he makes concerning his financial history and his ongoing financial dealings. Every financial decision needs to be a well-researched, well-thought-out decision. As Christians, we have additional resources for dealing with our bad spending habits. He can consult a local pastor or a trusted friend. Becoming debt free will not happen overnight so patience and perseverance are keys to success. Romans 15:5 says, “God of patience grant you be like-minded.” God will help us gain the patience and perseverance we need to follow through with our plans to be debt free, and that may entail credit repair software programs.
Credit Repair Software
Some people believe that credit repair software is a great way to help a person get organized in a journey to a debt-free life. They might also believe that these computer programs offer ways to get organized with bill paying and valuable information for reaching financial goals. But in reality, only an experienced credit repair service can factually improve your credit score.
Selecting a credit repair company to help you improve your credit score is a big decision. A typical credit repair service will cost you a few hundred dollars and will take up to a year to complete their service. Choosing the wrong credit repair company can end up wasting money and perhaps more importantly, your time. Choosing the right credit repair company, however, may be one of the best things you can possibly do for your financial future.
What do you need a credit repair company to do for you?
A good place to start when determining which credit repair company is best for you is to figure out what needs to be done to improve your credit. The process of repairing your credit can involve much more than simply disputing your credit with the credit bureaus. You should make sure to use a credit repair company that can fulfill all of your credit needs.
When most people think of credit repair they think of a process that has become known as credit report repair. When working to repair your credit using credit report repair, a credit repair company is using your rights under the Fair Credit Reporting Act to dispute certain items in your credit reports directly with the credit bureaus. This element of credit repair has helped many people with erroneous, incomplete, or unverifiable information on their credit reports improve their credit scores.
While credit report repair is a good start, many people find that it is not enough. Many leading credit repair companies will also work directly with your creditors using a variety of tactics to get them to stop reporting the negative accounts to the credit bureaus. They may also work with collections agencies and others to get them to stop reporting negative accounts or change the way the accounts are reported. A credit repair company may even go so far as to challenge the legitimacy of a reported debt.
Depending on your current credit situation, you may be best served by a credit repair company specializing solely in credit report repair or one that can also provide a full catalog of credit repair services.
How can I tell if a credit repair company should be trusted?
Unfortunately, credit repair is an industry that has received a bad reputation because of the publicity afforded to credit repair scams. While fraudulent credit repair firms tend to be shut down quickly, it is still in your best interest to learn how to identify the differences between a legitimate credit repair service and a credit repair scam.
An easy way to do this is to know a few of the laws that govern credit repair companies. These laws as defined in the Credit Repair Organizations Act were designed to protect you from credit repair scams while also protecting your right to get help with repairing your credit reports.
Another way you can find out about a specific credit repair company is to look up their BBB (Better Business Bureau) reports. The BBB keeps notes on complaints made against companies. If the BBB report for a credit repair company lists multiple unresolved complaints or an overall low rating, you should be wary of the company. In addition, beware of any credit repair company that does not list credit repair services as one of their offerings in their BBB filing. The BBB has very strict standards for credit repair companies so many fraudulent companies will not report to the BBB that they offer credit repair.
Debt-free living is definitely the goal. A Christian must be wise in the choice he makes concerning his financial history and his ongoing financial dealings. Every financial decision needs to be a well-researched, well-thought-out decision. As Christians, we have additional resources for dealing with our bad spending habits. He can consult a local pastor or a trusted friend. Becoming debt free will not happen overnight so patience and perseverance are keys to success. Romans 15:5 says, “God of patience grant you be like-minded.” God will help us gain the patience and perseverance we need to follow through with our plans to be debt free, and that may entail credit repair software programs.
Categories: Personal Finance Tags: Computer Programs, Element, Fair Act