CREDIT REPAIR

To better understand Credit Repair, we should first understand why we need to have our credits repaired. When we applied for loans for example and the company did not grant our loan request, we should probably blame it from a bad Credit Report. Credit Reports are the histories of everything you are doing with your credits. Now if you’re going to ask where did this credit reports come from, basically they came from at least one of the three major credit bureaus (Trans Union, Experian, or Equifax). These credit bureaus receives the information from the lenders who grant you credit. 

Now, if your history is not appealing (for example, you don’t pay on time), the chances of having your loan grant is at minimum. This is why we need to have a good credit report, and this could also be a reason that we would be needing a credit repair. 

 The other reason, that we would want to get the service of a credit repair company is when we are victimized by identity theft which will be discussed later.

 You might have one question on your mind now, “Is it possible?” and the answer is “NO”.

 The Federal Trade Commission (FTC) says that their claims should not be believed. The nation’s consumer protection agency also added that they’ve never seen a legitimate credit repair operation.

One can legitimately improve his credit worthiness but it sure takes time and there’s no quick remedy available legitimately.

“What should I do? I have been rejected of the loan I really need?” The answer is, You Should know your RIGHTS.

 The Fair Credit Reporting Act (FCRA) said that you can ask a copy of your credit report within 60 days after a company declined your application for credit, insurance or employment, you are also entitled for a FREE report if you are unemployed, on welfare or if your report is inaccurate because of fraud. 

If you are a victim of identity theft or if there is a mistake on your report, they should investigate on it and YOU NEED NOT TO PAY ANYTHING. It is their obligation to correct and to be sure that what they submit is accurate.

Hint: Since you can get the report for free once a year, you could also ask the 3 companies to issue the report, but you do not contact them personally for they are connected only thru their web, the address shown below or their toll free hotline. If you contact them individually, they might end up charging you up to $10.50, they might consider the request as an additional copy.

“How and where can I contact them?” 

Equifax, Experian, and TransUnion have a central website (www.annualcreditreport.com) and a toll free hotline (1-877-322-8228).

If you wish to send them a letter, you need to fill up the Annual Credit Request Form and mail it to:

           Annual Credit Report Request Service

           P.O. Box 105281

           Atlanta, GA 30348-5281

You can get the form thru their website given above or at ftc.gov/credit. 

How to report inaccurate information?

The Fair Credit Reporting Act gives you the rights to contact credit bureaus and dispute items you found inaccurate. Just like in court, one has the right to plead “not guilty”.

If you wish to clear inaccurate details from the report. You may send your letter to the consumer reporting company.

The letter should contain your supporting document to prove that some information is inaccurate. If you wish to keep track of the status of your mail, you should send it thru a certified mail with return receipt request would help.

Below is a sample of how your dispute letter may look like.

Date

Your Full Name

Current Address
(City, State, Zip Code)

Current Phone Number

Attention: (insert credit reporting agency name)

Dear (credit reporting agency)

This letter is a formal request to correct inaccurate information contained in my credit file. The item/s listed below is/are completely (inaccurate, incorrect, incomplete, erroneous, misleading, outdated). I have enclosed a copy of the credit report your organization provided  me (date of report) and circled the item/s in question.

Line Item: (creditor, account number or line item number)

Item Description: (this info is found on your credit report)

Requested Correction: (If you want an item deleted, update or corrected and reason/s why.  Provide documents to support your claims).

I respectfully request you investigate my claim and, if after your investigation, you find my claim to be valid and accurate, I request that you immediately update the item.

I also request that you provide me and all those who have received a copy of the previous report, a corrected copy of the updated credit profile for personal and whatever purpose I might be dealing  after this incident.

If your investigation shows the information to be accurate, I wish to know the procedure used to determine the accuracy and completeness of the item in question within 15 days of the completion of your re-investigation as required by the Fair Credit Reporting Act. Furthermore, please include this statement of dispute in your future reports.

Should you need any more information, you may contact me thru the number provided above.

Thank you so much for the good response.

Sincerely,

Printed Name 

Signature

If a negative information turned out to be accurate, you should wait for 7 years from the date the negative incident took place. And for bankruptcy information, one should wait for 10 long years.

The Credit Repair Organization Act.

The organization should hand you or discuss with you the “Consumer Credit File Rights Under State and Federal Law”. You should read and understand them carefully before signing anything, and review the the payment’s terms for services, including the total cost, the description of the service the company will perform, time for the service to be completed, the company’s whereabouts and please note that a credit company cannot:

Charge you before they complete the service

Perform any service until you sign the contract and have completed a three-day waiting period.

You can cancel the contract within the three-day waiting period without being charged of any fees.

Please be aware of Illegal Credit Repair Methods, if you hire an Illegal Credit Repair Company, chances are you will also get Illegal advise and you might also follow that advise. Remember that it is a federal crime to change any information when applying for loans.

 Here are some tips on how to distinguish Illegal Credit Repair:

• Changing your Social Security Number.
• Disputing items that are yours and almost everything on the report, regardless of nature.
• Obtaining your Employer Identification Number from the Internal Revenue Service instead of your social security number to obtain a clean bill of credit.

Please help us help you. If you think that you’ve been victimized by an illegal credit repair company, please don’t be embarrassed to report it. Contact your local consumer affairs office or your States Attorney General. Remember that laws are in place to protect you.

To contact your States AG, you may check on the blue pages of your telephone directory or you may visit www.naag.org for a list of states attorney generals.

If you think that you need financial help, having a poor report is not the end of the world for you. You can still get help from some creditors. Different creditors of course set different standards. Some might approve of you if they can see that your history has improved. If not, you might want to consider contacting a credit counsellor to help you. 

You can find credit counsellors from the internet, from local offices and some through ads. You might want to ask referrals from your family, friends or relatives too. A good counseling organizations can help you learn how to manage your debts and credits too. It is a must that you tell your counsellor the real deal and try not to omit any useful information about your financial status. Do not be embarrassed to admit your debts, they are trained to do this and always remember that you need their help and they can help you.

If filing a bankruptcy relief is an option for you, please note that the government requires you to take credit counsellor from a government approved organization within six-months BEFORE filing for a bankruptcy relief.

To view a list of state-by-state government approved organizations, you may check www.usdoj.gov/ust . 

Do you wish to:

• know more about Credit Repair;
• read articles on consumer issues;
• file a complaint;
• get more free information;
• know how to access your Free Credit Reports;
• know how to dispute Credit Report Errors;
• know how to improve your credit worthiness;
• find legitimate resources for low cost help;
• know hot to find a Credit Counselor and;
• know how to deal with SCAM and;
• wish find what you are looking for (Articles)?

Then, you may visit the (FTC) Federal Trade and Commission’s official website at www.ftc.gov/credit or call their toll-free hotline at 1-877-FTC-HELP (1-877-382-4357).