Some Credit Repair FAQs
Not everyone can be a credit expert, most of us are only content with a decent credit score and often don’t bother to find out enough about how credit works, much less what it takes to repair credit. This credit thing can be complicated but like anything else it can start to make sense once you understand what you need to do to steer clear of trouble and to seek appropriate help when you do find yourself in trouble. Here’s a short list of FAQs about credit repair that I think will shed light on some of the most common questions I’ve found people to have doubts about:
What is the Fair Credit Reporting Act all about? The FCRA is a federal law that governs the collection, reporting, and use of consumer credit information. What does this mean to you? These are specific regulations that are in place to protect consumers, without them you’re basically at the mercy of your creditors and credit bureaus. The specific code can be found here.
Does credit report really work? Yes, when used correctly. And it is absolutely essential that you do all you can within your powers to make sure that your inaccurate negative entries are fixed. Ignoring them will eventually affect your quality of life and no one else has the responsibility of making sure it is accurate but you. Credit repair works and it works particularly well when you make use of the right resources. For more information read the previous posts on credit repair.
Can I remove negative entries from my credit report on my own? You can most certainly repair your credit on your own. You need to begin by first getting a copy of your credit report from all three bureaus, you’ll find often that they differ by a lot and sometimes the inaccuracies do not spread across the board. Review all entries that you feel are inaccurate and begin your dispute process by contacting the credit bureaus through their dispute systems listed here:
TransUnion Credit Disputes 1-800-916-8800
Experian Credit Disputes 1-888-397-3742
Equifax Credit Disputes 1-800-685-1111
You may find that depending on the seriousness of the credit inaccuracies, some of these negative entries will prove to be more difficult to correct than you expected. The process may take longer or you may be denied by either the creditor that reported the entry or the credit bureau.
If I fail in my dispute with the credit bureaus, should I contact the creditors directly? Of course it won’t hurt to try, however you’ll need concrete proof that their negative entry was wrong. Bringing up an argument that you remember making the payment on time will not cut it. Creditors will listen but they won’t volunteer help, they’re looking for concise proof that they were wrong and since consumers don’t know the law and don’t have the resources some credit repair agencies have, they’re not likely to be as successful in these credit disputes.
Can credit repair agencies really help? Yes and no, that all depends on the status of your credit report and the circumstances around your inaccuracies. I’ve mentioned throughout credit posts on this blog that if you have accurate negative entries in your credit history, you are probably not going to succeed at removing them from your credit report. However, when it comes to the entries that are truly inaccurate, you have some options and the most effective one to take is to hire a credit repair agency.
With that said, you now have a new problem, and that is to find a reputable and honest credit repair agency to handle your case. It should not surprise you that the field of credit repair is filled with scams. Anyone can pose as a credit repair agency, get a catchy name and throw a website together and offer you their service. Making sure that you’re dealing with legitimate companies will save you time, money and a lot frustration. Once again start your search with the BBB and make sure that your candidates are legit.
How long can negative entries remain on my credit report? There are varied opinions on this issue, I have heard them all. It goes from 7 to 10 years, depending on the type of entry it is. For example a defaulted loan account will remain as such for 7 years even after you pay it off, whereas a bankruptcy will stay on your credit report for up to 10 years. Meaning that these periods can change for a variety of reasons that in fact only credit bureaus know about. It probably would have to do with an increasing number of consistent positive entries in your credit history that would eventually bump any old negative entries off the map.
How long will it be till the credit bureaus respond to my dispute? The Fair Credit Reporting Act states that credit bureaus shall respond to you withing 30 days of having received your dispute letter. Just remember that the credit bureaus can exercise the right to use their own discretion in the consideration they give your dispute. Because credit bureaus deal with so many frivolous requests and the dispute system is heavily abused by scam artists and illegitimate credit repair companies, they can simply deny process of the dispute without specifying a reason why.
Will removing negative entries really raise my credit score? That’s the general idea, however don’t be surprised if your score remains the same for a while. Despite what some credit repair companies may claim, credit repair may not cause the immediate results you were hoping for. The computer systems that calculate your FICO score work with the available data and time to determine your overall score. If you have several negative entries in your credit report but only some of them are inaccurate your score will probably climb a little slower as well after you repair them.
