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The credit repair industry is regulated by the Credit Repair Organizations Act, which is an amendment/addition to the Consumer Credit Protection Act. There are many activies which are illegal under this statute. Why not read the text yourself at http://www.ftc.gov/os/statutes/croa/croa.htm It is always best to have an understanding of the laws yourself than to rely on someone else's opinion. Answer NO it is NOT illegal to remove accurate information form ones credit file- if you read the NEW Fair credit and reporting act it clearly states " a credit reporting agency is not required to remove accurate information from a consumers file.." Notice it doesnt not say "CANT". it says "not required"
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Fix Bad Credit 1. DELETE COLLECTION ACCOUNTS Did you know that paying a collection account can actually reduce your score? Here's why: credit scoring softwar…e reviews credit reports for each account's date of last activity to determine the impact it will have on the overall credit score. When payment is made on a collection account, collection agencies update credit bureaus to reflect the account status as "Paid Collection". When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit score more severely. This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score. How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus. Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort. 2. DELETE PAST DUE ACCOUNTS Within the delinquent accounts on your credit report, there is a column called "Past Due." Credit score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported. 3. DELETE CHARGE OFFS AND LIENS Charge offs and liens do not affect your credit score when older than 24 months. Therefore, paying an older charge off or a lien will neither help nor damage your credit score. Charge offs and liens within the past 24 months severely damage your credit score. Paying the past due balance, in this case, is very important. In fact, if you have both charged off accounts and collection accounts, but limited funds available, pay the past due balances first, then pay collection agencies that agree to remove all references to credit bureaus second. 4. DELETE LATE PAYMENTS Contact all creditors that report late payments on your credit and request a good faith adjustment that removes the late payments reported on your account. Be persistent if they refuse to remove the late payments at first, and remind them that you have been a good customer that would deeply appreciate their help. Since most creditors receive calls within a call center, if the representative refuses to make a courtesy adjustment on your account, call back and try again with someone else. Persistence and politeness pays off in this scenario. If you are frustrated, rude, and unclear with your request, you are making it very difficult for them to help you. 5. CHECK YOUR CREDIT LIMIT(S) AND EVENLY DISTRIBUTE BALANCES Make sure creditors report your credit limits to bureaus. When no limit is reported, credit scoring software scores the account as though your current balance is maxxed out. For example, if you know that you have a $10,000 limit on your credit card, make sure that the limit appears on the credit report. Otherwise, your score will be damaged as severely as if you were carrying a balance of the entire available credit. Credit scoring software likes to see you carry credit card balances as close to zero as possible. If it is difficult for you to pay down your balances, read the following guidelines to maximize your score as much as possible under the circumstances: There are different degrees that scoring software can impact your score when carrying credit card balances. Balances over 70% of your total credit limit on any card damages your score the most. The next level is 50% of your balance, then 30% of your balance. In order to maximize your score without having to pay down your balances, evenly distribute your credit card balances among all of your credit cards, rather than carry a large balance on one credit card. For example, if you are carrying a $9000 balance on a credit card with a $10000 limit, and you have two other credit cards with a $3000 and $5000 limit, transfer your balances so that you have a $1500 balance on the $3000 limit card, a $2500 balance on the $5000 limit card and a $5000 balance on the $10000 limit card. Evenly distributing your balances will maximize your score. 6. DO NOT CLOSE YOUR CREDIT CARDS Closing a credit card can hurt your credit score, since doing so affects your debt to available credit ratio. For example, if you owe a total credit card debt of $10,000 and your total credit available is $20,000, you are using 50% of your total credit. If you close a credit card with a $5,000 credit limit, you will reduce your credit available to $15,000 and change your ratio to using 66% of your credit. There are caveats to this rule: if the account was opened within the past two years or if you have over six credit cards. The magic number of credit card accounts to have in order to maximize your score is between 3 and 5 (although having more will not significantly damage your score). For example, if a card was opened within the past two years and you have over six credit cards, you may close that account. If you have more than six department store cards, close the newest accounts. Otherwise, do not close any at all. 7. BECOME AN AUTHORIZED USER (Note: Although this tactic is no longer effective for Experian, both Trans Union and Equifax consider authorized user accounts when calculating your credit score.) If you have a short and limited credit history you can ask someone who is a primary account holder to add you to their account as a joint account holder or an authorized user. When added, the primary account holder's credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit and (2) has had good payment history on the card for seven years or longer. The longer the history, the better. Being an authorized user is potentially detrimental to your credit score if, for example, the primary card holder carries a high balance on the card and has had it less than five years. 8. KEEP YOUR OLD CREDIT CARDS ACTIVE 15% of your credit score is determined by the age of the credit file. Fair Isaac's credit scoring software assumes people who have had credit for a longer time are at less risk of defaulting on payments. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you've had credit. Use the old card at least once every six months to avoid the account rating to change to "Inactive." Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac's credit scoring software, so you won't get the benefit of the positive payment history and low balance that card may have. The one thing all credit reports with scores over 800 have in common is a credit card that is twenty years old or older. Hold onto those old cards!
Building back good credit requires patience and time. If you can, get a secured or unsecured credit card. Use it to make small purchases and pay the balance each month…. Keeping a low debt on credit cards can help build credit. Keep an eye on your credit reports to ensure that they're accurate and that there are no unauthorized accounts. Limit the amount of credit cards you keep. If you can't pay cash for something, question yourself as to whether you really need it. Old accounts should be erased from your record after seven years. Good luck.
Credit repair is LEGAL. You may have heard some mention that credit repair is actually illegal; but the fact of the matter is there is nothing illegal about credit repair and …disputing inaccurate information about your credit file. The Fair Credit Reporting Act (FCRA) actually encourages people to dispute inaccurate information.
Basically, and believe it or not, bankruptcy is not the end of the world for credit. I remember before I knew about Credit that I must have bad credit because I was late on… a few utility bills, that shows how dumb I was, but later I learned that the Credit Reporting Agencies keep us in the dark most of the time, because consumer spending and interest rates go up. Kind of a dark side to it all, but the good side is that you can repair your bad credit if you have bankruptcy or foreclosures or collections too!! But beware of scams!! Employ a good credit repair company if you can, or work with the BIG 3 to get your credit up! Wayne ans Very simply, virtually all companies claiming to make anything special happen with your credit are scams and denounced as such by EVERY consumer group and attorney general known. Most even do harm and the best certainly don't do anything you can't, or actually have to, do by yourself. I would observe that the comments above seem to have a familiar tone to them from the type of Cos being talked about. And why the credit reporting agencies would "want to" keep anyone in the dark about anything...especially justifyong it with increases in spending and interest is absurd, or just dumb. Credit reporting agencies are simply information services. That's all. They provide and share information...they do not extend, determine or actually have anything to do with providing credit..or have anything to gain from higher interest rates or such. (although interestingly, a credit repair company would have a financial interest in keeping you in financial straights as long as possible!) Fixing your credit is not a trick...you have to avoid doing all those things that made it bad...you must pay your bills and adhere to your promises absolutely completely. It takes time 9and the BK will stay on your record for at least 10 years, no matter what), but if you have shown that you have changed, maybe someone will provie you credit...of course screw it up at all, and everyone else will simply see, you aren't credit worthy. Pay your bills. Save money and show assets - which means there is some way a creditor can get repaid other than your promise -- and means you have discipline and are preapred for unexpected misfortune....and living within your means, and most importantly understanding the financial aspcts of life. It takes time...like any wound, to heal....and if you pick at the scab, it never will. ans If you worked for experian , like i did, you'd really be embarrassed with your response I wish it worked that way. Now my question is "how do the credit reporting agencies get paid? " Hmmm... figure that out and then we can talk.. Follow the money my friend, and all will come into the light
Hello It can take up to a year , sometimes less, depends on how much you do and how close you keep in contact with the BIG 3 We can do it in about 45 days in most case…s, just because we use attorney's and can wipe out most problems and jack your score up pretty quick.. BUT , if you do this yourself, just be ready to know how! Its much easier to get a "ding" on your credit than to get something taken off. Wayne email@example.com
You don't. You're screwed. Welcome to the world.
Anywhere between seven (7) and fifteen (15) years. It won't go back up as fast as it came down ... it will take many years to build back up to any decent rating.
Credit repair companies repair bad credit by using the Fair Credit Reporting Act to dispute negative items that are on your credit reports. This can be done by anyone, but has… been mastered by some of the credit repair services at a large scale level. The slang term for this practice is dispute mill because they dispute lots of negative items on lots of credit reports, but it can still be quite effective if done right. The FTC provides guidelines for credit repair as well as a sample dispute letter on their website (link below). There are many strategies in resolving credit problems. Just make sure if you use a credit repair company, deal with a reputable company. Consider finding a consultant that is a member of a trade association that regulates the credit service industry. Credit Consultants Association is such an organization.
A credit repair company shouldn't be able to hurt your credit score, but you may end up paying money without any improvement in your credit score either. To ensure your credit… repair company is reputable search the BBB website to see what reports, if any, exist on the company.
You pull your credit report at credit report .com and as long as it has been seven years you can go online to dispute it. It should say dispute just push the button or call to… dispute it they should have a number for each credit report which concist of three separate ones.
If you know what you're doing you may contact the 3 credit bureaus (Experian, Equifax, and TransUnion) directly. You may also need to contact the Original creditors, collectio…n agencies, 3rd party reporting services such as Lexis Nexis, and the FTC (Federal Trade Commission). Or if you want to hire someone to fix your credit you can hire a credit repair company.
The date when the derogatory account is going to be removed from your credit report is known as the FCRA Compliance Date. Most derogatory accounts remain on your credit repo…rt for 7 years. Although there are exceptions. Chapter 7 bankruptcy accounts will remain on your credit report for 10 years. A tax lien may report indefinitely. You can try to have the accounts removed before the FCRA Compliance Date by contacting the credit bureaus, collection agencies, and original creditors. If you don't know what you are doing you will need to do quite a bit of research on how this process works, or you may hire a professional credit repair company to help you.
If the account contains any incorrect, incomplete, misleading, erroneus, or misleading information, the repossession may be deleted from your credit report. But you do not nee…d to hire a lawyer and pay thousands of dollars. You can hire a credit repair service which will be a lot more cost effective.
It is not illegal to work for any legitimate company. If thecompany is doing illegal business, it can be a crime.
One can find a credit repair lawyer through online financial and credit forums by reading consumer recommendations. One can also find a credit repair lawyer in the legal secti…on of phone directories.
Credit repiar lawers assist in cedit repair helping clients impelment steps to up their credit score, helping clients with debt settlement, defends clients in debt collector l…awsuits. There are lots of resouses online where you can find ways to check and help your own credit. be careful of credit repair lawers who charge an upfront fee.
A foreclosed home can take seven years before it is taken off your credit report. You can build your credit back up in about three years if you continue to pay all your bi…lls on time.