The Wonders Of Credit Repair

Credit Repair Works

Credit repair works. And the results will have a dramatic impact on your financial life. Lenders everywhere have tightened their credit requirements. Every single point on your credit score matters. Credit blemishes can quickly translate into higher interest rates and even loan denials. You cannot afford to ignore the potential of credit repair. Do it yourself, or for a small investment you can hire a professional credit repair service to manage the process for you. Either way, now is the time to take action.

The Great Liberation

Free yourself from the illusion of authority. Many people make the mistake of giving too much credibility to the content of their credit reports. The power of the credit bureaus can be intimidating; we might believe our eyes against our better judgment. The credit bureaus play an important role in our world, but they are not without flaw. Over half of all credit reports include errors that are significant enough for the victims to pay premium interest rates, and, in many cases, to face loan denial. The credit bureaus maintain files on over 200 million Americans. That means that over 100 million Americans are victims of credit reporting errors.

The Credit Repair Plot Thickens

There is an unfortunate and unjust credit reporting anomaly that is virtually guaranteed to handicap those who can afford it the least. If you have had legitimate credit problems in the past you are more than twice as likely to be a victim of reporting errors as someone who has not had issues. There are two primary reasons for this; when you default on a debt the creditor is apt to move your account into another reporting category increasing the likelihood of duplicates and errors, and secondly, if an account is sent to a collector the lax reporting conformity of the collection industry can harm your credit needlessly for years to come.

And There is More

An informed examination of your credit report by a credit repair professional may turn up errors in many categories. Some of these errors are pure compliance violations that you are not likely to spot without training. If you are going to manage your own credit repair project make sure to do your homework before getting started. Educate yourself about reporting period limits for all categories of credit, make sure you understand the operation of statute of limitations, and peruse the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. The little details can make the difference between success and failure.

The Credit Repair Solution

Understanding your rights and the compliance requirements of the credit bureaus will give you the legal leverage you need for your credit repair effort to succeed. Your credit bureau disputes are the cornerstone of your credit repair project, but there is more. True credit repair success should be measured by the improvement in your FICO credit scores. You must carry out your credit bureau disputes with an understanding of the impact every change in your credit report will have on your FICO scores. When you put it all together you will be thrilled with the results.

Help is Near

You are not alone. Many people don?t have the time to manage their credit repair project as carefully as necessary. If you feel that you can?t give it the attention it deserves, hire a credit repair professional. A professional will insure that every issue is identified, and will address your problems in an informed and careful manner designed to produce the best results. In addition, truly effective credit repair services will assist you in rebuilding and reshaping your credit to meet future lenders guidelines so that you will be left with genuinely useable credit. Whichever route you take, I urge you to act now. It's your credit, and it matters.

Copyright ? 2009 James W. Kemish. All Content. All Rights Reserved.

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Credit Repair And The Statute Of Limitation Advantage

Whoa Nellie ? Don?t Pay that Bill

Hold your horses. So you got a collection letter in the mail. You are distraught and already figuring out how to pay the collector. Shockingly, a majority of collections are paid needlessly. Resist the impulse to pick up your checkbook. Just slow it down. Credit repair requires patience - and a bit of knowledge comes in handy too.

Don?t Believe Your Eyes

When it comes to collection letters, don?t believe your eyes. Don?t write a check. Don?t call the collector. There are four essential credit repair tests you must apply before doing anything. First, do you recognize the debt? Second, is it possible it was satisfied with a previous collector or the original creditor? Third, is it beyond the statute of limitation for collection through the court system? And fourth, is it beyond the reporting period limit for your credit report?

Do You Recognize the Debt?

If you have attempted credit repair you already know that the collection industry is far from perfect. Collectors buy and sell collection accounts on a regular basis. The level of quality control at collection businesses is notoriously lax. There is every possibility that you are getting a collection notice for a debt that has nothing to do with you. Be sure.

Have You Paid the Debt?

Because collectors buy and sell debt regularly it is common for a new collector to send you a dunning letter for a debt that you satisfied with a prior collector. Original creditors often have in-house collection departments that are as lax in their record keeping as any collector. Oftentimes debts are bundled for sale at the same time that consumers are sending their payment. Your money may have gone in one door while your account was being sold out another door.

Credit Repair Statute of Limitation Shockers

Here is the credit repair fact that most people are not aware of. I can?t tell you how many otherwise well-informed people have drawn a blank on this one. The statute of limitation (SOL) for collection through the courts has nothing whatsoever to do with the seven-year reporting limit for derogatory information imposed by the Fair Credit Reporting Act (FCRA) on the credit bureaus. This can be credit repair magic. The SOL is almost always far less than seven years, and may be as little as two years. Each debt type has its own SOL which depends on the type of debt, the state in which you incurred the debt, and the state you currently live ? more about this in a second.

The Reporting Period Limit

Most people in credit repair programs are aware of reporting period limits. Generally speaking the credit bureaus are directed by the FCRA to report derogatory credit events for no longer than seven years. There is a slightly more complicated method of measuring reporting period limits for charge-offs and collections which may continue to report for seven years plus 180 days from the date of original default ? being the first time a scheduled payment was missed in the sequence that led to collection.

What are the Credit Repair Consequences?

If you don?t recognize the debt, it may not be yours and you should not pay it. If you paid the original collector you certainly don?t want to pay it a second time. If the debt is beyond the SOL the collector has no way to enforce the collection. This means you can send the collector a cease communication letter and he will vanish forever from your life, and you don?t have to worry about a judgment. Or, if you want to pay the debt, it is usually very negotiable once past the SOL. And if the debt is beyond the reporting period limit it is almost certainly beyond the SOL, so all of the above benefits should apply, plus you should not have to worry about the appearance of the collection on your credit report. It's the ultimate credit repair outcome.

Credit Repair and the SOL

The SOL is not hard to check and it is central to any credit repair effort. Just get on the Internet and search for statute of limitations. You should be able to find an easy-to-read chart listing SOL by debt type and by state. Don?t forget to check your state of residence and the state in which you entered into the original agreement. The longer period applies to your case. Remember to measure the time period properly. The SOL clock always starts with the date of original default. Collectors do not reset the date when they start and restart the collection process.

Call in the Credit Repair Troops

If all of this is too much to bear, pick up the phone and call a credit repair expert. It's your money and should not be taken lightly. If you do not have the time to cope with the process a professional credit repair company will insure that every step is taken in the proper order and that you are not paying needlessly throwing money away. When it comes to credit repair, the right way is the best way. You can do it!

Copyright ? 2008 Ian Webber. All Content. All Rights Reserved.

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Credit Repair And The Credit Bureau Battle

Too Many Errors

Credit repair serves a real purpose. Credit reporting errors are much more prevalent and costly than most people realize. Over half of all credit reports have errors on them that are serious enough to cause the victim to pay higher interest rates and even to be denied for financing. Credit repair is about finding and correcting these errors, and there is more to it than most people realize.

Too Hard to Find

Many people dismiss credit repair as a process that requires no more than a cursory scan of their credit reports. Unfortunately, a quick scan of your credit reports will almost certainly leave almost all of the score-damaging errors undiscovered. To tap the real potential of credit repair requires an exploration of the credit reporting guidelines embodied by the Fair Credit Reporting Act (FCRA). An understanding of the FCRA is certain to reveal a number of surprising and correctable errors. And every error caught and corrected is money in the bank.

Why Credit Repair Matters

You might be shocked at the potential cost of impaired credit. You pay interest on the money you borrow, and your interest rates are based on your credit. And it adds up. If you have a mortgage, an auto loan, and a couple of Credit Cards a damaged credit report could be costing you thousands of dollars each year. A small investment of time today can repay you in a tangible way for many years to come.

Sneaky Defensive Credit Bureaus

If you are going to launch a credit repair project you must adopt a somewhat skeptical attitude towards the credit bureaus. It might be handy to understand that the credit bureaus are not government agencies, nor do they have any status other than for-profit businesses. They each manage billions of pieces of data for over 200 million Americans, and they are not perfect. They are interested in maintaining accuracy, but only to the extent that it is not an economic detriment. You should also keep in mind that they often take a stand against credit repair only because it is in their best financial interest to do so.

The Problem with the FTC

The FTC in very justified in their campaign against crooked credit repair operations. The only real caveat here is that the FTC operations and press campaigns against scams can be heavy handed and unhappily omit the fact that, as in every industry, there are good guys and bad guys, and there are many excellent credit repair companies capable of significantly transforming your life.

How the Bureaus Manage Disputes

Once you decide to get your credit repair project underway you need to be conscious of the fact that you need to work thoughtfully, and even respectfully, within the credit bureau system. It is essential to understand the FCRA and to focus your disputes in areas that you have leverage, but it is equally important to understand that you will face some resistance. The credit bureaus receive mountains of disputes every day and have the right to refuse to process any request they feel is frivolous. They use this right liberally, and you need to be patient; determined, but patient.

Collectors and Credit Repair

Another somewhat recalcitrant group of participants in the credit reporting process is collectors. They are governed by the Fair Debt Collection Practices Act (FDCPA), and in their interaction with the bureaus by the FCRA, but there are so few repercussions for failure to comply that an amazing number of errors, intentional and otherwise, slip through the cracks. And the unwary consumer pays the price.

Winning the Credit Repair Battle with Collectors

When it comes to collectors appearing on your credit report, doubt your eyes. Take the time to understand how reporting period limits work, and how collectors reset them causing collections to report many years past their legal reporting limit. And to defend yourself against any active collectors you will also need to understand how statutes of limitation work. When it comes to credit repair a little homework really pays.

Professional Credit Repair Services Work

Not everyone has the time available to master the details involved in credit repair success. Nothing can affect your financial life like your credit. You simply cannot afford to do half the job. It's your credit, and you owe it to yourself to make sure the job is done right. Either invest in a couple of good books and put in some serious study time, or hire someone to do the job for you. Credit repair is all about the details. It's not hard to get the results if you do it right. Good luck!

Copyright ? 2009 Ian Webber. All Content. All Rights Reserved.

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