How to Repair your Credit-Part 3

Action Strategy to Tackle Negative Items:

 Credit bureaus have up to 30 days to respond to a dispute and 45 days if you received a FREE annual report. It’s ok to call the credit bureau’s Consumer Relations Department and ask the clerk how long it will take them to verify inaccurate information that is disputed by consumers.

This will give you an idea when you should follow-up on your dispute with that credit bureau. It will help if you could get the clerk’s name to use as ammunition when necessary. Time frame is a major tool, and the main strategy credit repair companies depend on to repair negative accounts off their client’s credit report. The Law states that you cannot be victimized by slow and lazy responses to your dispute and this is where you are really protected against careless business practices.

Credit repair companies know that many companies react very slowly or does not take out the time to verify the information you are challenging, whether it is true or not, because it is not part of their normal everyday business procedures; therefore, since the negative information is not verified, it must be permanently deleted from your credit report. You completely got off on a technicality.

NOTE: Credit repair companies feel consumers should take advantage of their right to question any negative information in their credit report. They feel you should claim your innocence regardless to the truth, to start an investigation, and make them prove you guilty. There is a question of ethics in making such a claim, but many people are denying bad marks in the credit report, and they are being removed due to the above reason.

Keep in mind that the final burden of proof is on you to prove your innocence when you have a stubborn creditor–otherwise the negative information could remain on your file until the statute of limitation, unless you get a ruling from a judge.

If the information is verified, the law gives you one more strategy. You have the right to place a brief statement of at least 100 words giving your side of the story from your viewpoint. The credit bureau must include your story in every credit report that is issued.

 There is also a statue of limitations on how long a credit bureau may report negative information in your credit profile.

1. Bankruptcies must be removed ten (10) years from the date filed.
2. All other negative items including wage earner plans must be removed seven (7) years from the date filed(however because they are under title I it could be up to 10 years too.
3. Late payments, P&Ls, and repossessions must be removed seven (7) years from the last date of activity (meaning the last date you made a payment with that company).
4. Judgments remains for 7 years or State Statute of Limitations, whichever is longer. It can remain longer than 7 years under Federal Law or State Law that could be 10 years plus a renewal period of 10 years.

Now that you know what your rights are under The Fair Credit Reporting Act (FCRA), let’s review and add a few preliminary steps:

1. You should know which credit bureau holds a file on you.

2. You must get a copy of your credit report.

3. You must understand the contents of your credit report completely.

4. Write down on a sheet of paper all incorrect personal data listed on your report, such as, Name, Employment, address, previous address, social security number, etc.

5. You must also write down all of the negative accounts such as, Bankruptcies, Delinquents, P&Ls, Collections, Repossessions, Etc., that are listed in your credit report.

6. Write down all of the negative credit inquiries (negative credit inquires are companies who denied you credit). Make sure they show the correct close date which is the date of filing not the discharged date. This is important since what has happened over the last two years will be a factor. A sample dispute letter is listed in the back., Delinquents, P&Ls, Collections, Repossessions, Etc., that are listed in your credit report

NOTE: On a bankruptcy, make sure you noticed the closed date of the creditors listed in your credit file. Please understand that just deleting a bankruptcy will not raise your score–it could lower it if it is deleted, especially if it has been over two years. How the creditors under the discharged bankruptcy is currently reporting to the credit bureau, could hurt their score. 

7. Once you have written down all of the negative marks in your credit report it is time to develop action strategies to have those negative marks erased from your file. Accounts and inquiries that are not yours are easy to have removed especially if you can prove your innocence. You can simply write a letter stating the following: “these negative accounts and inquires, listed on my credit report, do not belong to me — Please remove at once!”

 Hire An Attorney When All Else Fails:

 You have rights and if the credit bureau violates them, hire an attorney who specializes in dealing with credit repair. You’ll be surprise at the results.

First, do all you can on your own and be polite but if your rights are violated, hire an attorney. This will usually get the job done. Sometimes credit bureaus and collection try to intimidate the little guy, but when all else fails, get an attorney to get the job done.

Check the next article to discover the next Strategy to help you improve your credit score fast.