Here are the answers to some of our most asked questions.
Q. Is it legal to repair my bad credit report?
A. Your right to repair your credit report is protected by law. There are a number of federal laws, like the Fair Credit Reporting Act commonly referred to by the initials FCRA, that already protect the credit rights of consumers, including the right to dispute negative and incorrect items that are damaging your credit report. It is important to understand that the credit bureaus that compile the information that makes up your credit report are for-profit businesses that make money off your credit report. They are obligated by law to investigate and correct negative and inaccurate information that appears on your credit report. Follow this link to read the entire Fair Credit Reporting Act (FCRA).
Q. Can I fix my credit report myself?
A. You absolutely can. And don’t believe anyone who tells you that you can’t do-it-yourself, because you can. Do make sure you learn everything you can about repairing your own credit before you begin. Don’t think it will be easy, it takes a great deal of time to learn about the legislation that governs the credit industry. It’s not easy to learn everything you need to know about your legal rights and the way to go about disputing incorrect and negative items, but it is possible.
You need to be organized, committed, and disciplined to be successful at repairing your own credit. And if you don’t believe you have these skills, then it may be advisable to hire a credit repair professional to do it for you. If you do decide to go it alone, first be sure to check out our review of what we believe is the best DIY credit repair book currently available, Smart Money Secret by Scott Hilton.
Q. Why are people with bad credit forced to pay higher prices for things?
A. The rationale is that people with lower credit scores present higher risks. Credit cards, banks, even Credit Bureaus make more money off people with lower credit scores. For example, a credit card starts charging sky-high rates if you miss even one payment, a bank charges a higher percentage rate on a home loan, and the credit bureaus make more money off people with “bad credit” because they have their credit reports pulled more frequently. Basically, the whole industry thrives off bad credit, and it’s surprisingly easy to fall into that category. Even a couple of points on your credit report can mean the difference between thousands of dollars.
A lower credit score means a higher cost for just about everything, including your home. Just look at the cost of buying a $200,000 home over the course of a 30-year fixed rate mortgage. The average person with a bad credit score (ranging from 620-639) pays $74,970 more for the same house than someone who had a credit score of 760 or above. The differences are dramatic. And even if you don’t own a home, the same thing happens to a lesser extent everyday with higher credit card payments, higher car loan payments. Everything costs more with “bad credit.” In addition, people with lower credit scores are excluded from money-saving specials, like 0% interest offers that are extended only to well qualified credit applicants.
Here’s a quick look at what two different people would pay for the same house:
HIGH CREDIT RATING LOWER CREDIT RATING
Interest rate based on Interest rate based on
Credit score of 760-850 Credit score of 620-639
$200,000 x 5.62% for 30 years=$414,245 $200,000 x 7.21% for 30 years=$489,215
Q. Do I need a lawyer in order to repair my credit?
Q. Can I create a new credit identity to improve my credit score?
A. Absolutely not. There is no way to create a new credit identity legally. Do not engage in any practice or hire any company that involves getting “a new credit report overnight.” Don’t fall for it, and don’t let these activities go unreported. We do everything we can to bring bad credit practices and the people who make money off them to light. Please report any individual or business who are ripping people off with bogus credit claims by reporting them to your state’s attorney general’s office and the Federal Trade Commission. We strongly urge you to report anyone who offers you a “new credit identity.”!!! Use this link to contact the Federal Trade Commission (FTC) to report Credit Identity Scams.
Q. Can repairing negative items damage my credit report?
A. Not if you know what you’re doing. We know how to dispute negative items so they will not be dismissed as “frivolous disputes” by the credit bureaus. We’re a reputable credit repair company, we know how to dispute negative and incorrect items according to the letter of the law. Exercise your legal rights under the Fair Credit Act Regulation (FCRA), you will not be penalized for making legal and legitimate attempts to repair your credit. But your credit could suffer if you start the process without knowing what you’re doing. So, just be sure to get educated about the process or get someone to do it for you. Or else you could damage your credit without meaning to.
Q. Do I need proof before I can dispute my credit report?
A. No. The burden of proof is on the Credit Reporting Agency or Credit Bureau, because they are the ones who are claiming the information they report is correct. They are the ones who placed the info that appears on your credit report in the first place. It is important to remember that the Credit Bureaus are just compilers of information (granted your credit report is some very important info). The people who work there are just trying to do their job, but mistakes happen, as they always do when humans are involved. And mistakes are happening all time, more than 79% of American consumers have errors on their credit reports according to a recent important study by The Public Interest Research Group. The good news for consumers is that the Credit Bureaus must be able to defend their reason for putting the information on your report in the first place. And they are legally obligated to conduct an investigation into your claim. As you can imagine, they really don’t want to have to do that (they basically don’t want to do anything that will cost them time and money), so getting them to actually fulfill their legal obligation can be a chore. We have the in-depth knowledge of the consumer credit laws (the Fair Credit Reporting Act or FCRA, The Fair and Accurate Transactions Act or FACTA , The Fair Debt Collection Practices Act or FCDPA) needed to make sure your claim is investigated and your rights as an American are protected against the multi-billlion dollar credit industry.
Q. Does it always take 7 years before I can get a negative and inaccurate item deleted from my credit report?
A. Absolutely not. The Credit Bureaus are merely people who store the large amounts of info that become your credit report. And people make mistakes. Fortunately, legislation has been designed to establish a system of checks and balances on the credit industry to protect you from negative and inaccurate information that could be damaging your credit report. There’s too much at stake to allow bad credit to be a part of your life for 7 whole years.Don’t believe the Credit Bureaus, or anyone else who tells you that you should just patient and it will come off eventually. Every time the Credit Bureaus receive a dispute, it means extra work for them to conduct an investigation into your dispute. If they have to change something it costs even more money, so you can see why they don’t exactly encourage it.