FAQ(Frequently Asked Questions)
Q: What is credit repair? A: Credit repair is a general term that refers to the practice of a consumer challenging inaccurate, misleading or unverifiable information on the consumer’s credit report to improve one’s inaccurate credit standing.
Q: What is a credit score? A: Your credit score is a number used by lenders as an estimate of your ability and willingness to repay a loan or debt.
Q: Why is it important to monitor my credit?
A: Monitoring your credit allows you to look for errors that may appear on your report as well as unauthorized changes that may indicate fraud.
Q: What will my credit report look like? A: Your credit report will contain your personal information, account history, an account summary of your inquiries, and public record information.
Q: What is “QUESTIONABLE CREDIT?” A: A government study reported that 80% of all credit reports contain errors. Please don’t assume that the derogatory information on your credit report is correct. If you honestly do not recognize an item or information on your credit report we should demand that the credit bureau research it. This is not a frivolous dispute! We are here to remove errors. We will ask you to be honest and to think carefully about every derogatory item on your credit. If you think that the report is wrong we expect you to tell us. Once we submit a dispute the credit bureau has 30 days to verify that the information is correct. If they cannot verify the item in that period of time they are required to delete the item. The burden of proof is on them. This is as it should be and it maximizes the probability of a valid and accurate result.
Q: Can I repair my own credit or do I have to pay to have this done?
A: Credit repair is a service you can perform yourself. In fact it is highly recommended by consumer advocate agencies that credit repair can and should be performed by people on their own behalf. It’s your legal right to do so. You are allowed to challenge the accuracy of your credit report at any time. The credit bureau must investigate anything you challenge. It is also highly recommended that a person should monitor their own credit files to ensure they haven’t fallen victim to identity theft.
Q: Is credit repair legal?
A: Credit repair is absolutely legal! The Fair Credit Reporting Act of 1970 acts a consumer protection law that includes many statutes. The bottom line to this federal law allows for the consumer to dispute any and all items on their credit report that are inaccurate, outdated, misleading or cannot be verified in a reasonable amount of time (which is 30 business days).
While it is legal to challenge negative items on your credit reports, it is entirely illegal to create a “new” identity by applying for an Employer Identification Number to use instead of one’s Social Security Number (a process known as file segregation) in order to escape responsibility by hiding one’s credit history. File segregation is a serious crime and can result in fines or imprisonment.
Q: Why don’t more people repair their own credit? A: Most people have overwhelming and demanding schedules that do not allow for the time necessary to perform their own credit repair. Credit repair can be tedious, time consuming and downright frustrating. Many people find it difficult to allot the time necessary to sit and write dispute letters. Even if consumers can find the time, knowing how to properly format a dispute letter to achieve maximum results, in many cases, proves frightening to the consumer. These are some of the major reasons why it has become common place for consumers to pay large sums of money to outside agencies for services they can actually do themselves.
Q: How long can accurate/derogatory information remain on my credit report? A: The basic guideline or rule of thumb is that information regarding revolving accounts and installment accounts generally remains on the credit file for up to 7 years. Judgments can remain up to 7 years or until the statute of limitations runs out. In the case of Bankruptcies the time frame is up to 10 years. Please keep in mind that post Bankruptcy is a good time to monitor your credit report to ensure that the information in your credit file is being accurately reported. If the information in your credit report is accurate, than either special arrangements with the creditor or the passage of time may be your only avenues towards the removal of the derogatory information.
Q: How long should the process of repairing my own credit normally take? A: There are various key factors that may come into play which should help answer this question. For example, how many items are being disputed and who are your disputes with. Other key factors can include whether or not you as the consumer have the proper documentation to support your claim and does the letter you send out include all the necessary information including the accurate account numbers.
If you feel you have not received a satisfactory response to your valid claim you do have the right to repeat the process. Many people find themselves frustrated at the time they have spent trying to manually compose the proper letters required to complete the task at hand. Consumers often discontinue the process even though their claims ultimately are valid. It is not uncommon for the disputation process to continue upwards of 6 months to a year.
Q: What if the credit reporting agencies choose not to respond? A: In the event this proves to be the case, you should send a follow up letter (all letters should be sent certified mail) reminding them that you are expecting them to honor your rights as a consumer and that they are obligated by law to research and respond your dispute in a timely manner. Manually disputing items on your credit report requires patience and persistence. The credit reporting agencies are bound by Federal Law to ensure the information they are reporting is accurate and not outdated.
Q: Why does credit repair carry a negative connotation? A: Credit repair’s reputation can be traced directly to exploitative and predatory companies operating within the credit repair arena, such as those advocating file segregation. Many are reckless fly-by-night operations seeking a quick profit. Unsuspecting consumers are the unfortunate victims of such operations, and the damage inflicted upon them reflects negatively on the industry as a whole.