Credit repair can not guarantee the removal of negative items from your credit report. The law does allow you to request a reinvestigation of credit information in your credit report that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost.
We allow you to ask credit questions in our credit repair forum.
• You are entitled to a free copy of your credit report if you've been denied credit, insurance or employment within the last 60 days. If your application for credit, insurance, or employment is denied because of information supplied by a credit bureau, the company you applied to must provide you with that credit bureau's name, address, and telephone number.
• You can dispute mistakes or outdated credit items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation. Do not send them original documents.
Clearly identify each item in your report that you dispute, explain why you dispute the information, and request a reinvestigation. If the new investigation reveals an error, you may ask that a corrected version of the report be sent to anyone who received your report within the past six months. Job applicants can have corrected reports sent to anyone who received a report for employment purposes during the past two years.
When the credit reinvestigation is complete, the credit bureau must give you the written results and a free copy of your credit report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address, and phone number of the provider.
You also should tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if you are correct-that is, if the information is inaccurate-the information provider may not use it again.
If the reinvestigation does not resolve your credit dispute, have the credit bureau include your version of the dispute in your file and in future reports.
Credit repair companies must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a credit repair contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you. For example, a credit repair company cannot:
• Make false claims about their credit repair services
• Charge you until they have completed the promised services
• Perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the credit repair contract without paying any fees
Your contract must specify:
• Payment terms for services, including their total cost
• A detailed description of the services to be performed
• How long it will take to achieve the results
• Any credit repair guarantees they offer
• The company’s name and business address
Credit Repair Tips
What does my credit fico score/credit report say? A credit report rating is a measure of your credit worthiness. It's a ranking based on your history of timely payments and how responsibly you've managed credit in the past. Credit Bureaus use your financial payment history to determine your credit rating.
We have helped thousands of customers re-establish there credit with our free credit repair advice. We would like to help you understand the importance of good personal credit score and what you can do to maintain a solid credit report rating.
Mortgage lenders like to see a credit score of 620. However if you can get your FICO score up to 700 you will receive the best interest rates in the market place and you will never have to worry about credit repair.
The best way to establish or re-establish your credit report is with a secured credit card.
A secured credit card is an account where the security deposit you provide is equal to the credit limit of your credit card. After 12 to 18 months of timely payments you may be eligible for an unsecured credit card.
Pay what you owe: Pay at least your "total minimum due" by the due date on your monthly statement to keep your credit report in good standing.
Don't skip any credit card payments: Try to pay more than the minimum, or even the whole balance, each month. New spending and carry-over balances combine to increase the amount of your average daily balance - and the finance charges you will owe. You can decrease this expense by paying down your credit card balances as much as possible each month.
Do not exceed your approved credit limit. Your "available credit" is how much credit you have left (your "credit limit" minus your "Outstanding Balance"). Be careful to keep your spending below this credit limit.
Ideally you should keep your credit balance at least 50% below your credit limit.
Be sure to add any charges you made after your monthly statement's closing date to your "outstanding credit balance."
Make timely credit payments Pay attention to the "mail by" dates for bills so that they arrive on time. We recommend that you mail your payment a week before the due date. You can be charged additional fees if it's late.
If you have trouble mailing bills on time set up a automatic minimum payment from your checking account.
If you are moving, fill out the change of address form to ensure that your credit statements goes to your new correct address. You are responsible for your balance even if your statement goes to the previous address.
What does a good credit rating mean? A good credit rating indicates to others that you are a "good" credit risk. You manage your debts responsibly and are likely to pay back what you have borrowed. The longer your credit rating remains unblemished, the more confident others will be in lending to you. Having great credit also allows you to qualify for the best loan programs and lowest mortgage interest rates.
Why should you maintain great credit report score? You may need good credit for such routine matters as having the utilities connected to your home.
A good credit report score is important to secure financing when buying furniture, a computer, a car, or even a new home.
Employers often check the credit rating of prospective employees. A solid credit rating reflects positively on your ability to manage your job responsibly.
Renting an apartment may be easier. A good credit score tells landlords that you are a person who's more likely to pay the rent on time each month.
You may be eligible to receive loans for college education.
If you need access to large sums of money, banks may look more favorably upon giving you the loan you need.
Strong credit references can open a world of financial opportunity. Someday you may want to use credit to finance a business.
What if I have bad credit or no credit report? You should start building credit with a secured credit card.
If I have bad credit can I still get a mortgage? Yes we have many bad credit mortgage and bad credit refinance programs.
Date
Your Name
Your Address, City, State, Zip Code
Complaint Department
Name of Company
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my credit report file. I have circled the items I dispute on the attached copy of the report I received.
This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be removed (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing.)
We hope you have enjoyed the free credit repair guide and information here.
