Know The Rules of Credit Repair

by Redeeming Riches on August 8, 2014

Photo Credit: Alan CleaverNumerous credit repair companions today claim eternal protection from bankruptcies, judgments, liens, and bad loans from credit filesThere is even a most suspicious assertion of permanent erasure of bad credit from one’s finances. Be careful of how you decide with credit repair services. If you’re carelessyou will be caught in mere sickly sweet promises that ensnare the unknowing naive clients in traps of money scams.

To prevent from playing victim to abusive and illegitimate credit repair companies, know the rules of the credit repair system. Understand the pragmatics of the system so you will not be cheated in the game of financial business. 

Consult a credit repair expert

Credit repair organizations provide solutions to remove negative information from your credit report.

Basically, credit repair organizations offer three steps in their credit repair services.

1) These companies will ask you to forward them copies of your credit reports which you must obtain directly from credit reporting agencies such as Equifax, Experian, and TransUnion.

2) Then, credit repair organizations will recommend which items on your credit report you should dispute on.

3) They will contact the credit reporting agencies to challenge the questionable items on your credit reports after discussion with clients.

Consult a credit repair expert 

But people unfortunately forget that when it comes to personal finances, it is not legitimate and illegal all the more to remove accurate negative information from a credit report. Why? Precisely, everyone must remember that credit reporting agencies under the Fair Credit Reporting Act (FCRA) and thus, obligated to correct or delete inaccurate, incomplete, or unverifiable information, usually within the span of a month. There is even no requirement at all to take out and erase accurate information unless it is more than seven years old (or bankruptcies that are over ten years old).

Know the Situation of the Mechanism

Understand that these are the situations when credit repair companies can intervene and help you with your credit problems:

  1. You have legitimate errors on your credit report: These errors go from errors in reporting from lenders to simple errors in your personal information. After finding those errors, a credit repair company can correct those errors for you.

  2. You have errors that can’t be verified: There is a loophole in credit reporting that credit repair services can definitely use  verifiability of details. When negative item appears from a lender who was bought or went out of business, they are required to remove them from your credit report.

  3. Your lenders are willing to work with credit repair agencies: lenders must be in coordination and consolidation with credit repair services so that credit repair services could raise your score.

Rules are there to be observed and to protect the rights of every individual. There are three things you must understand here – rules in credit repair, rights of credit repair clients and consequences of violation of riles. Understand so you will not lose in the game of the business.

Consult a credit repair expert 

 

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