Jan
31
Choosing a Credit Repair Service
January 31, 2010 | Leave a Comment
Credit repair involves removing inaccurate, misleading or outdated information from your credit report. Credit repair services are sometimes able to help you, when you cannot achieve results on your own. Choosing a credit repair service may involve a little investigative work on your part, but it is well worth the trouble.
An internet search for credit repair services will yield thousands of results. You may not know where to begin. First, you must decide what type of help you actually need. If you are having trouble paying your bills and feel you are close to bankruptcy, a new law requires that you receive credit counseling before you can declare bankruptcy. A credit counseling service and a credit repair service are not actually the same thing, though they may be listed side by side in a directory.
Credit counseling services help consumers create budgets and negotiate repayment plans with lenders. They attempt to remove late payment fees and lower interest rates. There are many “for profit” credit counseling services, but most states have non-profit services.
Credit repair services help consumers who are being denied credit or do not qualify for the best interest rates, because of negative information on their credit reports. If you have been denied credit or have been told that you do not qualify for the best interest rates being offered because of your “credit score”, then you are looking for a credit repair service.
Before you engage a credit repair service, obtain copies of your credit reports from the three major credit bureaus. Another recently enacted law has made it easier for you to do this. You only need to visit one website; www.annualcreditreport.com. The Federal Trade Commission advises that you spell it correctly or you may end up at an impostor site. You are only entitled to one free copy per year, unless you have been denied credit because of information on your report. This applies to most people searching for credit repair services.
The number of items on your credit report may help you choose a credit repair service. If you have multiple items that need to be removed, it makes sense to choose a credit repair service that charges a monthly rate, rather than a per item fee. It is also a good idea to look for a company that guarantees results and spells that guarantee out for you, before you sign up for their services.
Some credit repair services are operated by “financial professionals” or “credit experts” who may or may not be able to help you resolve any legal issue that comes up while you are going through this process. You can avoid these credit repair services by choosing a law firm that specializes in credit repair. You may think that a law firm will be more expensive than another credit repair service, but often this is not the case.
The Federal Trade Commission advises; “Be skeptical of businesses that offer instant solutions to credit problems. There aren’t any.” What this means is that there are some questionable services being offered, some of which are actually illegal. Legal credit repair takes time. A legitimate credit repair service that can achieve desired results will tell you this up front.
The writers and editors of the Credit Repair Blog are committed to providing accurate information about choosing a credit repair service. Visit us at http://creditfixnow.blogspot.com
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Jan
29
Can You Really Get A Free Credit Report?
January 29, 2010 | Leave a Comment
We’ve all seen the ads for “free credit reports” in our email and on various websites.
But are most free credit report offers real?
Unfortunately, most are not actually free. In fact, most require a monthly “credit monitoring” or other fee - one that most people really don’t need.
Under the Fair and Accurate Credit Transactions Act (FACT Act) consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies - Experian, Equifax, and TransUnion.
To get your copy, visit www.AnnualCreditReport.com and you can order your credit report online. Or if you prefer, you can make your request by phone or mail.
Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program.
So don’t get taken by these other offers.
What should you do if you find any wrong or damaging information on your credit report?
Contact the credit bureau that issued the report in writing (you can also file a dispute online.) Be specific about what you think should be removed, and provide an explanation. By law, the credit reporting agencies must investigate your dispute within 30 days, and notify you in writing - if the information cannot be verified as correct, it must be removed.
One way to monitor your own credit throughout the year is to order one credit report at a time, wait a few months, then order the next. While not all creditors report to each of the 3 major credit bureaus, this will give you a good idea about any changes in your credit.
What about your credit score?
Unfortunately, your credit score is not considered a part of your free credit report, and must be purchased separately. In most cases you do not need to order your credit score frequently, although it is a good idea to know your score before you apply for any major credit purchases.
Does credit repair work?
Credit repair does work. The credit reporting agencies must remove any items that are incorrect. And there is nothing that prevents you from disputing any item on your credit report that you consider to be damaging. While the credit reporting agencies have no obligation to remove any items just because it hurts your credit, many individuals are able to get damaging items removed from their credit report, and improve their credit score, just by asking for the item to be verified.
But be careful - there are many companies that will charge you a fee, basically to do what you can do on your own. And beware of any company that offers to create a new identity or credit file for you, as this is fraud, and can get YOU in trouble.
The best way to protect your credit is to be an informed consumer!
Kris Bickell is the owner of Debt-Tips.com, a helpful site for consumers struggling with credit card debt. For tips on getting out of debt, repairing your credit, improving your credit score, and saving money, sign up for the free “5 Simple Steps To Getting Out Of Debt Faster, Fixing Your Credit Problems, & Saving Lots Of Money!” email course at: http://www.Debt-Tips.com/
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Jan
28
Free Credit Repair Information
January 28, 2010 | Leave a Comment
Credit repair involves removing inaccurate, misleading or outdated information from your credit report. Credit report repair may help you get better interest rates. If you are being denied credit, it may help you get the credit that you deserve.
Most people understand the importance of establishing and maintaining a good credit record. You opened your first checking account and maybe got your first credit card or car loan and then something went wrong, so now you are searching for information about credit repair. You are not alone. Credit report repair is a major issue for many people and has created a relatively new market, particularly on the internet. Companies offer to sell you your credit report information and your FICO scores. They offer, for a price, do-it-yourself credit repair software and “professional advice”. Consumers are bombarded with information from television and radio personalities. Some of whom have no experience or knowledge in credit repair issues. Anyone can offer to sell you anything and if you are not careful, you will waste money on bogus “credit reports” which have nothing to do with your personal credit report information.
The first step towards credit report repair is to obtain copies of your credit reports from the three major credit bureaus. Before you can complete a credit repair program, you need to know what information is causing your credit problems. You are entitled to a free copy once in a twelve month period. You can view and print your credit reports by visiting www.annualcreditreport.com. The Federal Trade Commission advises that you spell it correctly or you may end up at an “impostor site”. Once you have this information, you are on your way to credit report repair.
The next step towards credit repair is to report inaccurate information to the credit bureau. If you dispute information on your credit report, the credit bureau is required to investigate. They are not required to investigate and remove information in a timely manner. If you only have a couple of negative items, then you may be able to handle this part of the credit repair process yourself. However, those with large numbers of discrepancies often become frustrated at this point and give up on the whole idea of credit report repair. They continue struggling for years with high interest rates or even being denied credit entirely. This does not have to happen. There are law firms that can help.
As opposed to credit counseling services and “credit advisors”, legal counsel familiar with the laws regarding credit repair issues may be able to help you resolve your credit problems in a timely manner. They can handle the red tape, paperwork and multiple requests to credit bureaus that are sometimes necessary to remove items and complete the credit report repair process. Fees for these services vary, but if you are stuck carrying a balance on high interest credit cards, then you are paying hundreds of dollars per year in interest. Interest is money thrown away. Even worse, if you can not buy a house because of information on your credit report and are stuck paying rent then you are throwing away thousands of dollars per year. Credit repair is a worthwhile investment, whether you have the patience to do it yourself or you enlist the help of a legal professional.
The writers and editors of the Credit Repair Blog are committed to providing accurate information about credit repair issues. Visit us at http://creditfixnow.blogspot.com
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