Did you just try to get a loan for car repairs and get turned down? That is a horrible feeling and it even makes you feel you have let your family and yourself down. Right? Don’t get desperate and run out to hire a company to do a credit report repair. You may find yourself in worse shape than before you started. This article may well give you 2nd thoughts about using one of these companies.
Chances are you have seen the ads for “Legally Repair Your Credit Report”, “Wipe Your Credit Report Clean In 7 Days”, “Buy A New House With A Clean Credit Repot” etc. You have been sitting in your favorite recliner watching the TV and suddenly somebody starts telling you can have a clean credit report in as little 30 days.
Hold on to your wallet if you are thinking about calling them. No matter what promise these companies make, bad credit transactions are going to stay on your personal credit report. They cannot wave a magic wand and make your bad debts vanish; like magic.
What you are hearing and reading is a first class con job, being played on desperate people. Many of these companies have been put out of business by the FTC (Federal Trade Commission) and local states Attorney General. The sad part is there are those that remain in business and continue to rake in $1000.00s of dollars per month from unsuspecting people.
Even some of the companies still in existence are a fly by night operation. You pay them a fee from as low as several hundred dollars to a high of perhaps a thousand or more. They collect your money and the next time you call them the phone has been disconnected.
However, there are some that actually offer a legitimate service. But you are going to be paying them to do something you can do yourself. All they are going to do is take the list of your debts, fill in a form letter to your lenders and ask them to prove the debt. Hey! You can do your credit report repair yourself.
O.K. are you now asking how you clean up your own credit transcript. You are most likely not going to believe this but the process is simple, but it can take some time.
Several years ago, the Federal Government of the United States, made it mandatory that the consumer had the right to get a copy of his credit report once a year. So the first step you have to take is write or call the “Big 3”, TransUnion, Experian and Equifax, and request a copy. By law they have to send you a current copy of your credit narrative.
If you should find false information reported by a creditor, your next step is write the company about their false information. By law, in 30 days, they must either prove the debt or have it removed if false. However, if you find the reported debts on your report are accurate, this is where the rubber hits the pavement. Because they will remain on your report for 7 years or until you clean them up.
When you hear the outrageous claims made by these companies, the old adage applies; “If it sounds to good to be true it probably is.”
In Part 2 of “Discover The Truth About Credit Report Repair” it will give you more information on how you can legally clean up your own credit transcript.
Did you know that credit report repair may be one of the biggest scams ever perpetrated on you the American Consumer? This article is a continuation of Part 1 of “Discover The Truth About Credit Report Repair”.
Many of the companies and individuals, which have bilked you he consumer, out of thousands of dollars have been put out of business and locked up for fraud. However, for every one that has been shut down it seems as if 3 more pop up. The sad thing is when the feds or the local state has shut them down; they simply pack a suitcase and move across the state line.
In some cases they simply change the name of the company and file for a new business license. In most states it is relatively easy to get a business license and open for business.
It is important for you to understand there are legitimate credit report repair companies. These companies will charge you a fee for doing the same thing you can do.
Here are some truths that you can do yourself without paying some one else to do it.
1. Disputed Debt: If you believe the amount of the money owed, shown on your credit transcript is wrong, you have the right to challenge it. You contact the lender with a letter or phone call, they have 30 days to respond. If they fail to do so you have the right to have it removed from your credit report.
Once the 30 days have passed it is your responsibility to call the credit reporting company and request it to be removed. Be sure you have a record of when and where you contacted the lender; you will need this for the credit reporting company to remove it from your report.
2. Bad debt shown but loan paid in full: Again if the loan has been paid off you have the right to negotiate with the lender and have it changed to “Loan Satisfied” or “Loan Paid In Full”. Even though it will remain on the credit report it will show others checking your credit you made it right.
3. Loan Negotiation: If you have failed to pay a loan on time or have defaulted on the loan, you have the right to try and make it right.
You can call the collection company or the lender and negotiate a settlement of the loan. Often times this could end up reducing the loan to pennies on the dollar. Once you have the reduced amount paid off, it will appear on your credit report as paid. Although it will reflect a reduced pay back it will show you have taken the necessary steps to try to make it right.
Folks you need to understand that the only way to do a legal credit report repair is to pay your debts. The debts you have paid late and defaulted on are going to be around for 7 years or longer. You heard right or longer being the keyword.
An example of this would be say if you have a defaulted loan in the year 2000. Normally it could drop off your credit report in 2007. However, you started to trying to clean up your credit report in 2005 and started a new pay back. Guess what? Its going to be on your credit report until 2012. But yet if you clean it up it will be for your good.
Credit report repair can be a long road, but you will find when you work at it, it will all be worth while.