The Right Way to Repair Your Own Credit Report
Credit repair is your legal right which is guaranteed by the Federal Fair Credit Reporting Act. This law was created for the purpose of correcting and counteracting the abuses of the credit reporting bureaus. More protests are recorded against credit bureaus than against any other type of business.
The credit bureaus constantly battle credit repair corporations. They disparage them in the media and they hand out literature that is slanted against credit repair to everybody they believe is obtaining help in repairing their credit. Credit reporting bureaus, just like any other kind of corporate entity, are primarily interested in guarding their profits. Investigating the protests of consumers costs them money. Since the credit reporting bureaus will do whatever they need to do to prevent consumers from making progress with the credit repair task, you, as a consumer, need to do whatever you are able to do to shelter your own interests.
Credit reporting bureaus want you to believe that you can easily and quickly repair your own credit because they are certain that you won't be able to generate the same results on your own as you would with professional assistance. The forms and web pages they provide are purposely designed to be useless because the bureaus don't want you to be victorious in repairing your credit.
When you speak with people who work for the credit bureaus or with people who work for credit grantors, you will probably be told that all negative entries MUST be on your report for 7 1/2 years before they can be automatically deleted. However, the law does not require that. The law states that negative items ARE ABLE remain on your credit report for UP TO 7 1/2 years. The real truth is that the credit bureau or the credit grantor can opt to delete any negative comment at any time. In actual fact, tens of thousands of negative items are taken off every day.
Most large credit repair companies are staffed by high-priced lawyers. Their job is to mail letters for you to the credit bureaus. You are invoiced once a month for this service, so there is no reason for the lawyers to accelerate the process. It may take years to see results from these companies.
Simply clearing a debt will not make the negative entry evaporate from your credit report. However, there is a proper technique for clearing debts, including collections and past due accounts. It's possible to get your negative entry revised to positive status by making this a condition of acceptance of your pay-off.
Just a few negative items can be damaging to your credit report since they will cause a strong, downward pull on your credit score which is the number lenders make use of to accept or deny credit to would-be borrowers. These items absolutely MUST be removed from your report if your credit score if it is to come up into positive territory. With only a few negative items on your report, you will pay a MUCH higher rate of interest on your loan, if you get the loan at all. While some items are more challenging to get removed than others, there is no type of negative item that has not been repaired.
Credit bureaus will try to discourage you from attempting to repair your credit by telling you that even if you are successful in taking away a negative item, it will just re-appear on your credit report later on. The real story is that the law now requires the bureaus to notify you in writing if they make a decision to re-report any entry that has been removed. Since this law has been in effect, there has been a big decline in the re-reporting of negative items because the bureaus realize that by doing this, they may be exposing themselves to costly lawsuits.
Finally, you should NEVER try to clean up your credit report by applying for a new Social Security number. This is highly illegal and may land you in jail. Also, don't declare bankruptcy as this will be damaging to your credit rating in the future. Every single credit item you connect with your bankruptcy will be marked “included in bankruptcy.” Because so many items will end up containing the word “bankruptcy,” it now will grow to be very difficult to remove them all. Bankruptcies remain on your credit report for 10 years if not successfully erased before then. By filing bankruptcy, you’ve made it a whole lot more challenging to re-establish good credit.
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ABOUT THE AUTHOR
Bob Gillespie writes on many subjects including credit repair. He is a full-time Internet marketer and author who lives on the island of Maui in Hawaii. Learn more about credit repair at Bob's blog at: