Credit Repair Help

Credit Law is on the Side of the Borrower

Whose Side is the Law On?

Many people assume that credit bureaus are government-supported organizations that are backed by a whole lot of laws designed to protect creditors. Well, it may surprise you to learn that this assumption couldn’t be further from the truth.

Apart from the government simply recognizing the need for credit reporting, credit bureaus have absolutely nothing to do with the government. Instead, credit bureaus are just huge bureaucratic business companies that exist to make a profit by selling information about you. And you may be surprised to learn that they don’t bother to verify the information they sell about you. They just report what creditors tell them about you. And actually, what the creditors tell them about you is usually just an automatic report generated each month by machine.

Because of the huge potential for errors in credit reporting, the United States Congress enacted laws to protect consumers from being victimized by problems that occur with the credit reporting system. You not only have a right to make use of these laws, it is your responsibility to make use of them. The protection afforded by these laws does not occur by itself. You must initiate action under the terms of the law to benefit from it.

The Reality that Prompted the Law

As the credit bureaus computerized their processes and greatly expanded their reach in the late 1960s and early 1970s, consumer complaints began to grow rapidly at the FTC and state attorney general offices. At that time, the new, combined power of computers and telecommunications provided an unprecedented ability to collect and centralize information about everyone from creditors everywhere. Credit reporting agencies quickly became huge information bureaucracies second in size to only federal government. At the same time, the existence and use of credit cards grew dramatically.

Credit bureaus expressly served only the needs of their clients, the companies that granted credit through loans and credit cards, etc. Lenders need this credit information to determine the risk of lending to a specific borrower. Such information, formulated into a specific score, is used not only to grant or deny credit, but to for the creditor to adjust the interest rate higher or lower for each borrower according to the degree of risk associated with him or her.

Naturally, in a system that was new and developing and that had to handle a huge amount of information every month, there were a lot of errors and few built-in safety mechanisms to respond to problems that had not been anticipated nor experienced yet. As it turned out, many consumers were negatively affected by the credit bureaus, but they had no way to correct or change their credit information. The American consumer lay completely at the mercy of the credit bureaus and a system over which they had no control or influence.

In response, the United States Congress enacted the Fair Credit Reporting Act (FCRA) in 1971 to insure that the credit bureaus actually investigate the credit items that consumers dispute. This federal law set guidelines for a process that gave a consumer the right to challenge the accuracy, validity, and verifiability of the credit listings appearing in their consumer credit report. It also required that the credit bureau delete any credit report item if it was inaccurate. But it went further. Similar to the principle that you are innocent until proven guilty, the law required that the credit bureau delete any item that could not be verified.

So, the Federal Credit Reporting Act changed the equation so that the credit bureaus have responsibility to the consumer as well as the credit grantor. However, in reality, the credit bureaus historically resisted, resented, and rejected consumer disputes. The credit bureaus preferred to be left alone to just collect and sell largely automated information to make a profit. After all, each time a consumer challenged his credit, the credit bureau had to do a lot of non-automated work, undertake a lot of steps, increase its costs and diminish its profits.

The credit bureaus first defended their profits by erecting walls of stall tactics, including requests for more information, further clarification, and additional identification from the consumer. The vast majority of consumers gave up before they even received copies of their credit reports, which they had to pay for. If a consumer managed to get a credit report, decipher the coded information, write a coherent dispute, and mail it, the bureaus often found some reason to disregard the challenge, without undertaking the work of verifying the credit information with the creditors. The entire dispute system was designed to frustrate and discourage the consumer and eliminate the dispute before requiring action and incurring costs to the credit bureau.

Things are a little better today, and it is easier to request and receive a credit report through various websites– for free. However, the vast majority of consumers still give up on the idea of improving their credit before they even receive copies of their credit reports.

Then on the opposite end of the spectrum, there are a lot of misconceptions floating around where people have got the facts wrong, or twisted around. Some consumers have the mistaken idea that the credit bureaus must complete their investigation within thirty days or be forced to remove all disputed information. Some of these people threaten to sue the credit bureaus if they don’t conclude their investigation in that time frame. Clearly, such thinking is wrong, if not delusional. Nobody forces the credit bureaus to do anything. Like most large businesses, they follow their set processes.

However, if you manage to submit a clear, coherent and valid dispute letter with specific dispute information, and the credit bureau investigates your dispute, your chances of success are good. Indeed many items are removed from credit reports, not only because they may be erroneous, but because the credit bureau does not receive timely response and confirmation of the bad mark from the creditor. And you don’t have to undertake this work by yourself. There are law firms that specialize in this work and do enough of it with paraprofessionals that it is not too expensive, especially when weighed against the benefits. And you can work with them entirely over the phone and on the internet.

But, here is the most important fact to understand. Thanks to the law discussed above, if a credit bureau cannot verify a disputed item before completing its investigation, that item will be removed from your credit report! And, amazingly, many creditor grantors and lenders are simply reluctant to take the time to verify the data and report back to the credit bureau. The credit bureaus are in the business of reporting credit histories, but the actual creditor is in the business of lending money for a profit. Collecting, reporting and quantifying credit data is what they pay the credit bureau for. And sometimes a creditor does not respond to the agency at all - basically because it involves a manual verification process that takes time, costs money and, depending on many circumstances, may just not be worth it to them!

So, if you think there is nothing you can do about a bad credit report and a bad credit score, think again. If you are willing to initiate the process, whether you initiate it yourself, or get some help, the law is on your side. And it is designed to protect the consumer so that if there is a lack of verification or error in the system, it will fall in your favor, instead of against you.

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If you are interested in learning more to fix a bad credit report, visit http://www.get-good-credit.com.

Today, I was thinking about the professional obligations of a law firm to its clients and how that helps to protect you when you get help repairing your credit. An actual law firm with many professionals and many clients has a lot at stake in the success of their clients and in their degree of integrity and reputation. So, I visited the Lexington Law website to see what they had to say about the subject.

“When it comes to matters of trust, there is no better place to turn than a law firm. Attorneys are bound by rules of ethics that require them to act with absolute integrity. Attorneys are responsible for looking after their clients’ best interest and are required to call upon every means possible to obtain positive results for those clients.” I pondered this statement for a while and concluded that law firms are involved in some pretty serious business!

I also had the good fortune today to be thinking about success. You know how a lot of the time we are thinking about our challenges, frustrations, and difficulties, etc. Usually I think about problems all the time in order figure out what to do to solve them and to plan my next steps, etc. It has become the normal way I look at the world and my everyday frame of reference. Well, today, I found myself just thinking about success for a while, and it felt great!

So I thought it might be a good idea to go back to the Lexington Law website and pick up some testimonials from people who have had success in fixing their credit since they engaged Lexington Law. From what I read, I could see that these people had some good feelings about their success. By showing some to you, I though it might also get you to share in some good feelings and also to do a little thinking about success.

Even though there are many more testimonials at the site - and even some videos, I picked up quite a few blurbs. So here they are:

“I’m sure you hear this all the time but I couldn’t stop singing songs of praise to the staff at the Lexington Law Firm. I got an updated copy of my Experian Credit Report today and I was so happy I started jumping up and down in the driveway. They deleted six out of nine negative entries — and in less than two months — now that’s what I call SERVICE. I can’t wait to see the negative entries fall off my other reports as well! Thanks a million!”

— A., Lexington client

“Your service is great! My Experian credit report is all cleaned up! I can’t believe it! The other two bureaus are almost clean too. The past six months have been great. Ford leasing company picked up the lease for a $40,000 car easily. I’ve also gotten new credit cards with high lines of credit and low interest and zero interest on balance transfers. So far I’ve spent under $500 on your service. It has been worth every penny. You guys are just great. I’d recommend you to anyone that has a scary credit report! Thanks so much.”

— B.G., Lexington client

“You guys did a great job! My beacon score went up 90+ points in less than a year. I went from horrible credit, to marginal to good credit. We have even purchased a house and went with a conventional mortgage.”

— K.D., Lexington client

“Thank you very much! To date, I have been quite pleased with your service and happy to report that my credit is very good now. I have not been able to get a normal credit card for the past 5+ years, however, after signing on with Lexington Law a little over a year ago, I now enjoy a good rating. I am approved for most credit lines that I apply for — at good rates. I will continue to endorse this service. Thanks again!”

— P.C., Lexington client

“THANK-YOU so much for your prompt reply. I am VERY happy with your work and professionalism!”

— L.L., Lexington client

“Your firm is absolutely outstanding! Your website said I would start seeing progress around 2-3 months and that is absolutely true, but I must admit that I was doubtful… Thank you so much for your help! I feel like I am becoming “credit human” again!”

— C.A., Lexington client

“Just want to say a big THANKS for your updates. I will continue to do my part and getting the info to you all as soon as it is available to me. Again thanks for your help and responses. It’s people like you that give customer relations and customer service a good name.”

— A., Lexington client

“Thank you for doing this for me, it is such a one-on-one service you all provide, dedicated ’till the end, able to work out any up and coming problem, a resolve, an end, a good end. All of you and yours have a safe & happy Thanksgiving… I love you guys… We are having our FIRST Thanksgiving because of you in our OWN HOME!!! THANK YOU!!!”

— The S.’s, Lexington clients

“I have had your service for over a year now. I have a new truck at a great interest rate and a loan at a great interest rate. All creditors rave about how great my credit is. It sounds really weird but i am getting the credit now! Thank you so much!”

— S.S., Lexington client

“I have to admit I was a little skeptical at first, but after seeing what you were able to do with my credit after only a few months, it is very reassuring. Thank you for everything that you are doing for me and please pass on to your staff my appreciation for all of the hard work.”

— T.B., Lexington client

“I just wanted to thank for for the great work you are doing for me. I’m very excited about the progress you’ve made and continue to look forward to more in the future. Thank you for your time and for your consistenly good customer relations. Each time I’ve had a question I’ve been answered in 1 business day. Thanks again.”

— A.B., Lexington client

“Thanks so much for the reply. I am so impressed by your incredible attention to the customer. Retaining your company was the best thing we have ever done. Thanks so much for all the hard work!”

— J.W., Lexington client

“It was a pleasure talking with you today. It is always refreshing to actually speak with a person, rather than an e-mail, lol. I feel better and wanted to thank you for your time.”

— M.A., Lexington client

“Thanks for the excellent services you have provided. I would sincerely say that your organization conducted business in the utmost professional manner. I am extremely pleased with the way you worked things out for me. Thanks for the wonderful service. You and your team have a great year ahead!”

— B.P., Lexington client

“Because of the awesome work you guys did, I was able to get both myself and my wife new cars (well, almost new) and to think, a year or so ago, I couldn’t get anything almost new without unreal interest and all that. I have recommended your services to all of our friends and family and will continue to do so in the future. Now my wife is in the process of working with you to get her credit cleared up. I couldn’t be any happier. Thank you.”

— M.F., Lexington client

“You guys are so friendly… are you charging me per e-mail? Given the level of communication it seems that $39.00 per month is too little? Are there hidden fees going on here?”

— V.S., Lexington client
[Editor's note: No hidden fees, we simply do the best job we can communicating with our clients.]

“Thank you for your reply. I must admit that you and your staff have been most responsive to my needs and I am thoroughly enjoying the working relationship. Keep up the great work!”

— G., Lexington client

“All of you are very kind and we have appreciated everything you have done. We will most definitely work with you in the future.”

— C.A & G.S., Lexington clients

“I am very happy with the results that your firm has provided for me. I am now able to get loans and credit cards that were impossible for me to get earlier without your help. I am now able to get low and reasonable financing terms because of my new credit. I have had a total of fifteen deletions and I thank you for helping me not have to wait seven years before I am able to start over again with my credit. Thank you.”

— K.C., Lexington client

“I know you must get millions of e-mails, but I want to quickly let you know how much I appreciate the report I received, and the also the note from you. Since we spoke, I have received the most prompt response from the credit bureau, and more information for me to use in expediting the process. Thanks for your professionalism and concientious approach to my situation.”

— V.P., Lexington client

“First and foremost, thank you thank you thank you and thank you!!!!!!! If I wrote a thank you for every negative mark taken off my credit reports, this page would really be long I hope this email reaches you in good spirits. THANK YOU FOR DOING YOUR JOB VERY WELL.”

— C.R., Lexington client

“Thank you for the information & the compliment. You have always been so helpful and friendly and I want you to know that I truly appreciate all your hard work.”

— J.F., Lexington client

“Thanks, you’re always very helpful and courteous.”

— F.W., Lexington client

“I just wanted to say that you guys are doing a GREAT job. I have sent 4 people your way and signed up my wife. Keep up the good work!!!! THANK YOU.”

— C.D., Lexington client

“I have reviewed my credit statements and find that you have done a great job at cleaning up my credit. I am very happy with the job that you have done. So happy in fact that I am recommending you to anyone who I know with bad credit. You have literally worked yourself out of a job. thank you thank you thank you.”

— G.P., Lexington client

“I just wanted to thank you and tell you that your system is going to be able to put me in a home almost two years earlier than I originally expected to. My credit score has jumped over 60 points in the last 6 months to a very respectable level and now when I apply for a mortgage…I will be able to name my price. So file this e-mail in the happy customer section and I will refer anyone with less than perfect credit to your services it has made a world of difference for me!!!! Thanks again!!!!”

— C.R., Lexington client

“I am now releasing you as my legal retainer. I have joined up with a nonprofit group and have begun paying those things that I do owe. I can’t express the feelings and freedom your services have provided me. I tell anyone who will listen about the miracles your firm has performed for me. If there is any way that I can assist in getting the word out about your firm please do not hesitate to let me know.”

— C.B., Lexington client

“I would like to first thank you, and Lexington Law for the marvelous work in getting my credit reports back to respectability. I am more than pleased with the results, I had tried this on my own to no avail. I have told several friends about your service, but its up to them. Please feel free to use this for advertising, customer satisfaction, or as a testimonial.”

— M.O., Lexington client

“I would like to thank you tremendously for the work you and your team have done. In just roughly 7 months or so, I have gone from an extremely bad credit situation to being a home owner. I couldn’t have done it without you and your team’s help. It has been extremely easy to work with your team and if you ever need a client referral please feel free to ask. Thanks again and congratulations on a job well done.”

— J.E., Lexington client

“You have been a great person to work with in regards to fixing my credit reports. No doubt that you have made things easier to understand and have helped me to remain patient throughout this process. You’re also great on the phone. Everybody appreciates straight facts presented with some compassion. Talk to you later.”

— S.V., Lexington client

“After receiving my last credit report, I noticed that my credit problems are solved and you were able to reestablish my credit. You do not know how thankful I am. Thanks a lot!”

— F.M., Lexington client

“I wanted to take this opportunity to mention how pleased I am with our client advocate and all the help she has given me and my family. These are difficult times for us and so it is nice to hear her pleasant voice and hopeful attitude when I call with a new set of questions. She is always helpful and always responsive. Thank you!”

— C.L., Lexington client

“Thanks for all your help. I am highly impressed with the degree of customer service, and results I have received from Lexington Law Firm in a relatively short period of time. Feel free to pass that on to whomever you want.”

— A.G., Lexington client

“Thank you so very much for your quick responses and polite emails, its wonderful to work with a true professional. :)”

— R., Lexington client

“Lexington Law Firm is the first credit repair team that has made any changes to my credit report, and I’ve only been with you for 1 month. I lost a lot of money in the past 6 months dealing with fraud credit repair companies. It’s funny because I used to get emails from you all but it sounded to good to be true. After other companies failed to do their job, I gave Lexington a try and I finally made the right decision.”

— A.B., Lexington client

“I just wanted to let you know that thanks to your services I just got approved for a car loan!! After years of bad credit I am finally getting my act cleaned up, thanks to you all at Lexington!! I’ve gotten 3 of my friends signed up with you all so far. You really are a blessing and I am so thankful for you all!!”

— J.K., Lexington client

“This is the most comprehensive evaluation and action that I have received to date — it is a pleasure to do business with you and your firm.”

— K.C., Lexington client

“Well , I am pleased to hear that my credit report is all taken care of. It has been a pleasure doing buisness with you. I will recomend you to anyone I know having credit trouble. Again thank you!”

— B.S., Lexington client

“Thank you for your quick response. Just to let you know I am very happy with the work my client advocate has done as well as you. Your company has treated me with the utmost respect. I have been referring your company, because of how you treat people and you can’t buy that. Keep it up! :o)”

— K.K., Lexington client

“I am very impressed & pleased with your service. Also, a side note, that about a month ago I moved into a new apartment where as usual, they checked my credit… thanks to your help, I got in. That would not have happened before. Thanks again!! Have a super day!!!!”

— T., Lexington client

Lexington Law is not the only law firm out there who can help you. But it is one that I know about and can definitely recommend without any doubts, so that’s why I feature them here in my examples.

Here’s wishing you success and the very best!

Today, I want to share with you an article I found that offers some tips for “do it yourself credit repair,” including how to get started, and what steps to take. The author of the article reprinted below also offers a software cd that can be bought relatively inexpensively to help you take these steps and do it yourself. The link for the CD is included with the author information, so you can explore it as an option. As I have said before, if you are in a bad credit situation, it’s important to get started taking some steps to improve it. It may be difficult, but it’s not as difficult as living forever with bad credit.

I haven’t looked at the product mentioned in the article and have not evaluated its content, so I’m neither endorsing it nor steering you away from it. It’s out there and it’s an option you can explore. My recommendations here generally have been to point you to Lexington Law, a firm of attorneys, for professional help - or to another professional law firm via the links here at the blog. But, not everyone is inclined or ready to go in that direction, and I can relate to it. So I’d like to offer some information for the do-it-yourself folks to explore, and here it is.

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“Everything You Wanted To Know About Bad Credit Repair

It may not be possible to provide you with everything you wanted to know about credit repair in this brief article, but here we attempt to give you the do-it-yourself basics and the facts about the many credit repair schemes that are being advertised and should be avoided.

Some companies advertise that they have a credit report repair Software and also they will teach you credit repair secrets, for a fee of course. There is a lot of free information here, if you know where to look. Before you take a credit repair course or sign up for credit report repair, read the facts and the laws relating to credit repair. In this way you may avoid some disappointment and save some money.

Credit repair is a popular subject. It seems that almost everyone wants learn about credit repair. Books and software programs that claim to contain everything you wanted to know about credit repair are being sold on the internet and in retail locations all over the country. There are some questionable credit repair schemes and some companies suggest action which is illegal. Consumers can learn to repair their own credit, but it takes time and patience. The safest bet when hiring someone to do the work for you is to hire a credit repair attorney. In this way, you can be sure that you will achieve results; they know everything there is to know about credit repair. You can also be sure that a credit repair attorney will not advise you to do anything that is illegal. Most of the popular credit repair lawyers do not charge more than the other credit repair companies and some offer money back guarantees.

One of the credit repair schemes investigated by the Federal Trade Commission involved a company that told their customers that they had a special valuable computer disc. This computer disc was supposed to contain everything you wanted to know about credit repair, when in fact there was nothing unique about the disc or the services offered by the credit repair company. They charged consumers, before results were achieved. In order to protect consumers from these credit repair schemes, companies are not allowed to charge customers upfront fees. In addition, consumers have three days to cancel any contract that they sign. Of course you may not enjoy the same protection when buying a book or software program that claims to contain everything you wanted to know about credit repair. So make your purchases carefully and look for money back guarantees.

The do-it-yourself basics for everything that you wanted to know about credit repair include reviewing and correcting the information on your credit reports. In response to a recently enacted law, the three major credit bureaus, Equifax, Experian and TransUnion, created a website to allow consumers easier access to their credit reports. Until this law was enacted, the credit bureaus were allowed to charge consumers a fee for a copy of their credit reports. You are entitled to a free copy of your credit report once in a twelve month period. You are also entitled to a free copy if you have been denied credit recently, if you are unemployed and plan to apply for a new job within the next three months or if you are on public assistance. The companies pushing credit repair schemes will not tell you where to find the information that you need to repair your credit reports, before you pay them. One way to identify a legitimate credit repair company is to look at what they claim they can do. If they claim to be able to do things for you that you could not do for yourself, with time, patience and know-how, then they are credit repair schemes.

The first place to go for everything that you wanted to know about credit repair is www.annualcreditreport.com. The credit bureaus are allowed to promote other services and products on this site. These are not credit repair schemes, but they are usually credit monitoring services or newsletter subscriptions which may or may not be helpful to you in your current situation. Be sure to spell the website address correctly, this writer has written a number of articles about credit repair and has been advised that she occasionally misspells it. You can link directly to the site from Credit Fix Solutions or the Federal Trade Commission’s official website for consumer credit.

The Federal Trade Commission website is also a good place to visit for everything that you wanted to know about credit repair. Their advice is discouraging to anyone that hopes to attain immediate credit repair, because there is no such thing. But they do provide a sample letter that you can use as a guide if you are planning to dispute information in your credit reports. You can dispute any information on your credit report that you believe is inaccurate, misleading, outdated or unverifiable. Unverifiable means that the credit bureau cannot verify the information.

Disputing information on credit reports is the main topic of most books that claim to contain everything you wanted to know about credit repair. Credit repair schemes may also focus on disputing negative items on credit reports. In fact the company that claimed to own the special computer disc, simply advised consumers to dispute every negative item on their credit report. It is not illegal to dispute any information on your credit report, but it is illegal for a company to make false claims about their services.

This is probably not everything that you wanted to know about credit repair, but it may be enough to get you started. Before you buy a book or software program, visit your local library. Experts have been writing books that are supposed to contain everything you wanted to know about credit repair for a long time. The only information that may not be accurate, depending on the date the book was written, is information concerning fees charged by credit bureaus for copies of credit reports. But, this article provided you with that information. Remember to avoid the credit repair schemes, take your time and have patience. Good Luck.”

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Mark Henry is the author of this article and recommends the Credit Repair Software, “Bad Credit Repair Credit Repair Software Kit” discussed, available at www.creditrepairsoft.com. He recommends to buy Credit Repair Software to help you repair your credit rating, to help you raise your credit score and to help you maintain an excellent credit score.

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I hope this article is helpful to you. If you need to get started doing it yourself. It contains enough information for you to begin. Especially important is the link for you to request your credit report for free from the three credit reporting bureaus, once per year. www.annualcreditreport.com.

Likewise, if it’s time for you to explore some professional help or advice from a law firm, (e.g., if your not sure which credit report items you really should dispute, or which items may be unverifiable, etc.) then you should explore Lexington Law. In any case, you should take some steps now to help your future along.

Can credit repair companies be trusted?

Many “credit repair” companies claim to remove negative credit with the flick of a wrist. Their advertisements make bold assertions and money-back guarantees: “Bankruptcy, tax liens, judgments… no problem!! One hundred percent guaranteed!! Credit report 100% cleared in 30 days!!” Can they really make such sweeping guarantees?

While some credit repair companies are outright frauds, others are not fraudulent and they use the dispute process to obtain impressive results. In fact, they delete thousands of negative credit listings every day. (There is a company called, Lexington Law who has been doing it for 15 years.)

Unfortunately, it is risky to trust anyone to help you restore your credit. It is estimated that fraudulent credit repair companies have bilked Americans out of more than fifty million dollars! The majority of credit repair companies were started by entrepreneurs with a penchant for marketing. Consumers flocked to these “credit doctors” only to discover that their advertisements proved far more impressive than their results. Hiring a credit repair company is like playing Russian roulette. Many of them are effective and legitimate, but it is difficult to tell a rip-off from the real article.

So, can credit repair companies guarantee results?

Not a chance! No credit repair company is so good that it can guarantee a specific outcome. It would be like a defense lawyer guaranteeing that the jury will find his client innocent. Guarantees are a sure sign of credit repair fraud. A warranty, where the credit repair company promises a refund if certain results don’t occur, is a better, more realistic claim.

Not surprisingly, the credit bureaus have declared war against the credit repair companies and those selling instruction on how to do-it-yourself. The bureaus lambaste credit repair companies in the media and send anti-credit repair literature to anyone whom they suspect of using credit repair services. The bureaus unflinchingly deny that accurate information can be removed from a credit report.

The simple truth is that you do not have to endure bad credit for seven to ten years as long as you feel comfortable challenging the accuracy or verifiability of your credit listings. If so, it is possible to restore creditworthiness within a much shorter time.

However you decide to address your credit challenges, realize that regardless of what you may hear in the news media, thousands before you have sought help and restored their credit. They can show you their homes, cars, and credit cards. Despite the newspaper articles, TV reports, and other credit bureau propaganda to the contrary, the simple truth remains: you can restore your credit.

Here’s another link to Lexington Law, a legal firm in credit repair that I can recommend with complete confidence.

Good luck and success to you in all your endeavors!

The Cost of Bad Credit

Often, if you have bad credit, you can’t get a car loan or home mortgage. For those lucky few who can get these loans with bad credit, the cost is much higher than it would be with good credit. Maybe they are not so lucky.

If you are making payments on a car, you are probably paying between $5,000 and $9,000 more just for having bad credit. This added interest shows up every month in a higher payment.

The following chart illustrates this:

Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit.

It’s unbelievable. You can’t get credit at all - and then when you finally can, it costs you much more than it costs the average person. And you probably can afford it least.

So this brings me to the big question. Wouldn’t you like to remove chargeoffs, judgments, or other Bad Credit from your Credit Report and get good credit?

Wouldn’t you Like to raise your credit score 50, 100, or even 200 points?

Wouldn’t you love to experience the feeling of being approved for a new car or home loan - and at good, money-saving interest rates?

How to Repair Your Credit

Bad Credit, such as chargeoffs, judgments, and other negative listings can be deleted and removed from your credit report. The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of “completeness and accuracy.” When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor’s own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.

it is illegal to dispute every item on your credit report, regardless of nature. The Fair Credit Reporting Act specifically states that only items that are unverifiable, inaccurate or misleading should be disputed. Often, a person with bad credit may be unclear about grey areas, or just what these terms mean. That’s precisely why better results can often be obtained with professional help. Then, when dealing with something as important and sensitive as your credit, you should be very careful who you trust to help you. Whom you hire to represent you can have a profound effect on the outcome of your case.

Lexington Law is a law firm that specializes in credit report repair and has successfully deleted negative credit including Charge Offs, Judgments, Late Payments, Repossessions, Collections, Bankruptcies and more. They assisted their clients in the removal of over 600,000 items last year alone!

If you want to start Repairing Your Credit today, click on their name to go to Lexington
Law! Or explore another professional credit repair firm from the “Credit Repair” links in the right hand column of this blog.

For your convenience, the links are repeated here:

Credit Repair Firms

Veracity Credit Repair

Whose Side is the Law On?

Many consumers have the mistaken idea that credit bureaus are federally supported organizations backed by a vast array of laws meant to protect creditors. Nothing could be further from the truth.

Aside from the government simply recognizing the need for credit reporting, credit bureaus have absolutely nothing to do with the government. Credit bureaus are simply huge bureaucratic companies which exist for the sole purpose of making money by selling information about you-information they never bothered to verify.

Because of the vast potential for error in the credit reporting system, the United States Congress has enacted laws to protect the consumer from being victimized by the credit bureaus. It is your right and responsibility to make use of these laws.

The Law versus Practical Reality

As the credit bureaus computerized their processes and greatly expanded their reach and influence in the late 1960s and early 1970s, consumer complaints began to mount at the FTC and state attorney general offices. The credit reporting agencies quickly became huge bureaucracies second only in size to the federal government. The credit bureaus expressly served only the needs of their clients, the credit grantors. Many consumers were negatively affected by the credit bureaus, but they had no way to correct or change their credit information.

The American consumer lay completely at the mercy of the credit bureaus. The United States Congress enacted the Fair Credit Reporting Act (FCRA) in 1971 to insure that the credit bureaus investigate the credit items disputed by consumers. This federal law set procedural guidelines, which gave the consumer the right to challenge the accuracy, validity, and verifiability of the credit listings appearing in their consumer credit report. It also required that the credit bureau delete any credit listing if it was inaccurate or could not be verified. Learn More.

In theory, the FCRA charges the credit bureaus with responsibility to the consumer as well as the credit grantor. In reality, the credit bureaus resist, resent, and reject consumer disputes. The credit bureaus would rather be left alone to make a profit. And, each time a consumer challenges his credit, profit is lost.

The credit bureaus first defend their profits by erecting walls of stall tactics, including requests for more information, further clarification, and additional identification. The vast majority of consumers give up before they even receive copies of their credit reports. If a consumer manages to get a credit report, decipher the codified information, write a coherent dispute, and mail it, the bureaus may still find some reason to disregard the challenge. The entire dispute system is designed to frustrate and discourage the consumer.

Many consumers have the idea that the credit bureaus must complete their investigation within thirty days or be forced to remove all disputed information. They threaten to sue the credit bureaus if they don’t conclude their investigation in time. In practice, such thinking is delusional. Nobody forces the credit bureaus to do anything. However, if you manage to submit a valid dispute letter, and the credit bureau investigates your dispute, the chances of success are good.

If a credit bureau cannot verify an item before completing its investigation, that item will be removed. Many creditor grantors are simply reluctant to take the time to verify the data. While the credit bureaus are in the business of reporting credit histories, creditor grantors are not.

This article has been provided by Lexington Law.

Click Here to learn about Lexington Law professional credit repair help services.

In much the same way that a resume displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history. And like a resume, your credit report can influence whether you will receive what you are applying for.

Ideally, your credit report is an accurate, up-to-date reflection of your credit history. However, since we don’t live in an ideal world, there are many reasons that your credit report could contain inaccuracies that might prevent you from receiving the credit you deserve. The good news is you can take action to keep your report accurate. Here are the top five reasons why you should make a practice of regularly reviewing your credit report:

Inaccuracies & Mixed Credit Files
Many inaccuracies on a credit report can be the result of simple human error, and are therefore are not difficult to dispute. Of course, if you don’t order your credit report, you might never know about it. Whether the inaccuracies relate to payments not credited, late payments, or data mixed in from the credit file of someone else with a name similar to yours, you will want to contact the credit bureau to dispute inaccurate information promptly.

Tracking Payments
One of the most important elements of credit is a demonstrated history of on time payments. Once you send the check though, anything can happen–a delay in the payment being received can kick you over to a 30-day delinquency. If you call your creditor and explain the situation, they might adjust the information. Of course, if you don’t read your credit report, you won’t necessarily know which payments are being received and reported properly.

Identity Theft
This issue alone is reason to order your credit report immediately. Identity theft is an insidious crime, involving a thief who assumes your name to open new accounts, divert your card statements to another address, and run up all sorts of bad debt without you ever knowing about it until collectors come calling. Over time, identity theft could jeopardize your ability to obtain further credit. The best way to catch a thief who is using your name is by getting a copy of your credit report, which will show you if there are accounts listed you know you haven’t opened. For example, if a thief has intercepted a pre-approved credit card offer in your name and sent it in with a change of address, your credit report will include the account. Inquiries

If you’re shopping around for a loan or more credit, you should know that when creditors check your credit, it places an inquiry on your credit report. Inquiries can add up, which is often interpreted as a negative by creditors. For this reason, too many inquiries can actually make getting credit more difficult. Moreover, if you didn’t authorize someone to look at your credit report and they did, they may have broken the law.

Credit Fraud–Unauthorized Charges

Credit fraud involves the theft of your credit card or account number to make unauthorized charges to your account. Though consumers are protected financially from this abuse, other creditors may take note of all this activity and decide to raise your interest rates or refuse to grant you a loan. Ordering your credit report will help you catch new activity on accounts that you haven’t been using, or may have closed.

When it comes to managing your credit worthiness, your credit report is your best resource. Ordering your credit report gives you the opportunity to manage your credit wisely today, while planning your credit strategy for achieving future goals–a credit-savvy move every consumer should make!

Information and opinions in the article were provided courtesy of Lexington Law.

To better understand what legal credit repair is, it would be helpful to understand a few types of illegal credit repair:

Illegal: Changing your social security number to obtain a clean bill of credit.
If any company should suggest this type of credit repair, report them to the authorities.

Illegal: Disputing every item on your credit report, regardless of nature.
The Fair Credit Reporting Act specifically states that only items that are unverifiable, inaccurate or misleading should be disputed. Items that are clearly yours, and reflect your credit history should not be disputed.

Illegal: Charging for services that have not yet been completed.
This is to protect the consumer from fraudulent companies that charge for services that never get completed (charging to “repair your credit”, then hitting the road…)

So, what exactly is Legal Credit Repair?

Legal Credit Repair consists of removing the negative items on a credit report. There are a few different methods of going about this, the most common and effective are:

“Goodwill” Negotiation Negotiating directly with creditors and asking them to “please” remove negative items from your credit reports is a viable method of credit repair for mild late-pay accounts. There are no laws that require that negative items stay on your reports for any amount of time, and creditors have the ability to simply remove these items if they see that it could somehow work to their benefit, even if that simply means a pleased customer.

Credit Disputation The Fair Credit Reporting Act gives you the right to contact credit bureaus directly and dispute items on your credit reports. Just as in a court of law, you have the right to plead “not guilty” to negative information on your credit reports, and leave the burden of proof to the credit bureaus. You can dispute any and all items on your credit reports that you feel classify as inaccurate, unverifiable, or misleading. If the bureaus can not verify that the information on your reports is indeed correct, then those items must be deleted.

This information has been provided by Lexington Law. Lexington Law is a law firm, an entity in which clients can trust their personal and sensitive information without fear of abuse. It takes years to gain an intimate knowledge of the laws and regulations governing credit repair agencies. Lexington Law has been practicing credit report repair for over 15 years because of their respect for and adherence to these laws. Learn more.

Can bad credit be deleted from your credit reports? Yes, it can. Despite what naysayers, bureaucrats and credit bureaus may sometimes say, the simple fact remains: negative credit listings are deleted from peoples’ credit reports by the thousands each and every day.

A few years ago, an attorney from Lexington Law visited with a regulatory agency for a casual conversation with two agents. The Agency’s office, as a matter of course, believed the credit bureaus’ claim that bad credit couldn’t be deleted. The visiting Lexington attorney asked, “How many negative listings would you have to see deleted from consumer credit reports before you would believe that bad credit can be deleted: ten? fifty? a hundred? one thousand?” The agents responded with only blank stares.

“How about 50,000 deleted listings, would that convince you?” continued the Lexington attorney. From his briefcase he pulled a stack of papers six inches high.

“In these pages, we have listed the permanent deletion of over 50,000 listings from our clients’ files in the last two years alone,” he explained. The agents pulled the stack across the conference table and began to pick through the pages, taking in the massive list.

“But have you deleted any bankruptcies?” shot back one of the agents, “we know that bankruptcies can’t be deleted.” The Lexington attorney leaned across the table and ran his finger down the first page.

“There’s one deleted bankruptcy… and, there’s another,… and another,… and another. Should I go on?” asked the Lexington attorney.

The agents sat back in their chairs. “You know,” began the junior agent, “I have this one listing on my credit report that simply must belong to somebody else…”

How is it possible?

The Fair Credit Reporting Act (FCRA) allows a consumer to challenge the information on his credit report on the basis of “completeness and accuracy.” When a consumer files a dispute, the credit bureaus must contact the source of the credit information (the creditor) and confirm that the information is accurate, verifiable, and not obsolete. In some circumstances, the credit bureau is required to go beyond a simple verification of the creditor’s own computer record. If, within 30 days, the credit bureau has not received verification from the creditor, then the credit bureau must promptly delete the credit listing.
Learn More.

At another law firm, Ovation Law, they answer the frequently asked question, “Why would your (Ovation Law) disputes succeed where mine would not?”

Ovation Law answers, “Our experience (and dedication to our clients) in working with the credit bureaus facilitates the credit repair process because we are more likely to anticipate the tactics and responses of the credit bureau. Members of our professional team of attorneys and paralegal case analysts have experience in interacting with the bureaus and creditors and have gained insight in regards to efficiently and effectively disputing credit report errors.”

“We stay current on consumer credit laws and economic issues, and we utilize the newest technology and proven techniques to ensure successful removal of inaccurate credit report information for our clients.”

Be sure to bookmark this blog and come back. Or sign up for the free guide and join my little blog email list. In a future blog I’ll discuss “Legal Credit Repair Methods,” and you’ll learn what the lawyers advise you can and can’t do according to the applicable laws.