Credit Repair Q & A

Do I have consumer rights regarding my credit?

Yes. As a consumer you have rights under the Federal Trade Commission (FTC). The Federal Trade Commission (FTC) enforces a number of consumer protection laws and regulations to protect consumers by preventing and eliminating fraud, deception and unfair business practices. You may visit FTC website at: www.ftc.gov to get more information about your consumer credit rights.

Why is it important to check my credit report?

A good credit score is crucial to financial success. It open many opportunities to receive competitive interest rates for mortgages, cars, credit card offers; in addition, to receiving job offers, insurance premiums and more. A strong credit score will save you money and cost long term. Also, it is important to check your credit report regularly for signs of fraud or identity theft. Early detection of fraudulent activity on your credit report is the key to avoid from suffering from long term financial stress.

What is a credit score?

A credit score is a three-digit number based on a mathematical system using information in a

a person’s credit report to the creditworthiness of an individual. It is designed to predict risk, specifically; in the likelihood you become seriously delinquent on your credit obligations. Your credit score is the main factor that determines if you are approved or denied for credit, and a low or high interest rate. Having a good credit score is crucial to financial success.

Why is my credit score important?

Your credit score is used by lenders to see if you are creditworthy and your overall level credit risk. It is a numerical summary of information in your credit report. The higher your score better chances of being approved for credit and lenders will be more favorable to giving you a reasonable interest rate. All three major credit bureaus (Equifax, TransUnion, and Experian) have their own system for determining a credit score, but they generally work the same.

How do I get my credit report?

The process of obtaining your credit report is simple. By law you have the right to obtain a free annual credit report once every 12 months at www.annualcreditreport.com. If you have already obtained your free credit report we ask that you provide us a tri-merge credit report (all three credit bureaus) from a credit monitoring service. Initially, you will have to pay a minimal charge to get your credit report and once you get it you may wish to continue with the credit monitoring service. However, it is not required.

Can you get my credit report?

Credit repair businesses are not allowed to order credit reports for their customers. The Fair Credit Reporting Act (Section 604) prohibits the credit bureaus from furnishing credit reports to third parties for any reasons outside of the FCRA definition of permissible purposes which include determination of credit worthiness, underwriting of insurance, and employment screening.

What should I watch for in my credit report?

When examining your credit report make sure your personal information is correct such as your name, addresses, date of birth, and social security number, employment, in addition, misspellings, and any signs of fraudulent activity.

Also beware of:

  • Any new accounts that you do not remember opening.
  • Derogatory information that is not up to date or outdated. Some derogatory information stay on your credit report for seven years; bankruptcies remain on your credit report for ten years.
  • Derogatory information that is incorrect, including missed payments, collections, or repossessions
  • Excessive inquiries on your credit file

How do you fix my credit?

To get started with repairing your credit we will need all three of your credit reports. If you already have your credit reports just forward them to us, if not we can assist you with getting them.

Will checking my credit report affect my credit?

No. Requesting your own credit report will not affect your credit score. However, inquiries from lenders such as mortgages, auto loans, and credit card applications will affect your score. By having lots of inquiries is viewed as you being a credit risk.

How do I rebuild my credit score?

If it looks like you will be left with “insufficient credit” when our job is done we will be recommending that you open secured credit cards. This is one of the best ways to rebuild credit and improve your credit scores. A secured credit card requires a small savings deposit which usually secures the entire credit line on a MasterCard or Visa.

Can you help me fix my credit?

Yes. As a client we review each item on your credit report to determine the accuracy of the reported information. We don’t make guarantees or promises to remove negative items from your credit report nor do we provide a solution for legitimate debt. However, if you have derogatory information on your credit report we will do everything we can to guide you in the right path to helping you improve your credit report and increase your credit score.

How long does negative information stay on your credit report?

Delinquencies (30 – 180 days):  Can remain seven years from the date of the initial missed payment.

 Collection accounts:  Remain seven years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked “paid collection” on the credit report.

Charged-off accounts:  Remain seven years from the date of the initial missed payment that led to the charge off (the original delinquency date), even if payments are later made on the charged-off account.

Closed accounts:  Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain seven years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain 10 years.

Lost credit card:  If there are no delinquencies, credit cards that are reported lost will continue to be listed for two years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.

Bankruptcy:  Chapters 7, 11, and 12 remain for 10 years from the filing date. Chapter 13 remains seven years from the filing date. Accounts included in bankruptcy will remain seven years from the date they were reported as included in the bankruptcy.

Child support judgments:  Remain seven years from the date the judgment is filed.

Civil and small claim judgments:  Remain seven years from the date the judgment is filed.

City, county, state, and federal tax liens:  Unpaid tax liens remain 15 years from the filing date. Paid tax liens remain seven years from the paid date of the lien.

Inquiries:  Most inquiries listed on your credit report will remain for two years.

Positive open credit information remains indefinitely and paid positive accounts remain 10 years.

 How long does it take to fix my credit?

It takes patience and persistence to successfully complete a credit profile. However, you will begin to see results within 30-60 days. Because everyone’s credit profile is different the time length may vary, however, the average time may take at least six months. The reason to consider why it may take longer for a credit profile to be completed will depend on the type and number of items that need to be disputed.

Why do you ask for identification?

The credit bureaus often request personal identification prior to processing a dispute. By providing it up front we minimize delays and significantly improve the efficiency of the process. Our only goal is to get the job done quickly, and to deliver the best value.