Although the credit bureaus would like to have you think otherwise, there is absolutely nothing illegal about disputing items on your credit report. In fact, it is your explicit right by law to do so (see Fair Credit Reporting Act). Credit report repair is as legal as pleading "not guilty" in a court of law.
It is inappropriate for any firm to promise a particular result within a certain time frame. We can no more do that than we could promise a client that he or she would prevail in a court of law. Though we can give you an idea as to how we have performed in the past your mileage may vary. If credit reports are received promptly, many clients see exhilarating progress within the first 30 days.
Statistically, participating clients have received, on average, 10.77 deletions by their firs month, 15.15 deletions by the second month, and 25.8 deletions by the end of three months. A deletion is a credit item that has permanently disappeared from the credit report of the client. Though we realize that these average results are exciting, we must warn you not to interpret past performance as a guarantee or promise that we will achieve precisely the same results for you as we have other clients in the past. Your results may be better or worse.
The progress of your case will depend on your participation (sending in credit reports on a timely basis,) the nature of your case, and the level of credit bureau cooperation.
You would think that would be true. But, again, the credit reporting system just does not work that way.
When you pay an old debt, the negative credit listing does not disappear. In fact, it re-ages and the seven year clock begins again with that negative listing. And, the most ironic thing is that a paid, current negative listing is not any better than an unpaid negative listing. That iss not always true, but in most cases, you wont get much further by paying the old debt.
That is, you wont get much further unless you also work to restore your credit at the same time. The good news is that we can help you settle those debts and save you a lot of money in the process.
Most people visit this web site after they have been denied credit. Most even know what negative listings are likely appearing on their credit report.
With this in mind, it is not necessary to know exactly what is appearing on the credit report before we begin work. It is only necessary to know that there is a credit problem which needs to be addressed.
One amazing thing about bad credit is that almost any small amount of bad credit will trigger universal credit denial. A little bad credit isn’t much better than a ton. So, if you believe that there might only be a couple of negative listings on your credit report, it still makes sense to retain us for the time it takes to remove them.
In any case, if your credit comes back all positive or you decide all items are accurate and verifiable, we refund all fees.
Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.
These credit bureaus collect and maintain information on the vast majority of Americans, but they are not affiliated with the government in any way. The credit bureaus are for-profit corporations and they sell your personal information for money.
The credit bureaus receive your personal information through the same lenders who grant you credit. They have agreements with each of these credit grantors that require the credit grantor to inform the credit bureaus of everything that occurs in your relationship with the credit grantor. If you make a payment late, the negative credit listing is quickly reported to at least one of the three major credit bureaus and is added to your credit history. Credit reports are not just a record of how you are currently managing your credit accounts. Credit reports are histories of everything you are doing with your credit now, and everything you have done in the past.
The credit bureaus collect this information, list it on your credit report, then sell it to other credit grantors who wish to see your credit history before they decide to lend you money. The credit grantors who review your credit are especially interested in any negative credit. If you have shown any tendency to pay late, or to disregard your financial commitments in the past, then the creditors computers will immediately reject your application.
Just like when you were in high school, your credit report is your financial report card to the world.
Merchant Trade Lines: These include all regular credit lines such as department store cards, auto loans, mortgages, and credit cards. If there is any history of late payment, or if the trade line was included in bankruptcy, charged off, or put into repossession, the listing will be considered negative by all credit grantors.
Collection Accounts: When an account is referred to collections because of delinquency or because of a bad check, this appears on the credit report as a collection account. Collection accounts can appear as paid or unpaid accounts. Any type of collection account, whether paid or not, is considered very negative by all credit grantors.
Court Records: Court records include bankruptcies, judgments, liens, divorce, satisfied judgments, and satisfied liens. All court records, including satisfactions, are considered negative by all credit grantors.
Inquiries: Every time a potential credit grantor looks at your credit file, a credit inquiry appears on at least one of your credit bureau reports. If the numbers of inquiries are few over the last two years, then there may be no negative effect on your credit worthiness. However, if there are many recent inquiries showing on your credit report, credit grantors may become nervous and deny you credit.
The Fair Credit Reporting Act (FCRA) requires that most negative credit items be deleted from your credit bureau file in no more than seven years, except for bankruptcy, which can be reported for up to ten years. These are the time limits for reporting negative credit. The creditor or the credit bureau can choose to have the negative credit information deleted whenever they please. Inquiries may remain on the credit report for up to two years.
As you may have already experienced, even one small late pay listing may result in credit denials. It is a myth that a large amount of positive credit can outweigh some negative credit. Any negative credit whatsoever can become a substantial credit obstacle.
With the passing of each year, your credit report is used more and more often as a yard stick to measure your character. Prospective creditors will always review at least one of your credit reports before granting you credit. Today it is increasingly common for insurance companies to review your credit before extending auto or health insurance. Many employers now check credit before they consider you for a position. If you rent, you may have already been through a credit check to determine your worthiness as a renter.
"R" refers to a revolving account, "I" refers to an individual account, and "M" refers to a mortgage account. This rating is supplied by the creditor. It is their rating of you as a borrower. There are only two ratings which are not negative. A rating of "1" is good and a rating of "0" means that they don’t have enough history with you to rate you.
Every other rating, "2" through "9" is negative. In our experience, creditors don’t look at these ratings when you apply for financing. The creditor usually looks at the late pays or other notations such as "charge off" or "collections." However, any rating but a "1" or "0" indicates that you have problems with the account.
When you become very delinquent on an account, the creditor will probably charge it off. This means that they have written the debt off as a loss for tax purposes. This does not mean that they have given up collecting on the debt. The creditor is now likely to either sell the debt or send it to collections.
As you consider retaining our law firm you would do well to look at the price you are already paying for bad credit. If the cost of our service can produce much greater savings, you would be wise to make the investment. Below are just a few examples of the cost of bad credit.
Credit Cards: Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as “sub-prime” cards) typically require exorbitant setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.
Automobile Financing: 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.
Home Mortgage: 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 is quite difficult to restore your credit without somehow satisfying your outstanding debts. However, the act of paying off a debt can actually hurt your credit.
Negative credit is allowed to stay on the credit report for a maximum of seven years, except for bankruptcy which may remain on the credit report for ten years. This seven year clock begins ticking on "the date of last activity"¡in other words, when the last action took place on the account. By paying an outstanding, delinquent debt you will change the account status to "paid collection," "paid was late," or "paid was charged off" - which will still stand out as a very negative listing.
Furthermore, you will create a new date of last activity on the day you settle the account. The seven year clock will reset and begin all over again. When you have outstanding debt, it is almost always prudent to seek professional help so that you may settle your debts without further damaging your credit.
There is not one type of negative listing that cannot be removed from a credit report. While negative items such as bankruptcy or unpaid debts are certainly more difficult to remove from the credit report, this has more to do with the operational systems of the credit bureaus than with the severity of the bad credit item. For example, judgments and tax liens are severely negative listings yet are considerably easier to remove.
Any amount of bad credit is devastating to your chances of being approved by a credit grantor. Most credit grantors never actually look at your credit report. A computer pulls your credit report, rates your credit standing, income, indebtedness, and stability, then spits out an acceptance or denial. Even one or two slow pays will usually trigger a credit card or personal loan denial. The slightest amount of negative credit will cause the interest on an auto loan to skyrocket. You will probably find that even a little bad credit, regardless of how much good credit you have, is an unacceptable barrier to credit approval