credit repair

The three major credit bureaus, Experian, Equifax and Trans Union are similar and feature a “Credit Score”, which is created from credit report data submitted to them about you.

But very often your credit report includes inaccurate, wrong or incomplete information (credit records).

In this situation you have to prepare and send letters to each of the credit bureaus. Also learn your credit rights by familiarizing yourself with the Fair Credit Reporting Act (FCRA).

The FCRA gives you the right to dispute inaccuracies or omissions, and it requires credit bureaus to investigate your complaint (generally within 30 days), send you a prompt response and correct any errors. The law also requires the source of inaccurate information (such as a bank) to correct the record at the credit bureaus to which it initially provided the erroneous information.

Consumers working on their credit reports say many times their letters are ignored by the credit bureaus. Consumer’s say even with proof a credit record is not theirs; its removal from their credit report can take three or four challenge letters, because the credit bureaus may have only verified it in their computers and not on the credit report.

Send your dispute letter by CERTIFIED RETURN RECEIPT MAIL. This should not be done with the first attempt.

Keep a record of when you sent the dispute letters and what date you should expect a response.

If you have received no answer to your dispute after 30 to 37 days, send a certified return receipt letter requesting an updated credit report demanding the disputed credit record be deleted.

If the bureaus do not reply within the 30 days, it must be that the information was either inaccurate, or it could not be verified. In either case, according to the Fair Credit Reporting Act, the credit record must be immediately deleted from credit report.

Some consumers have eliminated negative marks on credit reports simply by going through this process of disputing credit records several times. Since some creditors will not take the time to respond, you may be able to win by default.

In addition, some consumers working on their credit report have seen another negative credit record or two disappeared. Usually some progress is made each time you challenge. Remember, the credit bureau would like you to quit bothering them because if you aren’t disputing the credit report, they can legally continue selling it as profitable information.

To obtain the excellent credit report service, correct your credit, get FREE online Credit Report, make your Credit Score higher or avoid becoming a Victim of Identity Theft visit at Legal Helpmate Corp

Your credit score is important for obtaining credit. Your credit score is important to know, whether you need a new credit card, an auto loan, or a mortgage. Lenders use your credit scores to decide whether you are a good credit risk. If you have a high credit score, you are more likely to obtain the best rates.

Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life.
Website: http://www.legalhelpmate.com Email: jeffreyb@legalhelpmate.com

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Advertisements from credit repair companies can be found on local newspapers, TV, radio, internet, and fliers on the mail and on the streets claiming that if you have credit problems they can help you, that they can remove your bad credit, that they can get you a new credit identity or that they can remove stains like bankruptcy, judgments, liens, late payments, missed payments, and even unpaid loans or credit card balances.

Avoid Being Taken In

Truth is that all the above claims are nothing but false advertising, no one can remove those marks from your credit report unless the information is false or inaccurate. If you are actually responsible for those delinquencies, only time and a continued proper credit behavior can improve your credit report.

If these companies promise you they can fix your credit so you can get a new loan, credit card, store card, etc. right away, they are lying and you are probably facing a scam. Save your money and time and avoid paying for these companies’ services. Only legitimate companies that state that credit repairing can take some time are saying the truth and can help you to repair your credit by teaching you budgeting, how to refinance your loans, how to consolidate your debt, etc.

Avoid Legal Problems

Moreover, being ripped off is not the only problem you may face. If you follow some of these companies’ advice and try to invent a new credit identity and a new credit history by using an employer identification number instead of the social security number or by faking documentation, you may be charged with fraud and face serious legal consequences.

Don’t pay attention to companies that want you to claim that information on your credit report is false if it isn’t or any other practices that you think are clearly illegal or immoral. Don’t lie when submitting forms or other documentation nor when answering questions to lenders by phone. The conversations may be taped, the documents kept and used as proof to prosecute you for fraud.

The Truth About Credit Repairing

No one, in any way can remove correct information from your credit report in a legal way. Thus, if it isn’t a scam, it’s a crime. What can actually be done in order to repair your credit is to show a continued positive credit behavior. Some companies can teach you to do that and provide you with documentation and all the necessary tools for achieving your goals. It may take some time but it can be done with little sacrifices. However, there are no such things as magic solutions to your credit problems.

Legit Credit Repair companies will teach you how to repair your credit by yourself. What they can actually do is to provide you with information that you’d be able to find for yourself but is spread all over the net and on different government agencies. They have all this information, forms and documents packed and easily explained so you can save yourself time and probably money too.

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders.
In her website: Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.

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Imagine the public outcry if 27 million Americans discovered that their most private medical and financial health records had been stolen! No way, impossible. Yet, a single laptop computer containing all of these veterans and active-duty servicemen and women actually “went missing”.

The internet, PCs and laptops, cell phones and blackberries, online and offline data storage, and a raft of information technologies are leaving you vulnerable to identity theft and credit card fraud. Bad guys know about the credit bureaus, the banks and other institutions, and even the state governments which actively “sell” the data records to the direct marketing industry. Where’s your “privacy” in this unregulated market? You guessed it. It’s gone once a bent individual turns his or her attention to your file.

Result? Several million Americans each year eventually discover that they’ve become victims of identity theft, to the tune of up to $20 billion or more in fraudulent purchases. The bad guys easily get away, but you’re left holding the bag. Even though you didn’t make the purchases, and even though you’re not legally responsible to reimburse the firms who sold gear to the fraudsters…guess what? You get a bad credit record!

Credit History Repair - First Move Close All Accounts.

Time is of the essence. As soon as you suspect, or know, that you’ve become a victim of identity theft, you must contact 100% of your creditors and advise them to suspend credit and not authorize any purchases to your account. Who do you call? Department stores, banks, petrol, travel, finance institutions…any firm that issues credit cards to you.

“Victims” Trigger The Credit Repair Process.

Remember, the credit card firms don’t know and don’t care about your identity theft problem until it rolls up to their front door.

Over 85% of commercial identity theft is reported by victims rather than the credit card issuing firms. Most often victims are unsuspecting. Suddenly huge bills come in, reflecting unknown purchases, or you make a run-of-the-mill credit application and you’re turned down inexplicably. Only now does “the penny drop” and you realize that personal data has been stolen and some bad guy is out there impersonating you while racking up thousands of dollar of fraudulent expenses.

Credit Repair - Second Move “Credit Freeze”.

In 20 States you can order a “credit freeze” which will lock-down both the credit bureaus as well as any credit-issuing firm from doing anything unless and until they receive your permission. In other words, no new credit cards can be issued by anyone until you authorize it.

Who Opposes Credit Freeze Consumer Anti Fraud Defenses?

Remarkably, the credit bureaus, financial institutions, the identity theft fraudsters and even the US Congress oppose the States’ grant of identity theft protection in the form of the consumer-directed credit freeze authority. Why? It’s all about business-as-usual where the credit bureaus only make money when they’re analyzing or selling a credit history record to a firm considering offering you a credit card. Financial institutions create a business model that’s all about issuing more-and-more credit cards, and then earning transaction fees and interest income. Meaning what? Neither of these groups has an “economic incentive” to reduce credit card fraud, even where they’re “holding the bag” for liability payments of nearly $50 billion in 2006.

The US Congress in summer 2006 is considering stripping-down State “credit freeze” laws, making them junior to Federal protections which, incredibly, offer a credit freeze-like protection only for those consumers who can produce a police report verifying that they’re victims of identity theft and credit fraud. In other words and in a testament to the upper limits in legislative absurdity, you can’t preemptively obtain identity theft protections unless you can prove that you’ve been burgled.

Credit History Repair - Your Direct Liabilities And Expected Costs.

You’ll be lucky to get out of the credit repair process without investing something like 600 hours of your personal time, and it may take you years in order to obtain an honest and true credit history repair. You’ll be contacting major credit bureaus like Equifax, Experian or TransUnion which maintain credit records on over 90% of Americans.

Needing Professional Assistance.

You’ll likely need a lawyer and an accountant, and you’ll pay them professional fees to help you sort out your credit repair. Also, you need the investigative fire power necessary to canvas the entire credit market in order to identify whether other fraudulent credit cards have been issued, using your bank accounts, passwords, mother’s maiden name, credit card numbers, address, birth date, or any other personal information. Remarkably, nearly 20% of “reported identity theft” cases turn out to be situations where a family member who has access and detailed knowledge turns bad and rips-off the identity of another family member.

What You May Pay In “Losses”.

In many states identity theft victims are limited to the first $50.00 of transaction losses, leaving the industry’s remaining $50 billion “fraud tab” to be paid for by businesses.

Credit history repair is critical following identity theft. Learn what to do, how to contact the major credit bureaus, and the practical avoidance strategies for not becoming a victim of credit card fraud or identity theft.

Identity Theft Prevention Tips: http://www.wise4living.com/lidtheft/recovery.htm

Credit Report Repair After Identity Theft: http://www.wise4living.com/lidtheft/credit-report.htm

Author Robin Derry is publisher for http://www.wise4living.com/ a specialty information site that gives solutions to health, household, sport, travel and legal needs.

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