Exposed! The Real Truth About Legal Credit Repair
Perhaps youve just started looking into repairing your credit and want to learn a little about the basics of credit repair. Theres an incredible amount of information to be found online, but much of it is contradictory " and confusing. Is credit repair possible? Is it legal? Where do you start?
Many government organizations and private companies try to convince the American public that credit repair is illegal or that it is only for deadbeat debtors looking to escape paying for legitimate debts. Nothing could be further from the truth.
Credit bureaus are for profit companies. Two of the three bureaus are organizations traded on the public stock exchange. They must answer to their Board of Directors and share holders. Ensuring that your credit report is perfectly accurate cuts into company profits. That is precisely why they do not always share your interest of having a perfectly accurate credit file.
Youll find plenty of websites claiming that its not possible to fix your credit score, that credit repair simply isnt possible " or even legal. Of course, its in the financial interest of lenders, collection agencies, creditors and even credit bureaus to protect their profits and make sure that mistakes that show up on YOUR credit report are in THEIR favor. They want to collect, and they know that theyll lose money if consumers know " and pursue " their rights to legal credit repair.
Many people are completely unaware that the government created laws just so that they could challenge incomplete, or inaccurate items or information on their reports. More specifically, the Fair Credit Reporting Act provides that consumer reporting agencies must investigate and verify information that you dispute. It also states that this investigation must be done in a timely manner.
You can use credit repair as a tool to improve your credit score " and its perfectly legal. Negative items do NOT have to remain on your credit report for up to 7 years.
Removing a questionable item from your record is within your legal rights and can be accomplished by way of a dispute. After you file your dispute the bureaus and creditors must perform an investigation within a time period. If they fail to do so, the questionable item must be removed.
Many reasons prove to be your reason for challenging or disputing an item. For instance, perhaps a debt was taken out in your name without your knowledge or consent. Perhaps you paid a debt but the creditor failed to update their records.
Credit repair can prove to be a confusing and overwhelming process - especially if the bureaus fail to acknowledge your requests. If this happens - as it often does - you may consider enlisting a professional credit repair law firm. If so, make sure to verify that the law firm in question has experience and a track record of satisfied customers.
Many government organizations and private companies try to convince the American public that credit repair is illegal or that it is only for deadbeat debtors looking to escape paying for legitimate debts. Nothing could be further from the truth.
Credit bureaus are for profit companies. Two of the three bureaus are organizations traded on the public stock exchange. They must answer to their Board of Directors and share holders. Ensuring that your credit report is perfectly accurate cuts into company profits. That is precisely why they do not always share your interest of having a perfectly accurate credit file.
Youll find plenty of websites claiming that its not possible to fix your credit score, that credit repair simply isnt possible " or even legal. Of course, its in the financial interest of lenders, collection agencies, creditors and even credit bureaus to protect their profits and make sure that mistakes that show up on YOUR credit report are in THEIR favor. They want to collect, and they know that theyll lose money if consumers know " and pursue " their rights to legal credit repair.
Many people are completely unaware that the government created laws just so that they could challenge incomplete, or inaccurate items or information on their reports. More specifically, the Fair Credit Reporting Act provides that consumer reporting agencies must investigate and verify information that you dispute. It also states that this investigation must be done in a timely manner.
You can use credit repair as a tool to improve your credit score " and its perfectly legal. Negative items do NOT have to remain on your credit report for up to 7 years.
Removing a questionable item from your record is within your legal rights and can be accomplished by way of a dispute. After you file your dispute the bureaus and creditors must perform an investigation within a time period. If they fail to do so, the questionable item must be removed.
Many reasons prove to be your reason for challenging or disputing an item. For instance, perhaps a debt was taken out in your name without your knowledge or consent. Perhaps you paid a debt but the creditor failed to update their records.
Credit repair can prove to be a confusing and overwhelming process - especially if the bureaus fail to acknowledge your requests. If this happens - as it often does - you may consider enlisting a professional credit repair law firm. If so, make sure to verify that the law firm in question has experience and a track record of satisfied customers.
About the Author:
Rebecca Gray contributes to local consumer advocacy journals, online legal directories, and consumer review web properties. Rebecca is also an advocate for lexington law, an affordable credit report repair law firm who's credit attorneys have established a long running track record of successful consumer credit repair.
posted by Credit Counseling at
3:55 PM
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