Posts Tagged ‘credit repair agency’
When you have bad credit and you’re trying to get a loan it can be extremely frustrating. Repairing your bad credit can be almost as frustrating as trying to get a loan with bad credit if you don’t know how to do it. There are two ways to repair your bad credit. One is to do it your self the other is to hire a credit repair agency to do it for you.
The first step in deciding whether to do it yourself or hire a credit repair agency is to get a copy of your credit report. There are three agencies that report your credit. Equifax, Experian, and Trans-Union are the three credit reporting agencies. Each of these agencies allow you one free credit report each year. Once you obtain your credit report you need to go over it thoroughly and decide what is fixable and what is not.
There are some things on your credit report that cannot be repaired, for these things it just takes time. If you have had a bankruptcy then expect it to be on your credit for up to ten years. Unpaid bills can be on your credit for up to seven years or until the statue of limitations runs out. There is no limit on how long a criminal conviction, an application for a job that pays more than 75,000 a year or an application for more than 150,000 worth of credit can stay on your credit history.
The next step is deciding wether you want to do it yourself or hire a credit repair agency . If there are only a few things you are wanting to dispute with the credit agency it might be a good idea to do it yourself. The first step is letting the credit agencies know what information you think is inaccurate. The credit agency must then investigate the information , usually within 30 days, and then report all relevant data back to you. In order for this to happen you must move on to the next step. You must inform the creditor in writing that you are disputing an item. If all is done correctly then the creditor will investigate the dispute and report back to the credit agency. This is a time consuming process.
Hiring a credit repair agency can save you a lot of time but they usually cost around $500 dollars. However they can usually get better and faster results than you can. If you’re not interested in all the hassle and wait time of doing it yourself then hiring a credit repair agency might be right for you.
Wether you decide to use a credit repair agency or you do it yourself repairing your credit can be a great way to get your credit score a little higher and save yourself some money in the end.
What are the various negative items that you may find in your credit report? How can credit repair agencies help you remove the same? At the very outset, let me clarify that the removal of negative items can be done without the official consent of the lenders and the credit bureau. There are three parties to any credit transaction, the lender, the borrower and the bureau that records the information. Unilateral changes are out of the question.Remove
The various types of negative information that you may find in a credit report include Bankruptcy. Settlements. Charge-offs. Delayed repayments. Bouncing of check Non-repayment of debts.
Each and every point mentioned above will have a negative impact because it shows your financial planning and management in poor light. How can you get rid of this information? There are only two ways to get rid of negative information in your report. One is to wait for time to expire and the information to become obsolete. In case of bankruptcy, the law requires it to be mentioned for 8-10 years.
Settlement is not covered by any law but lenders invariably insist on the presence of this information for more than five years. Charge-offs and delayed repayment shall continue until you settle the debt and repay it in full.
If you opt for this approach, you will have to wait for a very long time before you enjoy any relief and improvement in your credit score. In any case, you do not need a credit repair agency to get this information.
The other option is to file a dispute and raise queries on the negative information included. Apart from bankruptcy, you can demand verification of each and every bit of information included in your credit report. The written complaint to the credit bureau will result in an inquiry and the conclusion will either be removal or verification of the same.
The loophole here is that any information that is not verified within 30 days will automatically be removed. This is a very useful advantage that people can use. If your lender is too busy to respond to these queries or if the lender does not have sufficient records, the transaction will automatically be removed.
The legality of the transaction is not under question. It is just a question whether the verification can be done promptly or not. If yes, it shall be retained. If no, it shall be removed. It is advisable to utilize this option even as you try other solutions to overcome your problem.
Many people are unaware that the credit report can be used as a tool to erase bad credit. This can result in a boost to your score by a possible 200 points. Many negative items found on credit reports are disputable and can be removed legally to erase bad credit.