There are a lot of terrible credit repair offers on the web today making bold claims to”raise your credit score by 100 points in 30 days! Guaranteed!” Or something like this. But beware! These bad credit repair systems may wind up making your own credit worse in the long run.
So What do you Do if you’re Confronted With extreme Mistakes?
For instance, a mortgage or automobile company that retains reporting your obligations as late, even though you’ve caught up (this happened to a friend of mine) credit repair Atlanta. These kinds of dings in your credit can keep you from getting good rates of interest, and may even allow you to be turned down flat by creditors! It is estimated that 79% of all credit reports contain errors. That’s a whole lot of errors and these mistakes cost Americans millions of dollars in interest every year.
But going head-on with a mortgage or auto lender is like the proverbial”tilting at windmills.” As soon as they ding your credit – they will not compose a letter to your credit agency retracting it! That would open them up to all kinds of liability issues. This is if you need to seek credit repair legal advice.
But before you seek bad credit repair advice (from an attorney or some other firm ) we wanted to offer you some very helpful information so you can make a more informed decision on what to do.
What’s Credit Repair?
Credit repair is the expression that describes hard inaccurate, misleading, or unverifiable information on credit reports to enhance the credit score.
Can Be Credit Repair Legal?
Yes, but there are illegal credit repair applications you should be aware of! By way of example, although it’s lawful to challenge negative items on your credit reports that you believe to be wrong, misleading, or unverifiable, the precise information is supposed to stay in your credit report. It is also entirely illegal to make a”new” identity by applying for an Employer Identification Number (EIN) to use as opposed to your Social Security Number.
An EIN number is the amount that the IRS gives to a company for tax purposes. To utilize this for credit fix is known as file segregation – in order to escape responsibility by concealing the credit history. The usage of File Segregation is a crime and could result in fines or serious jail time. This is a street you don’t wish to go down.
Why Can I See A Credit Repair Law Firm And Not Just Get One Of These”Do It Yourself” Credit Repair Systems?
First off – major errors are extremely hard to remove on your own.
A TRUE STORY: I have a buddy who filed for bankruptcy in New York. She paid off all her debts and the bankruptcy was discharged. Approximately 6 months after a SECOND bankruptcy filing appeared on her charge, along with a discharge. Needless to say, her score was absolutely tanked! It took her over 18 months to get just ONE of the mistaken bankruptcies removed. She’s still working on the next one today.
Secondly – those assumed”sure-fire” credit repair systems may destroy your credit score! A number encourage one to (or claim they will do it for you) challenge everything on your credit (good AND bad). Unfortunately, this can result in removing the”good things” additionally. And as any lender will tell you, NO credit history can be times worse than BAD credit history!
A TRUE STORY market automobile in Phoenix Arizona and imagine my surprise when I pulled a 52-year old customer’s credit one day and all that was there was his title! He might also be born yesterday. The thing was, he had an open car loan! So the banks knew that he had”washed” his credit, which made him seem questionable. Regrettably, no lender would touch him at any interest rate so that he went home with no new vehicle that day.
This type of credit repair is prohibited! If an item is questionable and old, that may be challenged and eliminated. A fantastic credit lawyer will understand the difference and keep you out of trouble and find these items removed, thus improving your credit score.
Aren’t There Legislation The Credit Repair Industry?
There are really. The most notable one is the credit Repair Organizations Act (CROA). This became law in 1996 to protect the general public from unfair and deceptive advertising practices in the credit repair business. Additionally, the Federal Trade Commission (FTC) investigates complaints about credit repair businesses and takes appropriate legal action. Unfortunately, it takes them a long time to operate and you might have your own credit damaged further by using one of those companies.
- This Is How You Can Avoid Becoming A Victim Of Unscrupulous Credit Repair Companies.
- Prevent any credit repair company which won’t let you know your legal rights and what you can do for free.
- Prevent any credit repair business that tells you to unwind and let them do it all. To put it differently, don’t contact the credit bureaus yourself.
- Prevent any credit firm that suggests making a”new” credit identity – then receive a brand new credit report by applying for an Employer Identification Number (EIN) to use instead of your Social Security Number.