FAQ’S
Is credit repair legal?
Yes, credit repair is legal as long as the company follows ethical practices and doesn’t engage in fraudulent activities. It’s important to research and choose a reputable credit repair company to ensure that your rights are protected. wer to this item.
How does credit repair affect my credit score?
Credit repair can help to improve your credit score by removing negative items from your credit report. However, the impact on your score will depend on the specific items being removed and your overall credit history.
What are the most common errors on credit reports?
The most common errors on credit reports include incorrect personal information, outdated or incorrect account information, accounts that don’t belong to you, and accounts with inaccurate payment histories.
How long does credit repair take?
The time it takes to repair your credit can vary depending on the complexity of your situation and the specific issues on your credit report. Some errors can be resolved quickly, while others may take several months.
Can credit repair companies really help?
Yes, credit repair companies can help by identifying errors on your credit report and working to remove them. However, it’s important to research and choose a reputable company that follows ethical practices and doesn’t make false promises.
Can I fix my credit myself?
Yes, but Thanks to the Fair Credit Reporting Act (FCRA), you’re encouraged to dispute inaccurate information. You will need to be familiar with factual disputing errors and the laws involved. It is also labor intensive and time consuming.
How long will negative accounts stay on my report?
Credit report information is classified as either “positive” or “negative.” Positive information includes items such as bills paid on time. Negative information includes items such as late payments, third-party collection actions, loan defaults, bankruptcies, and foreclosures.
In general, negative items remain on your report for seven years. However, this varies with different types of negative items:
- Late payments remain for seven years after the original delinquency date
- For accounts that the creditor has written off as a loss (charge-offs) or has referred to a collection agency, negative information remains for seven years after the initial missed payment
- For bankruptcies, negative information can remain on your report for 7 to 10 years, depending on the type of bankruptcy
- Other negative accounts, such as repossessions, can remain up to seven years from the first missed payment
- Closed accounts which have been paid as agreed can stay on your report up to 10 years after the account was reported by the creditor
- Open accounts paid as agreed remain as long as the account is open and the creditor continues reporting it
In addition, hard inquiries into your credit score can remain on your report for up to two years.
DIY
Pay Your Bills On Time
Your payment history accounts for 35% of your overall credit score. Any late payments listed on your account will negatively impact your credit score. To avoid future late payments, consider setting up automatic payments. This step can make sure your regular payments are made on time.
Pay Off Delinquent Balances
If you have any past due or delinquent balances on your credit report, try to pay them off as quickly as possible. The longer these delinquent accounts remain on your credit report, the more damage they can cause.
You can also reach out to your creditors and see if you can work out a payment arrangement. You may even be able to enter a “pay for delete” agreement. With this agreement, your creditor agrees to report your account as paid in full and you agree to pay a set amount, which is often lower than your actual balance.
While a “pay for delete” agreement won’t remove the account from your credit report, it will mark it as paid. Before entering into this type of agreement, be sure to get everything in writing.
Decrease Your Credit Utilization, and Pay Down Your Debt
High balances are another major item that can drag your credit score down and paying them down can be a route to improving your score. High balances result in a high credit utilization ratio which means the amount of debt you have in comparison to the total amount of debt you have available. It’s recommended to keep your credit utilization ratio lower than 30%.
When paying down balances, be strategic. Consider how much cash you can afford to put toward paying down debt without disrupting your budget. A general rule of thumb is not to allocate more than 20% of your monthly income toward debt repayments so that you still have enough left over for other bills and expenses. However, this may vary with your situation.
Also, consider which balances you should pay down first. Paying down balances with high-interest rates can save you money in the long term (debt avalanche method). Alternately, you may elect to pay off cards with low balances so that you can see your progress and get a sense of momentum (debt snowball method).
Open Different Types of Accounts
Having a mixture of credit accounts, such as credit cards and bank loans, can also improve your credit score. Once you start improving your credit score, you can begin opening different types of accounts.
One such account could be a secured card or loan. These lines of credit can help diversify your credit mix and show you’re capable of good credit management. Consider talking to your bank about whether they have any credit builder options for someone in your situation.
However, avoid the temptation to use your improved credit to apply for an excessive number of new accounts, which can hurt your score. Instead, be selective about which types of credit you apply for, and open new accounts gradually.
Keep Accounts Open
If you have poor credit, you may be tempted to shut down all your credit accounts. This could be a mistake. Instead, evaluate your accounts and keep as many open as possible. This step can actually improve your credit because 15% of your credit score is based on the age of your credit and account history.
Once you open an account, don’t close it unless there is some compelling reason. However, if you’re not using an account actively, be sure to keep an eye on it periodically to make sure you’re not being billed any fees in the fine print.
Request a Credit Limit Increase
Another way to decrease your credit utilization ratio is to request an increase in your credit card limit. Once your credit score starts to rise, you may qualify for this type of increase in credit.
Consider Debt Consolidation
If your debt is overwhelming and you have multiple accounts with high balances, you may want to consider debt consolidation. This method allows you to merge multiple outstanding debt obligations into a single monthly payment. There are two ways you can make this happen.
First, if your credit is high enough, you can use a credit card with a 0% balance transfer option. This method allows you to use your credit card to pay off your debt and then slowly pay it back with monthly payments. Keep in mind that some credit card 0% interest offers are only good for a set time. Once this period is over, your balance will be subject to the credit card’s regular interest rates.
The second option is to use a fixed-rate debt consolidation loan. It’s important to compare your options and speak with a financial advisor to determine which option is right for your specific situation.
Dealing with Negative Information on Your Credit Report
If you have negative information on your credit report, how do you deal with it? To understand your options, you first should understand how long different types of negative information stay on your report. You then can address how and if you are able to request the removal of the negative information.
How Long Does Negative Information Stay on Your Credit Report?
Credit report information is classified as either “positive” or “negative.” Positive information includes items such as bills paid on time. Negative information includes items such as late payments, third-party collection actions, loan defaults, bankruptcies, and foreclosures.
In general, negative items remain on your report for seven years. However, this varies with different types of negative items:
Late payments remain for seven years after the original delinquency date
For accounts that the creditor has written off as a loss (charge-offs) or has referred to a collection agency, negative information remains for seven years after the initial missed payment
For bankruptcies, negative information can remain on your report for 7 to 10 years, depending on the type of bankruptcy
Other negative accounts, such as repossessions, can remain up to seven years from the first missed payment
Closed accounts which have been paid as agreed can stay on your report up to 10 years after the account was reported by the creditor
Open accounts paid as agreed remain as long as the account is open and the creditor continues reporting it
In addition, hard inquiries into your credit score can remain on your report for up to two years.
Privacy
We have created this privacy policy (hereinafter the “Privacy Policy”) in order to disclose our information gathering and dissemination practices. We understand the importance that Internet users place on privacy and have designed our service with this in mind. You agree to this Privacy Policy, in its entirety, when you: 1) access or use our “Website”); and/or 2) select and register for an offer(s) on the Website by clicking the offer(s) presented. If you do not agree with the terms and conditions of our Privacy Policy, please do not use or access the Website.
Information We Collect- The information that we collect is generally limited to personal information about you that you submit on the Website. The personally identifiable information that may be collected includes: your name; address; email address; telephone number; fax number; information about your interests in and use of various products, programs, and services; and education level and interests. Although we are not collecting credit card information at this time, we reserve the right to do so in the future. To the extent that customer credit card-specific information is collected by our company and any of our affiliates and/or subsidiaries, said information will be kept in confidence and will not be shared with any third parties (other than consumer credit agencies) without the customer’s prior informed consent. Notwithstanding the foregoing, we and our affiliates and subsidiaries reserve the right to share with third parties the fact that they have credit card information on file for specific customers but they will not share this credit card information with third parties without the customer’s prior informed consent. Like most standard website servers, we use log files. Log files track anonymous user information including, but not limited to, Internet Protocol (“IP”) addresses, browser type, Internet Service Provider (“ISP”), referring/exit pages, platform type, date/time stamp, and number of clicks. This information is tracked in order to analyze trends, administer the Website, track users’ movements in the aggregate and gather broad demographic information for aggregate use. The information tracked via log files is not linked to personally identifiable information.
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How We Use Your Information- Any personal information that you supply to us remains your personal property. However, by submitting that information our company, you grant us the right to use your personal information for any legal purpose including, without limitation: a) providing promotional offers to you via email advertising and/or online banner advertising; b) transferring the personal information that you provided to a third party, when necessary, to receive a product, service, or information that you may have requested from such third party while using the Website; c) tracking compliance with our Terms and Conditions; and d) for validation, suppression, content improvement and feedback purposes. By submitting your information to the Website, you grant our company the right to use that information for marketing purposes, and agree to receive email marketing from the Website. We may maintain separate email lists for different purposes. In order to end your email subscription to a particular list, you must follow the instructions contained in any email correspondence that you receive from us. Unsubscribing from one list will not automatically unsubscribe you from all email lists. We only send email marketing to individuals that have agreed, whether by visiting this Website or through third party websites, to receive email marketing from us. We do not send unsolicited bulk email. As a result, certain statutes, requiring particular formatting for unsolicited bulk email may not be applicable to the bulk email that is sent by our company. Though we make every effort to preserve user privacy, we may be required to disclose personal Information in some instances, such as: 1) when required by law wherein we have a good faith belief that such action is necessary to comply with a judicial proceeding, court order, and/or subpoena; 2) in the event that our company is sold or acquired; or 3) in the event that we believe that the Website is being, or has been, used in violation of our terms and conditions or to commit unlawful acts. Moreover, you hereby consent to the disclosure of any record or communication to any third party when our company, in its sole discretion, determines the disclosure to be appropriate including, without limitation, sharing your email address with other third parties for suppression purposes in compliance with the provisions of the CAN-SPAM Act of 2003, as amended from time-to-time. Sharing of Information- Our company provides you with the opportunity to receive special offers, products and/or services from other third-party companies. To receive such offers, products and/or services your personally identifiable information supplied to us during the registration process will be shared with such third-party companies so that they may provide the product or service to you that you have ordered from them without requiring that you first complete another registration form. By submitting your e-mail address at the Website you agree to receive e-mail marketing from our company. We may share our user information and/or join together with other businesses to bring selected opportunities to our users. We are able to offer third party services to you, in part, based on your willingness to be reached by our third-party advertisers. In addition, you agree that such act constitutes a purchase, an inquiry and/or an application for purposes of the Amended Telemarketing Sales Rule, 16 C.F.R.
Billing
This covers our initial work in monitoring your credit, setting up your cases, and starting credit repair services.
Billing occurs every 30 days. We work behind the scenes to continuously send out challenge letters and work with you towards your best credit. You can pause or cancel your service anytime. Just a reminder that we bill every month for the work that has been completed. If you decide to cancel your service, you will be charged a final payment for work completed between your last payment and cancellation date.
On your monthly billing date we will charge your card that we have on file. If your card is declined due to insufficient funds or is not updated when we charge it, the payment will be considered late. Once the payment does not go through a late fee will be added to your account. Depending on your service level, the late fee could be upt to $19.95. We will continue to attempt to collect payment, but you will not be assessed a reprocessing fee for each attempt.