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Credit Repair Education

1 - Introduction to Credit2 - Repairing Your Credit3 - Protecting Your Credit4 - Consumer Credit Laws5 - Resources

         

 

 

Frequent Credit Repair Questions

Is it difficult to repair my own credit?

Repairing your own credit is possible; however, the credit bureaus make it very difficult.  It seems credit bureaus want to discourage consumers to repairing their own credit; however, consumers have been successful in repairing their credit.  

Disputing items on your credit report is easy.   However, getting them permanently deleted can be frustrating and time-consuming.  Dealing with credit bureaus can be frustrating.  The Federal Trade Commission (FTC) receives many complaints against credit bureaus than any other type of business.

If you want to repair your credit, you really have two options; you can do it yourself or seek professional assistance.  If you do it yourself, you must first educate yourself as to the process and be patient.   The process can take 12 to 18 months.  If you seek professional assistance, make sure to choose a legitimate company like Lexington Law.

Can a negative item on my credit report return after I get it deleted?


Negative items on your credit report are normally deleted for 30 days to give your creditor time to respond.  If your creditor responds, the negative item could get relisted.  However, many times the creditor will fail to respond causing the negative item to be permanently deleted.

If I pay off my debt listed on my credit report will my credit score improve?

If you pay off an outstanding debt on your credit report it will change the status from “paid was late”, “paid collection” or “charged off” and will not improve your credit score much, if at all.  Negative listings stay on your credit report for up to 7.5 years.  If you want a negative listing deleted, it is best to negotiate with your creditor to have the item deleted after it is paid.

Will creditors read my statements (up to 100 words) on credit reports explaining my debt?

Unfortunately most creditors will not read your statements.  They are more interested in your FICO score and other quantitative numbers to determine the risk in lending money to you.

Can I get a new credit report by changing my social security number or using an EIN (Employer Identification Number) tax number?


This practice is known as “File Segregation” and is a federal crime.  Additionally, lying on a credit application is also a federal crime.  Some credit repair companies have been known to promote “File Segregation” as a strategy to credit repair.  This scheme is extremely complicated because you have to change all you identification information and you must be careful to never use the old information again.

Can I improve my credit score with enough good credit?


Any amount of negative listings on your credit report can cause a loan denial or increase dramatically the interest rate on a loan (home, car, personal, etc).  Most creditors use computers to analyze your credit report to determine your FICO score, your credit standing, income indebtedness, etc., to determine loan approval or denial.

Can CCCS (Consumer Credit Counseling Service) help to repair my credit?

CCCS is a nonprofit debt counseling service controlled and funded by the credit bureaus and credit grantors.  CCCS’s main goal is helping people who are in deep debt.

CCCS does provide several beneficial services to consumers; however, there is a conflict of interest since they are aligned with the credit bureaus.  CCCS cannot be expected to do anything that the credit bureaus would not do to help you repair your credit.

If you leave the CCCS program before it’s completed, they can list your failure to complete as a negative listing on your credit report, however, rare, but possible.  If you participate in a CCCS program your creditors may note it on your credit report.  

Can bankruptcies and foreclosures be deleted from my credit report?


No type of negative listings is impossible to remove from your credit report.  However, bankruptcies, foreclosures, unpaid debt are extremely difficult to remove.

Will negative items be removed from my credit report after I file bankruptcy?

Bankruptcy should be avoided at all cost, because it will stay on your credit report from 7.5 to 10 years.  Bankruptcy on your credit report will totally destroy your credit because every credit account included in bankruptcy will be listed as “Included in Bankruptcy”.  Additionally, bankruptcy discharge listings will appear in the court records section of your credit report.

 

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