How to do credit repair on your own
When I pay off a bad debt, judgment, or a collection account, will the delinquency go away and fall of the credit report?
You might be surprised to learn that by simply paying off a debt does not remove the bad debt from your credit report and may not immediately improve your credit score by much, if at all. The paid delinquency will appear on your credit report as "paid was late," "paid collection," or "paid was charged off" on the credit report. Negative credit is permitted to remain on the credit report for a maximum of seven and half years, except for a bankruptcy, which can remain on the credit report for ten years. The seven-year clock starts ticking on the first payment that you missed that led to the collection or charge off status. Creditors and collection agencies are not permitted to extend the reporting period by passing the account back and forth between agencies.
Do the creditors have to remove a bad credit listing if they fail to respond within 30 days?
The credit bureaus will delete a negative listing when they have not heard from the credit grantor after approximately thirty days. However, if the credit grantor responds after 30 days, the credit bureau(s) are likely to reinsert the negative listing on the credit report. This is action is called a "soft delete." In most cases, the creditor will simply fail to respond, and the negative credit listing is permanently deleted from the credit record. The Fair Credit Reporting Act (FCRA) requires the credit bureaus to adhere to strict procedures and to notify you if they decide to re-report an entry on your credit report.
Are foreclosures and bankruptcies impossible to remove from the credit report?
There is no type of negative listing that has not been repaired and removed from a credit report including tax liens and judgments. Although, some negative items, such as unpaid debts, or bankruptcy, are more difficult to repair and remove from the credit report.
Is it true that anyone can repair their bad credit report for the cost of a few postage stamps?
Disputing the credit report is not difficult. Obtaining results and actually removing bad credit can be complex, difficult, and infuriating. It is no coincidence that the Federal Trade Commission receives more complaints about the credit bureaus than any other business. If you do attempt to repair your own credit report, keep in mind, the credit bureaus are interested in defending their profits. Verifying your credit dispute consumes these profits. Often, the credit bureaus seem to do everything in their power to discourage consumers from repairing their credit report.
Can I start over with a clean slate if I declare bankruptcy?
Yes and no. When you file bankruptcy and the judge approves the bankruptcy, the credit accounts that you filed against will be listed as "included in bankruptcy" item. The bankruptcy discharge listing will appear in the court records section of the credit report. If possible, bankruptcy should be avoided and used as a last resort.
Can I file a "100'word statement" on my credit report and will the creditors consider my side?
Creditors do not usually consider the information in a one hundred-word statement. The statement may make you feel better, but it is unlikely to make any difference. Computer programs that analyze, income, debt, and most importantly, your credit score, make most credit decisions. Computers do not read or take into consideration 100 word statements.
Can credit bureaus be fooled by changing my social security number(s) or by using an EIN tax number?
Some credit repair companies have marketed a scheme known as "file segregation". The scheme is complicated and requires a change to nearly all-identifying information. File segregation is a dangerous path to take-to-take to repair bad credit. Some people have been charged with crimes, or terminated from jobs, for providing false information. Lying about any personal information on a credit application is usually a federal crime. Using these "file segregation" should be avoided.
Will good credit offset my bad credit?
Unfortunately, the slightest amount of negative credit can result in the denial of credit, or a higher interest rate. Even a little bad credit can be a barrier to credit approval. Creditors use computers to make lending decisions these days and computers are cold, heartless and unforgiving when it comes to bad credit. Any amount of bad credit can be destructive.
Is it true that the law requires negative credit listings to remain on a credit report for seven years?
Negative listings can appear on your credit report for no longer than seven years, although, the creditor or the credit bureau is permitted to delete the negative credit listing whenever they see fit.
Is it difficult to repair my own credit?
Repairing your credit on your own, without help is possible. But remember, the credit bureaus are dedicated to the failure of credit repair efforts, and the credit bureaus are very experienced in discouraging consumers. Yet, some consumers have achieved results in repairing their credit without professional assistance. Attempting to repair your own credit is possible, but can be very difficult. You have to ask yourself, is it worth it? Or is it better that to turn it over to a professional?