Credit Repair is not difficult, but you can shoot yourself in the foot if you don’t pay attention to a few little things. Here are common mistakes people make which can be easily avoided:
- Failing to disputing with the credit bureaus FIRST. In credit repair, always dispute your negatives with the credit bureaus before doing anything else. 10-20% of all items disputed in an initial round of disputes fall off. Why not pick off the low hanging fruit in the beginning so you can concentrate on the tough stuff? In addition, you cannot take legal action as an individual against companies who are acting illegally by reporting you if you don’t dispute first.
- Failing to document your efforts. You should ideally be keeping notes and dates of all your efforts. Make a note of anyone you speak to, when you send letter, and when you receive letters. You should all make sure you send your disputes certified mail, return receipt requested. How to organize is up to you. Putting everything in a notebook is ideal, but a plain ‘ole file folder will do if you just store bits of paper. You don’t have to get too fancy.
- Disputing items online. Never do this! You will not have any written records of your dispute (the return receipt), plus, you are making it easy for them by disputing online. Your dispute will become a two letter code and will be sent (using eOscar) to an offshore computer for analysis. You will also not be able to dispute specific information within the listing, for instance, wrong high balance, wrong date account was opened, etc. You will not be able to send documentation. In addition, if your name, SSN or address is incorrect, you have to send your request in writing any way.
- Being unrealistic. If your credit report is in bad shape, there isn’t a quick fix. The process takes time, usually from 6 months to a year. In addition, some items are extremely difficult, if not impossible, to remove: bankruptcies, tax liens, judgments and child support. If you have any of those listings, you may be in it for the long haul.
- Giving up. The process seems overwhelming at first, especially if you are new to credit repair. Take one step at a time. You don’t have to do everything at once. I usually tell people to do things a few days or a week apart, and not to spend more than an hour at a stretch doing anything. After the first dispute letters are mailed, you really shouldn’t have to spend any more than 1 hour a month working on your credit. Isn’t it worth it?
Documentation is especially important when you are disputing items with the credit bureaus. Under the Fair Credit Reporting Act (FCRA), credit bureaus have 30 days to get back to you with the results of an investigation on your dispute. If you do not hear from them, within 30 days, they must remove the item.
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Hi, I’m new to the forum. I have went through a chapter 7 bankruptcy in November 2009. I had about 15 credit cards included in the bankruptcy. My bankruptcy was discharged. I’ve tried disputing with the bureaus, but it hasn’t worked. I always receive a letter from the original creditor / furnisher verifying the credit card. I have been told if you dispute a certain aspect of the card such as the date you opened it, amount, etc. instead of just saying “not mine” than it is easier to get it removed from your credit report. I need help. Thanks for reading.
I like the fact that you list the steps to follow. Repairing credit is difficult to do if you don’t know what you are doing so this looks a lot easier to do. Thanks for the information.
Understanding which items are negatively affecting your score is the very important. The older the item, the less the impact on your scores. Removing an old collection may only marginally improve your scores. There are three parts to the equation if you wish to maximize your scores: Fixing Bad Credit – Leveraging Existing Credit – Building New Credit. It’s simply not enough to assume that focusing only are Fixing Bad Credit will get you to your goal.
What if you have an ex-business partner to took out a loan on an old line of credit that I was a co-guarantor on. He used the money and has defaulted on the loan. I know I am legally responsible but I can’t afford to pay the debt.
How badly will that affect my credit?
Hi. I was wondering how in the world do you get a hold of theses people? I have their numbers but all I get is stupid voice mail. I need to talk to a real person. Cause right now my car die and i cant even get a loan because they cant tell the last number of my social security from somebody else.These credit bureaus loves to put bad under your number but they never want to fix it. Can somebody please tell me how to get rid of credit that is not mines.
I had to move out of Fl, to find work, where I had the Capital one CC debt.
I received a letter from Capital one Atty’s last June 2010 dropping a suit with prejudice in Fl. I had no knowledge I had been served?
I have just recently been served after nearly 4 years of no communication from them.
Can they sue me in another state, for Fl problems, and also I am only now after all those years being sent monthly statements from Cap One, now adding fees for court costs from Fl.
Any help would be appreciated.
I am now in Ohio, from Fl.
I disputed items on my report. now I have comments that say “consumer disputes this account” how long before those are removed and will they be removed or do I need to go through another round of contacting the CRA’s? and does this hurt my score and ability to get a loan?
My husband died in 2008 and I lost my house and was also unable to pay his CC debts. My name is not on the house deed but I am being dunned for that debt too. Some of the cards were taken in my name but all purchases were for items used in construction for his company, now I have the bad credit for the cards, any chance they might be disputed successfully and removed, from my credit file?
I am curently and have been a Credit Analyst for over ten years. The fact of the matter is that some accounts are better off disputed online while others that require additional documention to be attached are obviousely required to be physically sent. Noone can say that one way is better or more effective without a thorough analysis of the 3 reports. You can view all 3 online by visiting http://www.annualcreditreport.com and no credit card information is required. (credit Scores NOT provided).
This web site is really opening my eyes to the ways that we can beat ourselves by playing checkers while the creditors play chess.
this stuff is great. I have been using Lexington Law(not getting paid to say this) for almost six months and I upped my score enough to get a home loan. I had 38 negative items and most were removed in my favor because of greed and ignorance on the part of collectors.
Repeat after me: I will learn about debt validation and keep track of everything. The credit reporting agency is so biased they want to give me a bad score!!!
By keeping excellent records I was able to prove out and out lies, stupidity, DumbKoffinkin!!!! and it”s even better when you can point out it was they who made the stupidoink please remove gracias me teeny braindiggerstrom!!
Never assumne a contactor is the responsible person in a debt collection. Every debtor has the right to know wwho the money is owed to.! Don’t pay a nickle until you establish credentials. When they can’t satisfy your understandably pessimistic nature( from five years in Somolia selling encyclopedias on credit to 2% employed).
Well, I made mistakes but Lexington backed me up & went from low 500′s to high 600′s.
Thank you.
Hi my name is Tempestt me and my husband combined debt is about 5,000 we are tryng to buy a home in the next 6 months and I need advice about wether to hire a proffesional to settle these debts or if I should try to do it myself and how much time it will take.