"Who Else Wants to Know How I Got Negative Items DELETED from My Credit Report & Raised My Credit Score 180 Points?"

By all appearances. my mother is probably the most envied person in America right now. She has held the same job for seven years and earns enough money to pay her bills, put back some money into savings, and pay cash for her purchases. She managed to pay off her car in two years as well. Prior to this job, she had filled for bankruptcy and was a poor credit risk. For the past four years, my mother has not taken out any lines of credit. When she applied to a home loan, she expected no surprises as all of her delinquent accounts had been included in her bankruptcy filing years ago.

She was floored when the mortgage company informed her that she had many negative items on her credit report. They recommended that she discontinue the home buying process and clean up her credit.

My mother learned the hard way that is it important to review your credit reports annually and challenge any errors that may have been reported. The Federal Fair Credit Reporting Act (FCRA) was enacted to promote the accuracy and privacy of information in the files of the nation’s consumer reporting companies. This legislation makes it possible for consumers to stand up to unfair and unethical reporting practices of credit card companies and collection agencies.

Despite the consumer’s right to fair treatment by the credit reporting companies, disputing credit reporting errors is a daunting task. It takes months, and sometimes years, to challenge and resolve errors on your credit reports. As there are three credit-reporting agencies, it takes three times the amount of time and effort to correct these mistakes.

The first step is obtaining a copy of your credit report from all three agencies: Equifax, Experian and Trans Union. Thanks to the Federal Fair Credit Reporting Act (FCRA), consumers are entitled to a free copy of your report every 12 months. The three consumer reporting agencies have been kind enough to set up one website, toll free number, and mailing address to order your reports from. This is the easiest part of the disputing process. The rest is a complete nightmare.

Under the Fair Credit Reporting Act (FCRA), the company reporting the information [the company providing the credit or collection agency] and the consumer reporting company are responsible for correcting inaccurate or incomplete information in your report. They will correct the information, but only after you file a compliant for each error you locate.

This is accomplished by writing a letter to the credit reporting company, telling them what information you feel is incorrect. You need to provide copies of the evidence that supports your ascertations, you name, address, and why you feel that the information should be removed.

The consumer reporting agency determines if your claim is frivolous. If it is, they are not obligated to investigate. This is why it is very important for you to have your facts correct and state a very convincing reason for disputing the claim. Your letter should be well written, in a professional manner. If your claim is accepted, then it is forwarded to the agency that reported the information in the first place and they investigate it on their end.

Here is where the process becomes even more difficult. Typically, negative items on your credit report are dated. The original creditor probably sold the debt to a collection agency, who may have sold it again after you did not pay up. All three parties may be listed on your credit report as you owing them money. A frequent tactic of collection companies is to be as difficult as possible with these types of requests.

The easiest way to clean up your credit is to hire a professional. Professional credit repair companies are well versed in credit reporting errors and dealing with unscrupulous collection agencies and credit card companies.

As being unemployed is not bad enough, now a poor credit report keeps you from getting a good job. It seems like a nightmare of a catch-22 situation. You are unemployed and unable to pay your bills. Your credit is ruined. You are evicted. Your car is repossessed.

The day finally arrives that you land the interview for the job that is your second chance at a good life. The pay is more than you have ever earned. The job offers a company car and great benefits. You nail the interview; they make you an offer that you gladly accept. You look ahead and all you can see is a very bright light, at the end of a very long tunnel. Then out of nowhere, the offer is withdrawn because your credit history is substandard. This scenario happens every day and it can happen to you.

It is standard practice for employers to conduct full background checks, which include a reviewing your credit report. The belief is that late payments and irresponsible use of credit are indicators that you have no self control, do not meet deadlines and may make a poor employee.

High security positions, where you are entrusted with cash, company vehicles, or sensitive information, rely even more heavily on credit reports. The school of thought is that someone with an overwhelming amount of overdue debt is more likely to steal or commit some other fraudulent act. Government positions have actual acceptable amounts of overdue credit that you may have and still be offered a position.

While a criminal record and dishonesty on your employment application weighs more heavily than a poor credit history, you need every advantage to get a leg up on the competition. It almost seems unconscionable that after suffering the injustice of being laid off, you are punished for the financial fallout that was no fault of your own.

Many people make the mistake of thinking that since so many others are in the same situation, that the standards will be lowered and employers will turn the other cheek. This could not be farther from the truth.

I have a very good credit history. If you and I interview for the same position, with all other things being equal, I will get the position. I too was laid off not too long ago. My credit history suffered greatly, but I took actions to correct the problem.

Know your rights –

• The good news is that an employer cannot run a credit check on you without your express written permission. So, if you are in the process of landing a job and the prospective employer has not had you sign a release form, then you do not need to be concerned with your credit report.
• While poor payment history and accounts in default can be used against you, a bankruptcy cannot. Unfortunately, prior to filling for bankruptcy your credit typically is poor and that is reported on your credit however.
• You are entitled to a free copy of your credit report if you are not hired for a position due to negative information on the report. This does not seem to be very helpful after the fact however.

It is recommended that you order copies of your credit reports from all three reporting agencies once per year. Once you receive the reports, review them in detail. If you see information that you cannot accurately verify, you are entitled to have it removed. For example, if a credit company reported three, 30 day late payments and you disagree, then they must either verify the actual day the payment was received or remove the negative information. Many times, the credit card companies cannot verify the actual date the payment was received. A more frequent error is reporting a 30-day late payment for one, which was actually 28 days late.

A credit repair company experienced in credit repair can quickly identify opportunities on your credit report that should be disputed. For a reasonable fee, you can have these items removed and piece of mind that they will not keep you in the poor house forever.

Just three years ago, I was at the top of my game! I had finally gotten the promotion that I spent the previous two years working for. The increase in pay that followed allowed me to pay more than the minimum on my credit cards, with enough left over to save for a condominium purchase. I was finally able to get rid of my broken down car and purchase a brand new one. Life was good.

Within one year of purchasing the condominium, I was laid off from my job. I collected unemployment that kept me afloat for almost a year. I meticulously organized my finances so none of my bills were 30 days late to save my credit report from being ruined. Eventually, the situation got the best of me until I was barely escaping foreclosure and shut off utilities. My reliable car was repossessed, leaving me stranded.

As luck would have it, I landed another job. I use public transportation, because I can’t get a car loan. I have no cell phone because no one will extend credit to me. I am unable to take advantage of the today’s competitive mortgage rates, as my credit report is horrible.

I did endless internet searches to get a strategy for repairing my credit. I reviewed hundreds of internet pages, each speaking a foreign language. I had no idea what the difference between a late pay, short pay, 30-60-90 day late, or charge off was. All I know is that my credit was loaded with many of each.

A late payment is reported on your credit report once you are 30 days late on a payment. If 30 more days pass and you still do not make the payment, then the creditor notes a 60-day late payment. The same happens at 90 days late. If you were not keeping track, this adds up to three negative entries on your credit report when you fail to make a single payment for 90 days! The times when my car company said is was Ok to make less than the minimum payment on my car payment resulted in a short payment on my credit report. The repossession and outstanding un-collectable balance on the car loan, plus all the late payments resulted in a total of 12 negative entries on my credit report.

I asked my creditors to substantiate each negative entry and I was ignored. The credit reporting agencies recommended that I fill out an online form for each entry that I was disputing.

I shared my story with a coworker who recommended that I call a credit repair company for assistance. He explained that you can have negative information legally removed from your credit report. Federal and state consumer laws protect consumers from creditors erroneously reporting late payments. You have the right to request verification of each negative entry as well.

The credit repair company aggressively went after each of my coworker’s creditors and filled appeal forms for double the amount of entries than I had on my credit report. While they were not able to remove 100% of the information, they successfully removed enough negative information that allowed my coworker to purchase a new car at a competitive interest rate. He has a cell phone and does no have to put a deposit down on his utilities.

I too used a credit repair company to represent me with my creditors. It was the best investment I made ever! I purchased a used car and have a cell phone once again. I am a new person.

“The most important thing for a young man is to establish credit – a reputation and character.” John D. Rockefeller

John D. Rockefeller could never have imagined how long his statement would live on and remain relevant. In years past, local merchants extended small lines of credit to only the most creditworthy individuals. The average Joe paid cash for everything except their mortgage and possibly their car. Credit lines were only extended to those who could conservatively afford the payments.

Today, Americans finance just about everything from education to dental work. The credit card companies entice us with reward points and airline miles. There is even one creditor that offers cash back on all purchases, which tricks the consumer into thinking that they are saving 3% on every purchase they make.

Using credit for everyday purchases is a way of life for most Americans. Despite this fact, most people are not well versed on how your credit score is calculated. Your credit score is calculated by a fairly complex formula, that is driven by the information on your credit report. Your credit report contains the information on all of the credit lines that you have been extended, the amount of credit that has been awarded, and the manner in which you have paid your obligations.

Consider the following two statements:

• If you borrow money conservatively and repay the debts on time and as promised, your credit score rises.
• If you have multiple lines of credit, and pay them each on time, your credit score will be lower.

The above two statements contradict each other, but both are 100% true. You are rewarded if you borrow and pay back a few debts, but penalized if you borrow from several credit card companies at the same time, even if you pay them as agreed. Why? Because taking on too much credit is considered risky behavior. This is only one example of the confusing and complex criteria that is used to determine your credit score.

The interest rate that you will pay is based on your credit score. The most competitive rates are extended to borrowers with a score of 700 or higher. The lower your credit score, the more you will pay for the cost of credit. For major purchases, such as a car or home, your credit score is very important. A 1% difference in an automobile purchase can increase your monthly payment by $80! A monthly mortgage payment can increase by as much as $300 for a .25% increase in the interest rate.

If you are like me, you have had problems meeting your financial obligations and your credit score is low. Maybe you have fairly good credit, but you want to increase your scores in preparation of a home or automobile purchase. The good news is that you can take specific actions to boost your credit score.

Pay down your credit card debt – Carrying lower credit lines demonstrates your ability to use credit conservatively and will increase your credit score. Do not close lines of credit once they are paid off – Your ratio of available credit to outstanding credit increases your credit score.

The way to have the greatest impact on your credit score is to have erroneous information removed. Late payments are frequently misreported by credit card companies. Many people have debts on their credit reports that are simply not theirs. You can write letters to the credit card and credit reporting agencies and request that the information be removed or contest the reported items. The process to do this complicated and time consuming for the average consumer.

Credit attorneys and credit repair companies are extremely effective in working with credit card companies and consumer reporting agencies. They typically charge a flat fee for their services and get the job done quickly. Doing it yourself can take up to 24 months and there is no guarantee that you will get it right the first time.

Credit repair is a mystery to the regular consumer. We have a difficult enough time getting the credit card companies to move our due dates or possibly forgo the occasional late payment. We don’t speak the credit company’s language, nor are we educated on the credit laws that protect consumers. The three credit reporting bureaus are no help as they are not in the business of sympathizing with debtors.

There are many ‘non profit’ credit consulting companies that offer counseling. They are many times sponsored by the credit card companies themselves and do not have your best interests in mind. A typical strategy a credit counseling company will offer is to consolidate your bad debts and pay them off. Despite the fact that you continue to make payments on the debt, the credit card companies report the debt as compromised or show short payments on your credit reports. Clearly, the consumer does not benefit from that arrangement.

There are many do it yourself credit repair packages that are available on the internet. While their methods are sound, they offer a ‘one size fits all’ solution to your unique credit situation. After spending a few hundred dollars on one of these programs, you spend countless hours drafting form letters to your creditors and credit reporting agencies demanding that your credit file be modified. As a general rule, the credit card companies are not responsive to such requests as it is obvious they are dealing with an amateur.

The quickest and most efficient method of repairing your credit is by hiring the services of a legitimate credit repair company or law firm that specializes in credit repair. They are highly skilled negotiators, who get the attention of credit card companies. Furthermore, credit card companies spend more money responding to letters from lawyers because they utilize their in-house legal department and not the collection department. This provides additional incentive to quickly resolve your issues.

I hired Lexington law firm to repair my credit report. Unlike the credit card companies, Lexington law firm treated me with respect. They did not judge me for my past credit problems. Instead, they empowered me to utilize the credit reporting and consumer protection laws in my state to quickly improve my credit score and get my life back on track again.