Frequently Asked Questions
What is a credit report?
A credit report is a track record of both your personal and financial credit information. This includes information taken from public records, personal identification and debt information.
How many credit bureaus are there?
There are 3 major credit bureaus: Equifax, TransUnion, and Experian.
Are your services guaranteed?
Yes, we guarantee that all items from all Credit Bureaus that you want us to dispute will be disputed to the best of our abilities.
How will I know the status of my credit?
We will send you a weekly progress report detailing the items pending/deleted. Please email us if you are not receiving these notices.
How do you get a copy of my credit report?
We, by law, are unable to order a copy of your credit report. Since we can not pull your credit for you, we ask you to sign up for a trial membership with www.privacyguard.com. We will then be able to import all the details of your report into our secure personal computer system.
Does paying off my bills repair my credit?
Unfortunately, the credit reporting system just doesn’t work that way. When you pay your debt, the negative credit listing doesn’t disappear. There is little difference between a paid negative item on your credit report, or an unpaid one. In most cases, you wont get much further by paying the old debt. We can recommend a debt negotiation service to help you in that situation…simply ask your representative.
Who can see my credit reports?
Our credit service specialists are the only ones who will see your credit reports.
How do you restore bad credit?
Once we have your credit reports, we then dispute the questionable items to the credit reporting agencies, and creditors/lenders on your behalf. Any information the agencies or creditors cannot verify is removed. Any dispute not responded to within the allowed response time is removed.
Probably sounds easy, but if you ask someone who has attempted to dispute their own credit, they will tell you it’s actually not. According to federal law, the credit agencies can ignore your dispute under a variety of conditions. A large percentage of dispute letters sent directly from consumers are rejected under one credit agency pretext or another. Making it a very time consuming and frustrating task.
After we dispute your negative credit, a new copy of your credit report will be sent to your address showing any deletions or improvements. When you receive your new copy you’ll send us the updated version of your credit report, so we can continue disputing the remaining negative items.
Any accurate and verifiable information will remain on the credit report. All too often, disputed credit items cannot be verified or in many instances the creditor will not respond to our dispute due to our approach and the negative item is removed.
How long does it take to repair my credit?
Every client is different, but generally you can expect to start seeing some progress in 3 months, and a significant improvement in 6 months. Credit repair is a process and although we work quickly to repair your credit we can only move at the credit reporting agencies, court houses, and creditors pace.
How can negative items be removed?
The Fair Act Credit Act and the FACA gives the consumer the right to ask the Credit Bureaus to prove their reports, regardless of being accurate or not. Disputing your credit report is your right according to the Fair Credit Reporting Act and FACT act. Credit repair is a completely legal and necessary service. We hold the credit reporting agencies accountable. Simple as that. Whether the Bureaus decide to investigate, is their issue, the law states that they have to remove the items if they can not prove it. The Credit Bureaus admit that errors occur on consumer reports, but they do little to correct them, instead they rely on a pro-active consumer to dispute these errors. You can dispute these negative items on your own, or you can choose to hire someone to do the disputing for you.
Learn more about your rights as a consumer here.
You have the right to receive a copy of your credit report. Each of the nationwide consumer reporting companies ” Equifax, Experian, and TransUnion ” is required to provide you with a free copy of your credit report, at your request, once every 12 months.
If a company denies your application, you have the right to the name and address of that credit bureau.
If you question the accuracy or completeness of information in your report, you have the right to file a dispute with the consumer reporting company and the information provider.
You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction. Learn More @ The FTC Web Site
The Fair Credit Reporting Act
This is the Fair Credit Reporting Act (FRCA) as prepared by the Federal Trade Commission (FTC). It is intended only as a convenience for the public and not a substitute for the text in the U.S. Code. Learn More
A number of government and private organizations have information about various aspects of identity theft and fraud: how it can occur, what you can do about it, and how to guard your privacy. Agencies like the Federal Bureau of Investigation, Federal Trade Commission, United States Postal Inspection Service, United States Secret Service, the Better Business Bureau, and more.
There is no “quick and easy” answer to this question. You should discuss your situation with a credit counselor or a bankruptcy attorney, to evaluate the costs and benefits of bankruptcy given your personal financial situation.
Not every debtor qualifies to file for Chapter 7 bankruptcy. A means test is applied to determine if you will be able to repay a substantial percentage of your debt, and if you are determined able to do so you will be ineligible for a liquidation of your debts and will likely have to engage in a repayment plan as part of a Chapter 13 bankruptcy.
The type of debt you owe can be a significant factor in whether you file for bankruptcy, as well as the form of bankruptcy you pursue. Factors which may affect your decision to file for bankruptcy protection are detailed in this associated article: Filing For Personal Bankruptcy Protection in a U.S. Court.
Your ability to rebuild credit after filing bankruptcy is better than it has ever been. After you get your discharge, you will receive many solicitations from lenders offering to finance homes, vehicles and credit cards.
- Open a checking or savings account. Lenders may look at this to determine if you can responsibly handle money.
- Apply for store and gas credit cards that you would normally pay cash.
- Apply for a secured card where you deposit cash and charge against it. Pay advances back over two months so that they will be reflected as positive marks on your credit report.
- Pay your utility bills and rent on time for at least a year.
- Find a friend or relative to cosign for you on a loan and pay it on time.
- Look for car dealers and mortgage brokers that attest to be “bankruptcy friendly”. Buy a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.
- Stay away from payday loans that are at high interest rates and are a “bad credit” trap.
- Write a letter to each credit reporting agency explaining the circumstances that lead to you filing.
- Live within your means. Do not unnecessarily increase your debt to income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.
- Pay your reaffirmed, pre-bankruptcy debts on time.
Fallacy: My score determines whether or not I get credit
Fact: Lenders use a number of facts to make credit decisions, including your FICO?,® score. Lenders look at information such as the amount of debt you can reasonably handle given your income, your employment history, and your credit history. Based on their perception of this information, as well as their specific underwriting policies, lenders may extend credit to you although your score is low, or decline your request for credit although your score is high.
Fallacy: A poor score will haunt me forever
Fact: Just the opposite is true. A score is a “snapshot” of your risk at a particular point in time. It changes as new information is added to your bank and credit bureau files. Scores change gradually as you change the way you handle credit. For example, past credit problems impact your score less as time passes. Lenders request a current score when you submit a credit application, so they have the most recent information available. Therefore by taking the time to improve your score, you can qualify for more favorable interest rates.
Fallacy: Credit scoring is unfair to minorities
Fact: Scoring considers only credit-related information. Factors like gender, race, nationality and marital status are not included. In fact, the Equal Credit Opportunity Act (ECOA) prohibits lenders from considering this type of information when issuing credit. Independent research has been done to make sure that credit scoring is not unfair to minorities or people with little credit history. Scoring has proven to be an accurate and consistent measure of repayment for all people who have some credit history. In other words, at a given score, non-minority and minority applicants are equally likely to pay as agreed.
Fallacy: Credit scoring infringes on my privacy
Fact: Credit scoring evaluates the same information lenders already look at – the credit bureau report, credit application and/or your bank file. A score is simply a numeric summary of that information. Lenders using scoring sometimes ask for less information – fewer questions on the application form, for example.
Fallacy: My score will drop if I apply for new credit
Fact: If it does, it probably won’t drop much. If you apply for several credit cards within a short period of time, multiple requests for your credit report information (called “inquiries”) will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.
If you are behind on payments and wanted to know what options are available, many time professionals forget the simple options to homeowners. For professionals in the foreclosure business, we use terms such as deed-in-lieu, forbearance, loan mod, and other terms that homeowners may not. I have come up with a few terms and options that homeowners should have available as options for available alternatives to foreclosure.
A company will attempt to stall or reduce your payment by submitting a hardship package on your behalf. Many times the lender will work with a “foreclosure assistance” company before working with an individual attempting to submit a foreclosure package.
With this option, you can actually sell your house and continue living in. Some investors offer a buy back program where they will step-in quickly, purchase your house, and allow you to rent it while you catch up on your bills and even allow you to purchase it back from them once you are “back on your feet”. (Be very careful, some companies are better then others, and of course, you have those predators out there)
Restructure (Most Popular Alternative)
Some foreclosure companies will negotiate with your lender to get your loan in good standing again. There are many options available to get a restructure approved like a separate payment plan for your delinquency or even adding the delinquency to the end of your loan. No one can guarantee to restructure your payments, so be careful.
Pay your lender(s) your entire past due payments to bring your mortgage current. This option is rarely feasible. (However I know some private money lenders that will provide homeowners up to 90% for the reinstatement amount.)
Hardly available, through traditional lenders, however some foreclosure companies have established relationships with in-house lenders who can give loans on mortgages that are in foreclosure if there is enough equity in your property available.
This is a last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure.
Sell Your Home
You may simply sell your home before the Foreclosure Sale Date. Sometimes the home owner is unable to sell the home outright at the desired sale price and this is not an option.
In this instance the lender may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process.
Deed-in-lieu of Foreclosure
You or a foreclosure company can arrange for you to simply give the home back to the lender and walk away with a clean slate.