One’s credit history and credit score is reflected, in many countries, as a record of an individual's or company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score.
In the U.S., when a customer fills out an application for credit from a bank, store or credit card company their information is forwarded to a credit bureau. The credit bureau matches the name, address, and other identifying information on the credit applicant with information retained by the bureau in its files.
This information is used by lenders such as credit card companies to determine an individual's credit worthiness; that is, determining an individual's willingness to repay a debt. The willingness to repay a debt is indicated by how timely past payments have been made to other lenders. Lenders like to see consumer debt obligations paid on a monthly basis.
The other factor in determining whether a lender will provide a consumer credit or a loan is dependent on income. The higher the income, all other things being equal and the more credit the consumer can access. However, lenders make credit granting decisions based on both ability to repay a debt (income) and willingness (the credit report) as indicated in the past payment history.
These factors help lenders determine whether to extend credit, and on what terms. With the adoption of risk based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR), grace period, and other contractual obligations of the credit card or loan.
How is Credit Determined?
Credit ratings are determined differently in each country, but the factors are similar, and may include:
- Payment history - a record of delinquent payments, generally being more than 30 days late, will lower the credit rating.
- Control of debt - Lenders wants to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower's after-tax income.
- Signs of responsibility and stability - Lenders perceive things such as longevity in the borrower's home and job (at least two years) as signs of stability.
- Re-Aging - Through re-aging, the date of last action on the account is changed.
- This can dramatically alter the credit score. In 2000, the Federal Financial
- Institutions Examination Council (FFEIC) clarified guidelines on re-aging accounts for delinquent borrowers. [1] (PDF)
- Utilization - Lenders ascribe increased risk to accounts with balances near their limits.
- Credit inquiries - An inquiry is noted every time a company requests some information from a consumer's credit file. There are several kinds of inquiries that may or may not affect one's credit score. Inquiries that have no effect on the creditworthiness of a consumer (also known as "soft inquiries") are:
Prescreening inquiries where a credit bureau may sell a person's contact information to an institution that issues credit cards, loans and insurance based on certain criteria that the lender has established.
- A creditor also checks its customers' credit files periodically.
- A credit counseling agency, with the client's permission, can obtain a client's credit report with no adverse action.
- A consumer can check his or her own credit report without impacting creditworthiness.
- Inquiries that do have an effect on the creditworthiness of a consumer (also known as "hard inquiries") are made by lenders when consumers are seeking credit or a loan, in connection with permissible purpose. Lenders, when granted a permissible purpose, as defined by the Fair Credit Reporting Act, can "pull" a consumer file for the purposes of extending credit to a consumer. Hard inquiries from lenders directly affect the borrower's credit score. Keeping credit inquiries to a minimum can help a person's credit rating. A lender may perceive many inquiries over a short period of time on a person's report as a signal that the person is in financial difficulty, and may consider that person a poor credit risk.
- Credit cards that are not used - Although it is believed that having too many credit cards can have an adverse effect on a credit score, closing these lines of credit will not necessarily improve your score. Many risk models consider the difference between the amount of credit a person has and the amount being used: closing one or more accounts will reduce your total available credit, lower the percentage of available credit, and possibly lower your credit score. Risk models also factor in account age: closing an account with several years of history that is in good standing will most likely negatively affect your score.
FTC and Credit Education
Fraudulent credit repair companies have long been the target of FTC investigations, culminating most recently in Project Credit Despair which snared 20 credit repair companies in February 2006.
The Federal Trade Commission
The Federal Trade Commission (FTC) is responsible for enforcing consumer protection laws in the United States. In its capacity, the FTC offers a number of suggestions and warnings to consumers regarding credit repair organizations.
Beware of credit repair services that don't disclose your rights
Consumers have the right to attempt credit repair on their own. D.W. Scott Financial offers affordable credit restoration services to those clients who prefer having experienced professionals managing their credit disputes and creditor interventions.
Beware of credit repair services that advocate "new" identities
It is unlawful to create a "new" identity by applying for an Employer Identification Number (EIN) to replace one's Social Security Number. File segregation is a serious crime that can result in fines or imprisonment.
Beware of companies that imply FTC endorsement
The FTC does not endorse any business. If a credit repair organization implies FTC endorsement, you would do well to proceed with caution.
Mistakes Do Happen
A Look At Errors In Consumer Credit Reports
Executive Summary, 6-14-2004
The most valuable thing we have is our good name. The most common reflection of our reputation as a trustworthy consumer is our credit report. Unfortunately, the information contained in our credit reports, which are bought and sold daily to nearly anyone who requests and pays for them, does not always tell a true story.
Credit bureaus collect and compile information about consumer creditworthiness from banks and other creditors and from public record sources such as lawsuits, bankruptcy filings, tax liens and legal judgments. The three major credit bureaus—Experian, Equifax, and Trans Union— maintain files on nearly 90 percent of all American adults.[1] Those files are routinely sold to credit grantors, landlords, employers, insurance companies, and many others interested in the credit record of a consumer, often without the consumer's knowledge or permission.
Several studies since the early 1990s have documented sloppy credit bureau practices that lead to mistakes on credit reports—for which consumers pay the price. Consumers with serious errors in their credit reports can be denied credit, home loans, apartment rentals, auto insurance, or even medical coverage and the right to open a bank account or use a debit card. Consumers with serious errors in their reports who do obtain credit or a loan may have to pay higher interest rates because the mistakes falsely place them in the sub-prime, high-cost lending pool.
We asked adults in 30 states to order their credit reports and complete a survey on the reports’ accuracy. Key findings include:
Twenty-five percent (25%) of the credit reports surveyed contained serious errors that could result in the denial of credit, such as false delinquencies or accounts that did not belong to the consumer;
Fifty-four percent (54%) of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;
Twenty-two percent (22%) of the credit reports listed the same mortgage or loan twice;
Almost eight percent (8%) of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer;
Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but remained listed as open;
Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.
States have long taken the lead in protecting consumers’ privacy and ensuring the accuracy of credit reports. In 1992, Vermont was the first state to pass a law providing a free annual credit report on request, followed by Colorado, Georgia, Maine, Maryland, Massachusetts, and New Jersey. California adopted other comprehensive reforms in 1994 and later became the first state to require disclosure of credit scores.
Congress eventually followed the states’ lead, adopting some credit reporting reforms in 1996 and criminalizing identity theft in 1998. In December 2003, Congress passed the Fair and Accurate Credit Transactions Act (FACT Act). With the FACT Act, the financial industry won its primary goal: permanent preemption of stronger state credit and privacy laws. The FACT Act also included several modest consumer reforms, borrowing from state laws already enacted, including the right to a free annual credit report on request. Although these consumer reforms came at the unacceptable price of a state’s right to protect its consumers, the law includes a number of provisions designed to enhance the accuracy of credit reports.
Despite recent federal action, we need to do more to protect consumers’ financial privacy and ensure the accuracy of credit reports.
Policymakers should:
Strengthen a consumer’s private right of action to seek redress through the courts when a credit bureau or a creditor fails to protect personal information or comply with an investigation.
Limit or prohibit the use of a consumer’s Social Security number for transactions, credit applications, or on drivers’ licenses and other identification.
Give consumers more control over who has access to their credit reports and when, better information about when their reports are accessed or when negative information is added to their reports, and the right to control the use of credit scores for insurance purposes.
Give identity theft victims more power to easily clear their names.
Consumers should:
Order their credit report every year from the three national credit bureaus (Equifax, Experian and Trans Union) to identify and correct inaccurate information before it causes problems.
Top 10 Myths and Truths about Credit and Credit Repair
Myth #1: When I pay off a past-due account, such as a charge off or a collection account, it will show “paid” and no longer be negative.
It is difficult to fully restore your credit without paying your outstanding debts. However, paying off a debt can actually hurt your credit. Negative items on your credit report are allowed to stay on your credit report for a maximum of seven (7) years, except for bankruptcy that can stay for up to ten (10) years. This 7 or 10-year clock begins ticking at the date of last activity. Making a payment represents new activity and restarts the clock. When paying an outstanding debt, you will change the account status to paid collection, paid charge-off, satisfied judgment, or paid ‘was xxx days late”. This is still considered very negative and appears as though you had to be strong-armed by the credit bureau to pay the account. It is almost always prudent to have a professional help so as to not further damage your credit by trying to do the right thing.
Myth #2: If a negative item is successfully deleted from my credit report, it will just come right back on my report.
The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.
Myth #3: There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.
There is no type of negative listing that has not been removed from a credit report - thousands of times.
Myth #4: Disputing a credit report is easy. Any consumer can do it themselves.
Disputing a credit report is easy. Getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000 the 3 major credit bureaus paid a fine of 2 ½ million dollars for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Short of sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration.
Restoring your own credit is like repairing your own transmission or representing your self in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of your inexperience and realize that it will probably take you longer and you probably will be less effective than a professional.
Myth #5: The credit bureau allows me to submit a 100-word explanation as to my side of the story. Creditors will read my statement and take it into consideration.
No known creditors consider the information submitted in you're statement. This statement only verifies some of the negative items on your report. The 100-word explanation should be the first thing deleted from your credit file.
Myth #6: The credit bureaus are...a branch of the government, infallible, or otherwise above reproach.
The credit bureaus are publicly traded companies in business to impress stockholders. They are not government agencies. In fact, they are one of the most heavily regulated industries. The strict regulations stem from a public outcry of abuses and mistakes. A recent survey by an independent research group revealed that 70% of credit reports contained mistakes or errors. The prevalence of errors has lead to consumer protection legislation that allows consumers to challenge the bureaus and force the removal of inaccurate, outdated or unverifiable information.
Myth #7: I can create a totally new credit file by getting a federal tax ID number or changing a few numbers on my social security number.
This fraudulent scheme has proven to be complex, difficult and illegal. Lying on a credit application is a criminal offense and with the linking of computer systems it is virtually impossible to get away with. It is in your best interest to hire adequate representation and face the music by confronting the credit bureaus armed with the rights congress has granted you through the consumer protection laws.
Myth #8: If I build enough good credit, it will offset my bad credit and make me creditworthy.
Any amount of bad credit is devastating to your chances of being approved by a creditor. The approval is almost never in the hands of a human sitting across a desk from you. It is a computer achieving a point total. The slightest amount of negative credit will cause an auto loans interest rate to skyrocket. Generally, even a little bad credit (regardless of the amount of good credit) will cause you to be declined.
Myth #9: Nonprofit organizations like Consumer Credit Counseling Service (CCCS) can help me restore my credit.
Nonprofit debt counseling services assist people who are over their heads in debt and are seeking an alternative to bankruptcy. CCCS are funded and controlled by credit grantors and credit bureaus. When you are working with CCCS your creditors will often note this on your credit report. This is a huge red flag for prospective credit grantors - treated the same as Chapter 13 bankruptcy. Some of the very worst credit reports that we see are or have been participants in the CCCS or similar programs.
Myth #10: It is illegal for creditors to take off a negative-listing on my credit report. The law requires that these items remain on the credit report for at least seven (7) years.
When you speak to credit grantors, collection agencies, or credit bureaus, their typically under-educated staff may tell you all manner of such pseudo-legal nonsense. The law "limits" negative information from appearing longer than the legal seven (7) year maximum. The credit grantor or credit bureau may choose to delete the item whenever they see fit.
The Legal Perspective
What Our Attorneys Say
Unfortunately today, we live in a society that determines our net worth and value as human beings by our credit file. If your credit report is good, chances are you will partake in many of the better things in life. The complete opposite is true if your credit report is bad.
Very few creditors will extend fair credit to you with blemishes on your credit history.
What if it wasn't your fault? What if you had to make the simple choice between eating and making a car payment? What if a job lay-off, medical emergency, or some other personal crises prevented you from making a timely payment? Should you be forced to pay for this for the next 7 to 10 years serving a credit prison sentence?
How is a system like this allowed to operate in our democracy? The credit bureaus have placed themselves in the position of both judge and jury in relation to your credit file. Do not forget one very important difference… A judge will give you a chance to defend yourself before ruling. We are supposed to have the opportunity in America to face our accusers before judgment is passed. This is entirely untrue when it comes to your credit records.
The truth is creditors and credit bureaus have been swapping information about you behind your back and without your permission for a long time. In effect, it is hearsay and it can cause you severe economic hardship.
The current system does not give you the opportunity to defend yourself before inscribing your credit file with negative and damaging information (even if it is not yours). Their perspective is that you must prove to them that the negative information on your credit report is incorrect, invalid, erroneous, or otherwise non-verifiable before they will remove it. In other words, in the eyes of the credit bureaus… you are guilty until proven innocent.
We are brought up to believe that one is innocent until proven guilty. Why we are not extended the same courtesy by the credit bureaus? Why do they not give us a chance to defend ourselves before they place negative information on our report? Fact is, consumer rights cost them money.
The sole focus of credit bureau companies is profit.
Your credit file is their product. The credit bureaus have no government affiliation (except for spending millions on lobbying efforts). These private corporations sell your personal financial information to anyone that will pay for it…who generally accepts it as gospel. (Although it has been proven many times that mistakes do happen all too often.)
Creditors then reciprocate by giving back to the bureaus any information that they may have on you.
What can be done?
In a democracy, everyone is entitled to a defense.
Consumers have the right to obtain representation and face their accusers armed with their legal rights.
The credit bureaus should have to back up the information that they sell about you. Congress and the law agree. If your defense is presented properly, whether your credit report is accurate or not, it is usually more difficult and costly to prove the information is correct than to simply remove it.
It should require more than just a form letter to validate my credit. It does. If the bureaus state the information was only verified, our attorneys will increase the intensity of the challenge and request validation until it is permanently removed.
The longer you delay action, the longer you let them win.
The Ethical Perspective
Is It Ethical To Remove Legitimate Bad Credit?
The credit rating system has not been kind to the American consumer. The term "credit repair" has been given a nasty reputation and has become synonymous with fraud. This state of affairs often forces us to defend the ethics of our legal service.
We offer our members an alternative to credit prison despite the disrepute which taints credit improvement. A credit report is no more than an allegation. Most consumers never challenge that allegation. By enlisting the Association attorney network to their defense, our members essentially enter a plea of not guilty.
Our attorneys take an affirmative defense and leave it to the bureaus(s) to substantiate their allegation. If the bureaus claim to have investigated and affirmed the allegation, the decision is appealed. Eventually, we find that most credit report allegations are untenable and removed.
"Removing the record of a negative credit item is, without doubt, ethically sound."
We belong to a fundamentally capitalistic society and the credit bureaus capitalize on consumer information. Unlike our legal system, the bureaus take no oath to truth, equity and the common good. No citizen has a moral obligation to support any business venture, much less a publicly traded corporation, which may well destroy his or her financial life.
If it weren't for federal laws that directs bureaus to remove most items after seven years…the credit bureaus would maintain every piece of credit information forever… with errors uncorrected. Under the regulations, the credit bureaus must themselves practice credit repair at the seven-year mark. If it is right to remove accurate credit accounts after seven years, why would it be wrong to do so in less time?
"Credit bureaus do not concern themselves with the impact on consumers. Primarily their profit margins guide their judgment rather than consumer rights."
Credit history information often misrepresents the credit worthiness of the consumer. By tagging good citizens as deadbeats, they damage everyone…creditors, the economy and most importantly - the individual. Several policies and techniques employed by the credit bureaus appear most abusive to the consumer.
These we cite as justification of our opposition to the present credit reporting system. Seven years credit bondage (10 years for bankruptcy and some court actions) punishes the debtor unjustly. At no point have the credit bureaus ever conducted a study determining that seven years is the point of rejuvenation. The seven-year mark is entirely arbitrary.
In fact, Dr. Bonnie Gution, advisor to president George Bush on consumer affairs, remarked, "…it is our understanding that computer models that predict credit information find that most information that is more than 2 years old is nonessential."
Based on the experience of our members, seven years is entirely too long. Within a year or two, most consumers completely recover from a financial crisis. For the remaining five or six years they are left hobbled--- forced to rent homes, pay outrageous interest on sub-prime auto loans, forgo the convenience of credit cards and pay cash for every expenditure.
"The credit bureaus have not been able to maintain reasonable
accuracy in their credit profiles."
The bureaus claim an error rate of less than one percent. In reality, independent studies show the credit bureau error rate to be closer to 79% percent. One bureau has testified in court to "greater than 50 percent error rate." Unfortunately, the bureaus choose to error on the side of negative information.
The bureaus fiercely resist the correction of these errors. It costs them time and money. Credit bureaus make their money from the sale of information and from the sale of generic target marketing lists to invasive personal investigations. They cull a pool of information larger than any in the world. The loser is he who values privacy. Jobs are lost, insurance cancelled, reputations ruined - all by error-prone records collection, sloppy record keeping, and "up for grabs" dissemination of information.
"We need a grand scale revision of the US credit reporting system."
Recently, we have noticed a high incidence of file mismerges—the worst kind of file error. In a file mismerge, the credit information of another person with similar name or social security number is added onto the file of an innocent bystander.
America is not the only country that utilizes consumer credit reporting systems. However, most other countries extend credit based on present standing. In England, for example, Equifax and Experian cannot maintain credit information longer than five years. Americans need a grand scale revision of the US credit reporting system. Until then, feel comfortable that removal of negative credit accounts before the seven-year mark is NOT unpatriotic. It is NOT unfair or unethical.
By expelling the consumer from the credit loop, the economy suffers. Many of our members come to us on the upswing. If they can afford our membership, they are likely on the way back to financial abundance. Our members are consumers who have fully recovered from a crisis, anxious to re-enter the credit economy and be financially responsible. For them, we offer a well deserved parole from predatory lending practices.
Are You Caught Up In a Vicious Cycle?
Automobile Financing: A bad credit rating costs you thousands of dollars more. This extra interest shows up every month in a dramatically higher payment plus the loan balance remains upside down "for the entire life of the loan." The first thing our members do once they have restored their credit is to refinance or buy "twice the car value" at nearly the same payment.
Home Mortgage: Renters have paid off somebody else’s mortgage but owning your home is out of reach for most people with credit problems. Even mildly damaged credit will cost a lot more than those with good credit. It forces those unfortunate consumers to live in less desirable neighborhoods.
Frequently Asked Questions: Legal Credit Repair
- How is bad credit removed from my credit report?
- Is repairing my credit legal?
- How much does this service cost?
- How is the $5 correction fee paid?
- Does this program offer a guarantee?
- Would you explain the Membership Protection Warranty?
- How long does the credit restoration process take?
- Do I need to know exactly what is on my report before I sign up for your service?
- Do negative items need to be paid before they can be removed from my report?
- Does paying off all my bills repair my credit?
- Will deleted items reappear on my report?
- Can I restore my own credit?
- I don’t completely understand how the service works?
- When the service is completed will I be approved for credit?
- Does the law require that an accurate item stay on a credit report for 7 years?
- Will I be opening a new credit file or establishing a new
Social Security Number or Tax ID number? - How will I be updated as to the progress on my account?
- Who do I contact if I have questions?
- What are my responsibilities as a member?
How is bad credit removed from my credit report?
Everyone knows that under the law, if you are accused of anything, the burden of proof lies with your accuser. In other words, if the credit bureaus are going to promote and sell information about you that can cause you economic hardship, they must back it up to the full letter of the law. Congress has provided consumers the right to challenge information that is deemed to be inaccurate or unverifiable or obsolete. Our Attorneys are experienced at presenting your case in the most effective way possible. Information that is not properly validated under the law must be removed regardless as to whether it is accurate or not. Regardless of the accuracy, credit bureaus are often unwilling (to invest the resources necessary) or unable (to get the credit grantor to invest the resources necessary) to validate the disputed item. Oftentimes, it becomes a matter of economics. If the case is presented properly, it is often more difficult (expensive) for the credit bureaus to substantiate the item than to simply remove it. The law requires more than a form letter to verify that an item is accurate. If the credit bureau confirms an item on your report, the assigned attorney will ratchet up the intensity of our challenge and represent it. This forces the bureau to invest additional time and expense in conducting a new investigation.
Is repairing my credit legal?
Absolutely! An affiliated attorney network provides credit repair services on behalf of our members. Obviously if credit repair was illegal licensed attorneys would not facilitate the service. The Fair Credit Reporting Act was designed specifically to provide a way for consumers to force the removal of erroneous, outdated and unverifiable information from their report. Additionally, The Credit Repair Organization Act was passed to govern credit repair companies. If providing credit repair advice were illegal there would be no laws governing how to operate a credit repair company within the law.
How much does this service cost?
Attorney facilitated credit repair is available exclusively to valid Members in good standing. Attorney fees referred to as "correction fees" are only $5.00 per deleted or corrected item per credit report and paid directly to your attorney ONLY AFTER MEMBER IS NOTIFIED BY THE CREDIT BUREAU OF THE RESULTS.
How is the $5 correction fee paid?
You may mail a check or money order - payable to your attorney - with your updated report reflecting the corrections received or if you have a checking account on file you may authorize the amount and date.
Does this program offer a guarantee?
It is important to understand that there can be no absolute guarantees involved in any legal matter. As in a court of law, an attorney could never guarantee that a judge would rule in their favor. Based on extremely positive past experiences, we offer members the industry's only Membership Protection Warranty to protect their membership investment.
Would you explain the Membership Protection Warranty?
As long as you do your part, if no derogatory item is removed from your credit reports within the first 3 months, at your request we will cancel your membership and refund all monies paid. Quite simply this never happens! At the conclusion of your membership, if you have any derogatory item left on your report, an evaluation of your results will be performed. A value of $100.00 will be placed on each deleted or improved item and deducted from your total amount paid. We will refund to you any difference. This is offered to help you feel comfortable with the results that you can anticipate. D.W. Scott attorneys typically deliver results that far and away exceed the warranty value. If for almost any reason you are not satisfied with your results; our attorneys will extend your case and continue to work on your behalf until you are completely 100% satisfied with your results.
How long does the credit restoration process take?
Each case varies significantly. The most important variables are how involved your credit problem is and the responsiveness of the credit bureaus. It would be improper for a professional organization to say exactly how long an individual case would require. If you forward your credit reports on a timely basis, you should see exciting progress within the first 60 days. After that progress will be steady. Statistically, a participating member will see roughly (on average) 1/3 of the negative items deleted every time that the credit bureaus are challenged. (Every 60 days or so) Many members complete the credit repair service in approximately 6 months. A few of the more complicated cases use most or all of the one-year membership. As previously mentioned, progress will vary greatly based on your prompt forwarding of information received, the nature of your case, and the cooperation from the credit bureau(s).
Do I need to know exactly what is on my report before I sign up for your service?
No. Most of our members do not know everything that is on each of their reports. Once obtained, your attorney will easily be able to determine what items need to be removed.
Do negative items need to be paid before they can be removed from my report?
No. The fact that a derogatory piece of information is paid has nothing to do with its being removed from your report. Removing an item from your report DOES NOT eliminate your obligation for payment. It simply will not appear when a potential credit grantor is looking at your report. Leaving an item unpaid runs the risk of the creditor taking further action against you that damages your credit after it is cleaned up. (like submitting it to a collection agent or filing a small claims court action) In either case, you receive ample advanced notice to contact the creditor and settle the matter before any damage to your credit appears. You can also negotiate to settle unpaid obligations - ask for professional assistance.
Does paying off all my bills repair my credit?
That assumption would be logical but IS NOT true. Then again, the credit reporting system just does not work according to logic. Paying an item that is on your credit report extends the time that the item will remain on your report. The seven (7) year clock starts all over again. Ironically, a paid in full negative item is not generally looked at any more favorably than an unpaid negative listing. In most cases, without professional help, you will not get much further by paying the old debt. (IN FACT, YOU ARE LIKELY TO MAKE IT WORSE) .
Will deleted items reappear on my report?
Occasionally, the creditor will verify an item that has been deleted. The newly amended Fair Credit Reporting Act has provisions to protect you against items being re-reported on your report. Additionally, you must be notified before a previously deleted item can be re-reported. It is fairly rare for a listing to re-appear on a report once deleted. If an item is re-reported, it is a simple matter to challenge the listing again and press for permanent deletion. If an item is re-reported your attorney will credit you toward your next deleted or corrected item (or) at your discretion promptly send a $5.00 refund for the re-inserted item.
Can I restore my own credit?
Absolutely you can repair your own credit, represent yourself in court, be your own doctor, or paint your own house. Given the time and energy and commitment you can learn to do most of what our attorneys do on your behalf. Our attorneys are professionals who specialize in credit restoration. They eat, drink and sleep your rights under the applicable consumer protection laws. Like anything, a professional is often able to accomplish a task more quickly and effectively than a layperson. The ultimate question becomes how you value your time and your aptitude and inclination to learn this kind of work. If you don’t completely understand how the credit service works, that is why you should consider using a professional. When your car breaks down you may not completely understand how to repair the problem, or if you do, you may prefer to simply channel your efforts elsewhere. What is important is that our attorneys understand your rights and will be successful in restoring your credit rating.
I don’t completely understand how the service works?
That is why you should consider using a professional. When your car breaks down you may not completely understand how to repair the problem, or if you do, you may prefer to simply channel your efforts elsewhere. What is important is that our attorneys understand your rights and will be successful in restoring your credit rating.
When the service is completed will I be approved for credit?
You should be approved for credit as long as you meet the other requirements that credit grantor may have separate from a clean credit report. (Employment, debt ratio, residence info, etc) Sometimes little or no credit is as limiting as bad credit. If you do not have very many positive trade lines on your credit report, you may want to consider adding some new credit lines though Member Services.
Does the law require that an accurate item stay on a credit report for 7 years?
No. The law limits negative information from staying on your report for longer than the 7 year maximum. Also, the credit bureaus can delete the item whenever they see fit.
Will I be opening a new credit file or establishing a new Social Security Number
or Tax ID number?
NO! It's considered fraud. Simply put, we are legally challenging the credit bureaus, exercising the rights extended to you by Congress and forcing the deletion of adverse information from your credit report.
How will I be updated as to the progress on my account?
Credit reports will be sent to you from each of the three major credit reporting agencies regularly. As you receive them, you will see items being removed from your report. It is a little bit like losing weight, every time you step on the scale you are down a few pounds and eventually with patience and perseverance you reach your goal. Should you have questions regarding your progress, you may always contact Member Services for an update.
Who do I contact if I have questions?
If you need to make a contact, you will be offered a member service number, a special e-mail address and a fax number that goes directly to member services. The attorneys offer the association heavily discounted rates. For this reason, Members may not contact the attorneys directly without incurring an additional fee. D.W. Scott Member Service Representatives will handle all of your service needs.
What are my responsibilities as a member?
As detailed in the Service Agreement, you must make sure that your membership and "correction fees" are paid as agreed and act as a conduit (as you receive information forward it promptly) to keep the wheels of progress moving. Other than that, being our member is simply an exercise in patience, fueled by regular updates coming to you directly from the credit bureaus in the form of updated credit reports.
Call your D.W. Scott Financial representative to get started
(866)-240-6885