Can I Pay Someone to Just Repair My Credit?
July 15th, 2009
Categories:Home Buyer Education
Need Help with Credit Repair?
We’ve all seen the countless ads for companies offering to fix your credit for low fees.
The truth is those companies can’t deliver and often you don’t find out until after you have paid them hundreds or thousands of dollars in fees.
The Federal Trade Commission, (FTC) states “self help is the best way to go when repairing credit.”
The truth is that no one can legally remove accurate and timely information from a credit report. Which means if you’re guilty of paying the credit card two weeks late every month, no one can fix that problem and it will be on your record for the next 7 years.
No-Cost Investigations
As a consumer, you are entitled to a no-cost investigation of your credit report. Think about it from this angle, credit card companies (at will) flag your account as late, past due, etc. They often report those issues without notifying you or giving you a chance to set the record straight. In which case you are entitled to a no-cost investigation of the charges made against your credit.
Statistics show… 8 out of 10 people have legitimate errors on their credit report that should not be there.
What about all these free credit reports?
Certainly, we all have the right to a free credit report every year. And it is a very good idea to obtain a credit report every year, check it for errors and save the report. Yes, save the report.
There have been many instances where credit bureaus have misreported something as having occurred in the past, and if you don’t have proof that your credit was clean during that time period, you won’t have much to work with in terms of a defense.
Why Does My Loan Officer Say My Credit Score is Different from the Free Report I Printed?
Keep in mind the free credit reports do not show you the “Credit Score” that a loan officer / lender will use when determining your eligibility for a loan. This is because the free credit reports generate a different score for consumers that normally shows a higher rating.
If you want the true number, you’ll have to pay the extra fee for the higher end report or get a report generated by your lender. But keep in mind, while your lender might not send you the bill, they are paying the same amount for the higher end report that you would normally pay.
Is it Time to Take on the Big Fish?
Is it Time to Take on the Big Fish?
Ready for a Fight?
For instructions on how to dispute credit errors see the attached FTC Credit Repair Guide.
As a side note, there is discussion about changing the way credit scores are calculated and using a whole new system for determining someone’s credit worthiness. This has come from the need for a more well rounded system that will rely on more than just creditor’s reports of delinquencies. Keep an eye out for the news, because it will have a major impact on the way money is loaned in the near future.
What has your personal experience been with credit scoring?
Related posts:
- Time's Quickly Ticking for the $8,000 Home Buyer Tax Credit
- 4 C's of Mortgage Lending
- The Disappearing Time Table for the Home Buyer Tax Credit
- The 8 Phases of Stress for Homebuyers
- So Many Types of Loans, How Does One Choose?
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