Credit Repair and the Art of Finding Errors
The Invisible Threat
Are you aware of the errors on your credit report? Do you know what to look for? Most people are under the impression that the information on their reports is correct if it looks familiar. Unfortunately, a cursory glance through your reports in search of unfamiliar information is virtually guaranteed to miss a significant number of errors. Effective credit repair requires a thoughtful and informed effort and should not be taken lightly. Over 100 million Americans have errors on their credit reports serious enough to cause them to pay premium interest rates on every dollar they borrow. The cost of credit reporting errors can be significant. Can you afford to throw money away unnecessarily?
Looking Under the Hood
Have you ever had car trouble and lifted the hood to locate the problem? Unless you are a mechanic you probably didn’t achieve much. The first step in the credit repair process is the search for credit reporting errors, and it’s a lot like lifting the hood of your car. You might spot something, but your chances are better if you know what to look for.
Two Types of Errors
Credit reporting errors may be grouped into two general categories; obvious errors, and compliance errors. Obvious errors, such as accounts that don’t belong to you are easy to find. Compliance errors generally relate to a real event, but should not report as a matter of law. These may not look like errors at all, but anyone familiar with the nuts and bolts of credit repair knows they make up the vast majority of erroneous reporting.
Collection Issues
Because compliance errors relate to a recognizable event usually means that they go unchallenged, and needlessly damage your credit scores for years. Collection accounts often fall into this category. Collections are often sold and re-sold. Collectors who no longer own a debt may not report the collection on your report. A shocking number of reported collections have no legal right to show on your report. And yet, the system provides no mechanism or incentive for collectors to cease reporting when they should. Here’s a handy credit repair fact: collections change hands regularly and should be challenged even when they look current.
Reporting Period Violations
Reporting period violations are also in the category of compliance errors and often go unchallenged. Most derogatory information should stop showing on your report after seven years. People starting a credit repair effort are usually aware of this fact, but an impressive number of these errors escape notice. Creditors are responsible for furnishing the credit bureaus with accurate start dates for these reporting periods. Unfortunately, creditors do not always provide the proper dates, and may even inadvertently reset the start dates under certain circumstances. Did you know that the reporting period starts with the original default and cannot be reset by subsequent debt holders? If an account is charged off and sold to a collector, and eventually a sequence of collectors, the likelihood of a reporting period error increases exponentially and the damaging information may report for years past the proper expiration date.
Those Darn Credit Cards
The relationship between your credit card balance and the high credit limit can have an enormous impact on your score. Did you know that it is common for credit card issuers to misreport high credit limits? The affect on your credit scores can be dramatic. If you have a credit card with a $1,000 balance and a $10,000 limit, and the creditor were to erroneously report your card with a $1,000 limit – just equal to your current balance - your score could fall significantly. How much will it fall? Many consumers involved in a credit repair effort are confused about the effect of a derogatory item on their credit score. Did you know that the impact of an error on your score will vary depending on the overall content of your report? The more credit you have, and the older your accounts are, the less impact a single problem will have. On the other hand, if your credit is relatively lean, a single error can be devastating. In either case, it is worth examining your report carefully to insure your high credit limits are correct.
Déjà Vu Credit
Have you ever examined your report and seen the same account more than once? You’re not alone. Duplicate accounts occur all the time and impact your scores exactly the same as if they are real, additional debt on your report. Another common error of a similar nature involve closed accounts which continue to report as open with balances. Like too many other types of errors, these are often passed over with a shrug during a credit repair effort, but may be costing you money.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
(ArticlesBase SC #375338)
Article Tags:
personal finance
,money
,credit scores
,Debt
,Self Improvement
,budget
,Credit
,Credit Repair
,Home Finance
,Money Saving Tips
Legal Credit Repair
When creditors err, and even when they're fair, here are our tips for credit repair. (01:59)
Is Credit Repair Legitimate
In this video, Mr. Barnett reviews some important aspects on managing your money in college, like if credit repair is legitimate (00:47)
How to Get Free Credit Repair Information
Learn about credit repair for free at www.CreditDetailer.com and exercise your rights rights! Distributed by Tubemogul. (03:52)
The Dolans Credit Clinic
Watch the Dolans' video clinic to keep your credit in top shape. (04:59)
Legal Free Credit Repair Manipulation
Discover the five factors that determine your credit score and how to legally manipulate them to your advantage. (01:34)
Credit scores will affect your loans, your insurance, and your ability to rent an apartment. Your credit scores may even affect your ability to get a job. A nationally recognized credit repair expert answers your questions about credit scores.
The word is out. Unless you are independently wealthy and can pay cash for everything, your credit score will determine the cost of every dollar you borrow, and consequently, the quality of your life. A nationally recognized credit repair explains how to raise your credit score. It’s easier than you may think!
Would you like to increase your credit scores? Are you ready to get to work? Credit repair expert Jim Kemish offers a few powerful tips that can produce dramatic results in a short period of time.
Your credit score is a measure of the risk that lenders take when lending you money. Your credit score will determine your financing options and the interest rate that you pay on every dollar you borrow. Credit repair expert Jim Kemish offers a clear explanation of credit scores and how they work.
Do you think you know how credit scores work? There is more than meets the eye. A nationally recognized credit repair expert reveals some little known and powerful tips that can improve your credit scores faster than you thought possible.
Bob and Sue are real people. They are smart and resourceful, but several years ago they made some bad choices. Soon their credit was a mess. So they started their credit repair journey. Here are a few of their credit repair adventures that might shine some light on your own path. Good luck!
Are you ready to get your credit repair effort in gear? There is no time like the present. Here is a collection of powerful tips from a nationally recognized credit repair expert that you can use right away.
There are some powerful credit repair strategies that can have a fast and significant impact on your credit scores. But in the long run if you want to maintain your credit you will need to make a big lifestyle decision.
Building credit for a home loan takes a bit more of a focused plan than financial improvement for other goals, this focus can be a good thing though. Make all of your payments on time each month and build up a comprehensive history and you'll be well on your way.
When you take the time to compare credit cards, you will find the best offers. There is definitely significant differences in them including the credit limit, the interest rate, and the rewards that are attached. Finding the right credit card for you to apply for is very important. That way you can be satisfied with all that is offered and that you get in return
The happy season is fast approaching and for several people, tension depression and anxiety can build this season anything but merry.
Letters of credit help you take care of your own debt initially. You can seek professional help when you think you cannot handle the situation anymore.
Shopping without credit cards sounds somewhat unimaginable today. The concepts and procedures around monetary transaction are changing and with advanced systems and equipment, life is getting simpler every moment. Today, every small and big store accepts payment by cards and you might know how smoothly the payment is carried out. The advantages of using a credit are beyond mere convenience of usage. With a credit card on you, you can never fall short of money.
There are various myths surrounding credit scores. People have quite a few misconceptions that may cause more harm than any benefit. Find out the myths associated with scores and help improve your score.
The lending rules from banks and other institutions became really tough lately, and signing up for credit isn't as straightforward as it used to be. In this day and age of the credit crunch, world recession, loss of roles and monetary trouble, it is best to have a good credit score. Boosting your credit report is really not that tough if you're committed to taking care of your money affairs sensibly.
The introduction of credit cards in money transactions was nothing less than a revolution. Just the way money replaced the barter system eventually, we are probably looking at something which is here to stay. Credit cards change the way purchasing and paying works.
You can control your own credit destiny. Credit repair is the solution. Take charge of your credit today with these great tips.
Change your life with credit repair. You can recover from financial setbacks, clean up your reports and improve your credit scores. Take control now.
Credit repair is capable of delivering wonderful financial benefits. Take charge of your life today and experience the benefits yourself.
Are you ready for great credit? Credit repair is easy if you do it right. Take these ten steps and realize your full potential!
You have more power over your credit scores than you think. These credit repair techniques for managing your credit cards can boost your scores fast!
Every point on your credit score matters. Credit repair is for everyone. Is it time for your credit repair tune up?
Would you like to clean up the errors on your credit reports and improve your scores? Here are some awesome techniques that will get the job done quickly.
Credit repair can change your world, save you money, and energize your life. But you must get started with the right attitude.
0