Credit card repair companies are all over the country looking for consumers with poor credit histories as targets for their services.
These companies will promise to clean up the credit report of consumers like you for a fee in order for you to be able to get a home mortgage, car loan, insurance and others.
In reality, these companies cannot provide an improved credit report as they have promised using the different tactics they are promoting.
As a matter of fact, what they are doing is illegal.
Nobody can eliminate truthful negative data from your credit report.
Therefore, after you pay these companies with huge amount of dollars in fees, they got your money and what you have is the same credit report with no improvement.
Credit Repair Rights
In order for you to do your own credit card repair, you must first learn your credit repair rights.
No one has the authority to legally eliminate a correct negative data from a credit report.
However, the law permits you to request for an investigation of data in your record that you claim to be incomplete or inaccurate.
This procedure is for free and there is no need for you to hire a company to do the investigation; you are able to do it on your own at minimal or no cost at all.
The following are your rights in reference to the Fair Credit Reporting Act:
- When a company denies your application for credit card, insurance, loan, or employment, you have the right to get a free credit report.You may request for your report within sixty days after you received the notice for denial.You are also entitled to one free report in a year if you are on welfare, unemployed or if your credit report is incorrect due to fraud and identity theft.
- If you ask, the country’s three major consumer credit reporting companies; the TransUnion, Experian, and the Equifax, are mandated to give you a copy of your credit report for free every twelve months.You can forward your request to their central website; annualcreditreport.com, call their office or mail a completed request form.
- You have the option to dispute mistakes or irrelevant items on your report and it does not cost you anything.In reference to the FCRA, the credit company or provider of information and the consumer credit reporting company are both responsible for the correction of incomplete or inaccurate data in your credit report.Contact both to take advantage of your credit repair rights under the FCRA.
Do-It-Yourself Credit Card Repair
1st Step – In writing, tell the reporting company what data in your report you think is incorrect.
Include duplicate copies of supporting documents.
Make sure that all the important details are included in your letter.
In order to have a record that the consumer reporting company received your letter, send it through certified mail.
Keep a copy of your dispute letter and all enclosures as part of your credit card repair task.
2nd Step – Write a letter to the creditor or information provider to tell them that you dispute an item.
Include a duplicate copy of all your supporting documents. The provider should include a notice of your dispute when they report to the consumer reporting company.
If your allegation is correct in your credit card repair effort and it was found that the item is incorrect, the provider of the information should not report the negative data again.
A correct and verified negative data in your report will only disappear after seven years from the date it was included in the report.