|
Author: Jason A. Martin Article source: http://www.cease.info/. Used with author's permission.
There are no secrets to repairing your credit. Many shady credit repair agencies would love you to think the contrary. Negative items can be removed from your credit report and you can do it yourself. One does not need a credit repair "expert" or "law firm" to do it either. While the credit world can seem complex to the average individual, the basics are really simple once you know them.
Fact: You can remove negative items from your credit report.
According to the FCRA, you have the legal right to dispute any piece of information with a credit bureau. Upon doing so, the credit bureau then has 30 calendar days to investigate the item(s). After that time, the credit bureau will either update the item as you request or leave it alone if they proved it was correct to begin with. If you submit additional information on the dispute during the 30 days, the credit bureau is allowed to take an additional 15 days. Disputes can be submitted online at the credit bureau's site or simply sent via postal mail, which happens to be my recommendation. Disputes sent in based on the free credit report now provided under FACTA are given 45 days to resolve.
Myth: Collection agencies can call you anytime and do as they please.
To stop collection agencies from calling you, simply send them a cease and desist letter stating they are only allowed to contact you via postal mail. This ability is afforded you via the FDCPA. Collection agencies have a series of actions they must do to be in compliance. You would be surprised at just how many FCRA and FDCPA violations are committed on a daily basis by many collection agencies. Never speak with a collection agency over the phone. Conducting discussions via written form is best because you have proof.
Fact: Paying a collection account will not improve your score.
As far as credit scores go, a paid collection account is the same as an unpaid one. Your official credit score is called a FICO score. It takes into account many things such as:
- Age of overall credit file.
- Number of accounts in good standing.
- Number of accounts delinquent.
- Negative items: liens, bankruptcies, repossessions, etc.
- Time since the negative item was created.
- Amount of your credit being used (utilization).
- New account under six months old (which hurt your credit).
- Number of hard inquiries.
Typically, mortgage lenders will require delinquent accounts be cured but this won't improve your score.
Myth: You must pay any bill that comes to your home from a collection agency.
Under the law you have the right to challenge the legitimacy of any bill sent to you—it is called validation. By sending a validation letter to a collection agency they must, by law, cease all collection activities until they can validate the debt. It is important to note the word is validation and not verification which mean two entirely different things. Validation means they must submit to you proof the bill is yours, which is not a simply an invoice sent to you. Until that is properly done, they can not report the item to your credit report, ask you for money or do anything which can be deemed further collection activity. Do they anyway? Yes they do. This is why it is important to know the law, which is on your side.
It is vital that you check your credit report often as most individuals have erroneous data in them. Don't assume that everything will work as it should because it almost never does. No one will be looking out for your credit identity but you. Credit standing has never been more necessary than it is today. Just about everything we do in life from applying for a job to booking a hotel room has something to do with our credit worthiness.
American Consumer Group, a non-profit organization, has set up a free credit repair site with all the information mentioned in this article. Go educate yourself and spread the word.
This article is copyright Jason Andrew Martin LLC. Jason A. Martin has been conducting business on the Internet for 11 years. He is a free-lance writer on many topics and is currently working on obtaining a degree in Journalism and Law. His blog is displayed at: Jason A. Martin
Your Unique Point of View
Are your public speaking skills holding you back? Speaking well is more than making eye contact and using gestures effectively. It is about communicatino in a...
Why Target the Matures
Financial security issues are often unfamiliar even to the savviest Matures, and the choices they must make can be confusing. With so much at stake inaction or ...
What Goes Down (Sometimes) Comes Up Again
This is about the law of gravity inverted...sorta. Nature always strives to create balance, which is otherwise known as homeostasis. Examples would include day ...
Today I Choose
Here is a great way to create affirmations that may be helpful to you. Here's how it works:
The Five Deadly Fears of E-Newsletter Publishing
As a small business owner, you know a lot more than you may
realize. And although running out of material is the number one
reason cited by small business owner...
The Top 10 Mistakes Job Seekers Should Avoid In Contacting An Employer
There are numerous tools and resources available to guide job seekers through the steps of a career transition. These tools are very useful and suggest much tha...
The Magic of Breathing
Want more magic in your life? Breathe! Let go of fear and connect to Love. You cannot hold both emotions simultaneously. I understand that it is not always ...
Homemade Hair Dressing to Naturally Grow Your Hair
There's plenty you can do to hang on to what hair you have and encourage healthy regrowth. Start by looking in your very own kitchen!
Natural Arthritis Pain Relief - By Doing Simple Arthritis Exercises
Arthritis is a disease that causes swelling, stiffness and
pain to joints, muscles, tendons, bones or ligaments. There
are over 100 forms of arthritis and sever...
How To Handle No-Show Joint Venture Partners
"No-show" is the polite term for joint venture partners who make empty promises. Ever come across them? They are the all-talk-and-no-action types who seem to ...
Profitable Websites for Exclusive Industries
In the region where my company is located, South Bend, Indiana, the demand for web design and associated services could be described as: leery. It's not that...
Real Estate Investing - Books,TV Infomercials, and Seminars
Years before the real estate investing TV infomercials and traveling seminar circuits, only a few real estate investing books were available. However, awareness...
How to Create a Viral Lead-Generating Machine
Whether you own your own affiliate website, or subscription website, or publish your own ezine or newsletter, you need people to see what you offer. More peopl...
Color Management, the Digital Darkroom, and Adobe Photoshop
Color management, and creating a workflow to get from your scanner to the printer can be a little tricky. There are a few things that need to be understood firs...
Personal Core Values: Your Key to Success and Happiness
Do you feel frustrated with your life? Working hard and not achieving what you really want? Sometimes feel you are working for other people's benefit? Knowing w...
What L Glutamine Powder Can Do For You
L glutamine is an amino acid occurring abundantly within the human body. This acid L glutamine is important for overall well-being and bodily health.
A Guide To Cleaning Gas Permeable Contact Lenses
Whether you use soft lenses or gas permeable contact lenses, cleaning contact lenses is a must. Gas permeable contact lenses don't ask for much except proper cl...
Not Just Hearing the Word
Do not merely listen to the word, and so deceive yourselves.
From Brass to Tin: How to Care for Your Antique Metals
Caring for your antique metal items requires know-how. Each metal has its own particular characteristics and requires its own brand of tender loving care.
Today It Is ... Tomorrow It Will Be ...
Are you satisfied with your present lifestyle? Is it exactly the way you want it to be or do you desire to change it? The choice is yours and only yours. No one...
7 FAQs when You Apply for a Credit Card
There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than the hundreds o...
Getting More From Your Customer
Want to find out the secret to increasing the level of satisfaction your customer has with you and your business, AND how you can get them to buy more from you?
True Romance for Couples with Kids: 10 Inexpensive Ideas
Anyone can splurge on a formal dinner or a pricey bottle of perfume, but it takes creativity and forethought to be truly romantic. The key lies in personali...
What Does God Want From Me? A Personal Revelation of Conviction Verses Condemnation
It's strange how my life today looks wildly different from the way it was in the beginning of my Christian walk. My spiritual life cooled after being burned by ...
|
Print this page