How Credit Repair Companies Erase Bad Credit Legally?

Will The Credit Repair Companies Really Erase Bad Credit Legally?

Yes, they will do it for a fee. As a final resort to legally repair bad credit, you can approach your creditors and try to resolve the matter with them.  You may have to agree to pay off the old debt at a reduced agreed amount. And in exchange the creditor might just agree to write to the credit agency favorably. But the success of their claim to legally repair bad credit depends only on whether they represent facts while disputing the negative points in your credit report with the credit bureau.

Because erasing of bad credit legally from the credit report is only based on factual evidences and nothing else. On the other hand, resorting to falsified tactics (such as changing your identity etc) could lead to serious consequences. Accurate and comprehensive remarks in your credit report are going to remain for 7 years for bad credit and 10 years for bankruptcy.

What is Bad Credit History Bank Account?

Bad credit bank accounts are those offered to people with bad credit report. These types of accounts are also available to those who have bankruptcy or county court judgments against them. These accounts help you improve your credit history without being under constant fear of you being caught for fraud. The features of the account may vary from bank to bank. So, remember to check out them with the bank where you plan to open this account.

If you succeed in erasing bad credit legally, you can get the credit agencies to send the fresh report copies to whosoever have got it in the last one preceding year. Mind you, the credit reporting agencies will not do this them selves, unless you ask for this service. The reliefs of erasing the bad credit can make you forget all the trivial troubles.

Fight The Bad Credit Legally

Ready to erase bad credit legally?

Sometimes to your horror you would have confronted with the problem of bad credit without your knowledge .If you can prove that the bad credit is inaccurate then you can fight the situation legally. Here is the complete guide for you to deal with such situation. In this article we’ll cover the following:

  • How to erase bad credit legally?
  • Can you erase bad credit from your report?
  • Will credit repair companies erase bad credit legally
  • How do credit bureaus erase bad credit legally?

We have seen advertisements claim somewhat like this. Erase bad credit legally! 100% guaranteed! But spend some time to think how are they going to legally repair bad credit? If at all they can erase bad credit legally, at what cost and whether they do something special that you can’t do yourself? In this background, it becomes necessary to address the question whether it is possible to legally repair bad credit.

Can You Erase Bad Credit From Your Report?

Yes, you can legally repair bad credit provided you are able to prove it to the credit bureaus with evidences that some of the negative points entered into your file are inaccurate. But strictly speaking, credit bureaus are well within their jurisdiction to enter any information that they deem accurate and timely. They will not enter negative points to your credit file without substantial credibility.

However, when you have reasons to believe to the contrary, you have to correspond with the credit bureau with copies of your credit report and supporting evidences. Credit bureaus are obligated to complete the reinvestigation of your dispute within 30 days and report accordingly.

How do Credit Bureaus Erase Bad Credit Legally?

When you write to the concerned credit bureau, it has to take up your case with the concerned creditor. The investigation is basically to find truth with your dispute and the evidence you have provided. The creditor or the information source (that which reported to your bureau), will have to reply within the stipulated 14 days. During this time the reporting agency will have to refer back to their records in the light of the evidences supplied by you.

If, for some reasons such as human error, the point reported by them is found erroneous or obsolete, they will have to report back the new found truth to the credit bureau. However, for any reason, whatsoever, if the reporting agency fails to report this within the 14 days, the information you have disputed will be removed from your credit report file.

Using this method, you may succeed in getting some old and unfavorable issues removed from your report. In certain cases, credits as low as $500 are favorably removed upon persistent efforts. This means, if you do not succeed in getting them out of the report, you will need to revoke the matter again after thirty days. Another option for you to erase bad credit legally is to add a statement of dispute to your file. You can get this done by making a request to the bureau. And the credit report bureaus must oblige this request. This will almost have an equal impact as a good credit report would have.

The Credit Problems Students Usually Face

Part 2:  Click Here To Review Previous Article

Refinance Student Loans Benefits

Students, at their age and status, are slowly being introduced to their financial responsibilities with the number of student loans presented to them. And sadly enough, not all of them pass this particular real-life test of accountability.  In fact, a lot of them are facing credit problems, which they are likely to bear for several years after leaving college. Most of the problem they face are due to:

  1. Unusually high interest and credit line. 
    While a lot of credit card companies are extending credit lines to college students who don’t necessarily have stable jobs, they make up most of it with high interest rate and ironically, unaffordable credit line. So if students are not careful in using the cards and loans, they will end up with unfathomable debts.
  2. Increasing educational expenses. 
    Sending a child to college is very expensive. And for the student, staying in college is equally expensive. Each year, college fees go a notch higher. And so does everything else that is related to it. Such expenses include dormitory fees, books, and other learning materials, not to mention daily living allowance. As a result, students end up borrowing a bigger amount every year. And by the time of their graduation, the college student loans they acquire are higher than what they can pay off with their prospective salary.
  3. Peer pressure. 
    In college, students stay in the company of friends who could be compulsive shoppers and not with their sometimes-frugal parents. And so peer pressure becomes a factor. Friends and credit cards usually translate to shopping and buying stuff when they come together. And because of this, students end up buying items they don’t really need.
  4. Financial ignorance. 
    Because most college students are not briefed with proper credit management, they end up deep in debts without even knowing about it. High interest rates, late payment charges, and other finance charges are the fees that usually put the student borrower off-guard. And so the need to refinance student loans sooner than expected becomes necessary for them.

Student loans play an important role in college education. For one thing, these loans can certainly help them a lot because as their go through college. In a deeper perspective, student loans facilitate the achievement of a person’s dream. And because college life is expensive, multiple loans have to be secured in order to finish it. As a result, the need to consolidate student loans is there so as to gain better fund and financial management despite a student’s rather young age.

Improve Credit Now! Consolidate Student Loans

How To Consolidate Student Loans

Student loans are the type of financial aid offered by the government to qualified college students so as to help them with the rising costs of university education. Just like any other loans, student loans are also given with an interest rate.But the interest bestowed upon student loans is considerably low when compared to the regular ones. Most consolidate student loans with student grants. When done that way, part of the loan need not be repaid anymore. That alone is going to be a big help in the long run.

Aside from credit cards, there are also student loans in the form of aids and grants. To avail of it, students have to file a Free Application for Federal Student Aid or FAFSA. And even if it’s the government that sponsors FAFSA, a lot of private financial institutions use it to determine a particular student’s eligibility for grants, scholarships, loans, and similar programs they are offering.

The Nature of Student Credit

Research has it that more than eighty three percent of college students own one credit card at least. Recent studies reveal that around 54% of college freshmen have one. And that rate increases as students go up a year higher in their respective educational level. On the other hand, ninety percent of graduate students have around six credit cards each.

Given these data, the cases of student loans consolidation show that undergraduate college students owes more than $20,000 as they reach their final years of college. Furthermore, graduate students have student consolidation loans reaching as much as $50,000.

Much of this is because of the fact that it is fairly easy for college students to apply for credit cards and be approved for it. In fact, at the start of every semester, credit card companies set up several booths and tables inside schools and universities. They are even offering sign-up gift items such as water bottles and t-shirts to the applicants. Credit card companies are somehow lax on students because they believe that if and when credit problems arise among them, their parents are more than willing to intervene and bail them out with their defaulted student loans. And also, credit card companies sees students as an opportunity to produce a group of loyal customers in the future.

Continued Reading:  Part 2 Credit Problems Faced By Students

Credit Cards Criteria and Best Use of Credit Cards

Credit cards are small plastic cards that can give you financial flexibility. There are different types of credit cards that are issued by financial companies. Examples of these are business credit cards, student credit cards, and secured credit cards, among others.  But before somebody gets approved for a card, a series of background check is performed first. And all credit card companies, including those providing online credit cards, use them.

Criteria Used in Issuing a Credit Card

  1. Creditworthiness. 
    Creditworthiness corresponds to a person’s good credit history. Now creditworthiness also means that a person had good performance with his previous loans and was able to meet all his financial obligations with ease. Consequently, those with poor credit scores will experience difficulty in being approved for a credit card.
  2. Job. 
    Before a credit card is approved, a person has to prove that he is financially stable. This also means that he has a good job, preferably from a reputable company. He should also be earning enough to pay up his credit card’s revolving balance.
  3. Link to parents card.
    This is especially true with student credit cards. College students certainly have the need for funds to be used as their living expenses during their stay inside university dormitories. Even if students don’t have a steady job yet, they are approved for a credit card for as long as it is applied under their parent’s name.
  4. Verifiability. 
    This means that the personal data of a person, which includes but is not limited to, his residential and business address, social security number, contact numbers, and credit history, are correct and confirmable. This gives financial institutions the ease of getting in touch with the credit card holder should problems arise.

How a Credit Card Should Be Used

  1. Always pay your bill on time.
    If you fail to pay your bill on time, you will be charged a late payment fee. And these fees could really come high. Most credit cards companies charge as much as $30 if you miss your deadline or if you can’t pay the minimum amount required at least. Not only that these charges add to your expenses. It will also cause a dent on your credit history.
  2. Try to pay your credit card bills in full. 
    If you always pay in full, you will actually make a credit card company pay you back for using their card instead of the other way around. On the other hand, if you choose to pay only the minimum amount every time, it would take you several years before you can fully pay your debt.
  1. Use credit cards during emergencies only. 
    Instances like being are short on cash is a good reason to use your credit card. But then again, you should use it for the most important needs only. This way, you won’t end up paying for things you don’t really need.
  2. Charge what you can pay. 
    Credit card companies usually give big credit lines to people who have good credit standing. But even though that’s the case, make sure you use only the part that you can certainly pay off. If you want to buy a big-ticket item using your card, inquire about deferred payments or installment plans. Avail of them if those are available.

Problems That Could Arise Out of Using Credit Cards

If you over use your credit card and end up unable to pay your bills, here are the possible consequences of your action:

  1. Higher interest rates. 
    Next time around, your credit card company will bill you with much higher interest rate as a result of late and irregular payments. The best credit cards out there have low interest rates and no annual fees. But if you fail to be a good payer, then you won’t be enjoying those kinds of visa credit cards for a long time.
  2. Bad credit score. 
    Aside from paying higher interest rates, you will also suffer from a bad credit score. Repairing a bad credit score is real hard. And even if you manage to do that, a record that incident will remain in your files for a long time.
  3. Low approval rate. 
    Credit cards have expiry dates. And if you have are encountering problems with the ones that you own, chances are it won’t get renewed anymore. The chances of getting approved for a new card, whether with other credit card companies or not, is very low.

Once you become a bona fide credit card holder, a set of unconscious responsibility is passed to you. You have to know the proper way of using credit cards, no matter if those are business credit cards or otherwise. Doing so will retain your credit rating and worthiness. So if you’re ready, apply for credit cards today.

Credit Report Repair Secrets

There are lots of secrets involved in repairing your credit report. Some of them are as follows.

Restrict Accessing Your Own Credit Report

Did you know frequently accessing your credit report will be marked in your report for two years? And do you know how creditors view this remark? This is a sure sign of unstable and insecure financial status or the likelihood of it.  Check out CreditKarma.com for a free credit report.

Get Your Credit Report cleaned Up

You know that undisputed and accurate negative points continue for 7 years on your report. But the errors don’t have any reasons to be there. If you left them unattended they hurt your credit report for all those 7 years and getting them out will certainly help boost up your credit.

Do Credit Report Repair Yourself

If you can get a friend or a relative to co-sign for a new credit, just do it. This gives a double edged advantage. On one hand you have a new credit that takes care of your immediate necessities and on the other it offers a chance to repair your credit report by being steady in your repayments. You can also try out a secured loan. The monthly installments paid by you on this will begin to show up on your credit report apart from giving a low interest loan.

Credit Report Repair Yourself Kits

Credit report repairing is a big business opportunity. Nevertheless, there are so many companies that claim to fix up your credit for a fee. This is no bad a thing except for the claim that they can repair your credit report in a short time. There is no guarantee that it can be fixed if the points are accurate. So, repairing the report is one thing, but controlling the expenses and rebuilding it is something which takes a lot from you. Begin the exercise yourself. But mind you, this is no less a task than test by fire!

View Our Other Article On Credit Report Repair

Is Credit Report Repair Possible?

There are lot of hype about credit report repair and whether credit report repair is possible or not is the lingering question for most. If you the basics of it , you can certainly make it possible .Here are the ways to repair credit report.

The article covers:

  • How to rebuild your credit report?
  • Steps on how to rebuild your credit
  • Credit report repair secrets

The big question most of the Americans with bad credit are asking is how to rebuild your credit? And what are the credit report repair secrets? One can understand the deliberate urgency of all of them given the economic situation that just passed by. In the following paragraphs let us try to see whether your credit report repair is possible and how.

Credit report repair is not an entirely difficult job provided you know the basics. There are no such things as credit report repair secrets as you are made to believe by the hawks in the field. The various steps on how to rebuild your credit are as follows.

Track Your Expenses

Fundamentally, in most of the cases, credit problems begin when you forget to understand the flow of income and expenses. Having a budget for domestic spending may sound too restrictive for many. At the end of the month, if your expenses are over shooting (even if it is just close to) your income, this is the time you get alert. Having a wise budget and adhering to it is the first step towards rebuilding credit report, if yours is a bad credit report (or else, is a step to avoid falling into bad credit).

Control Your Expenses and Debt

Controlling expenses is easier said than done. What you can possibly do is review the track you kept on all expenses over the month. Holy! This is sure to throw some shocks at you. You see certain expenses you wouldn’t have probably done had you budgeted. Creditors see controlled expenses as evidence of stability.

Use Your Credit as a Step to Rebuild Your Credit

It is obvious that creditors want to see your credit history. The only way you can do this is through monthly paying credit account. Making small purchases regularly and paying them off within the stipulated time will avoid interest being levied to you apart from helping credit report repair silently.

Watch your credit report

Watching your credit report regularly helps you incredibly. If you are turned down a credit by some creditor, you can call a free (or a paid) credit report to locate the exact reason for the decline. If the reason for that bad point is not correct or incomplete you can get it removed from your credit report. Even otherwise, you can work out a plan of action to erase it.

Best Ways To Improve Credit Rating

Top 5 Ways To Improve Credit Rating

Avoid Opening Unwanted New Credit Accounts

Too many accounts are a burden and cumbersome to manage. Nevertheless, they sap out your critical resources. Moreover, they reduce the average life of your credit accounts. Whatever weight age you had with your existing accounts will get dampened by opening new accounts, if you don’t use them.

Don’t close accounts in a hurry

Closing down additional accounts may help you in the short term. But prospective creditors will unnecessarily get alerted as they remain on the credit report. This sure will have a negative impact on your report.

Review your credit report regularly

You can order your free reports from all the three reporting agencies once a year. But the smarter way is to get them at spaces of four months each. This cost free way gets you reviewing the credit report regularly and helps to identify and remove errors from the reports. According to FICO this helps improve your credit rating by about 10%.

Meet a professional

Seeking professional help is advisable. But take care not to fall into trap laid out by scam masters who vanish as fast as they appeared. There are some non profit organizations which help you improve your credit rating.

Get Your Act Together; You are Not Alone

IF you are worried about how you can do all these things, it is not surprising. It is natural for anyone who is at the end of the road of his financial life. First of all, trace back the reasons that lead you to this situation. It can be one of the now more common of the reasons, like job loss, a marriage divorce or a personal accident etc. It is true that each one of these has a potential to set you back financially by years. But don’t panic now. The fundamental truth in your quest to improve credit rating lies in your courage and meticulous planning and finally your perseverance to execute it.

Improving credit ratings is not all about formulating strategies. If you are thinking &I; can improve my credit rating”, think again. Following the steps to improve credit rating involves a huge amount of discipline and hard work. If you succeeded in your endeavor, you can teach others how to improve credit rating.

Tips To Increase Your Credit Rating

Ready To Increase Your Credit Rating?

Maintenance of a good credit report is important to get cash advances if you are confronted with impromptu expenses. This is possible if you train yourself to use your credits in an appropriate manner. Spare time to review your past credits and identify the unwanted expenses .If you bring a discipline into your spending you can certainly maintain a good credit rating. Read more.The article covers.

  • Top Tips to Improve Credit Rating
  • Pay you bills on time and consistently
  • Keep balances as low as you can
  • Manage your credit accounts wisely
  • Best Ways to Improve your Credit Rating

Before we set on to discuss the tips to improve credit rating, let’s accept a few truths. That regularly reviewing of your credit report needs to be given equal importance as medical checkups. You can draw ideas to improve your credit rating from reviewing your credit report. Rest assured all scoring procedures take into account that every person misses a payment or two in his life time.

Unfortunately, many who are under stress because of bad credit rating don’t know how to improve credit rating. Most of them confuse this to erasing the errors in their credit report. You can use the following list of tips to improve your credit rating. Mind you, you will have to diligently follow them, if at all you want to see any results.

Pay you bills on time and consistently

Paying your bills on time and very consistently is the foundation stone on which you can build upon your steps to improve credit rating. The regularity clearly reflects your financial stability and intentions to payback your debts. These payments will steadily show-up on your credit report as paid on time.

Keep balances as low as you can

Suppose you are paying your monthly credit installments. It is wise to pay as much as will be possible so that your unpaid balance, if any, will be low. This will send a strong signal to your creditors of your financial recovery. Secondly, the low unpaid balances can, at best accrue a small interest, which is easily manageable.

Manage your credit accounts wisely

How well you manage your various credit accounts matter a lot. One foremost thing to keep in mind is that, you will want to begin paying off from the highest debt account and move down the order. Please pay attention to include that debt account which has the highest interest also. Apart from quickly reducing the debt in key accounts it shows finance management abilities. This is a strong indication that you are on the path to recovery and from there would most certainly rocket your way to a stronger credit rating.

Steps To Becoming Debt Free

Steps To Becoming Debt FreeIs Becoming Debt Free Possible For Me?

YES!!  There comes a time when most sane people have had enough….Enough stress and embarrassment….Enough collection calls and harassment…. Enough being in debt! Living the lifestyle that you think you have to live simply because others expect you to is foolish. It is time to grow up and to finally start acting like an adult.

No matter what you may hear from the popular newspapers, your debt problems
cannot be traced to anyone but you. The economy did not cause your problems. George Bush did not cause your problems. You did. You signed that stupid car loan at 12% interest. You signed up, and subsequently maxed out, those credit cards. No one else did it for you.

If you are finally tired of the mess that you created, there is a way out. Becoming debt free will allow you to start living the life you have always wanted. All it takes is a plan.

Enter Dave Ramsey!

Dave Ramsey is a well respected, nationally syndicated radio talk show host and TV personality, who is quite simply ‘the’ expert with respect to personal money management. Over the past few years, Dave has helped thousands, if not tens of thousands, of people get their debt under control and changed their lives forever. Additionally, Dave has helped people understand the true power of passive income. I am one of these people.

What I like most about Dave Ramsey is his straight talking, in your face, attitude who will blast apart any objections that you may have. Teaching from a Christian perspective, he truly has your best interest at heart, even while sometimes appearing cruel, or downright mean. Over the course of dispensing financial advice, he has developed what he calls ‘The Baby Steps’.

What Are The Baby Steps?

Often people get frustrated by all of the possibilities available to them. Information is great, yet information overload can be tragic. In order to help people process what is important, and what is just noise, Dave developed the following plan.

1. Build a Small Emergency Fund of $1,000

The first thing you should do is save $1,000 as fast as you can. Do whatever you have to do to put this money in the bank. Sell some old stuff on eBay or Craigslist. Get a second job bagging groceries at a grocery store. Create your own affiliate marketing empire online. Whatever it takes!

Once you save this money, keep it in the bank for true emergencies. Do not use it for a nice vacation. Do not go out and buy yourself a new set of golf clubs.  Becoming debt free requires having this money set aside for true emergencies in the first step.  If something does happen, you will not have to use your credit card to pay for it! You can use cash!

2. Start Your Debt Snowball

This is the step where most people begin to understand just how difficult it can be to get rid of debt. It takes a lot of effort, dedication and teamwork to power through this step. For some people, it may take two years to finally complete it. For others, it may only take a few months.

Here is the basic approach:

* Make a list of all our your debts from the smallest amount to the largest. List ALL of your debts, except for you house (this debt actually is accounted for later on).

* After all of your necessities are paid (food, shelter, transportation and clothing), pay the minimum amounts on all of your debts. As a side note, you should be current on all of your debts before you begin this step. In fact, I think you should be current on all of your debts before you complete your initial emergency fund.

* Any additional money that can be squeezed from your budget should be applied to your smallest debt. This is extra money, in addition to the minimum payments that you are already paying. Do not consider interest rates when determining which bill to pay extra on. Pay off your smallest debts first and ignore the mathematics involved.

* Once you have completely paid off the smallest debt, put all of the money you were paying on that debt on the next smallest debt.

* Repeat this process until you are debt free living, except for your mortgage.

3. Complete Your Emergency Fund

In step one, you saved $1,000 to cover minor emergencies while you begin to eliminate your debt. In baby step three, you will now complete your emergency fund. A fully funded emergency fund should cover between three to six months of expenses. This is your main security blanket.

How great would it feel to know that even if you lost your job, you would be OK while searching for a new one. Guys, a fully funded emergency fund is the best gift you can give to your wife. She will sleep so much more sounded at night when you have one.

4. Invest 15% of Your Income for Retirement

You have now finally reached the step where you start thinking about your retirement. You have no debt, except for maybe your mortgage, have a fully funded emergency fund and are well on your way to changing your family’s future.

Invest 15% of your gross income, not your take home. Do not cheat yourself out of potential growth. Additionally, if your company has some form of retirement match, do not include it in your calculations. Invest the full amount yourself and consider anything else just icing on the cake.

5. Save for College (if applicable)

According to Dave’s book, The Total Money Makeover, 68% of Americans have saved nothing for their child’s college education. This is a tragic oversight, which is putting thousands of students in debt before they even have a chance.

In this step, begin investing such plans ESA and 529s. If you do not know what these terms mean, simply type them into Google, and do a bit of research. New plans are being creating every day, so it may be best to talk to a qualified financial planner.

6. Pay Off The Mortgage

Who would have thought when you began this process, that you would actually be debt free (except for the mortgage), have a fully funded emergency fund, be saving for your retirement and be saving for your child’s college education? You have come a long way and you should congratulate yourself.

You are not, however, completely done yet. In baby step six, you will now start paying off your mortgage early. Treat this exactly like you treated your other debt in step two and figure out a way to pay more directly to the principle each month.

7. Build Wealth

This is the step most people only dream about. You are now debt free and can truly live free from any debt or burden, free from the stress of being able to pay your monthly bills and free to know that you will have something saved for your retirement.

In this step, build wealth and then…..give it away. Give some to family. Give some to churches, Support something you believe in. Create a lasting legacy for your family.

Conclusion
Being in debt is not the end. It does not have to be part of your life. Becoming debt free just requires the right plan.