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Bad Credit Repairing
Introduction:
In the recent past there have been a lot of organizations which advertise through the print and electronic media, that they can remove negative information from the bad credit report. In fact this is not true. No organization can
just remove negative information from a bad credit report and say that they are good at bad credit repair. The only thing that you or the so called agencies which are willing to help you, can try to help you to challenge the information which you consider to be incorrect or incomplete, through an investigation only according to law.
When you apply for credit, insurance or for a job and you are turned down, then you can always ask for a report which may indicate your bad credit repair. Moreover, you can expect to be provided with the details of the consumer reporting company, so that you can contact them to get a credit report free of cost, if you happen to be unemployed.
How to obtain a credit report:
The following Nationwide consumer credit reporting companies, Equifax, Experian and Trans union are supposed to provide you with the credit report, whether they be good or bad in nature A major part in respect of bad credit reports are played both by the Nation wide consumer credit reporting companies and the information provider, which is the one that provides all the information about you to the reporting companies. Therefore, it is advisable to get in touch with the reporting company and the information provider and dispute the points which you think is incorrect.
How to dipute and repair the bad credit report:
You may as part of exercising a bad credit repair, write to the consumer reporting company, about the negative reporting that has been made. You may mention the areas and the facts which you wish to dispute. When you dispute such a report, in order to repair it, you need to substantiate your points very well, with the necessary documentary evidence. Do not forward any original documents to the concerned authorities but only the copies of such copies may be sent. Clearly state all your contact particulars and present all your details of dispute very clearly.
The most important point is that, you must send it only by certified mail return receipt requested. Only then, can you record the fact, that you have sent it to the appropriate authority and that you have received an acknowledgement from them. The consumer reporting company usually investigates the complaint within thirty days, unless it is found to be very frivolous in nature. The consumer reporting company, in turn forwards the representation that has been made to it to the organization (information provider) that provided it with the information. The service provider needs to thoroughly investigate the complaint in the light of the dispute that has been raised and report it to the consumer reporting company accordingly. It will also record if there have been any discrepancies in the report and duly notify corrections if any to the consumer reporting companies, for necessary corrections to be made at their end as well. Any kind of corrections, deletions or alterations that have been made in the bad credit report or the kind of repair that has been made should be intimated to the disputing party. This information of the report, after the investigation is over, must be furnished, even if there is no change in the bad credit report. You can also request the consumer reporting company to forward a report to the companies which you approached about six months back and had received the previous report. In case you had sought an employment, then the corrected report can be sent to them by the consumer reporting company, even if you had applied to a particular company about two years back. If you feel that the discrepancy that you have pointed out has not been resolved, then you can request the consumer reporting company to include the points that you had disputed in the report.
What happens if the negative information is correct:
If the negative information in the bad credit report is accurate after the investigating authority has found it to be so then the repair of bad credit is available only with the passage of time. The consumer reporting company makes such a report for a period of seven years, which runs from the date the event took place. In the case of bankruptcy, the information will run for a period of ten years. But, there is no time limitations whatsoever in the case of criminal convictions.
Bad credit repair organization
There are bad credit repair organizations that deal with clearing discrepancies in the report. A word of caution is however worth mentioning, as stated in the Credit repair organizations act. While approaching bad credit repair organizations, it must be ensured that a copy of the consumer credit file rights is obtained, as stated in the state and federal laws. Moreover, before signing a contract with the bad credit repair organization, all clear details about the service the organization wishes to offer, rights and obligations of the client should be spelled out by the bad credit repair organization. It must be ensured that they do not charge you before the service are completed and it should also be seen that they do not make any false promises to the clients, who are seeking a bad credit repair. The contract should also state the payment to be made by the client, the kind of services which the bad credit repair organization wishes to offer and the period that it will take to secure a repair of the bad credit.
Victimization br bad credit repair organization
Laws have been promulgated to protect any kind of victimization by the bad credit repair organizations. Do not feel bad if they try to victimize you, when they are not able to keep their promise and do the necessary repair that you require. Take up the matter with the law enforcement officers who will definitely help you. If you have any problem with the bad credit repair organizations, then you can also take it up with the local consumer affairs office that is situated very close to your place. It is better to seek the required remedy than to be victimized by such an organization. If need be, you may also take up the issue with the Attorney General.
Consideration of creditors
It is a general fact, that when a client has a bad credit and is unable to repair it, he finds it very difficult to obtain insurance or seek good employment. There is also a problem, wherein he may not be able to obtain credit, because of his bad credit report. However, there are creditors who look at it a bit differently. They also look into his repayment pattern in the recent past and see if there has been any improvement in his repayment to the creditors. In such a case, they may be willing to lend money.
Credit councelling
There are credit counseling organizations, which offer counseling on how you could tackle such a situation, when you are not in a position to repay your debts and you suffer from a bad credit report. If in case you are thinking of filing for bankruptcy, then the law stipulates that, with effect from October 17, 2005, you should undergo counseling only from a government approved organization before filing for bankruptcy.
Why obtain a bad credit
The question is, why should you obtain a bad credit report It is more advisable to spend less than what you earn and manage your finances in a very prudent way. It is always good to make both ends meet. It must also be ensured that we obtain a credit report which will be helpful while making a major purchase, getting insurance or seeking an employment. Discrepancies if any can also be set right, well ahead of time than cause any embarrassment at the last minute.
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