There are plenty of bad credit repair offers on the web today making bold claims to “increase your credit score by 100 points in 30 days! Secured! ” Or something like that. But beware! These poor Home loans repair systems can end up making your credit worse ultimately.
So what do you do if you’re faced with extreme errors?
In particular, a mortgage or car company that keeps reporting your payments seeing that late, even though you’ve caught up (this happened to a close friend of mine). These types of dings on your credit can keep through getting good interest rates, and may even cause you to be turned down ripped by lenders! It is estimated that 79% of all credit reports contain glitches. That’s a lot of errors and these errors cost Americans money in interest every year.
But going head on with a home finance loan or auto lender is like the proverbial “tilting on windmills. ” Once they ding your credit – they won’t create a letter to the credit bureau retracting it! That would open these individuals up to all kinds of liability issues. This is when you need to seek credit repair legal advice.
But before you seek bad credit repair advice
(from an attorney or any other company) we wanted to give you some helpful tips
so that you can make a more informed decision about what to do.
What Credit Repair?
Credit repair is the term that refers to challenging inexact, misleading, or unverifiable information on credit reports to improve the credit standing.
Is Credit Repair Legal?
Yes, but there are illegal credit improvement programs you should be aware of! For example , while it is legal to help challenge negative items on your credit reports that you believe for being inaccurate, misleading or unverifiable, the accurate information really should remain on your credit report. It is also entirely illegal to create a “new” personality by applying for an Employer Identification Number (EIN) to use in place of your own Social Security Number. An EIN number is the number the fact that IRS gives to a corporation for tax purposes. To apply this for credit repair is called file segregation – as a way to escape responsibility by hiding one’s credit history. The use of Data Segregation is a crime and can result in fines or critical jail time. This is a road you don’t want to go down.
Why Should I See A Credit Repair Law Firm And Not Just Get One Of Those “Do The item Yourself” Credit Repair Systems?
First off – major errors are certainly hard to remove on your own.
A TRUE STORY: I have a friend who all filed for bankruptcy in New York. She paid off all of her debts and the bankruptcy was discharged. About a few months later a SECOND bankruptcy filing appeared on her credit, plus a discharge. Then a THIRD one! This made her resemble someone who abuses the system (filing for bankruptcy to stop collection agencies, then canceling it without paying her bills). Needless to say your girlfriend score was absolutely tanked! It took her over 18 months to get just ONE of the mistaken bankruptcies removed. She’s still implementing the second one today.