Credit Repair

Updated on June 04, 2008
J.R. asks from Hemet, CA
21 answers

I am looking for any information regarding credit repair, I was told that here where I live in CA. there are many companies that can remove deragatory items from your credit report. However all the ones I have found require a never ending monthly payment. Any info would be helpful.

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So What Happened?

Thanks for everyones help, I've been given so much information, I think I'm going to take a crack at fixing this whole credit mess myself. I'll keep everyone posted thanks again for all your help.

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M.W.

answers from Seattle on

I wouldn't use consumer credit counseling if you can avoid it all. My husband and I used it 4 or 5 years ago because we got a little behind and now that we make double the money and can afford things, we can't get a good interest rate because all the credit companies look at it as a bankruptcy. If I were you I would just start making regular payments and get a few years of good history. I wouldn't pay anyone to remove things- I would call the creditors directly and explain what you are trying to accomplish. They will work with you as long as you are trying to pay them off.

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A.A.

answers from Seattle on

I found this info on http://www.americanloansearch.com/info-creditrepair9.htm

Removing Negative Credit

Step 1: To dispute a negative item on your credit file you need to first identify the negative items that you want removed.

Once you know which items to dispute, DO NOT complete the Dispute Forms that the Credit Bureaus included with copies of your credit file that they sent you. It's much more effective to easily follow the outlines of these sample letters.

Be sure to include a copy of your credit file and keep the original for your records. Highlight or underline the items you are disputing. Mail the dispute forms to the address listed on each credit file.

To dispute an inquiry, simply write that you never applied for credit with that company.

Make a photocopy of your dispute letter for your records and be sure to send it by Certified and Return Receipt Mail from your local Post Office. Mail your dispute form to the address provided with your credit file. Repeat the above process for each item that you want removed or changed.

Step 2: After reviewing your updated credit file and finding that most or all the negative items have been removed, you may now focus on building a positive credit profile. Positive information will always outweigh a few negative items that may remain on your file.

Step 3: This technique is extremely effective in removing any negative information that was supposedly verified as correct after your dispute.

Important: Always remember that if the dispute is sent in from anyone other than you, the Credit Bureau will suspect that you have paid someone to repair your credit. This raises all sorts of Red Flags. Since they make so many mistakes it is imperative that they believe you are working alone and trying to fix a real legitimate mistake.

If there is a negative item that you want removed from your credit, such as a bankruptcy, charge off or collection account, you may want to write that this is NOT your account and you want it removed immediately.

If the account is now paid off, but was seriously past due at one time, DO NOT write that it's not your account. Instead, write that it is your account but was NEVER past due and you need it updated to say that everything has always been current.

An Extremely Powerful Technique...
This auditing technique is usually only practiced by attorneys. It would be very expensive to hire attorneys to do this for you. However, by following the instructions you'll get similar results as any attorney (you just won't have to pay).

If the Credit Bureaus were able to verify any disputed information as correct, it would remain on your credit file. So you'll need to contact the creditor who is reporting the information. The creditor who reported the item is listed on the left or bottom of your credit file. If their phone number is not provided, call directory assistance in their city and ask for the creditor's telephone number. Call and ask them to mail you written proof and documentation that this is actually your account, since you do not believe the account belongs to you.

Almost all creditors and collection agencies use computers to store information about debtors and they throw out original, signed contracts along with other original documents. This makes it easy for creditors to store and organize information BUT makes it impossible to actually prove the account is really yours and not just another mistake.

Federal Law requires that upon your request, all creditors must show you written proof that the account in question is in fact yours. Written proof is a copy of the contract you signed with the original creditor. As we explained before, you are stored on the creditor's computer and chances are excellent that they have thrown out all the proof that this is your account.

The only creditors that may have proof are the courts (Recent Bankruptcies, Unpaid Tax Liens, Unpaid Judgments & Unpaid Child Support).

Again, all Federal Laws are in your favor. If you say an account is not yours and the creditor does not have written proof that the account belongs to you, they must remove the account from your credit file and cease all collection activity. If they don't have written proof that the account is yours, there are two ways to get the item removed

You might also want to look at this site:
http://www.ftc.gov/bcp/conline/pubs/credit/repair.htm

I wish you the best of luck. I have a few friends in a similar situation.

God Bless!

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J.G.

answers from Los Angeles on

Hi J.,
I work in the mortgage industry, and know a lot about credit repair. You should try to settle (and by settle I mean don't pay more than 50 cents on the dollar) for each creditor. The trick is to request that they "delete" their tradeline from your credit report with all 3 bureaus, not just show it as settled. The other thing you need to remember is that credit scores are based on 3 things: history (don't ever close an account... pay it off and cut it up, but don't close it. Pay the annual fee, and this will keep it open on your credit report. The more history, the better the score.) monthly payments (make all your payments on time for everything that reports to your credit) and balance-to-limit (don't charge more than 50% on any of your cards). Doing these things should make your score skyrocket!
Good luck... and call me for all your home financing needs! (wink*wink).

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T.R.

answers from Seattle on

Hi J.,
I am a loan officer in WA state. I help people with challenged credit. Our license does not extend to CA, however I have some experience with this. First thing.. get a copy of your credit report. Go to www.annualcreditreport.com. This website is sponsored by the credit bureaus and you are entitled to a free copy from each bureau every 12 months (CA might be a bit different). This website wont compell you to sign up for any credit monitoring etc. Once you have your report you can see exactly what is on it. I dont recommend the credit clean-up agencies because sometimes they do more harm than good. Your goal should be to retain some good credit if you can. Start with any accounts that you can bring current. Bring them current before paying them off so that it restores your account rating to an I-1 or R-1. For example.. if you are 90 days past due, and just want to pay the account off...pay the up to date amount first, wait 30 days then pay it off. That way the last rating will be I-1. Call your account holders...they can work with you. The collection agencies...not so nice so save them for last. There are loans out there for mortgages for people with collections..but sooner or later you will want to pay them off. Consumer Credit Counseling typically wont work with collection agencies. When dealing with a collecting agency... get the amount you owe in writing first! If they offer a payment plan.. get that in writing. When you get to the point of paying it off.. get the payoff in writing! You then need to send the final payoff with some sort of tracking mail.. fedex, certified, ups..etc. Another way to "clean" erroneous info... start disputing the wrong info on your report. You can do this on that website I gave you. You may also benefit from stating that the account is the responsibility of a divorced spouse on your report... CA has different laws than WA so you may benefit from doing a little research on that... if your paperwork says it is "his" responsibility... maybe that is enough to get the creditors off your back. You could find this out from an Attorney (costs money) or perhaps your local Consumer Credit Counseling service. Maybe there is a local womens network that could answer that also. Good Luck!

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S.G.

answers from Los Angeles on

I've processed mortgage loans for a few years now so I know a little about fixing credit reports. You don't need a company to help you fix your credit report. You can actually do it yourself. Log on to www.myfico.com. You can get your credit reports there. It will cost you a little bit but much cheaper than these crazy credit fixing co. Myfico.com will also advise you on different ways to increase your fico and has helpful info. on how to establish good credit.

Make sure you buy all 3 credit reports. I think they have a special price if you buy all 3. There are 3 different credit reporting agencies: trans union, equifax and experian. Once you have reviewed your reports you can request a dispute on anything you diagree on. All credit agencies handle disputes differetly. The report should have an 800 # you can call to find out what you need to do.

Please do not pay one of these so called credit fixing agencies. Fixing your credit report is easy for the most part. It just takes time.

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E.G.

answers from Los Angeles on

Hi J. R,

I have had many clients and currently have clients who have a challenging credit history. PLEASE DON'T GO THROUGH A CREDIT CONSOLIDATION COMPANY! Creditors will see that as a bankruptcy and it will hurt you more then help you. The best thing you can do is talk to a loan representative and they can advise you on how to concur your credit. If you would like the number to my rep just email me. You won't be charged you a dime, its free. [email protected]____.com. I also have some literature that I can forward to you.

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V.O.

answers from Los Angeles on

Hello J.,

My name is V., I live in Rancho Cucamonga. Have you ever thought about maybe finding a part-time job to help out with you financial situation? I was once in your shoes and it took me a while to get it fixed, but I did. I have a full time job and also a part-time job, the part-time job I do it at my pace and it's helping people, get out of debt and be financially independent. If you are interested please don't hesitate to call me at ###-###-#### or email me at [email protected]____.com

Good luck with everything!

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A.C.

answers from Seattle on

from what I understan there is no legal way to REMOVE something from your credit report without going to the credit bureo and disputing something that is not correct. Have you looked into debt consolidation 1 loan to pay off all your bills not a company to do it for you?

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B.W.

answers from Seattle on

In my opinion I wouldn't pay anyone to do it. They usually can't do anything you can do yourself. Get a current copy of your credit report from all three credit bureaus. If you have information on there that is inaccurate start disputing it, this can be done online or by mail. I did this with my husband's credit report and there were a few things on there that I had no idea what they were so I disputed them and they gave me the information I needed to contact the company regarding the file to take care of it. If the information on your report is valid it usually cannot be taken off. These items stay on there for a period of up to 7 years but can be accounted as closed or paid off to look better. It's a slow process that you have to be patient with, raising your credit score but it can be done, usually time is the best thing for this.

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J.T.

answers from Los Angeles on

Depending on your situation, and why you want to repair your credit, there are a couple of routes you can go. First, you can get a free copy of your credit report and call the companies yourself and then contact the credit report company. or I am using a financial services agent myself right now, my husband & I are trying to buy a house. The company that I am using is San Marino Financial Services. Their phone number is ###-###-####. Maybe they could help you or refer you to someone who can.

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M.J.

answers from Los Angeles on

Have you tried Consolidated Credit Counseling? I think what they do (my husband used them a long time ago) is they negotiate with your bills, lower payments, join them into one monthly payment and then you pay them once a month instead of all the other randomly. I think it may reflect negatively on your credit at first but it helps in the long run.

I would check with them and see if they can remove items from your credit.

Also, you can do it yourself. There is something, maybe someone else on her knows, but you send them a letter asking for proof that this is your responsibility. They have something like 30 to respond and if they can't prove it...or they don't respond, you can file (with the boogie man for all I know) and have it removed.

I'll have to ask my husband about it. If I find out more, I'll write back.

M.

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H.J.

answers from Los Angeles on

The agency sugested below I believe is one of the best to go with, and yes it will damageyour creedit a bit for now but will help in the longrun... Basically you have to want to really get out of debt and start over for them to help you.. I know people who have used them gotten out of debt in 3 years and tehn bought a house 2 years later so the damage to credit is not that bad, in the longrun it helps A LOT.

Also no matterwho you go thru make sure they are non-profit, check them out with the better business bureau and make sure they are clean. Any one who wants money from you to help solve your money problems is not helping you!!!!!

Good luck, we are too climbing out of a $20,000 cc hole we dug our selves, it's really hard but it can be done!!!! We are down to less then half and hope to have the other half done by christmas next year!!!!

H.

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S.F.

answers from Los Angeles on

OMG I hear you. Been divorced, attorney fees over 30,000 but had good credit still. Now remarried baby in NICU bills went crazy mortgage went crazy let our houe go now my credit is shot! We decided to do a "short sale" but on credit it's like a foreclosure". Everything it say's "over time, like watching grass grow" or monthly fees. Dispute what you can in writing they have a certain time period to respond to your letter if they don't they have to remove it. If you filed for divorce on that date anything he did is on him not you. You can prove that and fight it! My ex ran up credit cards they called me um nope as of that date not mine, so sorry! They didn't have me ss either they just needed someone to pay and it wasn't going to be me. If they call I happily give them his number and address and wish them luck, LOL. Do everything in writing! You can dispute credit bur online! Good luck it will all work out in time!!

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L.W.

answers from Portland on

I watched a show that Oprah did on Credit, it was a week long thing. Anyway I know that all of the debt consolidation places seem to be great, but they do carry a monthly fee and freeze all your credit cards. So basically it shows on your credit report similar to bankruptcy and you just pay off the balance rather than it disappearing and having to file for bankruptcy. Another common misconception is that when you pay off the balance of a card you should cancel it. Apparently that actually lowers your score. You should just cut them up and leave it open. The older the account the better. Hopefully this helps.....

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A.W.

answers from Los Angeles on

Dear J.;

I been through with what you're going through about the attorney's fee and divorce. It is a nasty and ugly but what I can suggested you, is to talk in a calm way or write a letter to the creditor's and explain to them your situation. It is better to be honest and willing to compromise with them than ignored them. I am sure you can repair your credit by trying your best to make an arrangement with them on how much you can afford to pay them because of the situation of your divorce. I have two children too and I did not have a child support either but I have a full time job in the office and part time job with my aunt ice cream parlor on the weekend. Don't believe with those company's that will repair your credit, they will only wanted your money. Show them that you will cooperate as long as they will stop bothering you at your work and home. Sit down and analyze your finances. Add your income and then minus your bills,child care and etc., Do you have a child support from the father of your children? Please make sure you ask your lawyer to help you get a child support or else not to depend on child support because it is too stressful too. Work and try your best to pay your bills. Good luck.

A.

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D.J.

answers from Los Angeles on

J.,
it will be a lengthy process but worth it to fix it yourself. i am doing the same thing. i started getting credit cards when i was 18. i racked up some pretty large bills and then couldnt pay the minimum due. at one time i had over 10 cards. i am now 32 and have only 3 active cards. i am paying a balance on one but it is closed. the one best thing you can do for yourself is get your credit reports from all 3 agencies every 6 motnhs to a year. see what is there and try to fix one at a time. if you can get a loan with low apr and pay them all off; that is an option also. i did that about 2 yrs ago. its easier to make one payment a month than multiple with high apr's.
if i can be of any other assistance to you please dont hesitate to ask. i know how you feel. my email address is [email protected]____.com
good luck

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H.B.

answers from Las Vegas on

Hello J.,

My name is H. Buck and I am a Realtor, Nevada Business Broker, and a mortgage consultant. We specialize in clients that have credit issues. Depending on what you have on your credit report you can actually write a letter directly to the creditors to try to get wrong information from your credit report and they have 30-45 days to respond to you. If they do not respond within the time period they have to take it off your credit report. What are you are trying to accomplish? Is it to buy a car, a home?

I am from Las Vegas, NV but if you need some help just email me or you may contact me @ ###-###-#### or ###-###-####.

Good Luck!
H. Buck

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M.E.

answers from Los Angeles on

Hi J.!
Try this:
If you don't already have a copy of your credit report, you need to get one. You can get one online. Next you can write letters to the 3 credit bureaus, Experian, Equifax, and Transunion, and request them to remove the specific derog. items from your report. Some items may be removed very soon, and some may require more persistence on your part. (You may have to write letters again in a few months.)
This method is free, and it almost always gets rid of at least a few derogatory items... just requires a little time.
Good luck!
M.

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T.S.

answers from Los Angeles on

Hi J.,

You can obtain your credit report from all 3 credit companys by going online to annualcreditreport.com its free and you can get all 3 once a year. I too had credit issues and was told to contact the companys that I defaulted on and offer them 50% and that opened a huge can of worms for me, the one company I did that with turned around and sued me in small claims for the entire balance. I had not had contact with them in over 5 years so the I thought they would not win their case because the statute of limitations is 5 years well guess what because I contacted them the statute was voided. DO NOT contact the company directly would be my advise to you. Just dispute it with the Experian, Transunion & Equifax(they will send the dispute) because then it is the up to the company you have the problem with to respond and if they don't within i think its 30 days it is automatically removed from your report. Anyways hope that helps a little my credit is great now but it took years and its not something that will happen over night I think it took me like 4 years to rebuild mine. Good Luck

T.

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C.W.

answers from Sacramento on

You should be able to contact each credit reporting agency directly and have them remove any erroneous items from your credit report. Each reporting agency's website should give detailed info on how to dispute erroneous info on your report. However, you can only dispute info that is not correct. For example, if you have defaulted on any credit cards or loans or have a bankruptcy, that will be reported for the legal period of time. You can't get those items taken off before then.

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A.J.

answers from San Francisco on

Hello! I used to work for a credit repair agency and I think you should know that they all charge a lot of money for what you can do for yourself. My suggestion is to start contacting loan officers (they do it for their clients all the time for free) and take a class. There is no guarantee that it will ever be fixed, whether you pay $1800 (that's what our company charged), or $40 a month. It can be done, though. Call a loan officer. :)

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