Category Archives: Credit Repair

Denton Bankruptcy Attorney: INACCURATE CREDIT REPORT

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Denton Bankruptcy Attorney:  Three out of four credit reports contain inaccurate information.  These errors include mistakes regarding missed payments, incorrect balances on accounts, and even statements that you owe money to a creditor when you don’t.  In order to remove these mistakes from your credit report, first you need to know that they exist.   A free credit report can be obtained from www.annualcreditreport.com or by calling 877-322-8228.

 

Now that you have a copy of your credit report, read it carefully and identify inaccurate information.  The Fair Credit Reporting Act provides a way to challenge mistakes on your credit report.  Contact the credit agency whose report contains the incorrect information and ask for information regarding their procedure for disputing entries on credit reports.  Once disputed, the creditor must file a response within a certain period of time, and if no response is filed the inaccuracy is automatically removed from the credit report.  This is a process you can do yourself, but it can be time consuming.  There are companies that will assist you with disputing entries on credit reports for a fee.

Dallas Bankruptcy Attorney: ADD A STATEMENT TO YOUR CREDIT REPORT

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Have you ever had something happen that made you look bad, and you would have liked to explain yourself, but were never given the chance?  This happens on credit reports all the time.  You might have a great credit rating with no bad notations on your report for years, and then you lose your job.  A few months later, you are behind on your credit card, mortgage, and car payments, and your credit rating takes a hit.  After you find a new job and start making payments again, the blemishes on your credit report are still there, and they can stay there for seven years!

 

There is a provision of the Fair Credit Reporting Act that allows you to add a 100-word statement to your credit report.  You can use this statement to explain that a bad notation is a mistake, dispute the information on your credit report, or simply to explain that you just went through a tough financial period but things are better now and you are making your payments on time.  Keep in mind that this explanation will not increase your credit score, but it may give lenders more confidence in your ability and intent to repay debts in a timely fashion.  Make sure that the statement is provided to each of the big three credit agencies which are Experian, Transunion, and Equifax.  Each agency has their own procedure for adding consumer statements to credit reports, so be sure to contact the agency to find out their requirements.

Dallas Bankruptcy: HOW LONG WILL IT STAY ON MY CREDIT REPORT?

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Dallas Bankruptcy: How long will it stay on my credit report? It depends on what Chapter you file under.  Chapter 13 bankruptcy cases will stay on a credit report for seven years from the date the case is filed.  Most Chapter 13 bankruptcy cases last five years, so after the case is completed the bankruptcy will be on your credit report for two more years.  Chapter 7 bankruptcy cases remain on a credit report for ten years from the date the case is filed.

It’s important to understand that having a bankruptcy listed on a credit report doesn’t necessarily guarantee a bad credit score.  Credit reports are made up of many positive and negative notations.  A bankruptcy is just one notation.  Most of my clients tell me that their credit score is higher a year after filing bankruptcy than it was before filing because they have discharged their debts and are better able to pay their bills on time.

A funny story from the world of credit…

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Okay, since here at DFW/Denton/Lewisville Bankruptcy we’re always addressing serious topics, I decided to keep it light today.

There’s a story buzzing around the internet that a 3 year-old recently got an American Express Gold Card application in the mail. Also, there are many report of dogs and cats getting credit card offers. If that’s the case, why is it so hard for qualified folks to get the applications??

Credit Repair Companies – Are They A Scam??

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Every time the economy cycles down, businesses taking advantage of the downturn arise. The recent recession (or what some economists have actually labeled, “Depression”) and resulting credit crunch have resulted in credit issues for many consumers, and a related dip in their credit scores. Here come Credit Repair companies to the rescue, right? They can raise credit scores by deleting negative information like it never happened? Late payments? Settlements? Bankruptcies? No problem, right? WRONG.

Federal law, specifically the Fair Credit Reporting Act (FCRA), is very specific as to what can go on a credit report and what can come off the credit report, and when. Most credit repair companies sell a misconception that they can delete negative information off a credit report. Not necessarily true. The FCRA expressly prohibits the removal of a negative item if the other requirements as to the reporting of that item are met (i.e. the reporting is accurate (the late payment really happened), complete and verifiable). If the negative item honestly occurred and is reported correctly, Federal law prohibits its removal. I’m sure I’ll get comments from credit repair folks saying that’s not true, but it is. Read the law.

The lesson here is that consumers shouldn’t pay a company to do something that’s against Federal law. Honest credit repair takes time. Some helpful things to do to repair your credit:

1) Pay bills on time.

2) Don’t max out your accounts.

3) Don’t continue to default.

There is much more detailed info out there on this, but for the most helpful advice on credit repair, visit www.ftc.gov.

Now, all that being said, I am aware of some very good, honest, credit repair companies.  You can do credit repair yourself -  all three credit bureaus have a very easy online dispute process where you can dispute inaccurate items on your credit report. However, credit repair is like anything else you can do yourself – you may want to pay someone with more expertise. Just do your due diligence and don’t get scammed by a company that makes promises they can’t deliver on.