Credit Repair – 4 Steps You Can Use To Fix Your Credit, If You Have The Time, Patience, Persistence and Have Knowledge of Consumer Law

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If you have bad credit, I actually have good news for you. Contrary to what you might have been told, negative items aren’t required to remain on your credit report for 7 to 10 years. The Fair Credit Reporting Act states that all items on your credit report must be reporting 100% accurately, be 100% verifiable, and reporting in a timely manner. If the account being disputed doesn’t meet all three requirements that I just mentioned, it must be corrected or removed. Yes, you heard me right, even if you defaulted on a loan, by law it can be removed if it isn’t accurate or verifiable. The other good news I have for you is that over 79% of credit reports contain errors, which means that those bad accounts that are killing your credit score, stand a great chance of being removed if disputed properly.

Being the founder and CEO of a national credit repair company, you probably think it’s strange that I’m telling you that you can repair your own credit. But the truth is you can. If you have the knowledge, time, patience and persistence to get the job done. Many people hire my team and I because they don’t have the time or expertise to do it themselves, But some do and you can also. 

Over the next couple of weeks I’m going to be sharing some insider tips you can steal and use to repair your credit. Things that I learned from knowledgeable veterans who taught me a thing or two , as well as what I gathered from trial and error after helping thousands of clients over the past 7 years.

If you have questions, please ask. Feel free to message me privately, there is no obligation and all conversations are private.

So let’s jump into how you can get rid of bad credit!

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Fair Credit Reporting Act

Every negative account on your credit report must be Accurate, complete and verifiable, or it Must Be Removed !

A negative account on your credit must meet all 3 standards that I just mentioned or it must be removed, that’s the law. Isn’t that refreshing news?

Is it accurate?

According to the United States Public Interest Research Group, 79% of all credit reports have errors. The credit reporting agencies and creditors are notorious for keeping inaccurate records, so check your report.  Review the account numbers, dates, loan amounts and your personal information like date of birth, social security number and address. Be sure that each bureau is reporting the same information for each account. If it’s not correct, it has to be updated or removed. But if you take no action and procrastinate, nothing will happen.

Is it complete?

Look for any missing data, like account numbers, balances or date of last activity. Missing information is a common error you’ll see on most credit reports. These are errors that will work on your favor.

Is it verifiable

By law, creditors are required to have all of the documentation for the account you have on your credit. Proof of the account must be provided to you upon request. If proper validation and proof isn’t provided then the account must be completely removed. Based on my experience , most creditors don’t have proper debt validation.

Tip: Your name and the account number on the creditors company letterhead is not proper proof, so don’t accept that.

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Step 1 – Order Your Credit Report

There are several ways you can obtain an updated copy of your credit report, but i’m here to save you time and tell you exactly how, what  and why when it comes to getting your credit reports. Once a year you can get a free copy of  your credit report from each of the three credit reporting agencies. But it’s better to order all three reports, that come with your scores. If you order a free credit report from each bureau, your credit scores will not be included. Knowing your credit scores are an important part of the credit improvement process. How can you know where you’re going if you don’t know where you are.

Credit karma has become a popular choice to get credit reports because it’s free. I personally would not recommend that you use credit karma because the scores that you get from them have been known to be very inaccurate and the credit reports sometimes will not include important information that you’ll need. Before you start the credit repair process, having an updated accurate credit report is the most important step. Because if you have a credit report that has incorrect scores and does not include all of your derogatory accounts, you’re already off to a bad start.

You can conveniently get a copy of your three in one credit report with scores from most credit monitoring companies online. Companies like credit check total will give you a tri-merge credit report with scores, for as little as $1. To avoid any monthly fees, you can simply download your credit report and cancel the service the same day.

Regardless of how you get a copy of your credit report, get it and start the credit repair process.

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Step 2 - Review Your Credit and Identify The Errors

Your credit payment history and personal information are included in your credit report. But, because there is so much data and the credit reporting agencies and creditors exchange information on thousands of individuals, they often make mistakes. According to the United States Public Interest Research Group, 79% of credit reports contain errors. The errors that the credit reporting agencies make can be used to help you legally remove the derogatory information.

So, review your credit report carefully!

I recommend that you print out a full copy of your credit report and have a pencil and highlighter handy.  There are several important things that you need to look out for when you start reviewing your credit report.

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Step 3 - Gather Your Evidence and Compose Your Disputes

While going through your credit report , highlight all the derogatory accounts and on a separate sheet of paper, make note of any mistakes you find.  When making a claim to remove negative accounts, gather any proof to support that claim. 

The burden of proof falls on the creditor and not you. They must be able to prove that all of the information that they are reporting is accurate, verifiable and 100% complete. In the event that they can’t, the negative information must be removed from your credit report. That’s great news , you should be ecstatic!

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Step 4 – Communicate With The Credit Bureaus and Your Creditors

After you’ve composed your letter with all the accounts you want to dispute , make sure you include all the evidence to back up your claim. We covered the type of errors to look for in step 2.

It is important to contact both the creditor and the credit reporting agency when challenging the negative information on your report. Most people only dispute with the credit reporting agencies and they depend on the credit agencies to perform an investigation. The credit agencies almost never get proper validation and perform a full thorough investigation, that’s why it’s important to contact the creditor yourself.

Contact the creditor and request proof that the account belongs to you. If and when they don’t have 100% proof, then you can show the credit agencies that the creditor did not have proper proof and demand that the item be removed from your credit.

Always submit your letters in writing and send them certified mail. This will cost you a little more money, but you’ll have proof it was sent, received and the time and date can be verified. Be sure to include a copy of your credit report with your disputes. Point out any conflicting information within the report by highlighting the credit report.

Your letter should include each account your disputing, the reason for your dispute, a copy of your credit report and proof of identification. Tell them what you want them to do with each account. If your request is to remove it, be specific and say that. If you need the information updated then say that as well.

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2019 – Errors You Can Find On Your Credit Report

  • Error- Is your personal information reporting correctly? Name, date of birth, social security number, address.

  • Error- Are the accounts on your credit, actually your accounts? Do you have a family member with the same name and their accounts are reporting to your credit?

  • Error-Are the details on each account correct? Is the loan amount correct? Is the amount owed correct? Is the date of last activity correct?  You may have one account and each of the credit reporting agencies might have a different loan amount. These mistakes work in your favor.

  • Error- Are any accounts past the statute of limitations, but still showing? Do you notice any accounts that have been re-aged and reported by a new debt collector?

  • Error-Is any information missing? Do you have any accounts that are in good standing, but not being reported? If so, this should be addressed. Do you have any accounts you closed that are still reporting?

Is all of the information on your credit report accurate and complete. If not, it must be corrected or removed. The Fair Credit Reporting Act states that even the negative information on your credit report must be reporting 100% accurately, reporting in a timely manner and be 100% verifiable. To put it plainly, even if you defaulted on a loan, if it isn’t reporting accurately, it must be removed. For example , what if you lost your job and your car was repossessed because you had no income or savings to pay for it. Technically, you did default on the loan,  but if the negative account isn’t reporting correctly, it must be removed. The good news is that 79& of credit reports contain errors.

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Get Professional Credit Repair Help, If  You Don’t Have The Experience, Persistence or Patience It Will Take

Credit bureaus are notorious for keeping sloppy and inaccurate records. They are managing millions of credit files and their process for doing so, is very outdated. Repairing your credit takes time, patience , persistence and an understanding of various consumer laws such as the Fair Credit Reporting Act, Fair Debt Collection Practices Act , Truth in Lending Act and various other laws. In addition to that you will need to know which order to dispute the accounts, and which law is being violated.

Credit repair does not just consist of sending out letters to the credit bureaus. There are five factors that impact your credit score and payment history is only one of the five.  Tyler Gregory very wisely said, “ If repairing one’s credit is as easy as sending some dispute letters to the credit bureaus , then why doesn’t everyone have good credit? “.


“If you don't take good care of your credit, then your credit won't take good care of you.” 
― Tyler Gregory

 

About the author

Aazim Sharp is the founder and CEO of L.E.A.F Credit Solutions, a national credit restoration organization. At L.E.A.F  he specializes in helping consumers legally repair their credit by leveraging the power of the law, while helping them build positive credit history and then guiding them on how to use their credit to secure personal or business funding

 Aazim is the author of The Ultimate Credit Repair Guide, a book which outlines how to use credit to get the things you want and need. He is one of the top FICO professionals in the nation. He has personally helped more than 1600 clients restore their credit and qualify for over thirty six million dollars in cash and credit.   

For more information on personal credit, business credit or funding, visit www.aazimsharp.com or call 1.800.818.6358

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