Is Credit Repair Legal

Category: Finance, Credit.

Credit repair is one of those topics that most people are not familiar with and many of those that think they are, do not have a correct understanding of what credit repair really is. Is Credit Repair Legal?

To help provide an introduction to the concept, provided below are answers to three common questions people have about credit repair. Absolutely! They do not have to prove that you did anything wrong and the credit bureaus are not going to contact you to get your side of the story. All a creditor has to do is report a negative item to a credit bureau for it to be added on your credit reports. By disputing the items in your credit reports, you are asking the credit bureaus to perform an investigation to determine if the negative items on your credit reports are being reported correctly. In a perfect world, credit repair would not be necessary, but because of the obvious flaws in the credit reporting system, the Fair Credit Reporting Act was enacted to protect your rights against unfair credit reporting. If they are not, then they must be revised or removed.

Because of this act, you have the right to dispute any items in your credit reports that you feel are not completely accurate. There are a number of reasons why inaccurate items could end up on your credit reports. How Do Inaccurate Items End Up On My Credit Reports? For example, a simple human error such as typing in your Social Security number instead of someone else s could result in their bad credit showing up on your credit reports. Another common reason for credit errors is mistaken identity. Also, items reported more, mistyped dollar amounts than once, and other errors, incorrect dates could results in errors on your credit reports. It is very common for your credit reports to show negative items from someone else with your same name.

It has happened many times that someone gets denied for credit only to find out that a bankruptcy or some other serious negative item has been erroneously added to their credit reports because someone else with the same name was not responsible with their finances. This could happen if you have a fairly common name or in some cases, in the case of a son who is named after their father. Finally, identity theft is a major source of credit reporting errors. Can I Save Money and Repair My Credit Myself? Someone steals your personal information and destroys your credit all in your name. Yes, you have every right to repair your credit yourself.

Of course, this is true of almost any service. As is mentioned in numerous credit repair articles, anything a credit repair company can do, you can do yourself. Just as you have the right to repair your own credit, you also have the right to change your own oil, cut your own hair, or even represent yourself in a court of law. When considering whether or not to repair your credit yourself, also consider what your time is worth. But as is also the case of these services, many people find that is is easier, and more effective, cheaper to hire a professional. Depending on the severity of your credit problems and the cooperation level of your creditors, effectively repairing your credit reports could involve learning about and analyzing your credit reports, researching the Fair Credit Reporting Act, research the Fair Credit Billing Act, researching the Fair Debt Collection Practices act, writing and sending dispute letters to the credit bureaus, writing and sending dispute letters to your individual creditors, and properly responding to all of these entities.

In fact, a sizable percentage of people who end up using a credit repair company to help them with their credit reports do so after already trying to repair their credit themselves. Many people find that it is simply easier to get help with credit repair than to do it themselves.

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