Advanced Credit Repair Tips (2 OF 3)

If you’ve been denied new credit because of your existing bad credit and want to know WHY your credit repair rights are legally protected, you’ll save time and money by reading further. Let’s start by defining what the Fair Credit Reporting Act (FCRA) is: “A United States federal law designed to help ensure that credit reporting agencies act fairly, impartially, and with respect for consumer rights to privacy when preparing consumer reports on individuals.” Simply put, your credit repair rights are protected by law. So HOW do we use this information to our advantage when we embark on a credit restoration program?
By understanding and focusing on three parts of the (FCRA):

1. FCRA Section 611(a)(1)(A) which states:
   

   “If the consumer disputes the completeness or accuracy of any item of information contained in a consumer’s file with a consumer reporting agency and the consumer notifies the agency directly of such dispute, the agency will reinvestigate free of charge and record the current status of the disputed information, or remove the item from the file pursuant to paragraph (5), before the end of the 30-day period from the date the agency receives notice of the consumer dispute.” .

   EXPLANATION: This means that the credit reporting agency has 30 days to verify the accuracy of a disputed credit item. You make this section work for you by making sure that all disputes are always in writing and mailed, return receipt requested. This way, you have documentation of when your credit dispute was received, and therefore when the 30-day limit begins. This can be used as evidence later if you need to verify the actual date a credit dispute began.

2. FCRA Section 611(a)(3)(A) which states:
   

   “…a consumer reporting agency may terminate a new investigation of information disputed by a consumer under that paragraph if the agency reasonably determines that the consumer’s dispute is frivolous or irrelevant, including because the consumer did not provide sufficient information to investigate the disputed information.” The law requires an agency to notify you within 5 business days if it determines that your dispute is frivolous or irrelevant. The law does not presume to define what are the grounds for making such a determination, except for “a consumer’s failure to provide sufficient information to investigate the disputed information.”

   EXPLANATION: This means that the credit reporting agency may decide not to check the accuracy of a credit item if it deems it to be frivolous. You make this section work by making sure you have a specific reason that you believe the credit item is incorrect and have a specific action take when verified.

   REASONS FOR CREDIT REPORT DISPUTE

   Reason
   Number  Description
     01    Are the balances, high limit, payment and date opened all correct?
     02    Is the date of last activity correct? (Last time you paid or they reported you late)
     03    Is the account being reported by a collection agency and the creditor?
     04    Has it been paid off but is not reflected?
     05    Was it closed by you but does not reflect that?
     06    Is it a spouse's or relative's account?
     07    Is it current but showing late?
     08    Is the account number right?
     09    Is your name correct on the reports?
     10    Is your social security number correct on the reports?
     11    Was the credit card ever stolen?
     12    Was there fraud on the account?
     13    Was there a billing error such as you gave a change of address and they did not change it, resulting in a late pay.
     14    Are there duplicate accounts for the same lender listed?
     15    Is the account listed positive on one report but negative on another?
     16    Was it closed and refinanced but is not reflected.
     17    Did you file bankruptcy but the accounts included do not reflect "included in BK."
     18    Is your bankruptcy accurate: Filing date, discharge date, dollar amount filed for etc.?
     19    Is your tax lien satisfied or vacated but does not reflect it.
     20    Was your judgment paid but no satisfaction of judgment was ever filed.
     21    Was the debt ordered to be paid by the x-spouse?
     22    Did you receive shoddy service or defective merchandise?
     23    Was it a medical bill that the insurance did not pay?
     24    Was it a workers comp bill?
     25    Has the statute expired to legally report the debt? Very important!
     26    Did your spouse use your cards without your knowledge or forge your signature?
     27    Has the creditor or collection agency validated the debt on their end?
   

3. FCRA Section 611(a)(5)(A) which states:
   

   “Historically, an item that was deleted occasionally reappeared in a consumer’s credit file. This occurred when a credit grantor automatically updated a consumer’s payment history. Most of the time this happened with a credit grantor with the that the consumer still had payment activity. However, the new FCRA does not allow a deleted item to be added back unless the creditor certifies that the information is correct.”

   EXPLANATION: This means that successfully removed credit items cannot be reinserted into a credit file unless they are proven to be accurate. You make this section work by using “FCRA Section 611(a)(5)(A)” as the reason each time a previously removed credit item reappears on your credit report.

Understanding the WHY of credit repair will save you time and money when it comes to restoring your credit. Time because you will get the maximum efficiency from each action you take. And you’ll save money because effective credit repair actions will ultimately lead to lower interest rate payments.