Credit Repair Secrets Revealed

by Steven on January 21, 2012

Credit repair is a very hot industry right now due to the downturn in the economy. Many individuals and families have found themselves falling behind on credit card payments, car payments, medical bills, etc.

Some of these individuals and families have lost it all and had to file bankruptcy. Because you are reading this article you might find yourself needing to repair your credit due to current or past financial trouble.

So where do you start first? The first thing you need to do if get a copy of your credit report. Review it to make sure all the information pertaining to your name, social security number, address, etc. is correctly shown on your report.

Next you should scan each item that’s listed on your report. Mainly looking at the negative items on your report. Probably one of the most common errors that I continue to see on my clients credit reports are duplicated negative items. This is when the original creditor sells a charged off account to a debt collector and they both list the item as negative on your credit report.

This is technically illegal to do but they get away with it because most people don’t know its illegal or they never challenge the duplicated item.

After checking for duplicated negative items you’ll need to check for other possible inaccurate information on positive items listed. Type of inaccurate information that could be listed on your positive items could be “late pays” and/or “inaccurate balances”.

Once you’ve reviewed all the items on your report its time to figure out a strategy of dispute the negative or inaccurate items on your report.

You might be thinking to yourself “how can I dispute debt that I owe?”. Or is it possible or even legal to dispute negative items on my report even though I owe the money?

Absolutely yes! Just because a creditor has placed a negative item on your credit report because you’ve defaulted on your obligation to pay them back doesn’t mean you can dispute the item.

A little known secret that most people don’t know is that you can dispute a negative item on your report by asking the credit reporting agency to verify each aspect of the negative item on your report.

You are not directly disputing the debt itself you’re disputing if the creditor or debt collector has followed the Fair Debt Collection Act rules by providing all the necessary legal documentation to substantiate the negative item(s) on your credit report.

When you applied for credit with the creditor you had to fill-out all types of paperwork, you had to provide your social security number, you had to provide employment information, etc.

By law the creditor must keep that documentation for as long as you have an open or a charged off account. This is what you will be disputing. If the creditor or debt collector didn’t have the appropriate documentation the item must come off of your credit report.

Now before you get too excited that doesn’t mean that you may not owe the debt it just means that the creditor or debt collector didn’t have the appropriate documentation to keep it on your credit report.

If you would like to get more information about how to remove negative items off of your credit report by disputing them legally please visit: The Credit Repair Shop

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