Credit repair is your legal right which is guaranteed by the Federal Fair Credit Reporting Act. This law was written for the purpose of correcting and counteracting the abuses of the credit reporting bureaus. More protests are recorded against credit bureaus than against any other type of business.

The credit bureaus constantly battle credit repair corporations. They disparage them in the media and they hand out literature that is predisposed against credit repair to anybody they believe is obtaining help in repairing their credit. Credit bureaus, just like any other kind of corporate entity, are primarily interested in safeguarding their profits. Examining the protests of consumers costs them money. Since the credit reporting bureaus will do whatever they need to do to prevent consumers from making progress with the credit repair task, you, as a consumer, need to do whatever it is you are able to do to watch over your own interests.

Credit reporting bureaus want you to believe that you can easily and quickly repair your own credit because they are certain that you won't be able to produce the same results on your own as you would with professional assistance. The forms and web pages they provide are purposely made to be ineffective because the bureaus don't want you to be victorious in repairing your credit.

When you interact with people who work for the credit bureaus or credit grantors, you will more than likely be told that all negative entries MUST be on your report for 7 1/2 years before they can be automatically erased. However, the law does not state that. The law states that negative items ARE ABLE remain on your credit report for UP TO 7 1/2 years. The real truth is that the credit bureau or the credit grantor can opt to wipe out any negative comment at any time. In actual fact, tens of thousands of negative items are deleted every day.

Most large credit repair companies are staffed by high-priced lawyers. Their job is to mail letters for you to the credit bureaus. You are invoiced once a month for this service, so there is no reason for the lawyers to shorten the process. It may take years to see results from these companies.

Simply clearing a debt will not make the negative entry evaporate from your credit report. However, there is a proper technique for clearing debts, including collections and past due accounts. It's possible to get your negative entry revised to positive status by making this mandatory of acceptance of your pay-off.

Even only a few negative items can be devastating to your credit report since they will cause a strong, downward pull on your credit score which is the number lenders rely on to accept or deny credit to would-be borrowers. These items absolutely MUST be deleted from your report if your credit score is to grow into positive territory. With only a few negative items on your report, you will pay a MUCH higher rate of interest on your loan, if you get the loan at all. While some items are more challenging to get removed than others, there is no type of negative listing that has not been repaired.

Credit bureaus will try to discourage you from attempting to repair your credit by telling you that even if you are successful in taking away a negative item, it will just re-appear on your credit report in the future. The real story is that the law now requires the bureaus to notify you in writing if they make a decision to re-report any entry that has been removed. Since this law has been in effect, there has been a big decline in the re-reporting of negative items because the bureaus are aware that by doing this, they may be exposing themselves to costly lawsuits.

Finally, you should NEVER try to clean up your credit report by applying for a new Social Security number. This is highly illegal and may land you in jail. Also, don't declare bankruptcy as this will be devastating to your credit rating in the future. Every single credit item you connect with your bankruptcy will be marked “included in bankruptcy.” Because so many items will end up containing the word “bankruptcy,” it now will grow to be very difficult to remove them all. Bankruptcies remain on your credit report for 10 years if not successfully removed before then. By filing bankruptcy, you’ve just made it a whole lot more challenging to re-establish good credit.

Bob Gillespie

© 2011 Robert M. Gillespie, Jr.

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