Frequently Asked Questions
GENERAL
Is Credit Restoration Legal?
Absolutely. The Fair Credit Reporting Act allows anyone to dispute inaccurate items on their credit reports. The FCRA (Fair Credit Reporting Act) and the FDCPA (Fair Debts Collections Practices Act) were designed to protect your rights, and initiated to hold creditors and credit agencies legally responsible for all claims they make against you. Any inaccurate, incomplete, outdated or unverifiable accounts must be removed or corrected.
How Long Does The Process Take?
Everyone's credit situation is completely different, so how long it takes for you to achieve your expected results depends on the number of derogatory credit items on your reports, your participation in getting credit reports to us, your ability to pay overdue debt, and the level of credit bureau cooperation. We will do our part by performing a comprehensive evaluation of your credit reports and creating dispute letters based on the results, usually within 48 hours from the date we receive them. Most of the wait-time after is usually spent waiting for the credit bureaus or creditors to respond.
How Much Will You Increase My Credit Score?
Many of our clients have seen an increase of 100 points or more*; however, the actual amount will vary per customer. There are many factors that affect a credit score besides derogatory items. For example, the ability to pay down revolving debt, the type of credit you have, your length of credit history, even the number of inquiries on your credit file. It is especially important that no current accounts fall into a negative status.
How Long Does The Credit Agencies Take To Respond After I Send Them My Dispute Letter?
You will receive updated credit reports from all three credit agencies within 30 to 45 days. At that time you will see what was deleted, updated or revised. Please forward these updated credit reports to us so that we can continue working on the remaining items. If the credit agency does not respond to your dispute letter, do not be alarmed, a new dispute letter will be generated when your file is reviewed by the processing center every 60 days.
Will The Credit Agencies Respond To All Of The Disputes I Send Them?
The credit agencies are required by law to respond to all correspondence. It is not uncommon for credit agencies to send letters stating they want more information, or that they will not re-verify an account. These types of responses are very common and customers should not be alarmed if they receive them. You must have patience, because the credit agency’s make their money by providing credit reports to lenders, not by answering dispute letters. Customers must continue to send all correspondence they receive from the agencies to the processing center.
When I Receive My Dispute Letter, Can I Make Changes And Add Information?
The credit agencies are required by law to respond to all correspondence. It is not uncommon for credit agencies to send letters stating they want more information, or that they will not re-verify an account. These types of responses are very common and customers should not be alarmed if they receive them. You must have patience, because the credit agency’s make their money by providing credit reports to lenders, not by answering dispute letters. Customers must continue to send all correspondence they receive from the agencies to the processing center.
What type of Changes Would Be Helpful?
The credit agencies are required by law to respond to all correspondence. It is not uncommon for credit agencies to send letters stating they want more information, or that they will not re-verify an account. These types of responses are very common and customers should not be alarmed if they receive them. You must have patience, because the credit agency’s make their money by providing credit reports to lenders, not by answering dispute letters. Customers must continue to send all correspondence they receive from the agencies to the processing center.
How Can I Check My Progress?
Every 60 days, your file will be reviewed. Based on the documentation received from you, (credit report updates and letters from creditors) a new dispute will be generated and forwarded to you to review and sign. Along with the new dispute document, you will receive a status update report showing the progress and deletion of accounts to date. You can also access our Web site for an up-to-date account status.
Can I Restore My Own Credit?
Yes, you can. You can also represent yourself in a court of law, and do your own oil changes on your vehicles. There's nothing we do that you cannot do yourself when it comes to fixing your credit situation. Individuals can restore their credit on their own but this can take time and a lot of knowledge when it comes to the credit laws. We are a service company. We offer experienced, professional help at very affordable rates for your convenience and benefit.
How We Dispute Your Accounts
When you notify the credit bureaus that something in your credit files isn’t correct, you have to indicate the nature of your dispute. In other words, you must indicate whether your dispute relates to the 'ownership' of an account or if it involves the 'account information' or 'status' of an account.
For example, if you find a certain account listed on your credit report that doesn’t belong to you, you would dispute the ownership of such an account for one of the following reasons:
This account does not belong to me. I have no knowledge of this account. This is not my account; it belongs to a relative or another person with same/similar name.
If you would like the credit bureaus to correct the 'Account Information' or 'Status' of something in your credit reports, you would indicate one of the following reasons:
My account balance is incorrect.
I have never paid late.
I have paid this account in full.
Too old to be on file, please remove.
There may be slight differences in how these phrases can be worded bureaus word these phrases, but universally, these are the types of statements that are required by Equifax, Experian and TransUnion to begin an investigation on an account in your credit file.
CREDIT BUREAU / CREDIT REPORT
What Is A Credit Score?
A credit score is a number that reflects your risk level, as an individual, to a lender. The higher the number, the lower the risk will be to the lender. As you apply for increased credit or attempt to make a purchase, the lender will check your ability to pay back that loan. The more negative marks you have on your credit report, the less likely you will be granted the loan or purchase you requested.
How Often Can Individual Credit Scores Change?
Credit scores are not fixed; instead they reflect a consumer’s current credit situation, based on the information in the credit report at the time the report is pulled.
What Is A Credit Report And What Is It Used For?
Credit scores are not fixed; instead they reflect a consumer’s current credit situation, based on the information in the credit report at the time the report is pulled.
What Is In Your Credit Report?
Although each credit reporting agency formats and reports this information differently, all credit reports contain basically the same categories of information.
Information.
Your name, address, Social Security number, date of birth and employment information are used to identify you. These factors are not used in credit scoring. Updates to this information come from information you supply to lenders.
Trade Lines.
These are your credit accounts. Lenders report on each account you have established with them. They report the type of account (bank card, auto loan, mortgage, etc.), the date you opened the account, your credit limit or loan amount, the account balance, and your payment history.
Credit Inquiries.
When you apply for a loan, you authorize your lender to ask for a copy of your credit report. This is how inquiries appear on your credit report. The inquiries section contains a list of everyone who accessed your credit report within the last two years. The report you see lists both 'voluntary' inquiries, initiated by your own requests for credit, and 'involuntary' inquiries, such as when lenders order your report so as to make you a pre-approved credit offer in the mail.
Public Record and Collection Items.
Credit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, law suits, wage attachments, liens and judgments.
How I My Credit Score Calculated?
The formula used to calculate your credit score includes information based on several factors:
35% on your payment history
30% on the amount you currently owe lenders
15% on the length of your credit history
10% on the number of new credit accounts you've opened or applied for (fewer is better)
10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)
Are 'Credit Bureaus' Government Agencies?
No. Credit reporting companies are just that - companies. They are in business to make money, and they generate their income by selling credit reports to creditors.
How Long Do Negative Items Stay On a Credit Report?
Negative credit accounts, or trade lines, can remain on your credit report for up to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from your credit report if the consumer requests an investigation into remarks that they feel are incorrect.
Is There Anything That Cannot Be Removed From A Credit Report?
No, all information reported by the credit bureaus are subject to the same laws and criteria. We may challenge on your behalf any items you request and the credit bureaus must investigate these items.
Why Should I Care What Is In My Credit File?
It is your credit report that creditors use to determine if they will extend credit to you. If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.
Why Do The Credit Bureaus Have Separate Reports For Husband And Wife?
The credit bureaus collect information based on individual Social Security numbers.
Do All Three Credit Bureaus Report The Same Information?
Depending on which lender you go through will determine which credit bureau the item will appear on. It could be one, two or all three bureaus.
Who Has Permissible Purpose To Access My Credit File?
Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is:
Granting credit, reviewing your account, or collecting on your account
Reviewing you for employment purposes
Reviewing your application for insurance
Reviewing your eligibility for a license or government-related benefits
Providing information for a business transaction, such as renting an apartment
Has a court order
Has an IRS subpoena
Someone to whom you have given written permission
How Do Mistakes Get On My Credit Report?
It is estimated that as many as 80% of credit files have errors. If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because:
You applied for credit under different names (for example, Margaret Jones versus Margaret Jones-Smith)
Someone made a clerical error in reading or entering name or address information from a hand-written application
You gave an inaccurate Social Security number or the number was misread by the lender
Loan or credit card information was inadvertently applied to the wrong account
Who Can Remove Items From My Credit Report?
Only the credit bureaus have the power to remove items from your credit report. But, as required by law, the credit bureaus must delete inaccurate, unverifiable, or outdated information.
Is Credit Restoration Legal?
Absolutely. The Fair Credit Reporting Act allows anyone to dispute inaccurate items on their credit reports. There's nothing we do that you cannot do yourself when it comes to fixing your credit situation. Individuals can restore their credit on their own but this can take time and a lot of knowledge when it comes to the credit laws. That's why we are here to help since we have the experience and knowledge to get you the positive results.
CREDIT PROCESS
How Long Does The Process Take?
Everyone's credit situation is completely different, so how long it takes for you to achieve your expected results depends on the number of derogatory credit items on your reports, your participation in getting credit reports to us, and the level of credit bureau cooperation. We will do our part, the auditing and creating dispute letters based on your reports, usually within 48 hours from the date we receive them. Most of the wait-time after is usually spent waiting for the credit bureaus or creditors to respond.
How Much Will You Increase My Credit Score?
Many of our clients have seen an increase of 100 points or more*; however, the actual amount will vary per customer. There are many factors that affect a credit score besides derogatory items. For example, the ability to pay down revolving debt, the type of credit you have, your length of credit history, even the number of inquiries on your credit file. It is especially important that no current accounts fall into a negative status.
* Results may vary by individual.
Can I Restore My Own Credit?
Yes, you can. You can also represent yourself in a court of law, and do your own oil changes on your vehicles. We are a service company. Just as you are probably better at what you do than we would be, we are probably better at credit restoration than you would be. We offer experienced, professional help at very affordable rates for your convenience and benefit.
Can You Remove A Bankruptcy Or Foreclosure?
Yes. If the listing is inaccurate, incomplete, misleading or unverifiable, it can be removed. The severity of bankruptcies, foreclosure, liens, etc. does not factor into their removal as much as you would believe. There are a number of elements, unrelated to severity, upon which such items can be successfully removed.
Will The Credit Bureaus Respond To All Of The Disputes I Send Them?
The credit bureaus are required by law to respond to all correspondence. It is not uncommon for credit agencies to send letters stating they want more information, or that they will not re-verify an account. These types of responses are very common and customers should not be alarmed if they receive them. Customers must continue to send all correspondence they receive from the agencies to the processing center.
Are 'Credit Bureaus' Government Agencies?
No. Credit reporting companies are just that - companies. They are in business to make money, and they generate their income by selling credit reports to creditors.
How Long Do Negative Items Stay On a Credit Report?
Negative credit accounts, or trade lines, can remain on your credit report for up to 7 years, and bankruptcies and other public records for up to 10 years. Inquiries on your credit report may remain for 2 years. These are the maximum times that are permitted by federal law for reporting agencies to show negative items; however, these times are not mandatory. At any time, a creditor or credit bureau may remove a derogatory remark from your credit report if the consumer requests an investigation into remarks that they feel are incorrect.
Is There Anything That Cannot Be Removed From A Credit Report?
No, all information reported by the credit bureaus are subject to the same laws and criteria. We may challenge on your behalf any items you request and the credit bureaus must investigate these items.
Why Should I Care What Is In My Credit File?
It is your credit report that creditors use to determine if they will extend credit to you. If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.
Why Do The Credit Bureaus Have Separate Reports For Husband And Wife?
The credit bureaus collect information based on individual Social Security numbers.
Do All Three Credit Bureaus Report The Same Information?
Depending on which lender you go through will determine which credit bureau the item will appear on. It could be one, two or all three bureaus.
Who Has Permissible Purpose To Access My Credit File?
Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is:
Granting credit, reviewing your account, or collecting on your account
Reviewing you for employment purposes
Reviewing your application for insurance
Reviewing your eligibility for a license or government-related benefits
Providing information for a business transaction, such as renting an apartment
Has a court order
Has an IRS subpoena
Someone to whom you have given written permission
How Do Mistakes Get On My Credit Report?
It is estimated that as many as 80% of credit files have errors. If your credit report contains errors, it is often because the report is incomplete, or contains information about someone else. This typically happens because:
You applied for credit under different names (for example, Margaret Jones versus Margaret Jones-Smith)
Someone made a clerical error in reading or entering name or address information from a hand-written application
You gave an inaccurate Social Security number or the number was misread by the lender
Loan or credit card information was inadvertently applied to the wrong account
Who Can Remove Items From My Credit Report?
Only the credit bureaus have the power to remove items from your credit report. But, as required by law, the credit bureaus must delete inaccurate, unverifiable, or outdated information.
Is Credit Restoration Legal?
Absolutely. The Fair Credit Reporting Act allows anyone to dispute inaccurate items on their credit reports. There's nothing we do that you cannot do yourself when it comes to fixing your credit situation. Individuals can restore their credit on their own but this can take time and a lot of knowledge when it comes to the credit laws. That's why we are here to help since we have the experience and knowledge to get you the positive results.
Get Your Credit Builder Card Here
© Sheila Pullum Financial. All Rights Reserved.
Get Your Credit Builder Card Here
© Sheila Pullum Financial. All Rights Reserved.