Month: November 2012

Dealing with Your Credit History Can Save You Thousands

Your credit history, erroneous accounts (not yours), obsolete accounts (past the statute of limitations), or unverifiable accounts (the creditor cannot verify the accuracy of the item), are costing you hundreds and even thousands of dollars each year in higher interest rates, fees and points on your home and auto loans, and credit cards. In some cases they are preventing you from even getting credit. credit history

Most people are unaware of their credit history. Some of aware that they have negative items on their credit report but are embarrassed about it or don’t know that there’s a legal and affordable way to remove them.

Steps to Monitor Your Credit History

Monitoring your credit history by obtaining your credit report from one of the 3 main credit bureaus (Experian, Equifax, Transunion) on a regular basis is the first step. You can do this quickly, easily and it’s free! Federal law allows consumers to receive a free credit report from each of the 3 main credit bureaus mentioned above once every 12 months. We suggest that you pull one from each bureau every 4 months instead of all 3 at the same time to be able to monitor the credit activity on your account all year long. Go to www.annualcreditreport.com. This web site is listed on the Federal Trade Commission web site as the place for consumers to go to obtain their free credit reports. And, you should know that when you pull your own credit report it does not reflect as an inquiry on your credit file.

What Can Be Removed From Your Credit Report?

Once you have your report note any items that are in error (not yours), obsolete (older than 7 years), duplicated (items listed more than once), or are simply showing up as derogatory even if you do owe the money, did file for bankruptcy, did short sale your home, or did have that foreclosure. All these items can potentially be legally and affordably removed from your credit history. Yes, all of them!

If you have even one item on your credit report that fits any of the categories above it will save you for more in the long run to remove that item and increase your credit score. An increase of just 25 points on your credit score may allow you to refinance your car, home loan, or move your credit card balances to lower interest rate credit cards.

The Benefits of Cleaning Up Your Credit History

To encourage you to do this, look at the following example. Let’s say you have a credit card with a $3,000 balance and an 18% interest rate. If you were able to move that balance over to a credit card with a 14% rate (the approximate current average rate for credit cards), you would save about $1,000 in interest by just making the minimum payment each month. You could potentially do this with all your debt by removing those negative items on your credit report and increasing your credit score.

We’re Experts at Working on Your Credit History

You just have to give us a call, text us or send us an email. We conduct a free, no obligation phone consultation. It’s simple. If you choose to work with us it’s affordable too.

Call or Text
West Coast- 619-492-3040
East Coast- 727-222-0120
Email info@eracreditservices.com 

Or, visit ERA Credit Services Credit Repair

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The Fair Credit Reporting Act-Fixing Your Credit

The Fair Credit Reporting Act (FCRA) is administered by the Federal Trade Commission. In the 84 page Act there are provisions to address the issue of erroneous information listed in a consumers credit report. Basically what it says is that a credit bureau must verify the information a creditor reported to them if a consumer disputes that information. This should make one realize that information in a consumers credit report, whether it be from Transunion, Equifax or Experian, is not verified before it is inputted in a consumer credit file.

Fair Credit Reporting Act

By virtue of the language in the Fair Credit Reporting Act a consumer can dispute any item on their credit report whether they know if it is erroneous or not and thus make the creditor prove the accuracy of what they originally reported.

There is a timeline involved in which the creditor has 30 days respond to a dispute. If they do not respond within that time period the item in dispute must be deleted from the consumers credit report.

A Creditor’s Timeline Outlined in the Fair Credit Reporting Act

  • Dispute from consumer to credit bureau (Transunion, Equifax, Experian)
  • Credit bureau has 5 days upon receipt to notify creditor of the dispute
  • Creditor has 30 days upon receipt to respond with findings to the credit bureau
  • Credit bureau has 5 days upon receipt to update the consumers credit report and respond to the consumer

A total 0f 40 days

Taking Advantage of The Timeline To Fix Your Credit

Whether it’s considered a loophole or not consumers can have accurate items removed as well if the creditor does not respond to a dispute by the consumer. But to do this (whether erroneous or accurate) a consumer must have knowledge of the proper procedure to follow, the language to include in the dispute and, in some cases, know what dispute code to use relating to their particular dispute.

That is where a reputable credit repair company that charges a reasonably fee can be helpful. The company should have the expertise to continue the dispute process beyond just the initial dispute, give the consumer online access to the progress of their dispute process, and offer a guarantee for their service.

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