Frequently Asked Questions
What is credit repair?
Credit repair is a common phrase that refers to the practice of a consumer disputing inaccurate, misleading, or unverifiable data in their credit file to improve one's credit standing and score.
Who needs credit repair?
Just about everyone could use a boost in their credit rating. If you are applying for mortgage, looking to refinance, seeking employment, need insurance or other line of credit, you can increase your chances for qualifying and getting better loan terms as well as securing a job, if you raise your credit score.
Can I really fix my own credit?
Yes, you can fix your own credit! You don't need to hire a lawyer or a credit counselor to fix your credit. There is nothing a credit repair company can do to improve your credit score that you can't do for yourself. Credit repair is not as difficult as many people think. With a little knowledge and patience you can easily and effectively repair your credit rating.
Is credit repair legal?
Yes, credit repair is legal and it is your right! Thousands of people have taken control of their credit problems and legally and successfully repaired their credit and increased their credit score. It is crucial to verify the accuracy of data in your credit file. If you feel that any information in your credit report is inaccurate, obsolete, or unverifiable, you have the legal right to dispute these items with the credit bureaus and creditors and have it removed. The Fair Credit Reporting Act, Fair Credit Billing Act and the Fair Debt Collections Practices Act grant you the legal right to petition erroneous data in your credit score.
How much money can I save by improving my credit?
The better your credit is, the lower your interests rates can be. You can save thousands of dollars on your household expenses. With an average amount of debt, you can save as much as $300-$500 a month by improving your credit.
How much will it cost on my end to repair my credit?
We will educate you on how to get your credit reports for free. It doesn't cost anything to dispute mistakes or fix outdated items on your credit report.
How can I start repairing my credit score?
The System to Repair Your Credit & Boost Your Credit Score will provide you with everything you need to repair and rebuild and your credit. A higher credit score can save you thousands of dollars and benefit you throughout your life.
What is a credit reporting agency?
A credit bureau, credit rating agency, or consumer reporting agency (CRA) is an agency that compiles and distributes personal credit and information to creditors. The three consumer reporting agencies are Equifax, Experian and TransUnion. The credit bureaus gather information about an individual's credit history on an ongoing basis. The bureaus amass this data, along with public record facts, into a file on each consumer. The credit bureaus then use this information to determine a credit rating.
Are the credit bureaus government agencies?
No, the three consumer reporting agencies Equifax, Experian, and TransUnion are national, independent, for-profit companies owned by their shareholders. They are regulated by the Fair Credit Reporting Act (FCRA), the federal law which covers credit bureaus and credit reporting.
What is my credit report?
Your credit report is a history of your financial activities used by creditors and other businesses to evaluate your applications for credit, insurance and employment.
What is in my credit report?
We're often asked "what is in my credit file and what does it mean". Your credit file contains personal identifying information as well as public data. Included in your report is where you live, how you pay your bills, whether you have filed for bankruptcy, been sued, have tax liens as well as data on anyone who has accessed your credit report.
What is not in my credit report?
Your credit report does not contain gender, ethnicity, religion, political affiliation, medical history, criminal record data or checking or savings account information. Also, your credit score is generated by information in your credit report, but is not part of the credit file itself.
Do I have to pay for my credit report?
The System to Repair Your Credit & Boost Your Credit Score will provide you with everything you need to obtain at least three free credit reports each year, one from each of three bureaus, so you never have to pay for your credit report again.
How can my credit report affect potential employment?
Prospective employers may use your credit record to decide whether or not you are a good fix for their organization. If you have poor credit, you may also be thought of as a poor investment. Therefore, companies may decide to hire someone who managed their credit more diligently. Good credit may help you get that job offer.
How common are credit report errors?
A study by US PIRG (an advocate for public interest) noted that as many as 80% of credit reports contain at least one error, and as many as one fourth contain an error serious enough to result in the denial of credit; This is one of the many ways why it's imperative to fix or repair your credit score right away.
What is a credit score?
A credit score is a measure of risk used to assess an individual's credit worthiness. Credit scores are generated from statistical models that weigh several factors in a person's credit record like, bill-paying history, the number and type of accounts, late payments, collection actions, outstanding debt, and the age of accounts. A credit scoring system awards points for each factor. A total number of points make up a credit score. These scores help predict how likely it is that an individual will repay a loan and make the payments on time.
What are the different credit scores?
Credit Scores are somewhat confusing because the credit bureaus sell FICO credit scores under different names. Equifax FICO Score is called BEACON® Score, Experian FICO score is called Experian/Fair Isaac Risk Model and TransUnion Fico Score is called EMPIRICA®. The bureaus also sell their own, very different credit scores. For example, Experian has a scoring product called the PLUS score which is different than a FICO score. The three credit-reporting companies also jointly introduced another credit score, called VantageScore to compete with FICO's score. VantageScore is an attempt to create a standardized credit-scoring model, independent of Fair Isaac's.
What is a FICO Score?
A FICO score is one type of credit score. Any credit score obtained using the Fair Isaac formula is called a FICO score The most commonly used credit scores are called FICO scores. FICO scores are based on a scoring system created by Fair, Isaac & Co. FICO scores range from 300 - 850. Everyone has three FICO Scores, one from each of the three consumer reporting agencies, Equifax, Experian and TransUnion.
Why is my credit score different with each credit bureau?
Credit scores vary because of different data on file with each credit bureau. The bureaus are independent companies in the same business, and they gather information separately. Since your creditors might not report to all three bureaus, one or two of your credit reports might contain account history the others don't.
What is considered a good credit score?
Credit scores usually range from 300 to 850. Anything below a 760 should be fixed or improved. Credit scores between 720 and 800 are the most attractive. Keep in mind each of the three major credit bureaus records your score slightly differently.
Where can I get my FICO credit score?
Consumers can only get true FICO scores in the following places
- For TransUnion, you can get your true FICO score either from http://www.myFICO.com or from http://www.transunioncs.com (note the "cs").
- For your Equifax FICO score, you can get it either at http://www.myFICO.com, or directly from Equifax.
What is a Vantage Score?
VantageScore was jointly developed in 2006 by TransUnion, Experian, and Equifax as an alternative of the FICO score, to make credit scores easier to understand. Although the three credit bureaus can now generate scores using the same credit scoring model, you may see differences in the actual scores because each bureau maintains its own consumer credit files, which may vary. VantageScore ranges from 501 to 990, and the score is divided into five grades, from "A" to "F" with "A" being the best. VantageScore is available from TransUnion and Experian.
What is the Fair Credit Reporting ACT (FCRA)?
The FCRA seeks to ensure that the credit bureaus supply correct and complete information to businesses to use when assessing your application. Read More
What is the Fair Credit Billing Act (FCBA)?
The FCBA establishes procedures for resolving mistakes on credit billing account statement. Read More
What is the Equal Credit Opportunity Act (ECOA)?
The ECOA protects consumers against credit discrimination on the basis of sex, race, marital status, religion, national origin, age, or receipt of public assistance. Read More
What is the Fair Debt Collection Practices Act (FDCPA)?
The FDCPA prohibits debt collectors from engaging in unfair, deceptive, or abusive practices while collecting debts. Read More