Credit repair companies file many disputes and wait for credit bureaus to miss a deadline. When that happens, the credit repair company takes action, calling on the consumer to announce that the item was recalled and suggesting that the consumer pay more each month to “keep up the momentum and go after the rest. The credit repair organization will contest a specific number of items in its credit reports each month, depending on the plan chosen. In some cases, a simple challenge is enough to correct or delete an item.
In other cases, the Service will formally dispute the items by publishing online communications containing detailed objections and evidence necessary to resolve the issue. The Fair Credit Reporting Act is a federal law that defines the type of information that can be included in your credit report and for how long (usually seven years). A popular credit repair scam involves credit profile numbers (CPNs), which are nine-digit numbers in the same format as Social Security numbers (SSN). Here is a list of factors that can affect your credit score negatively and stay on your credit report for up to seven years in most cases.
To help you on your path to better credit, here are some strategies to remove negative information from your credit report. If a charge is accurately reported on your credit report, a dispute (whether initiated by you or by a credit repair service) will not eliminate it. Federal law guarantees everyone the right to a free credit report from each of the three national credit bureaus (Equifax, Experian and TransUnion) every year. You can add positive data by making on-time payments, keeping your credit card balances paid, and applying for a new credit only when you're sure you'll be approved.
Several hard credit checks over a short period of time are a red flag for lenders, telling them that you are applying for credit too often and potentially being denied. Check your credit reports to find out if you need to go through the same process with the other two credit bureaus. Either way, it's up to you to work to get unfavorable entries on your credit report removed from your credit report. But what happens if the collector refuses to remove the item from his credit report? Paying the collector may be good for your soul, but it won't help your credit score.
The FCRA says you are entitled to an accurate credit report, and because of that provision, you can dispute errors with the credit bureau. The hardest part of DIY credit repair is reviewing your report data to find accounts or account activities you don't recognize, incorrectly reported negative credit file items (cancellations, delinquencies, bankruptcies, etc. These companies usually offer to review your credit reports and address any negative issues). items you can with credit bureaus on your behalf.
You need all three reports (one from each credit bureau, Experian, TransUnion and Equifax) because creditors can only report transactions to one or two credit bureaus.