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Frequently Asked Questions

 

Question: Is attempting to improve your credit score by disputing negative report items considered legal?
Answer: Yes. The Fair Credit Reporting Act was created to allow consumers to review their credit reports and dispute or challenge incorrect, incomplete, inaccurate or obsolete information. Disputes are submitted to the credit bureau(s) every day. Sometimes the smallest mistakes can result in a negative effect on your credit report. The Federal Credit Reporting Act gives all citizens the right to review their report, question or dispute items and the opportunity to change or remove them! The C?R?C System makes the dispute process easy to do yourself, at a small fraction of the cost of a credit repair company.
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Question: What is my credit report comprised of? How is it used?
Answer: Your credit report is comprised of a record of your payment history, on previous loans, credit cards, charge accounts, etc., as reported by your past and current creditors. Banks, Credit Unions and other lenders use the information and score on your Credit Report to determine if you are a good risk for additional loans.
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Question: How do I establish good credit and how long does it take?
Answer: Establishing good credit takes time! It's the old question of "which comes first, the chicken or the egg"? It's difficult to obtain credit if you've never had it, and you can't get it without showing a good record of having had it. There are a number of ways of establishing a "good credit profile" within 6 months to a year. These methods include things like securing a savings account insured loan or credit card and paying it/them off ahead of schedule. There are a number of excellent books available on the internet, which provides other shortcuts. The important thing is to maintain that rating, once you have established it. The way you maintain it is not only to pay on time, but also to monitor your credit rating and immediately dispute anything that you consider inaccurate, misleading, incomplete or obsolete. The C?R?C System will make it easy to manage your credit report on a consistent basis.
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Question: How long does negative information remain on my report?
Answer: Most negative information must automatically be removed after seven years from the time of last activity associated with the account record?provided it is 100% accurate. The most notable exception is for bankruptcy. Bankruptcy (Chapters 7, Fresh Start 11 and 12) will remain on your record for ten years. Chapter13 often referred to as wage earner, will only remain seven years. A collection account, charge-off, late payment, suit/judgment, child support, repossession, and foreclosure, tax lien, or record of arrest, indictment or conviction will remain on your credit record for 7 years. There are exceptions to these Federal guidelines on some State levels. For example, in the state of New York, satisfied judgments remain on your credit profile for 5 years from the date filed, and paid collections remain for 5 years from the date of last activity with the "original" creditor.
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Question: Can I improve my credit score if I pay off all or some of my old debts?
Answer: It will probably surprise you to know that paying off old debt can actually prolong the re-establishment of a good credit rating. If you pay off an old bill today from a debt that you incurred 3 or 4 years ago, it will start the clock running again from the most recent "activity" on the account, in this case, your payment, for the next 7 years. Payment of old debt should never be done without negotiating a settlement with the creditor that includes removing the past payment history from your credit file.
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Question: What information does my credit report store?
Answer: Your credit profile includes 5 basic types of information:

    • Identifying Information. Your name, current and previous addresses, marital status, social security number and date of birth;
    • Employment Information. Place of employment, length of time on job, compensation and position.
    • Credit Information. This includes all types of information provided to the bureaus by the companies with whom you have been extended credit. This information includes the date and amount of each loan, your payment history, broken down by the number of times you paid on time, number of times you were 30, 60, or 90 days delinquent on your payments. If your account has been turned over to a collection agency, your activity on the same account may be reported by them as well.
    • Public Record Information. Federal bankruptcies, state and county court records tax liens, monetary judgments and overdue or unpaid child support are all included in this category.
    • Inquiries. This is a listing of businesses that inquire about your credit history. Inquiries listed in your file may be authorized by you intentionally, unintentionally or not at all. Each inquiry will have an effect on your rating, usually negative. It is important to remove as many as possible.
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    Question: How badly does bankruptcy affect my credit?
    Answer:     Whether filed as an individual or business, bankruptcy is one of the worst things you can have on your credit. Federal law does not dictate how long a business bankruptcy must remain on your credit file, but personal bankruptcies remain for 7 years for filing a Chapter 13, and 10 years for Chapters 7, 11 or 12. The bankruptcy will show up on your credit shortly after it's filed. The losses incurred by your creditors will appear as a "charge-off" once the debt is discharged on a Chapter 7. The losses incurred by creditors on a Chapter 11 or 13 will be less on an unsecured loan if your Reorganization Plan is effective, but the chances of them recovering 100% of the debt are very doubtful. A good negotiation plan with creditors is always a better plan than a bankruptcy.
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    Question: Can bankruptcies or tax liens be dismissed from my credit report?
    Answer: Yes. Although it is true that some types of information can be much more difficult than others to remove, each of these negative entries have been removed thousands of times, using a multitude of creative methods. This is not to say that all these type items that may appear on your credit report will be removed. It is possible for example, to negotiate with some percentage of the individual creditors, who may be willing to remove the "charge-off" from your credit in exchange for an agreed upon payment amount. A good plan of negotiation should always be a part of a "credit repair" program.
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    Question: Is it really possible to remove negative information that is accurate?
    Answer: Yes. The Fair Credit Reporting Act requires that items must be removed if they are not 100% accurate, or cannot be verified in 30 days. It's as simple as that! So?if you can substantiate inaccuracy, even a portion of inaccuracy, or if the creditor fails to verify the negative item within the allotted time period, the credit bureau must remove it. The creditor company may no longer be in business, or their records are no longer available, or they may not be willing to spend the time substantiating the item, especially if you paid it off in past years. If you are lucky enough to have those things happen, some items will be removed. There will almost always be some percentage of accurate items that will be removed, if you are effective in your credit repair plan.
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    Question: How long does it typically take to see improvement in a person's credit?
    Answer: Since there are usually a few items that are obvious inaccuracies on a person's credit report, especially someone who has not monitored their credit on a consistent basis, most people see some improvement in the first 30 days. But a complete program of repairing credit, that includes debt negotiation when necessary, will take 6 months to a year, or more. YOU MUST BE PATIENT! If you attempt to dispute too many items in a short period of time, you stand a good chance of your disputes being labeled "frivolous". In that event, the credit bureaus will not feel an obligation to re-investigate your claims.
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    Question: If I submit a "100-word statement" to the credit bureau on a negative account, will it help?
    Answer: Yes! But it should be used as a last resort! Remember, that when you submit a 100-word statement, you are confirming the debt. The statement should only be utilized after you have attempted all the steps in the C?R?C System for credit repair through disputes and negotiation. If they prove ineffective, you may be able to soften the negative claim with a "100-word statement".
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    Question: Does good credit counterbalance bad credit?
    Answer: Yes, to some degree! Obviously, the more good credit you have, the better your score. However, you can dramatically improve your credit rating through an effective credit repair and negotiation system.
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    Question: Can employers review my credit file?
    Answer: Yes. But they must have your permission, in writing.
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    Question: How long does it take for disputed items to be resolved?
    Answer: In some cases 30 days. Credit bureaus have an obligation to complete re-investigation within 30 days from the date of dispute, in order to comply with the FCRA. However, they have the right to request additional information, which in some cases justifies an extension of the 30-day period. In addition, the C?R?C System strongly suggests that you don't stop with the initial dispute attempt, even if it is rejected by the credit bureau. At least 1 "Follow-up" letter is recommended, even after a dispute rejection. This will add 30-90 days to the final resolution.
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    Question: Does the credit bureau charge me a fee for challenging information on my credit report?
    Answer: No. They cannot charge for investigations, or for removing incorrect information. The C?R?C System includes a "KNOW YOUR RIGHTS" module that gives you a complete understanding of the Fair Credit Reporting Act, and how it effects you.
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    Question: How is it possible to repair credit?
    Answer: The Fair Credit Reporting Act (FCRA), drafted and approved by Congress in 1970, and the Consumer Credit Reporting Reform Act of 1996 are the basis for your ability to "repair your credit". Repairing your credit pursuant to these Codes can be accomplished through the credit bureau's responsibility to, within 30 days of the date they receive your notification of dispute, remove any disputed item from your credit profile that is not determined through their investigation, to be 100% accurate.  The C?R?C System, provides you with the tool that makes it easy and convenient for you to monitor your credit reports, identify items for dispute, register your disputes with the credit bureau(s), and then track and follow-up on your disputes until the determination is made to remove or retain the negative item.  All this can be done by simple mouse clicks once the creditor information is input into the System..
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    Question: What is the most basic benefit to me of the Fair Credit Reporting Act?
    Answer: The FCRA states: "If a consumers personal credit information is incomplete, inaccurate, or cannot be verified by the creditor in a specified time period after written request from the consumer, the credit reporting agency or bureau shall promptly remove and delete such information as requested, or modify that item of information as appropriate based on the results of the investigation."
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    Question: In what situations would legitimate negative items be removed from my credit?
    Answer: There are many times when credit reporting agencies or creditors do not follow all proper guidelines and procedures. If those guideline deviations result in the inability of the bureau to substantiate the accuracy of the item, credit reporting agencies are then required to delete this credit report information upon request.
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    Question: If an item is removed, can it be reinstated by the creditor?
    Answer: Yes. It would be typically caused by one of the following events:

      • You include the debt in a subsequent bankruptcy;
      • You become delinquent in payments on the same creditor account;
      • The creditor can have the item reinstated by certifying that the information is complete and accurate.

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