Credit Attorney Archives

Credit Repair Laws

There are so many firms and companies that are offering their services to improve your bad credit score. But the main question arises which company is perfect for you or whether this company is performing its task honestly or sincerely? Normally being as a bad credit scorer, you may consider using a credit repair service to improve your credit. But be cautious because there is large number of companies use dishonest and illegal methods to falsely enhance their customers’ credit. Still, several credit repair services are nothing more than scams to trick consumers out of their hard-earned money.

According to the credit repair laws, Credit Repair Organization Act was put in place to protect consumers from dishonest practices by organizations who claim to repair credit. The Act is totally based on the credit repair laws that seek to ensure that consumers who decide to use credit repair services are aware of their rights and are able to make an informed decision about choosing to pay a credit repair company.

A credit repair organization is any person or business who takes money in exchange for improving your credit.

Restrictions on Credit Repair Organizations:

According to the credit repair laws, here are a few things credit repair organizations cannot legally do:

  • Lie or advise you to lie about your credit history to your current or future creditors
  • Alter your identity, e.g. get a new EIN (Employer Identification Number) or new identity, to try to get a new credit history
  • Misrepresent the services they provide to you
  • Ask you to pay for services before they have been provided
  • The law requires the organization to provide you with a disclosure called “Consumer Credit File Rights under State and Federal Law” that lets you know your right to obtain credit report and dispute inaccurate information on your own. You also have the right to sue an organization for violating the CROA.

Credit Repair Contract Requirements:

Before the credit repair company can perform any services for you, you must be given a contract, you must sign the contract, and the 3-business day cancellation period must expire. The contract should include the following:

  • Payment amount required
  • A description of the services that will be performed to repair your credit
  • An estimate of the time it will take to complete the services (or a date by which the services will be completed)
  • A visible statement letting you know you can cancel the contract within 3 business days

You have the right to cancel a signed contract within 3 business days. According to the credit repair laws organization cannot charge you a fee for this cancellation as long as it’s made within the specified time frame. Your contract should include a Notice of Cancellation form that you can fill out and return to cancel the contract.

Waiving Your Rights:

The credit repair organization can’t ask you to sign any kind of form waiving your rights under the CROA. Any waiver you sign is considered void and cannot be enforced by federal or state.

Reporting Violations:

Organizations that violate the law can be sued for actual damages, punitive damages, and attorney’s fees. You can report violations to the FTC, your state attorney general, and file suit in your state.

You have five years from the date the violation occurred (or the date you learned of the violation) to take action against the organization.

By following these credit repair laws you can easily judge which organization is better for your credit repair.

credit repair agencies

It is needless to explain that the credit scores are vital for your financial future. It plays the important role when you to try to get the money on credit that can be as loan or as credit card debt. Even the interest rate on the loan is decided based on your credit score. Credit repair agencies closely monitor and gather the data of your debt and payments history. Depending upon their finding they give credit score to the consumers.

It is very difficult to monitor and rectify the errors in the credit report. This is known fact all that sometimes the credit report contains the errors. To rectify the errors, lot of paper work is involved. This is tedious and time consuming for the consumers. It is advisable to consumers to hire the credit repair agencies. The credit repair agencies are very professional in their approach. They not help you to rectify the credit score errors but they also help you to increase your credit score.

After knowing that the credit repair agencies are helpful; let me help you to find them. The following points should be kept in mind to find the best credit repair firms:

  • If you search for credit repair firms using the search engines, you will get many thousands of results. Screen the result for the legitimate firms. The legitimate firms will not try to retrieve the financial information which only you should know. This will help you in find the correct one.
  • The good firms will offer you free advice and will take only small amount as their fees. This point can be used the distinction between the two firms.
  • Check the physical address of the credit repair agencies. As the fraudulent firm will try to hide themselves on the web. They will not have any office.
  • You can check the review for the credit repair agencies on the web. These reviews are best way to analyze any organization in 21 century. Also check their time of operation and the performance.

These points will surely help to find the best and legitimate credit repair agencies. You should not get in trap of fraudulent firms. This can get you in further unwanted trouble.

credit score chart

Credit score chart is basically a type of credit report that shows your recent credit history.  Credit score chart is also called FICO score with some other useful information. According to the FICO score, the credit score is basically any number from 300 to 850, which is depends on the history of your credit. If we talk about in simple words, credit score chart is an expression based on the statistical analysis of a person’s credit files and it is used to symbolize the credit worthiness of that person.

Mostly, credit score charts are used by the financial institutions, credit companies and banks to estimate the risk in case of lending money to customers and to lessen losses due to bad money owing. Credit scores are also used to decide whether the applicants are capable for loans. If they are qualified, it also helps to decide the interest rates and credit limits they should get.

While dealing with the credit score chart there are two major factors that we need to consider. The first important fact is to find out the credit score of a person and how these factors are selected. Secondly, we need to know how to read and understand a credit report. Firstly thirty-five percent of the score depends on the record of timely payment of loan. Then thirty percent of score is calculated based on others debts, unpaid bills and total outstanding balance.

Fifteen percent of the rest is dependent on how long you are using the credit system and the history of that time. Ten percent depends on the types of credit and the number of credit account. Ten percent depends on new accounts and types of account recently opened. The score you achieve in FICO credit score chart classifies you in different groups and provides you different types of facilities.

If your credit is between 700 to 850 it would be called an excellent score. For this score you will be eligible for any kind of loan with lowest interest rate. For this reason you will be under fair repayment terms. If the score is between 680 to 699 you will be easily approved for any kind of loan from your lender. Score between 620 and 679 are considered as the reasonable score. The people under this category will be approved for any kind of loan but they will not be able to get the best interest rates. Scores between 550 and 680 will not allow you to have loan of any amount. Some lenders may agree to give you loan but you have to pay it back with highest rate of interest.

The people who have scores under 550 can hardly have any loan as the lenders feel insecure in the case of repayment. They must concern with credit repair before taking any kind of loan. The credit score chart is designed in such way that one can easily have an idea of one’s recent financial condition in case of loan, debt bill payment etc.

fix your credit score

Maybe you’ve been recently turned down for a mortgage or auto loan. Or maybe you were approved, but don’t want to pay thousands of dollars on high interest. Whatever your specific situation is, fixing credit reports is always a good ideas. All kinds of creditors, employers, landlords and insurers are scrutinizing your credit file in order to evaluate your application. The growing necessity of your FCIO makes having a good score a simple necessity.

Here are 3 popular misconceptions about credit repair that deter most people from trying to raise their score.

1) Times is the only cure.

Wrong! Time is NOT the only cure. And instead of waiting passively for certain negative items to fall off your record, you should take action. There are so many things like dispute, negotiation, validation of debt, lawsuits etc, you can do in order to boost your credit score fast. Certain strategies (the Rapid Rescore Dispute) can even bring changes to your report within 48 hour period. The “time rule” applies only to certain type of negative items-chapter 7 bankruptcy, foreclosure, repossession. There is not much you can do here, but wait till the punishment period is over. Everything else, however, can be changed in your favor or completely deleted from your record.

2) Only the experts know what should be done.

Wrong! Anybody could be a credit expert given the proper knowledge. It is no rocket science to fix your credit score, the only thing required is knowledge about the inner workings of the credit system and the various loopholes in it. How is your FICO calculated? Which are the two most crucial factors to fix your credit score? How to request validation of debt for negative items on your report? How to convince credit bureaus, collection agencies and original creditors to remove negative items from your record? How to use the 623 Dispute Strategies? What are your legal rights according to the Fair Credit Reporting Act? The more you know about the credit system, the better your chances to raise your score FAST.

3) You don’t stand a chance against collection agencies and debt collectors.

Wrong! Collection agencies a debt collector might sound threatening and intimidating, but they are more bark than bite. In reality collection agencies often have poor documentation to prove the validity of your debt. They also have very little money tied in the collection. Under the Fair Debt Collection Practices Act collection agencies are forbidden from making harassing phone calls, threatening to garnish your wages, seize property or take you to court. Any violation of FDCP act gives you the legal right to sue them. Knowing these facts will help you realize that you have more leverage with collections than you think. Settle for 20 % or less and promise to pay ONLY if the agency removes the negative account from your report.

It is not much difficult to fix your credit score. Credit tricks and little known secrets will take you to the desired destination faster than you ever thought possible. Once you start thinking outside the box, you’ll be surprised to know that it is too much easy to fix your credit score.

repair my credit rating

Repair my credit rating is a thought that runs through many people’s minds when they find out what their credit report looks like. The question on the tip of many people’s tongues is how to do this. When thinking about financial reparation, think about what it was that caused the problem in the first place. If money was spent irresponsibly, that would be the first area to focus on to avoid the need for financial assistance in the future. Then after that, the best way to begin on the road to financial indebtedness may be to take out a loan and pay off a credit card, where the balance may be slow to decrease due to high interest rates.

When the thought occurs, “I need to repair my credit rating”, then thinking about budgeting as a number one priority is the most prudent beginning. Rebuilding a financial history may take time, but that time is well invested if any financial freedom is desired. Learning to budget money is a necessary evil, so to speak, as it may protect from repeating the same mistakes with finances. When changes are needed, attention has to be paid to what is being spent and how much and the harder question of, “do i really need this?” If I want to repair my credit report, then I have to pay attention to finances. When making a budget, look at how much money is coming in as opposed to how much money is going out. Bills, of course, are the priority here and paying on time also helps in the formulating of a better repayment or financial report.

Once the budget is formulated, it will be much easier to take the step to repair finances. If I want to repair my credit rating, then I must be consciously aware of my spending habits all the time. In order to repair my credit report, it is important to pay attention to the habits that I have formed and to begin new ones. Before making a purchase, look at the budget, consider the need and think of the future, and don’t spend money that is not readily available, in other words, do not go back into debt.

Finally, in taking the next step to repair financial reports is to take out a loan that can readily be paid back as this will begin to repair my credit report and my repayment history also. When doing anything that deals with money, we all need to honor the Lord in how we are spending this money. He wants us to be good stewards of money.

non profit credit counseling services

Non Profit Credit Counseling Services is a type of services that offer information and advice for managing debt to those people who are trapped in financial crisis on any other type of bad credit score. These credit counseling services are not much expansive some of these are offer their services on very cheap or reduced rates. Basically, these Non Profit Credit Counseling Services have been established to help individuals and families who are experiencing financial stress, or even financial ruin, due to several conditions that have spiraled out of their control. People whose problems are not yet at a crisis point can also benefit from money management counseling.

Trained counselors provide financial education and budget planning to help consumers reduce or negate debt, avoid bankruptcy, and build financial stability. Many people seek credit attorney services when they have over extended themselves financially. Heavy debt due to a crisis or poor spending habits can become stressful, affecting quality of life, family relationships, and over all functioning ability. The overwhelming results of poor money management cannot be understated. By taking advantage of non-profit credit counseling, individuals and families can get back on track and take control of their finances.

Not all financial counseling services operate the same way. Consumers need to know that some companies charge far more than others. Researching the fine print of each organization is essential. Non-profit credit counseling services generally do not charge large application fees or processing fees. People who are struggling to keep their heads above water in terms of their debt obligations will certainly not need to add financial burden by paying additional fees while trying to fix their money woes.

Non Profit Credit Counseling Services can also offer advice to help consumers re-establish credibility for obtaining credit in the future. However, financial counselors are all in agreement about the temptations of credit use. Wise advisers strongly warn advice against heavy charge card use. To obtain financial security, education and discipline about financial spending is a must. Buying now on a charge card or a loan means spending future earnings. Understanding truths like these will enlighten consumers to the pitfalls and dangers of charge card overuse. It’s a buy now and pays later, instant gratification mindset that causes people to give in to the temptations of having things now.

To find a non-profit credit counseling service, consumers can browse the Internet. These non-profit credit counseling services are often parts of larger corporations that will have physical locations across the country. Also, some financial counselors offer preliminary consultations to consumers online. Researching and asking questions of potential services can yield a good match for nearly every consumer in need of money management assistance.

lawyer credit repair

Those people who trapped in a bad credit score or any type of financial crises, they start searching for a best credit repair lawyer. It also might be possible that the borrower is not responsible for it. At this time a Lawyer credit repair is only a person who can take you out from all these unexpected problems.

A lawyer for credit repair is the best option for you to achieve positive results if you’ve been besieged by various debt collectors or merely seeking to straighten your weak credit records. Plus, despite the fact that some bad details in your record are perfectly legal, the professional legal counsel will still be able to remove these flaws.

There are so many advantages of hiring a lawyer credit repair. The main advantage is that there is someone to act on your behalf in the course of cleaning up your bad credit history. Next, since all lawyers are well-acquainted with every points of the law, your lawyer will be able to take whatever actions he considered needed just to correct or wipe out any incorrect or negative information in your credit report. Needless to say, the credit repair lawyer is expert in credit law, thus, he is clearly the one who can take care of your credit report.

Sometimes, when you are really worried about poor credit score, most probably you try to clean up your poor problematic fields as quick as possible; as a result lots of problems occur in your credit report. A lawyer credit repair can easily handle all these type of cases. As part of his services, he will also work to sort out your obligations without delay.

In addition, if you will hire an attorney specializing in credit repair, he will be able to determine whether the debt collectors are already at the point of illegally hounding you or not. You must know that most of the collectors’ actions or behavior when collecting money can be against the law aside from being unethical. And in this case, if you have a legal counsel, you will definitely see if all the procedures in fixing your record are both legal as well as ethical.

What’s more, when the time comes that you have to face and talk to your lenders and credit bureaus, keep in mind that only a small number of people are likely to pull off this move with fruitful results. But with the help of an experienced negotiator, all the dealings will surely be a productive one. So, let the skilled negotiator, your lawyer for instance, work for you and your debts and credit history will be straightened out in no time.

Finally, the last benefit of hiring a lawyer credit repair is that, he will view all the issues from a business angle so that he can solve all the problems. And also there is one more thing the proceedings of lawyer credit repair are not gripped with emotions that’s the reason the lawyer’s lines of attack are likely to be more systematic and logical.

There are so many credit repair lawyers available all around the world. But only a best and a skilled lawyer credit repair can take you out from any kind of bad credit score.

Credit Attorney

Credit repair services are mandatory for two reasons. Statistics show than seventy-nine percent of credit reports have errors. Statistics also show that there are twenty million people that suffer from poor ratings.

Anything one wants to learn or know how to do can be found online; building and fixing credit is no exception. There are many discussions on improving credit both on and offline. There is also much talk both offline and online in terms of the best way to improve your ratings, an on-going debate as to whether or not it is better to fix your credit yourself or hire a professional.

Either option can fix your low scores. However you get what you choose or not choose to pay for. For a price the credit repair companies can do the work for you. In order to successfully repair your credit you must have basic knowledge of credit laws. The bureaus do not make the task easy for you that is why a lot of people think it is a wise idea to hire a repair company.

Two types of credit repair companies are:  non-attorney based and attorney based. Non-attorney companies do more work than attorney based companies because they do not have a staff of attorneys fixing credit. These companies work to help you; they practically do the work for you so it appears as though you were going through the credit repair process yourself.

Then there are attorney based companies that are made up of attorneys that work especially to repair credit. They have a very thorough understanding of the Fair Credit Reporting Act, the documents that explain consumer rights and regulations pertaining to credit. These companies also have a thorough understanding of the Fair Debt Collections Act.

Either credit repair company you decide to choose should work closely with and have an interest in you and your repair process. Once hired, it is the credit repair company’s responsibility to order the reports, disputing wrong information, and reviewing your credit reports to make sure everything is correct. Remember, fixing credit is a process and you have to be patient. Once the credit fixing process begins you can expect the companies to charge you on a monthly basis.

Pro Credit Attorney

There’s a lot of bad credit repair offers on the web today making bold claims to “increase your credit score by 100 points in 30 days! Guaranteed!” Or something like that. But beware! These bad credit repair systems can end up making your credit worse in the long run.

So what do you do if you’re faced with extreme errors?

For instance, a mortgage or car company that keeps reporting your payments as late, even though you’ve caught up (this happened to a friend of mine). These types of dings on your credit can keep you from getting good interest rates, and may even cause you to be turned down flat by lenders! It is estimated that 79% of all credit reports contain errors. That’s a lot of errors and these errors cost Americans millions of dollars in interest every year.

But going head on with a mortgage or auto lender is like the proverbial “tilting at windmills.” Once they ding your credit – they won’t write a letter to the credit bureau retracting it! That would open them up to all kinds of liability issues. This is when you need to seek credit repair legal advice.

But before you seek bad credit repair advice (from a credit attorney or any other credit repair company) we wanted to give you some helpful information so that you can make a more informed decision about what to do.

Is Credit Repair Legal?

Yes, but there are illegal credit repair programs you should be aware of! For example, while it is legal to challenge negative items on your credit reports that you believe to be inaccurate, misleading or unverifiable, the accurate information is supposed to remain on your credit report. It is also entirely illegal to create a “new” identity by applying for an Employer Identification Number (EIN) to use instead of your own Social Security Number. An EIN number is the number that the IRS gives to a corporation for tax purposes. To use this for credit repair is called file segregation – in order to escape responsibility by hiding one’s credit history. The use of File Segregation is a crime and can result in fines or serious jail time. This is a road you don’t want to go down.

Why Should I See A Credit Repair Law Firm And Not Just Get One Of Those “Do It Yourself” Credit Repair Systems?

First off – major errors are very hard to remove on your own.

A TRUE STORY: I have a friend who filed for bankruptcy in New York. She paid off all her debts and the bankruptcy was discharged. About 6 months later a SECOND bankruptcy filing appeared on her credit, along with a discharge. Then a THIRD one! This made her look like someone who abuses the system (filing for bankruptcy to stop collections, then canceling it without paying her bills). Needless to say her score was absolutely tanked! It took her over 18 months to get just ONE of the mistaken bankruptcies removed. She’s still working on the second one today.

Secondly - these supposed “sure-fire” credit repair systems might ruin your credit! Many of them encourage you to (or claim they will do it for you) challenge everything on your credit (good AND bad). Unfortunately this can result in removing the “good stuff” also. And as any lender will tell you, NO credit history is often times worse than BAD credit history!

Aren’t There Laws Regulating The Credit Repair Industry?

There are indeed. The most prominent one is theCredit Repair Organizations Act (CROA). This became law in 1996 to protect the public from unfair and deceptive advertising practices in the credit repair industry. Additionally, the Federal Trade Commission (FTC) investigates complaints about credit repair organizations and takes appropriate legal action. Unfortunately it takes them a long time to operate and you could have your credit damaged further by using one of these companies.

Here Is How You Can Avoid Becoming A Victim Of Unscrupulous Credit Repair Companies.

  • Avoid any credit repair company that will not tell you your legal rights and what you can do for free.
  • Avoid any credit repair company that tells you to relax and let them do it all. In other words, don’t contact the credit bureaus yourself.
  • Avoid any credit repair company that tells you they will dispute everything (good, bad or ugly).
  • Avoid any credit company that suggests creating a “new” credit identity – and then get a new credit report by applying for an Employer Identification Number (EIN) to use instead of your Social Security Number. Remember – This is illegal and can have serious consequences.

Credit Attorney Can Help to Rebuild Credit

A low credit score, due to missed and late payments, will result in an application for credit being rejected by the lender. Whether an application is turned down due to erroneous data or bad credit is immaterial as the outcome is the same. Fortunately, a credit attorney will be able to resolve many of these issues within a few months. A bad credit rating will normally take up to 10 years to fully recover from, but this isn’t necessary when the information held is wrong.

Assistance from a Credit Attorney

A credit repair attorney will help an individual to remove credit report errors and entries that should not show under the Limitation Act. The Fair Credit Reporting Act also gives consumers the right to correct any inaccurate data meaning that they can improve credit relatively quickly. It is important to appreciate that all of this can be performed by the individual without any of the associated charges.

How to Overcome a Low Credit Score with a Credit Repair Attorney

A comprehensive analysis of the client’s credit report will be performed in order to identify debts that shouldn’t show as well as any inaccurate data. Provided that the consumer has done their part (supplied the appropriate supporting information), credit reference agencies are legally obliged to commence the credit report error correction process within 30 days. Invalid entries will be deleted and not assessed by creditors when lending money or refinancing loans.

What Does a Credit Attorney Typically Offer?

  • The opportunity to correct unlimited credit report errors.
  • Access to a dispute manager via a toll-free number.
  • Account investigations and a debt validation service.
  • The opportunity to cancel the subscription at any time.

Rates start from as little as $29.99 a month, although the higher the premium paid the more comprehensive the program of support. As already alluded to, all of the above can be performed by the individual. However, it is a matter of assessing whether it can be performed correctly and in full.

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