Introduction

Having a poor credit history is an unfortunate yet common problem that affects many Americans. Challenges associated with poor credit include financial hardship, higher interest rates, loan application rejections, and even denial of lease applications. Due to these debilitating reasons many turn to credit repair companies to help fix, or even restore their credit.

The Process

Credit repair itself is the process of disputing errors on an individual's’ credit reports. Credit repair companies typically offer to review your reports, the address, along with any negative items that can be removed with the credit bureaus on your behalf.

Most companies start by requesting a copy of your credit report from each of the three major consumer credit bureaus- Equifax, Experian and TransUnion. After obtaining all three reports, the company will begin to review your credit history and identify any derogatory marks such mistakes in the credit report, duplicate accounts as well as expired or negative items that should no longer appear. This process can take some time to complete, as the company will also identify items such as as late payments, charge-offs, collections, tax liens, bankruptcies and repossessions.

After identifying all removable information and consulting with the client, the company will set a plan for disputing errors and negotiating with creditors to remove those items, via post mail. The formal dispute, made on your behalf provides detailed explanation of all errors found as well as any supporting documentation regarding your case. Disputing inaccurate items on your credit report is a legal right granted by the Fair Credit Reporting Act (FCRA), which protects your right to fair and accurate credit reports.

After 30 days, the credit bureaus must respond to the inquiries sent on your behalf. In some cases, more documentation may be required if the bureau requires more information to verify or reject your dispute. As a result, there can be some back and forth communication before disputes are resolved. In addition, you may have to file more than one dispute letter for each bureau and disputed item. If you have a large number of mistakes that are identified, you usually don’t want to submit more than a few disputed items at a time in each dispute letter in order achieve the best results. With that said, you may have to submit a few disputes at a time and resolve them in sets over time.

The bureaus must then investigate all items in question, reviewing all relevant information and reporting their results. If the investigating bureau finds the items to be inaccurate, they are required to notify all three credit bureaus and request that the item be removed from all of your credit reports. After the investigation is finished, the bureau is required to inform you of the results in writing, along with a copy of your report if any items were altered or deleted. You can also request the reporting company to send notices of these corrections to anyone who has received your credit report in the past six months.

 

Timeline

It takes time to thoroughly repair credit, the timeline can vary widely, depending on a number of factors- from the severity of debt, number of mistakes and accounts in need of dispute to the goals you would like to accomplish once your credit is fixed. Since most people often repair their credit with a specific goal in mind- negotiating an interest rate with a creditor, applying for a new line of credit, or even bigger financial decisions such as buying a car or even a house. It’s important to know how long the process can take so you have the opportunity to plan ahead effectively.

In general, credit repair takes about three to six months to resolve all of the disputes that the average consumer needs to make. Of course, if you only have only a few mistakes to correct it may not take as long.

In Conclusion

Unfortunately, due to malpractice according to the Federal Trade Commission, the credit repair industry is prone to scams. However there are many reputable, trustworthy companies just like Prominent Financial Consultants whose sole mission is to help their clientele achieve their long term goals. To help avoid a scam, it is very important to research any credit repair organization before agreeing to work with it, always read the contract and retain all documents for personal records.

Prominent Financial Consultants is unique to all other competitors. As we provide complete honesty and transparency to all of our clients. Free consultations, evaluations, suggested solutions and a quote before you decide to sign up. In addition a lifetime satisfaction guarantee or your money-back.

Bad credit means higher loan interest rates and higher insurance premiums and that all add up over the years. Bad credit can hold you back from achieving major life goals like buying a house, going back to school, taking a dream vacation, or even retiring on schedule. Fortunately, you aren’t necessarily saddled with bad credit for life, Prominent Financial Consultants are here to help.