Credit Improvement-Do it yourself

Contents of Guide — Bankruptcy — Credit Laws — Credit Cards — Credit Scams — Credit Fraud — Identity Theft- Credit Information — Credit Improvement — Home Buyers / Mortgage Credit

Credit Improvement

Accurate and timely information cannot be removed from your credit file unless there was an extreme mistake, possibly the courts will order it off

Credit Repair clinics can't do anything to improve your credit file that you can't do for yourself
Avoid companies that want you to pay for credit repair before they provide any service
It's illegal for tele marketers who offer credit repair services to request payment until six months after they've delivered the service
"Credit problems? No problem!"
"We can erase bad credit -100% guaranteed."
"Create a new credit file - legally."
"We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"

What to look out for:

They want you to pay money up front before any services are provided
Do not tell you your rights and what you can do yourself for free
Recommend that you not contact a credit bureau directly; or
Advise you to dispute all information in your credit file or take any action that seems illegal, such as creating a new credit identity.
If you follow the illegal advice and commit fraud, you may be subject to prosecution
No one can legally remove accurate and timely information from a credit report. But the law does allow you to request an investigation and reinvestigation of information in your file that you dispute as inaccurate, incomplete, or adverse and out dated. There is no charge for this. Everything a credit repair company can do for you, you can do for yourself and save a lot of money doing it. (See the laws section of this guide under The Fair Credit Reporting Act)

Do yourself a favor and save your money. Don't believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit file. You see these ads in newspapers, on TV and on the internet, here them on the radio, get fliers in the mail and even call from tele marketers offering the same claim. Its all a scam, everyday companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, a large fee, to clean up your credit file so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can't deliver. After you pay them hundreds or thousands of dollars in up front fees, these companies do nothing to improve you credit; many vanish into thin air with your money.

You may not be aware of how much information is not on your credit file. The reason for this is, there are some subscribers out there who are only limited subscribers, they only inquire about a consumers credit file and do not input their credit experience with their patrons. Although they don't report the consumers payment history, they do, however, run a credit report on an applicant prior to extending him or her credit. If you notice on your credit report, these creditors only report to the credit bureaus when the consumer defaults on his loan.

CONTENTS OF A CREDIT REPORT

Identification Section- This section includes all your personal information such as: complete name, address, social security number and date of birth. Also other identifying information reported by creditors.
Credit History Section - This section includes a list of both open and closed accounts. The identification numbers of all subscribers (creditors), the original date account was open, beginning and current balance, original terms, payment history and date of last input by creditors.
Public records- This section includes all courthouse records available to the public such as Liens, Bankruptcy's and Judgments.
Collection agency Accounts- This section includes all accounts forwarded to a third party by creditors who have given up on trying to collect amounts owed (defaulted loans) to them by you. Once the account is turned over to the collection agency, they report it to the credit bureau.
Additional Information- This section consist primarily of former/other addresses and employment’s as well as current employment. Other names used, middle initials, self-employment information etc...
Credit Inquiries- This section includes a list of businesses or creditor who have (run) or received a credit file on you in the last 24 months. When creditors run a credit report on a consumer, the credit bureau's computers automatically records this on the consumers credit file. Inquires give creditors an idea of the type payment history a consumer has, which they use to determine your credit worthiness.