It’s important to understand what kind of assistance is available when you need credit report help. Whether from a legal expert, a consumer advocate, or a credit repair agency, you need to be informed of your options and what you can do.

Do You Really Need Credit Report Help?

Some people (mistakenly) believe that the only way to get an item corrected on a credit report is to get an outside agency or professional to do it on their behalf. While they might think they need credit report help, nothing is further from the truth – anyone can dispute inaccurate information on their credit reports at any time.

So the question is not whether or not you have to have credit report help, but whether or not you actually need it. And in many cases, the answer is a resounding “yes” – having a professional handle credit report issues can often be very beneficial.

How to Get Credit Report Help

One way to get credit report help if you want to repair your credit yourself is simply taking the time to do some research. Read up on your state’s credit and consumer laws to understand your rights. Read the Fair Debt Collections Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) so that you know precisely what the creditors and credit bureaus can and cannot do.

Once you are fully aware of your rights as a consumer, it becomes easier to see when you do and do not need to get outside credit report help. If you have decided that you need a professional, there are many credit repair companies and credit repair lawyers out there who can provide services.

The best way to get credit report help from a professional is to first make a list of the questions you need answered and the services that you find necessary.  Once you have your list, you can start searching for companies and independent professionals that meet your criteria.

Do you need credit report help because of a lien or a judgment on your credit report? Do you have bills that are in collections or zombie debt that is showing on your credit reports well past the federal reporting limit? Each of these examples requires a different kind of credit report help, and by focusing on exactly what you need, you are more likely to get a positive result from the professional you choose.

Most places that offer professional credit report help allow you to sign up directly online – this is convenient because it allows you to get started right away. It is also a reason to be careful as you make your choices, and to be certain you are choosing someone reputable for your credit report help.

The top companies in credit report help – Lexington Law, Sky Blue Credit, Ovation and others – already have verifiable credentials and a reputation in the business so that you can feel secure in giving them your information. If you go with a smaller, unknown company, it is up to you to make sure you thoroughly check them out before you sign up.

Setting Expectations for Professional Credit Report Help

Even though professional credit report help offers multiple benefits, it is important to have realistic expectations about what a professional can and cannot do.

In general, it is important to realize that a credit repair specialist cannot offer credit report help that is outside the law. That is, they cannot get accurate, timely, and verifiable information removed from your credit report. If the information is accurate and it is not past the federal reporting limit, and if the creditor has records that can prove the accuracy of the information, then the item is going to remain in your credit file until the time limit on reporting it runs out.

Any credit repair agency that says otherwise is not telling you the truth, and you would be well advised to hire another professional to help you.

Professional credit report help can, however, ensure that you get an appropriate response from creditors, collection agencies and the credit bureaus. Formal letters and professional intermediaries can go a long way to getting you results. Getting inaccurate information removed from your credit report will likely be easier when you have credit report help that comes from a professional.

As you can see, getting credit report help doesn’t have to be complicated. Once you’ve found a reputable company, don’t wait around – get the credit report help you need and start seeing your scores improve right away.

Scenario 2: Stacy has fallen behind on some of her bills over the years, including some charge-offs. She gets a raise at her job, and starts paying off all of her bills, starting with the oldest ones first. Stacy is dismayed to find out that her credit scores have dropped significantly, despite the new ‘paid’ status on all of her old, previously-unpaid accounts. She is unable to open any new credit accounts, and despite having paid down her debts, she finds that her credit scores remain low for some time.

Both Brenda and Stacy paid their debts, so why did Brenda’s credit scores improve while Stacy’s got worse? The simple answer is: Time. Brenda’s debts were only a few months past-due, while Stacy’s debt was years past due. Because new negative information harms your credit scores, paying off a lot of old charge-offs can initially put your credit scores into a tailspin. Even though Brenda’s medical bill was written off after a few months, the relative newness of the negative information had already done its damage to her scores. Stacy’s old charge-offs, however, were impacting her credit scores much less before they were paid in full.

How late is too late to pay down a debt? Generally speaking, the closer a debt is to being dropped from your credit report, the less likely it is to help you if you pay it off now. That doesn’t mean you shouldn’t pay off the debt – but you may want to wait until the item has dropped from your credit report if you want to avoid damaging your credit scores. In general, any revolving debt that is a few months past due should be taken care of first. Open accounts take precedence over your old charge-offs.

If you do decide to pay on a charged-off account, make sure that you only pay the original creditor. While debt collectors may be the ones contacting you about the debt, not all debt collection agencies are reputable. If you pay off the original creditor, there is less chance that your good-faith payment will be mishandled. In some instances, very old debt may have been bought and sold by multiple debt collectors – paying the original creditor ensures that you have a verifiable means of proving that the debt has been satisfied.

Charge-offs can be tricky business. No one wants to leave a debt unpaid, but if a credit item is about to be removed from your credit report, it may be best to wait before you pay. If you do decide to pay sooner, contact the creditor directly and let them know that you’d like to work out an arrangement that will help minimize the impact to your credit scores. Make sure you check on your credit report again after the payment has cleared to be sure that it accurately reflects the status of the debt. The worst thing you can do is pay off a bill and have the payment go unreported, so always be vigilant and check your report regularly.

1. Check your credit report and credit scores. People who know they have poor credit may only know because they’ve been recently turned down for new credit. If that applies to you, get your credit report sooner rather than later. Being turned down for credit entitles you to a free copy of your credit report, even if you’ve already received your credit report in the past year. By getting the most recent version of your credit report and scores, you’ll know exactly where you stand. Start off by disputing any inaccuracies that you see – inaccurate items on your credit report can significantly damage your scores.

2. List your debts from smallest to largest. By itemizing your debts, it will help you to focus on paying down your debts more efficiently. If most of your debts are nearly the same value – $1000 on one credit card and $1500 on another, for instance – then list your debts by interest rate instead.

3. Pay off the smallest debt (or the one with the highest interest rate) first. By getting rid of debts in a targeted fashion, you can improve your credit scores more quickly as you eliminate your debt obligations one at a time. Use the money you spent towards paying down the first debt as an additional payment to pay off the next, and you will be able to get out of debt even faster.

4. Don’t forget to reward yourself along the way. Getting out of debt and improving credit scores is hard work. Whenever you meet one of your goals, set aside a reasonable reward to celebrate your hard work. Whether it’s saving for a vacation, a special night out, or some other treat, make sure that it fits with your current budget and savings goals.

5. Remember that not all debt is bad. Some debts are actually seen as good debt by lenders. In general, if you have borrowed to purchase something that will increase in value, this debt is seen as positive by lenders. Student loans, traditional mortgages, and money borrowed to grow your business all fall into this category. That doesn’t mean that you shouldn’t repay these debts – on the contrary, paying off good debt can only increase your net worth in the future.

Paying down debt and paying on time are two of the most powerful techniques for raising credit scores. If you’re having difficulties with tackling your debt and getting your credit on track, talk to a reputable credit repair agency, and work with a professional to raise your credit scores one step at a time.

1. Keep a Spending Journal. Often, it’s not the big purchases that can cause problems, but instead, several small purchases that add up. Fast food, movie rentals, and other little conveniences we take for granted can quickly add up. By keeping a diary of exactly what you spend on a daily basis, you can track precisely where your money goes when you make these ‘unseen’ purchases. Once you understand your own spending habits, you’ll be better prepared to stick to your financial goals when temptation arises.

2. Create a Budget. This goes hand-in-hand with your spending journal. In order to control your spending, you have to set reasonable limits. Look at your bills and see where you can cut back, as well as areas that you may need to spend more in order to reach your goals – putting away more money into your health savings account may be useful if you are planning to have a major procedure, and want to avoid maxing out a credit card, for instance.

3. Prioritize. When you are setting goals for improving your credit, prioritize what’s most important. Getting current on everything at once may not be possible, but you can decide to get current and stay current on those cards that are charging the highest fees, for example. Once you’ve met one goal, move on to the next – credit repair is a dynamic process, and as long as you are willing to move forward, you will see positive results.

4. Make a Wish List. Don’t forget to reward yourself (within reason) as your credit scores improve. Try to think of ways to treat yourself that won’t put you back into debt. Save up for a well-deserved vacation, or treat yourself to dinner and a movie twice a month. The trick here is to find something that will motivate you, without breaking the bank.

5. Automate Your Bill Pay. If you find that you are often charged late-fees because you forget the payment due date, why not pay automatically through your bank? Most banks now offer online bill pay as well, so avoiding late fees and the damage to your credit scores can be as simple as a click of the mouse.

6. Keep Track of Your Progress. Don’t forget to check your credit report and scores to gauge your progress after several months. Everyone gets one credit report per year for free – and people in some states get 2, so check your local regulations. Make sure that companies are reporting your timely payments accurately, and don’t forget that you can dispute inaccurate information on your report. If you need help with the process, work with a reputable credit repair agency to get the job done.

The ‘trick’ to credit repair is in knowing that it is an ongoing process. As you move towards your financial goals, always be willing to incorporate ways that will make it easier for you to succeed.

Your first and likely best option is to write your creditor and request a pay-for-deletion arrangement. In the letter, offer to pay a percentage of what you owe provided that the creditor agrees to remove the charge-off from your credit report. If the debt is fairly recent, you may need to offer the full amount as payment in order to get the creditor to agree. Not all creditors will agree to this type of arrangement, but if they do, be certain you have the pay-for-deletion agreement in writing before you send in your payment. You will have to use certified funds in this type of an arrangement, so be prepared take the extra step of purchasing a money order or cashier’s check. This option works best, because the derogatory credit history will be gone from your report as if it never existed.

Your second option is to arrange for the debt to be listed as ‘Paid in Full’ on the credit report, in exchange for payment. Just as with a pay-for-deletion agreement, you must be certain to get this in writing, especially if you work out a payment arrangement that is less than what you owe. The ‘Paid in Full’ listing will improve your credit score, but not as much as having the derogatory information removed entirely. What you do not want is a listing of ‘Settled’ on the account, as it indicates to other creditors that you do not fully meet your credit obligations.

Your last option, if you cannot work with your creditors in any other way, is to pay off the debt in full, with appropriate account numbers, reference numbers and any other necessary information included with the payment. Make copies of everything, and once the payment clears, you can dispute the listing on the credit report to have it updated as ‘Paid in Full’. Keep in mind that you must provide proof that the debt was entirely satisfied in order for this method to work, so you won’t be able to make a payment that is less than the full amount owed if you want this to be successful.

One final note: charge-offs remain on your credit report for up to 7 years. If the date for the charge-off to be removed from your credit report is close, you may wish to wait for it to be removed from your credit report entirely. This is true whether or not you ultimately decide to repay the debt, because repaying older debts can cause your credit scores to drop temporarily.

Getting your credit repaired can take some time if you have several charge-offs. Be patient, wait for the written agreement, and make the payments in certified funds in order to obtain the best results.

When you cosign an account, whether it’s a loan, credit card, or an open line of credit, that account shows up on your credit report as well as the credit report of the individual you cosigned with so that he or she could qualify for the credit. This means that if payments are not made on time, both individuals’ credit scores will suffer. Additionally, the student credit card that you cosigned for will be added to your current available-credit-to-debt ratios and you could be denied additional credit based on the payment and purchasing activity on that card. Keep the initial credit limit low, and make sure any credit limit increases are only granted with your consent – this will help you to effectively manage both your credit scores, and your child’s credit scores.

Credit card companies probably won’t stop their aggressive marketing to students, and you can expect that the new laws will only encourage some credit card companies to offer additional incentives for new students to get their parents’ agreement to sign up for the card. If you have a student who is currently in college, or that is approaching college age, now is the time to help explain to them how credit cards work – keeping balances low, making payments on time, and paying off more than the minimum balance each month can actually improve your child’s credit, and yours as well if managed carefully.

If your student will be attending college out of state, it can be difficult to keep track of credit card activity. One way is to sign up for email alerts on purchases, or when the card is approaching its limit. Be aware of how much your child spends while in school, and help him or her to create a budget that will successfully track spending and reduce the risk of over-limit fees. Even better: opt out of any over-limit fees on the new card, and avoid getting hit with extra charges if your student does max out the card.

It’s never too soon to learn the lessons of responsible credit use; just be certain that your college student’s spending habits don’t end up costing you your good credit. Stay informed when it comes to purchases, encourage responsible spending habits, and don’t be afraid to take the credit card away or cancel the account if your child proves that he or she is not ready for the responsibility – it’s better to cancel a card with a small limit early on than it is to pay thousands in fees and late charges down the line.

Some common mistakes with regards to positive information on your credit report include the length of time the account has been open, the credit limit on the account, and any accounts where you may be a joint account holder but the account isn’t listed on your credit report. When it comes to these types of mistakes, adding the positive information to your credit report can usually be accomplished one of two ways:

Contact the creditor. If it’s a case of not having a joint account listed on your credit report, you’ll want to contact the creditor directly. In many instances, your creditor will be able to add the account to your report for you. This is especially true if the account is listed for the other joint account holder already.

Contact the credit bureaus. After you’ve contacted your creditor, you’ll want to confirm that the information has been changed within the credit bureaus. Wait a couple of weeks, and then check your report – if you still see errors, send a letter to the credit bureau asking them to correct the information, or use the online contact form.

For accounts that are in your own name, but that aren’t listed on your credit report, you should verify with your creditor that they report to the three national credit bureaus. Not every creditor chooses to report to the bureaus, and without their voluntary reporting, the credit bureau won’t be able to help you. If you do confirm that the creditor typically reports and just hasn’t reported your account, you can take the same steps above in order to have the situation resolved.

For creditors that do not choose to report your credit to the agencies, you can still help your chances of obtaining credit if you can get a certified copy of your payment history. If possible, request a copy of the payment history on company letterhead, and signed by a manager or someone else in charge. By having this documentation on hand to bolster your credit report, you may be able to convince some lenders.

Adding positive information can be a helpful step when it comes to repairing your own credit. Listing accurate, positive information can counteract some negative marks on your report. Additionally, by verifying these positive items, you will can be more vigilant to potential errors in the reporting process overall. Don’t just look at your negative items – always look at your credit report as a whole to attain the best results.

Delinquencies (30 – 180 days late) remain for 7 years from the date of the initial missed payment.

Collection accounts remain on your credit report for 7 years from the date of the initial missed payment that led to the collection (the original delinquency date). When a collection account is paid in full, it will be marked “paid collection” on the credit report.

Charged-off accounts remain for 7 years from the date of the initial missed payment that led to the charge off (the original delinquency date), even if payments are later made on the charged-off account.

Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain 7 years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain at least 10 years.

Lost credit card – If there are no delinquencies, credit cards that are reported lost will continue to be listed for 2 years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.

Bankruptcy – Chapters 7, 11, and 12 remain for 10 years from the filing date. Chapter 13 remains 7 years from the filing date. Accounts included in bankruptcy remain 7 years from the date they were reported as included in the bankruptcy.

Judgments (child support, civil & small claims) remain on your report for 7 years from the date the judgment is filed.

Tax Liens – (city, county, state, and federal) Unpaid tax liens remain 15 years from the filing date. Paid tax liens remain 7 years from the paid date of the lien.

Inquiries remain on your credit report for 2 years, with those in the last 6 months usually given the most consideration.

Positive Accounts remain indefinitely and paid positive accounts remain 10 years.

DO…

• Consider closing unused and idle accounts. These accounts could be charging you unnecessary fees and are often targets for identity thieves. Close the accounts with annual fees or the highest interest rates first.

• Check your credit report online to see the status of your accounts. Look for late payments, high balances and signs of identity theft. As a bonus, checking your credit report can save you some research time by providing you with contact information for each of your creditors.

• Be aware that you can cancel accounts that have an active balance. You can ask your creditor to close the account to new charges and continue paying down the balance each month. This may be a good way for heavy credit users to prevent new spending while they are reducing their balances but watch out for hidden fees.

• Keep four to six credit accounts open. This will keep your credit score and debt balances healthy. Signs of active and responsible credit use are viewed positively by creditors.

• Designate one card for regular use and try to pay the balance in-full each month. Reserve the other cards for emergencies only so that you are not tempted to overspend.

DON’T…

• Don’t close the oldest account on your credit report. This could cause your credit history to appear shorter and could harm your credit score.

• Don’t just throw away old cards and expect your accounts to close automatically. The safest way to close an account is to send a certified letter to the customer service department of the credit company. You should receive an account closing confirmation letter in 10 days.

• You shouldn’t be pressured to cancel several accounts all at once. Gradually paying down and closing accounts may be the best plan if you are unsure about the impact on your credit score or the amount of debt you need to carry. If you want to cancel numerous credit accounts, spacing the closures over time will reduce the chance of attracting negative suspicion from potential creditors.

• Avoid over-consolidating balances onto one card. If your credit balances rise to above 35% of your available limits, you may see a drop in your credit score.

• Don’t forget to check your credit report for updates and errors after you close your credit accounts. Wait 30-60 days for the creditor to report the closed account and the credit reporting agencies to update your records. While the accounts and their payment histories will stay on your report for 7 or more years, they should be marked as “closed.”

The credit reporting agencies – TransUnion, Equifax and Experian are the three national credit reporting agencies that keep records on consumers. The reporting agencies work with lenders, creditors, insurers and employers to update and distribute your information to the appropriate institutions. Here’s an example of how the system works:

1. When you apply for a new credit card the creditor requests a copy of your financial history from the reporting agencies. This causes a “hard inquiry” to be recorded on your credit report.

2. The creditor uses your credit reports and scores along with income and debt information to determine what rates to offer.

3. You start to use the new credit card and the creditor reports your activities to the credit reporting agencies about every 30 days.

4. The credit reporting agencies update your credit report as they receive new information from creditors or lenders.

5. Your credit profile changes based on your financial activity. The next time you apply for a credit card or loan, the process repeats.

Your Credit Report

Your credit report is divided into six main sections: consumer information (address, birthday and employment), consumer statement, account histories, public records, inquiries and creditor contacts. When you open a new account, miss a payment or move, these sections are updated with new information. Old negative records will stay on your credit report for 7-10 years. Positive records can remain on your credit report longer. Not all creditors report to all three agencies and the agencies obtain their data independently so your reports from TransUnion, Equifax and Experian could be substantially different from each other. That’s why it’s important to check your three credit reports every 6-12 months to ensure that the information is accurate and up-to-date.

Correcting Inaccuracies

Under the Fair Credit Reporting Act, consumers are protected from having inaccurate information on their credit reports. If you find an inaccurate record on your report, try contacting the creditor or lender associated with the mark first. These companies can usually correct the mistake and send an update to the credit reporting agencies. If you can’t make progress this way, you can also dispute the inaccuracy directly with the credit reporting agencies.

Working the System

Keeping your credit reports healthy will improve your credit scores and help get you the best rates on major purchases. We recommend that you check your credit reports every 6-12 months or at least 3 months before a major purchase in order to guard against damaging inaccuracies and identity theft. Routine check-ups along with paying your bills on time, keeping your credit card balances below 35% of their limits and correcting any negative inaccuracies will help you maintain a healthy credit profile.