Sometimes you may need professional help, especially if you feel that your credit problems are overwhelming, but there are many people who repair their credit all on their own. For those who want to get started repairing bad credit right away, there are a few things you need to know before you dive in.

Repairing Bad Credit: Assemble Your Information

There is no charge to ask for an investigation of information in your file that may be inaccurate or incomplete. Equifax, Experian and TransUnion are required to give you a free copy of your credit report every twelve months if you ask, either all at once or staggered throughout the year. Don’t try to contact them on their own websites — if you want the free credit report you have to use annualcreditreport.com. Otherwise, they could try to charge you for something you should be getting for free. Plus, if you try to get more than one credit report a year from the same company, it could cost up to $10.50.

If you don’t want to use the website, you can call 1-877-322-8228, or get the Annual Credit Report Request Form and mail it to:

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281

You can get a copy of the form to print out from ftc.gov/credit.

Repairing Bad Credit: Additional Free Reports

You’re also entitled to ask for a free report if a company denies your application for credit, insurance or employment based on your credit score. Ask for it within sixty days of getting notice of the negative action – you’ll then have the name, address and phone number of the company.

If you’re unemployed and looking for a job within sixty days, on welfare, or the report is incorrect because of identity theft or other fraud, you can ask for a free report as well.

Repairing Bad Credit: Debt Validation

Once you have your credit report in front of you, you want to take the time to go through each item. You may find multiple copies of the same debt listed on your accounts. You may find accounts listed that aren’t yours, or that were closed satisfactorily years ago. Whatever the issues are, you’ll need to request that the debts be verified.

This can be done by writing the creditor, asking for debt validation – the creditor should be able to furnish proof that you owe the debt. If not, you may not have to pay at all.

Disputing Negative Information when Repairing Bad Credit

Always act as quickly as possible to dispute action against you and your credit score. The longer you wait the more likely it is that that score is going to stay there and be reported as accurate.

Removing outdated items and disputing mistakes helps with repairing bad credit and costs you nothing beyond the postage and your time. The Consumer reporting company and the one providing the information to that company are the ones who have to correct inaccurate and incomplete information that appears in your credit report. If you find information that is incorrect, contact both the Consumer Reporting company and the company or person who gave them the information. That is part of your rights under the FCRA (Fair Credit Reporting Act).

Professional Help

If your accounts that are causing your negative reports are older than ten years, or there are a lot of them to go through, you may need to get professional help. A professional will be able to sort through your files and will be able to accurately explain precisely what needs to be done to repair your credit scores.

Additionally, professional credit repair specialists are able to write exactly what needs to be disputed without being dismissed as frivolous just because they know what needs to be said and how to say it.

No matter which route you choose, don’t let yourself get discouraged. Repairing bad credit takes time, but the rewards in terms of financial freedom are worth it.

What Are Charge-Offs?

Charge-offs are when a creditor deems a debt to be “uncollectable” in order to be able to write it off in their accounting records. Different companies handle charge-offs in different ways – some have an internal collection department, while others will sell old debts or contract third parties to collect for them.

No matter which option a company chooses, charge-offs can be a real headache for consumers, not only because of the damage to their credit reports, but because of the collection activity that often occurs as a result.

Myth:

Charge-offs only occur after several months of no payment – and when they do, they are easy to correct.

Fact:

Charge-offs can occur as soon as 90 days past-due, though most companies wait six months. Regardless of when the charge-off occurs, getting it resolved can be difficult if the company sells their debts to a third-party collection agency.

Myth:

Charge-offs really aren’t that damaging to credit scores.

Fact:

Charge-offs are a significant negative when seen on your credit report, and are much more damaging than a 30-day or 60-day late notation. While not as bad as a bankruptcy or a foreclosure, most creditors won’t lend to someone who has multiple charge-offs on their credit report. Additionally, nearly all mortgage lenders require all charge-offs to be cleared before issuing a home loan.

Myth:

Since the company has written off the debt, I don’t have to pay my charge-offs.

Fact:

Even if your debts are now charge-offs, you are still liable for the debt and if the statute of limitations has not expired on collecting the debt, you may be sued for what you owe. Never assume that you don’t have to pay your charge-offs – always verify the facts.

Myth:

Since I only have one account, I can’t have multiple charge-offs listed for it.

Fact:

You can have one, two, three, or even more charge-offs listed for the same account. The reason being, debt collection companies often sell debt to other collection agencies as well – leaving a trail of charge-offs in their wake. Cleaning up these multiple negative listings can be a real hassle and your credit scores will drop for each new charge-off account listed on your report.

Myth:

Charge-offs are permanent – once you get one on your credit report, there is no getting it off.

Fact:

Despite the very definite negatives that come with charge-offs, there is still hope. These negative listings can be removed if they are inaccurate, just the same as any other debt. And like other debts, there is a credit reporting limit in effect – so if it’s after the credit reporting limit (generally 7 years) then the charge-offs must be removed from your credit report.

Understanding Charge-offs and Your Credit

Once you understand the seriousness of charge-offs and how they affect your credit, you can take steps to avoid having them listed in the first place. Here are three quick tips to avoid charge-offs on your credit file:

1. Keep all accounts as current as possible. If you can’t pay up in full each month, try to come to an arrangement with the creditor. The goal here is to never be more than 60 days past due on any debt. That way, you are assured of avoiding a charge-off.
2. Pay attention to any “Final Notice” bills that you receive. Go to the original creditor and try to work something out before the debt is sold to a collection agency. You’ll find that most creditors are willing to work with you because they get more money if they don’t hire out an agency.
3. Get professional help. If you are having problems with your credit, a credit repair specialist may be able to help you avoid the pitfalls of charge-offs and improve your credit scores at the same time. Disputing inaccurate information (such as debts listed as past-due when they’ve been paid) can help to keep your account from going so far into arrears that the debt is charged-off.

No matter what you decide to do to get rid of or prevent charge-offs, there is no better time to act than right now. Charge-offs don’t have to ruin your financial future if you are smart and take the time to be proactive about repairing your credit.

But if you are willing to do all the work yourself and you feel comfortable talking to the creditors and dealing with the big credit bureaus on your own, there is plenty of free credit repair help in the form of information that you can use to put yourself on the right track.

Can I Trust Free Credit Repair Help?

One of the biggest reasons people turn to professional credit repair agencies for help is to be sure that they are getting the right answers when it comes to credit repair. They also want to know that those answers directly apply to their particular financial situation. With free credit repair help, there are fewer guarantees of accuracy, however, there are a few types of sites you can trust:

You can also trust sites such as the FTC.gov to provide the basic information that you need to repair your credit on your own.

Where to Get Free Credit Repair Help

Because you are likely to be on your own when it comes to actually performing the tasks around the credit repair, where you look for free credit repair help will likely depend on how comfortable you are searching the web and getting information from outside sources.

Forums and newsgroups offer a wealth of information about free credit repair help, but it will most likely be anecdotal information based on the experiences of the forum or newsgroup members. Even so, when several people all have the same experience with one particular creditor or debt collection agency, it can be helpful to understand where you may also run into trouble.

Likewise, if there is a technique that proves particularly effective against a particular company, you will benefit from the past experience of others. Keep in mind that you will need to verify the legality of any advice provided on these forums and newsgroups before you take action.

You can also get free credit repair help and information from blogs, online articles, ebooks, and other resources – but they all carry the same caveat. You will need to verify all information is accurate before you proceed.

That being said, if you are comfortable doing a lot of the work on your own, it is generally not too difficult to confirm a law or a statute by looking it up on the appropriate government website.

Free Credit Repair Help – Important Considerations

While free credit repair help may be your only option if that is all that you can afford, it may be worthwhile to save up for a few months of professional credit repair if you need assistance with disputing complicated items on your report.

The main risk you take with free credit repair help is that the credit bureaus and collection agencies will ignore your attempts at getting the debt cleared. If they decide that your disputes are “frivolous” then they do not have to comply with the laws that generally protect consumers.

Because of this, you must be very careful to make sure you are following the letter of the law and are offering evidence as best you can in order to prove your case.

For very old debt, this may prove to be very difficult, as many banks only keep a few years’ worth of records, and your online bills accounts may only hold the past 12 months of payments. So if the debt is 5 or 6 years old (near the end of the limit for reporting on your credit report) you may have no way to prove that the debt was for a different amount or that you paid more than the creditor claims.

It’s in situations like these where careful wording and experience may make the difference between a removal and a verification that lasts until the debt falls from your credit report. So when you are going it alone, it may make sense to only challenge those items you are assured of getting removed.

Regardless, free credit repair help can make it easier for you to decide how to start repairing your credit and where you can begin in order to get the best benefit for your credit scores. Even if you have to go it alone, you shouldn’t wait – the sooner you start repairing your credit, the more dramatic the results can be.

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.

How to Spot a Credit Repair Agency Scam

Credit repair agency scams can come in many forms, and you may be contacted via telephone, email, or regular mail by a scammer who is just hoping you’ll take the bait. If you’re feeling desperate as the bills pile up, this uninvited offer for assistance may seem like just the thing you’ve been waiting for — and that’s what the scammers want you to think.

You should evaluate any unsolicited offers from a credit repair agency very carefully, and if they have any of the following warning signs, you should stay away:

 

Choosing the Best Credit Repair Company – Extra Services vs. the Basics

Sometimes, people turn to professional credit repair to help with one particular issue, and sometimes there are several. Different credit repair companies all offer different levels of service. What one person may consider necessary, another may consider to be extra, unneeded “frills”.

The best credit repair company for you will match up with your needs, but you have to know what those are before you choose.

Credit Repair “Basics”

At the very least, the credit repair company should do the following:

• File your disputes with the credit bureaus
• Follow-up on any confirmed items
• Provide you with a list of disputes filed
• Give you copies of any letters or responses from the credit bureaus
• Help you to keep track of which disputes have been filed and what the results were

Most credit repair companies will also:

• Request debt validation from collection agencies
• Follow-up on ignored validation requests
• Act as an intermediary between you and the collections agents

Extra Services You May Need

The additional services offered will vary from agency to agency, but if you need extra services, then the best credit repair company for you may include some or all of the following:

• Credit score tracking
• Credit report alerts
• Identity theft monitoring
• Letter writing for additional credit repair tactics (Goodwill, Pay-for-Deletion, etc.)

There may be other services as well – some credit repair companies offer finance classes, for instance. In order to find the best credit repair company for your situation, make sure you are getting all of the services you need, or as many as possible for what you can afford.

Choosing the Best Credit Repair Company – One Time vs. Long Term

This one may seem simple on the surface but once you start to think about it, there are a number of factors that may contribute to whether you want one-time credit repair assistance or a long-term solution.

You may only have one or two items, but how fast will these items be resolved? If the negative listings on your credit report are complicated, then the best credit repair company for you may be one that offers long term services.

For people who only need help with a particular problem – maybe a bill that is listed as 90 days past due when it is really current  and you can’t work things out with the creditor on your own – a one-time solution may make more sense.

Choosing the Best Credit Repair Company – Legal vs. Professional

Generally speaking, small legal firms offer fewer services than the larger professional companies, so if you want all of those services wrapped up into one package, this choice may already be made for you. However, you may need to reconsider when it comes to choosing the best credit repair company, as small legal firms and professional service firms have some distinct differences.

In particular, you need to decide which is more important: access to someone knowledgeable at (nearly) all times, or one-on-one discussions either in person or over the phone. Also, while a person does not have to have a law degree to assist with credit repair, it may be an issue if you need assistance dealing with a judgment or will need representation in court proceedings.

These are all complicated issues, so it’s important to get it right the first time. You don’t want to spend money on a credit repair service, only to find out that it’s not the best credit repair company for your situation.

Take the time to prioritize what it is you want out of a credit repair company, and then use those criteria to narrow down your choices. Once you have five or less to choose from, start calling them up and get a feel for how well you will work with them, whether a company or a lawyer. Trust your instincts and be ready to take action once you’ve made your decision.

Choosing the best credit repair company is important, but what’s even more important is getting started right away so that you can see real improvements in your credit situation sooner rather than later.

But regardless of the underlying reason, there are certain things you can do to have these negative items removed permanently and legally.

Collection Accounts on Credit Report Files — Are Duplicates Allowed?

Myth: You can only have one entry on your credit report file for each account you own.

Fact: If you have an account that has gone into collections and it has been sold to a debt collector, you may have multiple entries on your credit report file for one account.

What You Can Do: The easiest way to avoid having collection accounts on credit report files that you own is to keep your open accounts up-to-date. This doesn’t necessarily mean staying current — in most instances, creditors only write off those accounts that are six or more months past due. This means that if you can avoid being more than 180 days late on any payment you’ll most likely avoid these collection accounts on credit report files that you own. Bear in mind, however, that even 30 days late on your payment will mean that you take a hit to your credit scores.

If you already have a collection account (or accounts) on your credit report, you’ll need to act swiftly in order to get it removed as quickly as possible.

Collection Accounts on Credit Report Files — Are They Always Collectible?

Myth: If a collection account appears on my credit report, my only option is to pay it off.

Fact: Just because a collection account appears on your credit report, it doesn’t mean that you’re necessarily obligated to pay.

What You Can Do: Many times, creditors will sell debt that is past the statute of limitations. These debts cannot be legally collected in a court of law, even if you still owe the amount in question. Creditors may also sell debt that is past the federal reporting limit on your credit report. When debt collectors list these collection accounts on credit report files, they are acting against the law. You can request to have the collection account removed from your credit report if the debt is past the federal reporting limit. The collection account has to be removed regardless of whether or not you’ve actually paid the debt if it is past the federal reporting limit — generally anywhere from 7 to 10 years after the first delinquency on the account.

Collection Accounts on Credit Report Files — Can I Trust my Credit Report?

Myth: If my debt is sold to another debt collector, the credit bureaus will automatically update my file to reflect only one collection account on my credit report.

Fact: You may have multiple listings from various debt collection agencies if your debt has been bought and sold multiple times. Each collection account will count against you and will hurt your credit scores, even though they all reference a single debt.

What You Can Do: When debt is bought and sold multiple times, mistakes are often made. As a result, some of the debt collection agencies will most likely have errors in the information about your account. If the debt collection agency cannot produce accurate records, they have to remove the listing from your credit report. However, this only happens if you write and request debt validation – the credit bureaus will not automatically update your file, and the debt collection agencies are unlikely to send in updated information (if they even have it to send).

Collection Accounts on Credit Report Files — Is It Legal to Get Professional Help?

Myth: Getting help with collection accounts on credit report files isn’t necessary. The credit bureaus and the debt collection agencies will listen to me when I file my disputes.

Fact: Sometimes they do, and sometimes they don’t. Credit bureaus are not required to investigate a dispute if they consider it to be frivolous. Collection agencies may or may not perform diligent investigations when you ask for a debt to be verified, and the credit bureaus are more likely to take the side of the debt collection agency in many instances.

What You Can Do: If you feel that you need assistance with writing your dispute letters and/or deb verification requests, a credit repair specialist may be able to provide you with the help you need. Credit repair specialists also provide added security and the peace of mind that comes from knowing you have professional help and support. For those specialists that are also lawyers or that have a good reputation in the business, it is far more likely that your communications will be taken seriously and you’ll see results.

The bottom line is this: collection accounts on credit report files do not have to destroy your credit. You can remove ANY type of inaccurate information on your credit reports, no matter who put it there – so don’t wait to repair your credit. Get started now and see your scores improve with every collection account that gets removed.

Credit Repair Agencies – How to Choose

When it comes to fixing your credit, reputable credit repair agencies will handle anything from late payments to charge-offs, judgments, bankruptcies, and more. This makes finding the right credit repair agency the most important task you’ll have when it comes to getting rid of negative items on your credit report.

There are several qualities that you’ll want to look for in the credit repair agencies you are considering. First and foremost, you want a company that has verifiable experience and expertise. Testimonials help, but having a reputation in the business is important as there are so many fly-by-night companies that only exist to take your money and run.  Make sure that the company doesn’t ask for payment up front, and that they know and respect the law when it comes to protecting your credit.

Second, you’ll want a company that has proven success rates. You want to be able to see that the company really has removed negative items from their customers’ credit files. And you want to be sure that there is consistent pattern of success.

Once you have these two factors in place and are sure that the credit repair agencies you are considering are well-established and professional, you need to narrow the field. To do this, you’ll want to work out what kind of services are most important to you – is it just the dispute letters, or is it follow up support, credit monitoring, etc. – in addition to the basic services that all credit repair agencies provide.

List the services that you must have in order of importance and be ready to shop around with a few credit repair agencies until you find the one that is the right fit. Going this route may mean that you have two or more credit repair agencies that fit your needs once you’ve narrowed your choices.

How do you choose between them? The best advice here is to get on the phone and actually speak to one of the people who may be handling your credit repair. You want to feel comfortable talking to the people in the company, and you want to feel like these are people who will work hard on your behalf.

Avoid any credit repair agencies that make you feel uncomfortable or pressured to make a fast decision without checking out your options. A good credit repair agency will recognize that getting your credit back on track is too important to make a snap judgment call, and will always be willing to let you know your rights under the current laws.

Credit Repair Agencies – Moving Forward

Once you’ve chosen the credit repair agency that’s right for you, you need to get started with your credit repair efforts right away. The reason for this is that the longer you wait, the more serious your credit problems are likely to become.

For example, most credit repair agencies can help you to clear up a 30-day or 60-day late payment notation on your credit report. But if you keep waiting, to the 90-day or even 180-day mark, you risk having the account sent to collections. Once that happens, it triggers another wave of negative items on your credit report which will need to be addressed.

Continue to wait, and you’ll have to deal with a charge-off account, and additional negative hits as the debt collection companies add their own negative entries to your credit report. Each of these new items will be more work (and more money you’ll have to spend) to get the item taken care of properly. Additionally, each of these new items further drags down your credit scores, and makes it difficult to recover.

If you already have these issues, you may wonder what you have to gain from taking action now versus continuing to wait. Depending upon which state you live in, hiring a credit repair agency may be the best step to preventing judgments, liens, wage garnishments and more – getting rid of inaccurate or untimely information before it can cause additional problems is just the right thing to do.

No matter what your financial situation, whether it’s just a few problems or several, you need to be proactive this new year in getting your credit problems under control. Let the credit repair agencies help you ring in the New Year with a bright financial future.

Understanding How to Dispute Bad Credit

Federal law outlines your rights as a consumer to dispute bad credit. These consumer protection laws give you the right to dispute any inaccurate or out-of-date information within your credit file. What’s more, the burden of proof is generally on the creditor to show that the disputed information is accurate.

You can have negative information removed from your credit report if the creditor does not report the correct information – errors in address, name, account numbers and even the amount you owe are not uncommon. This is one of the reasons why it’s so important to keep track of your credit file as errors can severely impact your ability to qualify for the kinds of credit you deserve.

While the steps look simple, if you have more than one or two items to dispute, it’s easy to lose track of what’s been filed where. Keeping track of your correspondence when you dispute bad credit is highly important – your creditors are required to respond to your disputes within 30 days. The credit bureaus are required to remove any disputed item(s) from your credit report while the investigation is ongoing.

If your creditors fail to respond in the timeframe provided by law, then the negative item must be removed from your credit report, regardless of whether or not it is correct.

When to Dispute Bad Credit

Knowing when to dispute bad credit can help to save you some time and frustration. In general, it’s best to dispute an error as soon as you see it. Waiting around only increases the time that negative items have to lower your credit scores and damage your chances to qualify for new credit.

Additionally, more weight is given to recent negative items versus older items, so if you can dispute bad credit sooner, you will see a greater lift in your credit scores once the item is removed.

However, in some instances it can make sense to wait. For example, if you have a debt that is near the reporting limit, i.e. 7 years old, then you can safely wait until the credit reporting limit has passed in order to dispute the negative item and be sure it will be removed.

This is particularly useful where you may not have proper documentation, but you are certain of the error. Once the debt is past the reporting limit, you can have it removed for that reason alone, without any backup documentation.

Professional Help to Dispute Bad Credit

While some people prefer to go it alone when they dispute bad credit on their credit reports, others prefer to turn to a professional for advice. Both methods have their places, and it is entirely possible to dispute your bad debt on your own.

However, hiring a credit repair specialist can have many benefits, including:

• Ongoing support for multiple credit issues – get help with organization, verification and tracking for all of your dispute letters and other notices
• Professional intervention with the credit bureaus – get help with follow-up letters, official correspondence and responding to requests for more information from the credit bureaus
• Professional intervention with creditors – a professional credit repair agency will respond on your behalf to any requests for information, or refusals to change inaccurate information from your creditors or the collection agencies as a part of the credit repair process
• Credit monitoring – some credit repair companies will also monitor your credit file for key changes that could impact your scores, so that you can dispute inaccurate information faster and minimize potential damage
• Peace of mind – with a professional supporting you, you don’t have to worry about the day-to-day tasks of repairing your credit

Whether you decide on professional help to dispute bad credit items on your credit report or not, the important thing is to take that first step. Go over your credit report, start disputing the incorrect items, and see your credit scores improve.

It is your right as a consumer to dispute negative items that are inaccurate and you owe it to yourself and your financial freedom to have the very best credit scores possible.

What is Credit File Repair?

When people talk about credit repair, what they really mean is credit file repair:  that is, updating and correcting the file from each of the three credit bureaus.  Typical credit file repair works like this:

While credit file repair can seem straightforward on the surface, there are many factors that complicate the process. One of the major stumbling blocks many people run into is the fact that whether or not the credit bureaus decide to investigate rests solely with them. Likewise, your creditors do not have to verify any information if they consider your request to be “frivolous”.

What that means for you is, if you want your credit file repair to progress successfully, you need to have a strong case, ideally with documentation to back up your position.

Credit File Repair: Types of Errors

The most common problems that people generally target for credit file repair include errors in the amount of a current debt, errors in the payment date(s) of a current debt, charge-offs with errors in the date or amount, and collection accounts that either do not have accurate records (wrong name, wrong address, etc.), or that are reporting incorrect information.

Additionally, if the collection account is older than the credit reporting limit, then it must be removed from your credit file, regardless of accuracy. Generally speaking, this is 7 years for most debts, but may be up to 10 years for things like bankruptcy or unpaid judgments.

Credit File Repair: Common Mistakes

The biggest mistake most people make when it comes to credit file repair is confusing the credit reporting limit and the statute of limitations or “time-barred” debt. While the statute of limitations for suing and collecting a judgment varies from state to state, the reporting limit does not.

Therefore, it is entirely possible for a collection account to be time-barred – that is, the collection agency can’t sue you to recover the money – while still being within the statute of limitations for being reported on your credit file.

What this means is, while the collection agency cannot do anything to force you to pay, they don’t have to remove the negative item if it is accurately reported. The only remedy in this instance is to wait for the time to run out for reporting the negative item on your credit report – once this date is past, you can dispute the negative entry and it will be removed.

Another common mistake that many consumers make when it comes to credit file repair is assuming that one account cannot appear on their credit report twice. Unfortunately, this is not always the case.

If you have an account that has been charged-off – that means the original creditor has written off the debt – that entry and the entry from the collection agency that buys the debt will both be on your credit report, and they both have a negative effect on your credit scores.

The best option is to avoid a charge-off situation when at all possible and work out payment arrangements before you are 60 days past due. However, if you already have a charge-off account on your credit file, the next best option is to try to work with the original creditor and get them to accept payment – by doing so, you will most likely be able to dispute and remove the collection agency account, and reduce the damage to your credit scores.

Credit File Repair: Getting Professional Help

Not everyone needs help with credit file repair – some people only have one or two negative items that are easily taken care of through the typical dispute resolution process. However, if you have a large number of past due accounts, collection accounts, judgments, or other negative information on your credit file, you may need the help of a credit repair professional to get it all sorted out.

This is particularly true of older debts where you may not have all of the necessary documentation to prove your case – in this instance, having a professionally-worded dispute can be the difference between getting credit file repair and seeing your complaint ignored for being “frivolous”.

In the end, credit file repair takes patience, diligence and willingness to follow-up with all three bureaus for every single negative entry that is inaccurate. By taking the first step and disputing these errors, you are taking back your financial freedom and getting that much closer to your goals. Whether you do it on your own or with the aid of a professional, the sooner you get started, the sooner you can look forward to all the benefits of a clean credit record.