Is Credit Repair Legal?
Posted on September 3, 2007 in the Credit category
.Are you wondering; Can I legally repair my credit report? Can I legally increase my credit score? The answer to both of those questions is YES!
The Fair Credit Reporting Act (FCRA) protects you from mistakes made by the three major credit agencies (Experian, Equifax and TRW). By law you are allowed to dispute questionable items on your credit reports on the basis of “completeness and accuracy.” If the credit bureaus are unable to verify the accuracy of information found on your reports within 30 days, those items MUST BE DELETED. It is as simple as that.
Why doesn’t everyone do it? The answer is that most don’t have the time or energy to learn all the relevant consumer protection laws. Disputing items on your credit report is the easy part. It is getting results from the credit bureaus that is difficult, complex, and infuriating. So most people let the disputable information stay on their credit report for years, bringing down their credit score and costing them thousands of dollars in extra interest rate charges. How much can wrong information on your credit report cost you?
Well on a car for example, you are probably paying between $5,000 and $9,000 too much just for having bad credit. This added interest shows up every month in a higher payment. Take a look.
| $20,000 car paid over 5 years: | |||
| Credit Status | Rate | Payment | Cost of Bad Credit |
| Perfect | 10% | $424.94 | $0.00 |
| Mildly Damaged | 14% | $465.37 | $4,722.54 |
| Damaged | 20% | $529.88 | $8,593.30 |
| $100,000 home paid over 30 years: | |||
| Credit Status | Rate | Payment | Cost of Bad Credit |
| Perfect | 7% | $655.30 | $0.00 |
| Mildly Damaged | 9% | $804.62 | $50,155.24 |
| Damaged | 12% | $1,028.61 | $130,791.63 |
Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit.
Readers often ask whether negative listings, such as bankruptcies and foreclosures, are impossible to remove from the credit report. The answer is that there is NO TYPE of negative listing that hasn’t been repaired and removed from a credit report thousands of times. Negative items, such as bankruptcy or unpaid debts, are certainly more difficult to repair and remove from the credit report than other items, but they can and have been removed from thousands of credit reports. Judgments and tax liens are other items that are commonly removed from credit reports.
To learn more about credit repair, please visit www.lexingtonlaw.com. Lexington Law is the largest and most trusted credit report repair firm in America. In over 15 years of practice, Lexington Law has helped more than 300,000 clients clean up their credit reports, removing over 2 million items. Ever more, Lexington Law offers a full refund policy if their efforts on your behalf fail to deliver satisfactory results.
.
Comments
Leave a Comment