Credit repair, remove negative items. Can it be done? You’ve probably come across ads promising to clean up your credit file, lower your payments, removing bad information, and/or help you open a brand new file. Can it be done?
As you probably know, there are three major credit reporting agencies in the US. By simple math, this makes it three times as hard to remove negative items.
Even if it were possible for one to break into one bureau’s computer, you would still have two to go. And, the cost for such a “service” would cost several times the already exorbitant fees that credit repair clinics charge, not to mention, the risk of spending a very long time behind bars.
Secondly, even if you somehow succeeded in removing negative items from one credit bureau’s report, creditors could still re-report them and you’re back to square one.
To cut a long story short, no one – except two parties – can remove negative information from your credit file. But don’t give up, there is hope.
Yes, you credit restoration and removal of negative information can be done. But it doesn’t take a day. And it’s not a walk in the park either. It takes time and effort.
You see, there are two parties (three if you count collectors), that can legally remove negative information from your credit file: The creditors (furnishers) and the credit reporting bureaus. Once a debt has gone to collections, the respective can collector can also remove a negative item that it has reported.
Now, there are two forms of negative credit information, (1) accurate and (2) inaccurate information. Needless to say, the latter is the hardest to get removed. But it can be done.
The same tricks and strategies that credit repair clinics charge hefty (and sometimes recurring) fees for you can apply yourself with equal or better results. Why pay when you can do it yourself for free?
In fact, most credit experts agree that the best repair is self credit repair. And it costs you nothing but your own time and effort. It involves learning the right strategies for negotiation, using the existing credit laws to your advantage and yes, some guts.
Once more, the best credit repair is self credit repair. Remove negative items tricks and strategies do exist. Unfortunately they are beyond the scope of this one article.
By: David Kamau
Posts Tagged ‘Several Times’
Credit Repair – Remove Negative Items – Is It Doable?
February 22nd, 2010Credit Repair Essential Guidelines
November 11th, 2009
Chapter 7 Bankruptcy
A discharged Chapter 7 bankruptcy will show in the Public Records section of your credit report for 10 years from the initial filing date – please note that the filing date is different from, and prior to, your discharge date.
Debts that are discharged in a bankruptcy can continue to report for seven years. It is important to note that once a debt is discharged it should not report with a past due balance, or in a charge off or collection status.
Dismissed Chapter 7 bankruptcies will report for ten years. A dismissed bankruptcy is a bankruptcy which was filed and thereafter cancelled or disallowed.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy which has been completed will continue to report for seven years from the initial filing date, rather than the discharge date.
A Chapter 13 bankruptcy which was not completed will continue to report for seven years from the initial filing date.
Bankruptcy and the Fair Credit Reporting Act – A Legal Note
It may be of interest to note that the only reference to bankruptcy in the Fair Credit Reporting Act is a blanket rule that limits the reporting time to 10 years following the filing date. See § 605. [15 U.S.C. §1681c] (a). The credit bureaus, however, voluntarily make exceptions for Chapter 13 bankruptcies as noted above.
Collections – Overview
Collections are unique for the reason that they typically change hands, often several times during their lifetime. Important credit repair tip! Please note that only one collector at a time can legally report the debt; and only the collector that owns the debt can legally report it. All duplicate collection accounts for the same debt should be deleted from your credit report.
Collections can report for seven years from the original default date. The original default date is defined as the first time that you missed a scheduled payment. The original default date cannot be reset, and the reporting period cannot be extended by subsequent collectors.
Collections of Charged Off Accounts
Collections of charged off accounts have a slightly different reporting period than other collections. Charged off accounts can continue to show on your credit report for seven years plus 180 days from the date of original default, as defined above. This means that this extended reporting period does not start with the charge off date, but rather with the earlier default date.
Once a creditor has passed a charged off account to a collector, the original creditor cannot report the charged off amount as a past due balance. The balance should report as zero; the charged off amount may report on a separate line.
Unpaid Judgments
Unpaid judgments can continue to report for seven years or until the governing state statute of limitation has expired. You need to check your state statute of limitations to know for sure. State statute of limitations for judgments range from 4 years (PA) to 21 years (OH), and in some cases may be renewed one or more times.
Paid Judgments
Paid judgments can report for seven years from the initial filing date. This is handy to know if you are in a credit repair program; you may quickly remove a judgment from your report if you are willing to pay it, as long as the original filing date is seven years old. For legal support see FTC Official Staff Commentary § 605(a)(2): “Paid judgments cannot be reported for more than seven years after the judgment was entered, because payment of the judgment eliminates any “governing statute of limitations” under this subsection that might otherwise lengthen the period.”
Tax Liens
Paid tax liens may not report more than seven years beyond the date of payment. Unpaid tax liens may report as long as they are in effect. If you are in doubt consult a CPA or tax attorney.
Student Loans
Late payments on your student loans will cease reporting after seven years. Defaulted student loans are another story…
A 1991 amendment to the Higher U.S. Department of Education Act lifted all time limits for collection of student loans. The reporting of defaulted student loans on your credit report can now go on forever. In addition, a 1998 change in federal law made it virtually impossible to discharge a student loan in bankruptcy.
If you are in default on a student loan you are well advised to address the issue, sooner rather than later. Fortunately, there are excellent rehabilitation and consolidation programs now available to everyone. These programs offer affordable repayment options and can even erase the default status from your credit report! This can prove to be a painless and powerful step for anyone in a credit repair program. Explore your options today with the Student Loan Ombudsman Office at (877) 557-2575.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
By: Jim Kemish
