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Are you new to credit repair or an old hat at it? Either way, I bet you have been through the old dispute process, at least in your mind if not on paper. I can remember when credit repair was a dirty word. Anyone involved in credit repair was thought to be a scam and a scum. That was only about 10 years ago. Now, you can find credit repair all over the Internet. Everyone’s doing it. But… just because someone throws up a 10.00 web page doesn’t mean they are credit experts.

It’s so frustrating for me to see hundreds of so called credit repair experts littered all over the web. Just yesterday I found about 5 websites that had taken my information from other financial websites that I consult for and recycled the information into their own, and along the way, tried to make themselves appear as credit experts. I hope no one bought their shabby service (whatever it was they were selling).

Yes, credit repair is real but it’s not a secret trick. It’s not insider information locked within the vaults of the Big Three, (Experian, Trans Union and Equifax). It’s a real process just like balancing your checkbook, organizing your business expenses or any other business transaction. It’s a PROCESS. A process of not just writing mindless dispute letters but a process of validation and disputation.

When credit repair first started it was pretty much dispute letters sent off and you just sat back and waited (and prayed) for the bureaus to send back an investigation result that said “deleted”. Boy what a rush that is. But it’s not that easy nor should it be. I have been dealing with credit report issues for over 20 years and I remember when I sounded like the town crier trying to convince anyone who’d listen that credit repair isn’t just letters being sent out and hoping for the best. I would scream at the top of my lungs, “it’s validation, negotiations and disputation”.

Soon after, it seemed every knock off credit repair website was acting like they discovered it- invented it. No. It’s always been there and now I am going to tell you what it is.

Credit repair is like a good recipe. A recipe of knowledge and action. First, you educate yourself then you put that education into action. Credit bureaus are a for profit business. They make money selling information, not by standing by waiting for disputes. Because they are an information provider they also house information in databases. Millions and millions of information bits. They (the bureaus) are only a part of the PROCESS. On the other end is the creditor or the source- the entity that reports information about you to the credit bureaus. The two come together like a not so fine oiled machine. Mistakes in reporting happen and lots of them. Thats where credit repair comes in. The bureaus house your information, the source reports your information and you need to work those two to get the right results.

Consumers ask me all the time “Can’t I fix my own credit, why would I pay someone”. It depends. If you like to do the work yourself and you know what you are doing then do it yourself- save your money. If you have no clue what you are doing then hire someone to do it. Just be careful to hire someone who knows exactly what they are doing and either way, take responsibility for the results. Do your homework whether it’s researching credit repair methods yourself or researching the company that is doing it for you. Anti-credit repair lobbyists will say “do not attempt it, it’s illegal”. Not true. Questioning anything in your credit reports is legal. It’s a consumers right, but when I say take responsibility,  I mean, if you question a debt and it wakes a giant then that’s your fault.

Here are my tips for doing it right:

Know the laws that protect you This is first on this list. After all if you don’t understand what rights you have about your credit how are you going to begin the process? The Fair Credit Reporting Act, (FCRA) is a federal law and it’s your weapon of choice. Study it. You’ll also want to know about The Fair Debt Collections Practices Act (FDCPA). It regulates third party debt collectors.

Be careful what you question If you have debts that you consider to be wrong, by all means, dive right in and go to war. Question that item with all your might. Use any proof you have to show you’re right. On the other hand, if you have debt(s) that you know are accurate (like a charge off or collection account) then think it through before you question it. What if you send out a dispute on a debt that was previously written off and forgotten about, and your dispute has now been forwarded by the credit bureaus to the creditor or collection agency, and now they know you’re out there? You may have just created a lot of trouble for yourself. The point is, know what you’re doing.

Consider the source Are you questioning a debt that belongs to an original creditor or a collection agency. A collection agency must abide by the Fair Debt Collections Practices Act while an original creditor does not. Many violations can be discovered when dealing with a collection agency and those loopholes can help you remove the item.

Keep records This is really important. Keep a paper trail of everything you have disputed so that you have it handy for follow up. Seems simple but it’s often overlooked. Write down everything. Who you talked to, where you sent your disputes, what came back and why. It’s part of the PROCESS.

Review all three credit reports What might be in one may not be in the other two so make sure you go over all three before you send out a dispute. If you don’t, you will waste time and risk opening up a can of worms. The bureau may contact the other two to confirm the item- thus inserting it where it once was not!

Consider the negotiation process If an item is accurate and you’ve been unable to remove it, then you have to consider negotiations. This is where you’ll work to settle the debt in exchange for a deletion or better rating. This is only done if the item is 100% accurate and you want it removed. Also be sure to consider time limits of older debts before you negotiate anything. Debts have statutes’ of limitations for reporting and collecting. They vary by state and your debt may be legally expired – to report and or collect, and that would result in a deletion.  If you question a debt ready to expire, you cause a lot of problems for yourself so pay attention to dates of activity such as charge off date and originally reported date.

Resources Here are some excellent resources to help you better educate yourself before you undertake the project of credit repair. These resources are invaluable in your efforts.

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