Does Credit Repair Really Work?
As a highly successful real estate investor for over twenty years, Briggs is driven to obtain the highest standards for his clients. His successes as an effective motivational speaker and published author were developed from life experience. Through those exceptional skills, he learned the art of passive income. Chayo can assist his clients in procuring their prosperous future, breaking the chains of financial distress.Your credit is something you can’t get away from, so ignoring it doesn’t make it go away. You can take these basic steps to improve your credit, so you have better financial opportunities. .
For more information about how he can help you rebuild your credit contact, Dr. Credit King AKA Chayo Briggs at (800) 216-8871 or text (760) 912-3472
We are ending 2019, I wanted to talk about getting serious on repairing your credit. In many cases, people wonder if credit repair really works. Most of them have fallen on hard times, and want to get back on track with their financial future. However, have read or been told repairing your credit is not possible without a tremendous amount of work and money.
Just like a mop in your house, cleaning up your credit is possible, and much easier than you might expect. Now, there are some things you need to know before diving into repairing your credit. Yes, credit repair can work to remove certain negative items from your credit reports. But it doesn’t work for every type of item — and it definitely isn’t an instantaneous, magic credit score booster. Basically, credit repair is the process of disputing errors on your credit report, unfair or inaccurate information representation of your financial history. The ability to file credit report disputes is provided to ensure your credit report isn’t full of false data that can be used against a lending decision.
If you encounter an error, identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. Credit repair is not a way to remove fairly earned derogatory credit report marks, or dispose of legitimate
debts. These disputes will be rejected, but the credit bureaus do not investigate disputes that are considered frivolous. “In the US alone, credit card debt was $868 billion in 2019, a 4.7% increase from the same time last year. The average credit card limit increased by 11.5% from $20,265 in 2018 to $22,589 by the end of 2019. Between 2018 and 2019, the average credit card debt per cardholder decreased 0.2% to $6,028. The number of new cards issued went down by 3.7% between June 2017 and June 2018, with an average of 5.54 million new credit cards originated per month in 2018.” (Lexington Law, n.d.)
The best way to succeed in repairing your credit report, is understanding, how the process works. If you go into it with an inflated sense of what you’ll accomplish, you’ll obviously be disappointed in the end. Realistic expectations can go a long way in credit repair (and finance in general). It means, knowing what items you can correct. The process was designed to ensure your reports are accurate, therefore the types of items that can typically be removed include items that are erroneous, fraudulent, outdated, or unsubstantiated. Erroneous Items: The easiest type of item to dispute is one that is just flat-out erroneous. It covers basic errors, like spelling mistakes or misreported amounts, that can cause confusion or credit problems. For example, a decimal point is in the wrong place, it may increase the amount of debt you owe. In many cases, simple mistakes take little effort for the credit bureau to investigate and can be fixed in a fairly short amount of time. Outdated Items: Another disputable item that is generally easy to fix is outdated information. Nonetheless, most negative items can only remain on your credit report for a set amount of time before
they need to be removed. Hard credit inquiries, for instance, last up to two years, while delinquent payments can last up to seven. Once these items hit their max-age, they should be removed from your report automatically, if not you can file a dispute to have them removed. Fraudulent Items: If you’ve ever been the victim of identity theft, you could wind up with fraudulent
accounts on your credit reports. At first, these accounts may seem legitimate, although with further investigation it can unveil their sinister origins. In addition to filing disputes, be sure to report any cases of identity theft right away. Unsubstantiated Items: While this is the last item on my list it is by far one to ignore. These accounts, cannot be substantiated by the information providers. If they are unable to show that the debt or derogatory mark really belongs to you, the credit bureaus will remove the item.
Taking Action on Your Credit Repair
The initial step is requesting your complete accurate credit report. Not all reports are the same, and not all are accurate. My suggestion is annualcreditreport.com. They are free to anyone once a year. Credit
bureaus rely on third parties to report your financial behavior, so not every item is reported to all three consumer credit bureaus (Equifax, Experian, and TransUnion). In this situation, not all the errors will report on each report. Since you can’t predict which credit report(s) a creditor will use to determine your credit risk, all three of your reports should be in good condition to
prevent missing out on credit in the future. The next step is deciding who will file the disputes. As with many things in life, credit repair is a process
you can do yourself — or hire a professional. The option will depend on what your report shows. In other words, if the report has simple straightforward corrections, like spelling error, outdated items, then filing yourself may be fast and easy. However, not all disputes are easy. It may be less stressful to hire an experienced credit repair company to act on your behalf. If the situation requires you to supply large amounts of evidence, to back up the claim, you may want some help. There are some of our top-rated credit repair companies that have decades of experience helping consumers remove items from their credit reports. On another subject, I want to touch on is the growing concern over Identity theft. Americans are afraid and, in an effort, to defend themselves, people are spending billions every year on protection and credit
monitoring products. Many of these plans run about twenty dollars a month and promise peace of mind. But are they worth the money?
Key Services to Request:
Credit monitoring: The service will review up to three credit bureaus every day and will alert you to any changes in your report. If someone tries to open an account or cause a negative collection you will be notified. This can be especially important to watch during the holidays.
Identity theft resolution services: If your identity is stolen, many companies will assign you a dedicated caseworker to manage the process. However, you will usually sign a limited power of attorney, and incur countless hours of phone calls and paperwork to fix the situation.
Insurance: Most companies offer coverage up to $1 million in case of identity theft. However, this coverage can be misleading. Federal law already protects you. So long as a report is filed within two days of discovery, you only have a $50 liability on your checking account and credit cards, and most banks
offer no liability as a business practice. The insurance policies offered by these companies usually only cover expenses related to identity theft, including loss of wages. For example, if you need to go to court to fight a fraudulent charge, the insurance could cover the cost of transport and the lost wages during that
day. (Clements, n.d.) Identity fraud, according to Wikipedia, “’is a crime where one person uses another person’s personal data, without authorization, to deceive or defraud someone else.’ To put numbers on it, a Javelin
Strategy and Research report state financial fraud using false identity in 2016 added up to a cost of $16 billion. The fastest rising category was online, with card-not-present (CNP) fraud rising by 40 percent. Another study, by CSIdentity, found that the cost of identity fraud to US businesses is in excess of $50
billion a year.” (Wikipedia, n.d.) As innovation advances our lives with be completely intertwined online. It provides bad hats access to a
treasure trove of PPI (Personally Identifiable Information). Many of us are only one data breach away from being exposed to fraudsters. Consider this, the problem is so prominent anyone can buy an ID card for a nominal amount to use on the dark web. Or, these same bad hats can create synthetic identities based on data points of real ID’s to use for activities.
Below are Five Ways to Help Protect Yourself
The best way to stop a breach is before it happens. The first step is identity verification. It requires an Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance and helps reduce fraud by noting data mismatches.
In certain circumstances, consider an additional layer of verification, by performing an identity document verification check. You can also use various fraud detection tools to provide further risk management options.
Understand How Fraudsters Think
If you have an idea of how these bad hats work, you can diminish the threat.
As James D. Ratley, President, Association of Certified Fraud Examiners states, “As fraudsterswill continue to evolve with technology, it is important for anti-fraud professionals to stay on top of the current trends in order to prevent fraud before it’s able to occur.” (Ratley, n.d.) For example, many fraudsters use prepaid phones, thereby checking the history of a phone number will
tell the long-term number or suspect. The same applies to email addresses; has that email address been used by the prospect for a long period of time?
By knowing fraudsters tend to use bulk techniques, you can also watch for multiple applications at around the same time using the same phone number and email address. Another form of fraud gaining popularity is electronic gift card fraud, which accounted for 9.5% of all online fraud attempts in 2015. There again, especially during the holidays. (Ratley, n.d.)
Keep a Watchful Eye
Numerous suspicious patterns are common to ongoing monitoring. Unusual purchases, locations, devices, volume and/or value can all be signs of trouble. Not all accounts are the same, so not all monitoring is the same.
Think in Advance
Don’t wait until a breach happens, before you do something. You need an action plan, to anticipate various scenarios and have processes to deal effectively with them. Review and adjust these processes on an ongoing basis.
Learn the Process and Pass it Along
Fraud prevention is a worldwide task. Some of the most successful fraud attacks use social engineering to gather sensitive information from users. So, share an occurrence if something happens, it could save someone else the heartache. By using fraud prevention techniques, and up-to-date technology you can keep identity fraud in check.
The more you know, the better you can protect yourself.
In today’s economy, something simple like getting a place to live requires a credit history report, “Therefore, I am committed to assisting people in understanding the importance of credit credibility.”
Briggs has a great deal of life experience, making him a skilled expert at helping people overcome their credit creditably issues. In return, he is able to establish a solid foundation for his clients to achieve their credit status goals. Please, check out all my latest books on chayobriggs.com.