Credit Repair Tips for Busy People

The 5 credit repair tips on this page can help you navigate the process of credit restoration with dealing with creditors, collection agencies and credit bureaus. By paying attention to the advice in the sections below, you can avoid adopting any illegal practices (or hiring people who use them), and use the consumer protection laws to your advantage.

Credit Repair Tip 1. Know Your Basic Consumer Credit Rights

Consumer protection laws like the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), the Fair Debt Credit Billing Act (FCBA), the Real Estate Settlement Procedures Act (RESPA), and the Credit Repair Organizations Act (CROA), have provided you with a comprehensive set of protections that can help you tremendously in dealing with creditors and reporting agencies.

Use online resources like the credit repair section of the Federal Trade Commission website and other informational blogs and websites, to learn the basic rights you have under each of these laws.

Credit Repair Tip 2. Learn To Recognize Credit Repair Scams

Unethical or illegal credit repair companies often use marketing practices that are either barred or frowned upon by the FTC. These practices include offering guarantees to repair your credit, collecting payments before performing credit services (prohibited by the CROA), suggesting you create new credit identities, or advising you to arbitrarily dispute all the negative items on your credit report.

Credit Repair Tip 3. Never Use E-Oscar

The big three credit agencies, Experian, Equifax, and Transunion, developed a system for online dispute of credit report errors called E-Oscar. However, when you use this system as a consumer, you unwittingly give up some of your credit rights.

Since E-Oscar is an online system, you lose the ability to attach the documentation you may need to prove your case. Additionally, you have to limit the scope of your dispute to one of the 2-digit dispute code options given by the system. You also lose the right to get a written result of the credit bureau's investigation when you file online.

Credit Repair Tip 4. Practice Informed Debt Repayment

One of the hidden secrets of dealing with debt repayment is that the timing of debt repayments can make a big difference in whether or not credit improvement efforts are compromised by your payments. For instance, if the statute of limitations for your debt is set to expire within a week, it would not be advisable for you to make a partial payment today (no matter how small) that could register a new credit event and extend the time for reporting of your debt by another 7 years.

You should also pay attention to methods like debt validation to make sure that you do not make payments to third parties who are not authorized to collect your payments.

Credit Repair Tip 5. Consider Legal Credit Repair

Choosing a legal credit repair organization to help you handle the details of improving your credit may be a good idea. If you find that you are not able to devote the required time to preparing your correspondence, going through the debt validation process, and negotiating with creditors, the right company can help you facilitate these interactions, while helping you avoid damaging mistakes.

Register here and get your free download of our Audio CD "The 5 Most Not-So-Obvious Credit Mistakes and How to Avoid Them"

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