Frequently Asked Questions
I have been refused credit. Can I do something about it?
A. Absolutely! Nearly 90% of Americans, just like you, have some “blemish” on their credit reports. Due to the nature of the credit reporting industry, those blemishes can be mistakenly included on your record. Frequently, credit reports contain outdated information, unverifiable negative items, or totally inaccurate entries. Under the law the credit reporting companies must remove such information. You should check your credit report and see why you were, or may be, denied credit. Then, on your own or with our assistance, you can do something to correct the mistakes and have your report corrected.
Q. Are “credit reporting agencies” a part of the government?
A. No. Credit reporting companies are just that – companies. They are in business to make a buck, just like the mega-billion-dollar banks that run the credit card businesses – VISA, and MasterCard. The credit reporting business is a multi-billion dollar industry. They generate their income by selling credit reports to creditors.
Q. Is it illegal or immoral to have your credit profile improved?
A. No. It is not illegal or immoral to eliminate mistakes on your credit report. In fact the federal government, under the 1970 Fair Credit Reporting Act, Section 1681e, protects your right to do so.
Q. How does the credit reporting system work?
A. Today, the credit reporting system contains literally millions of computer files about individual consumers which are maintained by the three credit reporting companies. The files contain personal information about you – how much you owe, how you have paid your debts, your employer, your social security number, public records, etc.
Q. How does information about me get into my credit report?
A. When you agree to accept credit from a bank, most retail stores, etc., or fill out an employment application – if a credit report is used as a background check – you give the creditor the right to provide information to any credit reporting company. Additional information about you comes from public records, such as court records, debt collection companies, and even the utility companies.
Q. Why should I care what is in my credit file?
A. You’d better care. It is your credit report that creditors use to determine if they will extend credit to you. If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.
Q. How often are mistakes entered into my credit file?
A. Frequently! Some experts say that as many as 90% of credit reports contain errors! That is inaccurate, incomplete, or misleading
information that can cost you the credit you deserve.
Q. Who will remove items from my credit report?
A. Only the credit reporting agencies have the power to remove items from your credit report. But, as required by law, the credit bureaus must delete inaccurate, unverifiable, or outdated information.
Q. Once a credit reporting agency has removed an item from a person’s credit report, can it be reinserted.
A. Credit reporting agencies are often reinserting items that they have previously removed from a consumers credit report. According to the FCRA, one of the requirements for reinsertion of items is that a consumer must be notified within 5 days when an item is reinserted. Most consumers are not made aware when these items are reinserted at all, let alone in 5 days. That’s one of the benefits to our customers when signing up for a year. They find out when items are reinserted, and then we can have the credit reporting agency verify that the item is in fact accurate, and that they followed the FCRA requirements for reinsertion.
Q. Should I apply for credit while in the restoration process?
A. Do not apply for credit during the restoration period. Each time you apply for credit, an inquiry is recorded on your record and too may inquiries may be a cause for denial of credit.
Q. Are credit reports all the same?
A. No. Each of the three major reporting companies’ reports look different and may not contain the same information. The companies maintain their own databases and do not often share information.
A. No. But, you do not own the information either. It is owned by the individual merchant or creditor who put it there.
Q. Does paying a past due debt remove the debt from your credit report?
A. Paying an old debt does not erase the fact that at one time you were not paying it as you agreed, but it is possible to update your payment history.