Below, we’ve further covered the credit restoration process and explained common credit report errors as well why you should consider contacting a credit repair attorney in San Diego.
‘Credit restoration’ refers to reviewing your credit report, pinpointing errors, and sending dispute letters to rectify those errors. Credit restorations are also performed to remove accurate but negative items from your credit history to fix your overall credit score.
Every individual has the legal right to request creditors to remove incorrect items from their credit report, but creditors have no legal requirement to remove accurate information. Generally, accurate but negative information is more challenging to remove and can stay on your report for a long time.
Credit restoration is significant because of many reasons. A good credit score is essential for getting loans and credit cards at reasonable interest rates, leasing apartments, and gaining employment.
On the other hand, a low score can seriously compromise your bargaining strength in all such scenarios, which is why it’s always recommended to dispute all errors on your credit report.
Credit restoration can be done yourself, through the help of nonprofit credit counseling agencies, or via a formal credit restoration company.
What Is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is a U.S. Federal legislation governing the credit restoration process. The FCRA gives individuals the right to dispute information on their credit reports if they believe it is erroneous. It is also legally allowed to request changes in negative, accurate information through pay-for-delete negotiations, and goodwill letters.
However, there is no legal requirement for credit agencies and creditors to honor these requests. Therefore, if there is a negative score on your report, it will likely be reflected for some time. But if this negative information is inaccurate, seeking credit restoration is extremely important.
What Are the Typical Credit Report Errors?
Some of the most common errors on credit reports include the following:
- Incorrect name, phone number, or address
- Unfamiliar listed accounts because of identity theft
- Closed accounts listed as open
- Accounts listed belong to someone else with the same or similar name
- The same debt appearing multiple times
- Previously disputed and removed information returning
- You are listed as an account owner when you are only an authorized user
- There are inaccurate late or missing payments reflected
- There are accounts reporting an incorrect balance
- There is a wrong credit limit listed
- Collection accounts are reflected multiple times with different creditors and buyers
Generally, these errors can be attributed to simple misrepresentations made by the credit bureau, which can be rectified quite easily–but sometimes, serious mistakes in your credit report can be indicative of identity theft or fraud. It’s therefore vital to immediately dispute these errors and have them corrected as soon as possible.
Can You Restore Your Credit Yourself?
It is entirely possible to restore your credit by yourself without any professional intervention. However, there are many key elements to successfully disputing information in a credit report and dealing with the CRAs and creditors.
You will need to know how to read a credit report, understand the laws (such as the new debt collection laws of 2022), and consistently keep asking for updates on your case. You’ll also have to keep track of your previous dispute activities and time frames, which can be a tedious and time-consuming process.
While there is nothing too complicated about the process, most individuals seek professional help because they simply do not have the time to pursue their credit restoration. In such a scenario, reaching out to a credit restoration company is almost always your best bet.
How Long Does It Take To Restore Your Credit?
The credit restoration process can be lengthy and complicated. How much time it takes depends on your situation and how many negative items there are on your report.
Credit bureaus are allowed between thirty and forty-five days to investigate a reported dispute. After the investigation, they must inform you of the results within five business days.
If one or two simple errors can be quickly confirmed, your dispute can be resolved within six weeks or fewer. However, the more issues you’ll have, the longer the resolution process will take. If you run into an uncooperative creditor or multiple investigations are required, your dispute can run over three to six months.
The credit repair process begins once you send a dispute letter. If the resolution process does not yield the desired results, consider contacting a consumer attorney who can help you determine whether your case is serious enough to require a lawsuit. If a legal case is needed, the process can take up to two to three years; however, depending on the nature of your case, a lawsuit may be your best possible chance to get compensated for the extra time it takes to resolve your issue.