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Page 4
Many times you will be told that an item was removed only to find it on your credit report again in the future. This happens because although the credit bureau removed the item, the company reporting it may have sent in an update to the bureau containing the same wrong item. The credit bureau can't control that. In order to protect yourself, have that letter from the credit bureau available for prospective lenders.
CREDIT REPAIR COMPANIES Clearing your credit takes time and patience. However, there is nothing that you cannot do yourself that these "credit repair" businesses claim that they can do. These "credit repair" businesses can be quite expensive and you are basically paying for them to write letters to the credit bureau on your behalf. It is not possible to clear items off of your credit report that are accurate, regardless of what some of these businesses tell you. There are limitations on how long derogatory information can be reported on your credit report. Most of the time, the credit repair business is simply disputing an outdated derogatory item to the credit bureau in order to clear your credit file. Why pay for a service to write a few letters that you could write yourself? FAIR CREDIT REPORTING ACT You have many rights regarding your credit. You need to become comfortable with the concept of checking your credit at least once a year in order to check for errors and then get them corrected. There are specific procedures for getting things corrected on your credit history. There is no charge for disputing any item on your credit bureau. In addition, you are entitled to a free copy of your credit report if you have been denied credit, employment or insurance. All you have to do is find out what credit bureau provided the information that the information was based on and contact that credit bureau. The company that denied the credit, employment, etc, is required to give you the name, address and phone number of the credit bureau that provided the information. SUBPRIME LENDERS (B/C LENDERS) Lenders that offer loans to borrowers who can't get approved for a mortgage through a bank or a mainstream lender are called subprime lenders or B/C lenders. These lenders offer a very important product. They offer many different types of mortgages to borrowers who in the past wouldn't be able to get a mortgage at all. Most of their products have higher interest rates than the mainstream lenders. However, due to the growing competition within the subprime lending world, even those high rate loans are pretty competitive.
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