Credit Repair and Your Legal Rights

Getting your credit repaired is not just a matter of knowing how to deal with creditors, collection firms, and consumer reporting agencies. It is also essential that you know your legal rights under the laws dealing with credit reports and credit repair organizations. Knowing your rights will aid you in your fight to regain a respectable credit rating, and will also help you to avoid the danger of falling for a credit repair scam.

You have a number of rights regarding what other parties may do what your credit information. The law states that consumer reporting agencies must and sure that the information found on your credit report is accurate. This is in line with the permissions of the Fair Credit Reporting Act. Therefore, if you believe there to be inaccuracies on your credit report, you can call the attention of the consumer reporting agencies and they will have to verify the information. If they cannot verify it, then under the law, they must make corrections to the report and send you a free copy of the corrected report. Furthermore, once an agency has made a correction to your credit report, it may not refile the negative information that was changed for a duration of five days since you received notice of the correction.

You also possess the right to have any negative information dropped from your report after a certain period of time. Bankruptcies should be removed from your report after a period of 10 years. A tax lien can only remain on your report for seven years after it has been paid for. Other types of negative information can only remain on the report for as long as seven years from the date the information was first provided.

By law, you are also entitled to receive a free credit report once every 12 months from each of the three national credit reporting agencies, which are Experian, Equifax, and TransUnion.

The Credit Repair Organizations Act gives you certain rights when dealing with credit repair services. Credit repair firms are required to inform you of your rights and obligations before you can sign a contract with them. They are also prohibited from taking their fee from you before they provide you with their services. You are also given a five day waiting period after the contract signing in which you are allowed to get out of your contract at anytime without having to pay a fee.

Learn all about the Four Laws That Can Help You In The Credit Repair Process. Get more information and tips at http://creditrepairinsider.info

This entry was posted on Tuesday, January 30th, 2007 and is filed under Credit Repair. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.