Rebuild Your Credit Article

Let’s get right to it. Right now more than ever is the time to rebuild your credit and focus on making your credit report stronger, even if it seems like it currently doesn’t even have a pulse.

Banks and lenders have tightened up on credit big time as a result of all of the defaulted loans floating around in the mortgage market right now.

The days of easy access to mortgage loans and the multitude of poor credit lending programs are virtually gone at least in the prime market. The prime market is where people with good to excellent credit go to get loans at the best possible interest rates.

The subprime market which is where all of this drama unfolded is all but gone. These days good credit means a fico score in mid to high seven hundreds.

There is actually no score on file for consumers, when a lender or potential creditor requests a report.

The credit reporting bureaus at that time produce a score calculation based on comparing information in a consumer’s credit history.

By comparing past credit pattern information from a consumer it gives a potential creditor an idea of what type of risk the consumer would be; hence the score.

There is a lot of misinformation floating around online and off about what can and can’t actually be done with credit repair.

Repairing credit can only happen if the original information listed on a report is incorrect. If the information on a particular account and debt owed on the account is valid there is no fixing it.

There are however, some other strategies that some savy people can and do use that work. see some other articles on this site for more information.

If there is however information that has been reported that is in fact incorrect, this is where 2 laws that are designed to protect the consumer come into play.

    1. Fair Credit Reporting Act
    2. Fair and Accurate Credit Transaction Act

    1. This Act establishes procedures for the correction of any mistakes on a person’s credit report.
    2. This act was signed into law in 2003 to combat identity theft

How Long Are bankruptcies and other derogatory items reported?.

  • Bankruptcies: ten years from the date of entry of the order for relief
  • Suits and Judgments: seven years from the date of payment
  • Tax Liens-Paid: seven years from date of payment
  • Tax Liens-Unpaid: no limit
  • Collection Accounts: seven years
  • Charge offs: seven years
  • Criminal Records Limitations: no limitation on criminal conviction
  • Other Lates & Adverse information: seven years

    The first step to take towards rebuilding or repairing credit is to take advantage of requesting you Free Annual Report.

    This can be done online at www.annualcreditreport.com.

    You can also contact Annual Credit Report Request Service PO Box 105281, Atlanta, GA 30348-5281.

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    Darren Britt Loan Advisor

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