Credit Report Repair Services - How They Work To Fix Your Bad Credit

If you are suffering from a bad credit score or are just looking to improve your credit score then you may benefit from and get some help from professional credit report repair services.

These services provide you with a hands-off, headache free way to to correct your credit report.

How Do Credit Repair Services Work?

Companies that work to fix your bad credit report are going to primarily use two methods to
clean your credit history.

1. Credit Report Dispute

The first step a service is going to do on your behalf is to
dispute your credit report that you believe are questionable or incorrect.

Many consumers wonder what items they can legally dispute and challenge with the credit bureaus?

Just as you have the right to freedom, life, liberty, and happiness granted by Congress and federal laws. You are also given the right to dispute any item on your credit report that you believe is incorrect.

Your right to dispute your credit report is also given to you by Congress and federal laws. Specifically the Fair Credit Reporting Act which was originally passed in 1970.

It is this law that protects your right to have accurate information on your credit reports. This law additionally says that in item can only remain on your credit report for a maximum of seven years!

And that any item on your credit report must be verifiable with the lender or collection agency reporting the negative information. Once you file your credit bureau dispute and the credit bureaus deem it valid, they will investigate the item.

The bureaus will first contact the lender and ask them to verify your account, the dates reported on the account, and of course the balance due. It is estimated that 4 out of 5 credit bureau investigations result in the lender not verifying an account.

If this is the result of your dispute then the credit bureaus must, according to the Fair Credit Reporting Act, remove that item from your credit report. Removing negative information from your credit history has been shown to be the most efficient and effective way to
increase credit rating.

2. Debt Validation

The other common tool used by credit repair agencies to fix your bad credit is requesting debt validation with any outstanding collection agencies. This will require the collection agency to provide you the legal evidence that they own your debt and can collect payment upon it.

If your debt is not validated then you don't have to pay and it will be relatively easy to have the item erased from your credit history. One of the biggest mistakes and money wasters, is many consumers mistakenly believe that just paying old debts will improve their credit.

This could not be further from the truth! The reality is when you pay an old debt you must get the collection agency to agree that in exchange for your payment they will stop reporting negative information about your account to the credit bureaus.

This is the only way you can settle your debts and effectively
raise credit score. We also must briefly mentioned that you should never settle an old debt for the full amount due.

This is because the collection agency that is contacting you regarding payment has purchased your debt for just pennies on the dollar. And when we say pennies we are not exaggerating.

There are reports of one of the larger collection agencies in the U.S. buying debts for less than $.03 on the dollar. For example if they were contacting you about a $3000 debt, they purchased that debt for $90.

Therefore any amount of money you pay them above $90 would be pure profit. We do acknowledge this is potentially an extreme example however even on new debt accounts, they are only worth a fraction of the total balance owed.

The point here is you can and always should negotiate a settlement for less. You can do this and still have the debt removed from your credit report.

If you are getting frustrated trying to fix your credit report yourself or just simply want to avoid the frustration, time, and instead pay someone an affordable amount then professional help may be a good choice.

Clean Credit Report - Three Step Process

If you are looking to clean up your credit report then you're likely already suffering from high interest rates and paying unnecessary fees.

It's quite amazing if you take a moment to sit back and think about how much money is wasted due to having a low credit score.

If you are ready to put an end to the days of wasting your hard-earned money on avoidable expenses and are ready to get a clean credit history them follow instructions below and get the credit score that you really deserve.

1. Get Credit Reports

The first thing you must do before anything else, is get a copy of your credit reports. You need to get a copy of each one of your reports. This will total three credit reports (Experian, Equifax, and Transunion).

It is vital to have a current and updated copy of your credit report before you start trying to clean up incorrect information.

The primary reason it is because when you file a dispute or challenge information on your credit report you must make sure you the correct information with the correct credit bureau.

You can get these once per year for free by visiting http://www.annualcreditreport.com. If you have already used this free option then you can order you credit report directly from each bureau.

http://www.experian.com/
http://www.equifax.com/
http://www.transunion.com/

Once you have all three of your credit reports, if you take a moment to compare the information contained on each, you will be shocked at how different it is.

The reason it will be different is because not every lender is going to report your account information to all three of the credit bureaus.

A very well kept secret is that if you dispute the wrong information with the wrong credit bureau, then that credit bureau will red flag your name.

It is speculated the credit bureaus will then see any future dispute attempts on your behalf as frivolous and ignore them.

2. Clear Your Credit Reports by Removing Bad Credit

The second step to fix your credit report is to challenge incorrect information by filling a bad credit dispute.

This is your way of communicating with the credit bureaus and telling them that a listing on your credit report is incorrect and needs to be fixed. You will need to file a credit dispute with each credit bureau.

In other words if you have an outstanding debts and have a collection on credit report, then you will have to file three separate dispute requests, one with each credit bureau. When the credit bureau receives your dispute and deems the dispute to be valid, they will conduct an investigation.

When the credit bureaus investigate they will contact the creditor that has reported the negative information about your account and ask them to verify the account, the dates on the account, and the amount owed.

If your account is verified and has incorrect dates or balance due, then the credit bureau will update that information. The more likely scenario is that your account will not be verified when the bureau investigates.

If this is the result then the credit bureaus must delete the item from your credit report according to Federal Law. This same Federal Law is what gives you and every consumer the right to challenge any information on your credit report.

Cleaning up your credit report has been shown to be one of the fastest and most effective ways to build credit. This is because you are improving your payment history which is an incredibly vital piece of information used when your credit score gets calculated.

According to FICO one of the largest credit scoring business, your payment history is 35% of your overall credit score and the largest influence to your overall score.

If you are looking to clean up bad credit and stop paying the high expense, personal expense, and even potentially professional expense then take action today.

We continue to hear more employers are checking job candidates credit records prior to employment and while having bad credit in the past only meant a lot of wasted money and a lower quality of life.

It is abundantly clear that in today's job market it could be the difference in your job, income, and future wealth too!

Capital One Buys Orchard Bank Credit Card - Orchard Bank Future In Doubt

In recent news Capital One Bank purchased the Orchard Bank Credit Card and all of the US credit cards issued by HSBC bank. The details and exact amounts of this purchase are currently unclear but we are confident that Capital One paid a hefty price.

Orchard bank has a trusted leader and brand in the bad credit credit card market for years. Additionally they have a huge customer base and many current card holders. It is arguably one of the biggest sub prime lending acquisitions.

We believe the acquisition of the Orchard Bank Credit Card is a subsequent result of the mortgage collapse and banking crisis in our country.

Just like many local banks were forced to merge with larger banks and thus consolidated our choices of banks to use, we believe the credit card industry is going through the same process.

It is rumored that Capital One is actually going to shut down the
Orchard Bank credit card.

We believe that Capital One has made an aggressive attempt to target individuals with a less-than-perfect credit rating by rolling out a prepaid credit card, secured credit card, and an unsecured credit card for fair credit.

This way we think Capital One intends to shrink the market and their brand will fill the void. One of the most unique features about the Orchard Bank Credit Card was its application process.

When you provided your information and your application was processed Orchard Bank would return to you and offer you all the credit cards that you qualified for which included: an unsecured MasterCard, a secured MasterCard,
prepaid MasterCard… And then you would choose which credit card was right for your needs.

It certainly appears that Capital One could provide this option to applicants, we hope they do because we have heard many consumers say they appreciate this upfront process.

Another concern we have is what alternatives will be left for consumers as the orchard bank secured credit card was one of the most competitive price and
best secured credit card on the market.

It would report to all three major credit bureaus, charged you a 9.9% APR, and an annual fee of $49. This compared to unsecured credit cards before the mortgage collapse was a very low priced credit card that would still give you an opportunity to build positive credit.

However today we have seen some partially secured credit card offers that we would not recommend to our worst enemies! These partially secured credit cards require an upfront deposit, the most popular offer we have seen charges an outrageous 36% APR, roughly $80 in upfront fees, and then another $80 in annual fees.

Thus, it will be interesting to see what comes of Capital One purchasing the HSBC Orchard Bank Credit Card and if there will continue to be competitively priced secured
bad credit cards available.

As of today and according to both websites it doesn't appear that Orchard Bank or HSBC Credit Cards will continue to be offered. With that said we are by no means executives with Capital One and have no way of knowing for sure, one way or another.

Currently at the Orchard Bank website you can still apply for a credit card but from insider information, we have heard Orchard bank is going to stop accepting applications around the end of May.