Improved credit score ratings through repairs to the report are the equivalent of a miner during the gold rush years who has hit gold. It needs the ability to dig in deep, face a lot of resistance and keep hammering until the job is done – the rewards are very sweet and very big. But as every consultant knows, there are certain loopholes that can make it easier to get items removed from the report.
This kind of consultant usually knows who to tackle a negative item like collections or late items and charge-offs, etc. Every item for each customer has a different history, and has to be tackled in its own way. But there are some guidelines available that are applicable to all these items.
For example, sometimes accounts will have been settled for quite some time, and then it shows up in the report as a negative paid item. It will get listed as a paid collection or paid charge-off, etc. If so, then there are two options.
The first one is to write to one of the credit bureaus and claim there is an error in the report. If the creditor does not respond to any enquiry from the bureau within 30 days, the bureau will expunge the item, and it will also get expunged from the other bureaus too. The second option is to write directly to the creditor, and/or send a legal notice threatening to file a lawsuit and claim damages.
This may seem like overkill, but it is actually only a bluff. It works in most cases because the account is already settled and the reporting organization sees no benefit in going to court. If the account is not settled, then don’t expect any help from the reporting organization.
This is where the 7 yr rule hits home hard. If an item related to a delinquent account pops into the report after a big delay, the consumer has to choose between the lesser of two evils. Either leave it as it as and run out the clock, or settle the account and have something like a paid charge-off on the report for another 7 years.
Which one is better? That is an individual matter that needs to be decided on a case-to-case basis, keeping in mind what kind of financial needs the consumer has now and expects in the near future. Sometimes it’s best to let the clock run out, but it is advisable to talk it over with a consultant. To be noted that there anything wrong with trying to improve credit score ratings in this manner, because the Credit Repair Organizations Act allows these activities under certain guidelines.
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