| By :
Jim Kemish
Details Matter If you want the full benefit of credit repair you will need more than a perfunctory review of your credit reports. Credit repair has the potential to significantly transform your credit, but you will need to examine your accounts in detail, and you will need to have specific knowledge of the laws that govern credit reporting. Hidden Errors A perfunctory review of your reports is almost guaranteed to be inadequate because most errors are not obvious. Examples of obvious errors include accounts that do not belong to you and derogatory events that you know did not occur; these errors are easy to spot during a cursory review and do not need specialized credit repair skill to eliminate. But as common as this type of error may be, there is a category of error that is even more prevalent, and because of the subtle nature, even more insidious. A Common Scenario Imagine that you had a credit card account that you defaulted on, say two years ago. This was a real event and hence not a target for a credit repair dispute, but six months after your default the account was charged off and sent to a collector, and six months after that the account was sold by the initial collector to a secondary collector, who soon gave up on the account and sold it to a tertiary collector. Now there are four separate accounts on your credit report pulling down your scores. The Tragic Truth This scenario is very typical of charged off accounts, and is at least fifty-percent erroneous. And if by chance the original creditor is still reporting the account with a past due balance there is yet another error that should be addressed with credit repair. As awful as this very common string of events may be, the real tragedy is the fact that the majority of victims are never aware that there are any errors at all. The Power of Knowledge The most skillful credit repair effort will identify errors like these and focus on removing them. Where are the errors in the chain of events? The original creditor had every right to charge off the account, and each subsequent collector had the right to report. The errors revolve around a single issue; collectors are supposed to withdraw an account from your report as soon as they sell it to another collector or send it back to the original creditor. In addition, the original creditor should remove any past due balance as soon as the account is in the hands of a collector. Untapped Potential Credit repair has enormous potential, and it is mostly untapped. Credit reporting rules are virtually unknown. And, as it often happens in cases where there is awareness of the presence of errors, there is a lack of confidence on the part of the consumer in confronting the credit bureaus. As a result, many consumers suffer from needlessly low credit scores for years, where credit repair could have made a world of difference. How About You? How does your credit look? If you have had genuine adverse events in your past, the events may have triggered a sequence of reporting errors that are hurting your credit scores and ability to borrow at decent rates. Credit repair may be the cure. There is nothing that can influence your financial life like your credit report and scores. And there has never been a better time to take control of your credit life. It is up to you. Copyright © 2010 James W. Kemish. All Content. All Rights Reserved.
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