To better understand what legal credit repair is, it would be helpful to understand a few types of illegal credit repair:
Illegal: Altering your social security number to obtain a clean bill of credit by using a CPN. If any credit repair salesmen advertizes this type of credit repair they will get you in trouble with the Law since it is considered fraud.
Illegal: Disputing all items on your credit report, regardless of circumstances unless Identity Theft is the culprit. The Fair Credit Reporting Act specifically states that only items that are unverifiable, inaccurate or misleading should be disputed. Items that belong to you, and reflect your credit history are not something to dispute under the law.
Illegal: Charging for services that have not yet been completed. This is to protect the consumer from fraudulent credit repair companies that charge for services that never get done or do not meet their outrageous claims.
So, what exactly is Legal Credit Repair?
You have the right to dispute questionable information on your credit reports according to Highline Credit a Phoenix based credit counseling company.
Legal Credit Repair consists of removing the questionable items on a credit report.There are a few different tactics you can use, the most common and effective are:
Goodwill Negotiations: Negotiating directly with creditors and requesting them to delete questionable items from your credit reports is a great way get mild late-pay accounts updated in good standing. There are no laws that require that questionable items stay on your reports for any amount of time, and creditors have the ability to simply remove these items if they see that it could somehow work to their benefit, even if that simply means a pleased customer.
Credit Disputation: The Fair Credit Reporting Act gives affords the right to write to credit bureaus directly and dispute items on your credit reports. Just as in a court of law, you have the absolute right to plead not guilty to to any information on your credit reports that may be damaging, and leave the burden of proof to the credit bureaus. You can dispute any and all items on your credit reports that you feel classify as inaccurate, unverifiable, or misleading. If the credit bureaus cannot prove that the information on your reports is absolutely correct, then those items must be deleted by law.