Credit Repair

Improving Your Credit Score After Bankruptcy

Many people are unknowingly subjected to additional financial burdens because of false or wrong information contained in their credit report. Under the FCRA, Fair Credit Reporting Act, you have the right to correct erroneous information contained in your credit report. After completing a chapter 13 or chapter 7 bankruptcy many people see the importance of putting attention on credit repair without knowing that wrong information can mean higher interest on credit cards, loans and mortgages, higher insurance rates, and can interfere with employment opportunities.

Beware of Scams

The Federal Trade Commission has issued a list of warnings regarding legitimate vs. illegitimate credit repair agencies. While there are many legitimate agencies out there, it is common from scam companies to promise credit improvement when they actually just want your money. The first warning sign that you should look for is a company who guarantees that they can fix your credit. Your credit score is something that fluctuates and is subject to much change from a variety of factors, therefore, no one can guarantee 100 percent that they can “fix” it. Also, beware of any companies who ask for money before they have performed any services for you. The Fair Credit Reporting Act actually states explicitly that credit repair agencies are forbidden from collecting money before performing a service.

It is illegal for anyone to attempt to remove negative history from your credit report. For example, if you filed for bankruptcy three years ago and a credit repair company is promising to get that off of your report so that you can get a lower interest rate on a home loan, they are lying to you. Filing for bankruptcy stays on your credit report for up to ten years. Don’t worry though. Good spending habits after filing can quickly better your credit score, even though the filing is still on your record.

Know what’s on your credit report!

You are entitled to receive a free copy of your credit report each year from each of the credit reporting agencies. It is important that you review each one carefully for errors. It is up to you to make sure that all the information concerning your credit history is factual. A skilled credit repair lawyer can take the steps which are required to clean up your credit report with each of the three credit bureaus, Experian, TransUnion and Equifax by disputing inaccurate or misleading information. This process takes time, knowledge of the law and expertise in following the procedures to ensure the process is completed correctly.