A: The credit repair process works by challenging inaccurate or outdated information on your credit report. This is typically done through filing disputes with the three major bureaus (Equifax, Experian, and TransUnion) to have them investigate and verify the information in question. If this information can’t be verified, it must be removed from your credit report.
A: We can’t promise that your credit will be perfect after working with us, but we can guarantee that we will help you improve your credit profile by addressing any unfair or inaccurate negative items.
A: As every credit report is unique, it’s impossible to accurately predict how much time it will take to repair your credit. Last year our clients saw thousands of negative items deleted from their reports.
A: The cost of credit repair services can vary depending on the specific services needed. Generally, you can pay a one-time setup fee and monthly maintenance fees. Some additional fees may include document preparation costs and any other services requested.
A: Obtaining copies of your credit reports from Equifax, TransUnion, and Experian is the first step to taking matters into your own hands and repairing your credit without professional help. Review your reports for any errors or inaccuracies, and if you find any, take steps to dispute them with the appropriate bureau. However, this process can be tedious and time-consuming. So, many people prefer to seek the assistance of a credit repair company.
A: For many people struggling with financial challenges, these services are more than worth it. An experienced professional will review your credit report and help you dispute inaccurate information or debts that may have been unfairly reported. These services can also guide you in improving your credit score and building a better financial future. While some upfront costs may be associated with using a credit repair service, the long-term benefits are worth it for many people.
A: Yes, credit repair is a legal process involving disputing inaccurate or outdated information on your credit report. Credit repair companies can legally help consumers dispute errors and incorrect items on their credit reports to improve their scores and financial standing. Furthermore, the Credit Repair Organizations Act (CROA) protects consumers from unfair business practices by credit repair companies.
A: The credit bureaus and your creditors are legally bound to delete any negative items on your report that they cannot prove are accurate, fair, and substantiated. We call this deletion of payment history a removal.
A: Negative items on credit reports can include late payments, charge-offs, collections accounts, foreclosures, repossessions, and bankruptcies. Depending on the specific item and your circumstances, some of these items could be removed from your credit report. The negative items can be a part of your credit report for up to seven years, but they will eventually fall off your credit report with time. It’s also important to note that even if an item is removed from your credit report, you may still have to pay it back.
A: If a negative item is removed or deleted from your credit report, your creditors may still report it again. That’s why you should always contact the credit bureaus and your creditors to ensure that inaccurate or unfair listings will not reappear on your credit. According to the Fair Credit Reporting Act, the credit bureau must notify you before re-reporting a previously deleted listing.
A: Negative items, such as missed payments, delinquent accounts, and collections, can significantly lower credit scores. Generally speaking, the more severe the negative item and the longer it has been on your report, the greater its impact will be on your score. For example, a single late payment may cause only a tiny drop in your score, but multiple late payments over a long period can have a much more significant effect.
Additionally, more serious negative items such as bankruptcies and foreclosures will usually cause your score to drop significantly. The exact impact of negative items will depend upon your overall credit history, so it’s best to consult with a professional credit counselor like Trifecta Credit Solutions.
A: Divorce can significantly impact credit scores, as the debt division between two former spouses could result in either or both parties incurring additional debt. This added debt may cause their credit score to drop considerably. It’s essential to ensure that debts are divided fairly and that both parties keep up with payments to maintain a good credit score. Finally, suppose either party has difficulty making payments due to the divorce. In that case, they should reach out to their creditors as soon as possible to discuss options for keeping their credit scores healthy.
A: Identity theft can damage your credit score by increasing your debt utilization ratio and possibly missing payments or collections appearing on your report. Even if you eventually regain control of your identity, these problems could remain on your credit history.
A: Medical debt can have a severe impact on your credit score. If you cannot pay off the medical bills in full, they will show up as a negative item on your credit report.
Fortunately, there are laws against some practices about how medical debt is reported. Under the FICO score, unpaid medical bills over six months old will not be factored into your credit score. However, if you miss payments or are in collections, it can harm your credit score. Paying off medical debt is essential to maintaining a good credit rating.
A: Student loans can affect your credit score in two ways. The first is if you fail to make payments on your student loans, it will show up as a negative item on your credit report, which will lower your score. The second way student loans can affect credit scores is if you make timely payments for an extended period and can pay down the loan balance significantly, this will likely increase your credit score.
A: Yes, credit repair should be considered an urgent task. One of the most critical steps in repairing damaged credit is to begin working on it as soon as possible. The sooner you take action to improve your credit score and remove any negative marks from your record, the better chance you have of returning to good financial health.
A: Generally, paying off collections can help improve your credit score. Paying the debt in full will typically remove it from your credit report after seven years, but many creditors may settle for less than the total balance. In addition, you may qualify for more favorable terms on future loans or credit cards by resolving the collection accounts on your credit report.
A: If your objective is to fix your credit, you will need more than simply paying off your debts. For most people, repairing poor credit is a substantial challenge, but we’re here to lend a helping hand. Trifecta Credit Repair has established a four-step process for credit repair that has been effective for hundreds of thousands of clients. Give us a call!
A: Negative items on credit reports can significantly impact your overall credit score. These factors are considered when calculating a credit score and can be challenging to overcome. You should stay on top of your payments and manage your credit responsibly.
Here is a list of negative items and their impact on the credit score:
Late Payment 110 points
Collections 100 points
Bankruptcy 300 points
Foreclosure 200-220 points
Charge Offs 180 points
These are only estimates, and the actual decrease in score will depend on many factors, including your current credit score.
A: If a late payment is accurately reported, removing it from your reports will be difficult—and it probably won’t be deleted for seven years. However, you can request the creditor to remove it as a goodwill gesture by providing a legitimate reason, such as hospitalization or job loss.
If a late payment report is incorrect, you can file a dispute explaining the mistake and demanding that the payment be removed. You’ll need to provide proof that the information is incorrect, and then the credit bureau will investigate. If they find it in your favor, they’ll remove the payment from your report.
In either case, remember that the Fair Credit Reporting Act gives you specific rights and that you can take action to protect your credit score.
A: A charge-off is a notation on a credit report that indicates an outstanding debt has been written off by the lender and deemed uncollectible. It means that the lender no longer considers you liable for paying back the debt, but the debt remains unpaid. Charge-offs can significantly damage your credit score, so it’s essential to understand the implications of a charge-off and take measures to improve your credit.
Some common causes of charge-offs include failing to make payments on time, defaulting on a loan, or not responding to collection efforts. To minimize the impact of a charge-off, it’s crucial to contact lenders as soon as you become aware of any debt problems.
Once a charge-off has occurred, you can take steps to protect your credit score. You should contact the lender directly and negotiate a settlement for the remaining amount due. If this isn’t possible, you can explore other options, such as credit counseling or debt consolidation.
A: You are still held accountable even if an account is charged off. So, you should consider paying it off. Doing so before the account gets sold to collections could shield your credit from further harm because a collection, in addition to the charge-off, would show up on your credit history.
Your creditor can report a debt as “charged off” on your credit report, even if you’ve paid it in full, and this will remain on your record for up to seven years. Occasionally, creditors will delete the account from your credit reports if you agree to pay the debt in full. This is not something that creditors have to offer and is entirely at their discretion.
A: Some people think dealing with collections is similar to dealing with creditors for other negative accounts, but there are some key differences. Collection agencies earn money by buying debts from creditors at a reduced rate and then collecting payments from the debtors for the total amount. Because these agencies make their living off collecting unpaid debts, they will sometimes go to great lengths to get in touch with you. This may include calling, sending letters, or contacting your employer.
The Fair Debt Collection Practices Act (FDCPA) protects you from being harassed by collection agencies. This means they can’t make too many phone calls, threaten you, or call at unreasonable hours. You can ask them not to contact you by telephone. However, they may still be able to contact you in writing.
A: Medical bills are the most common type of accounts sold in collections. Most credit scoring models impact your credit score as other types of collections. However, recent credit scoring models are changing because medical bills are often a poor indicator of an individual’s creditworthiness.
FICO 9 is the newest scoring model and does not consider paid medical bills. Unpaid medical bills weigh less now. Your FICO score is what most lenders look at when you apply for credit. This news benefits people who only have medical bills on their credit reports; however, not all lenders use FICO 9. Some lenders might still be using older versions of the FICO model, which means that unpaid collections could carry the same weight as before when applying for credit in those cases.
A: The best way to determine if you have collections on your credit report is to check it yourself. You can obtain a free copy of your credit report from each of the three major credit bureaus once yearly. If there are any collections, they should appear listed on your report.
If you find collections on your credit report, the best course of action is to contact the collection agency and negotiate a payment plan or settlement that works for both parties. It’s essential to make sure any agreement you reach with the collection agency is in writing before making payments. Additionally, if you can pay off the debt in full, that’s a better option as it will help boost your credit score more quickly.
A: Foreclosure is a legal process that typically begins when the borrower defaults on their mortgage payments and the lender initiates judicial proceedings against them. It ends with either the homeowner voluntarily relinquishing the property to the lender or foreclosure proceedings initiated by the lender.
It’s important to understand that once the foreclosure process begins, it can be challenging to stop, and homeowners should contact their lender as soon as possible for assistance options. Depending on state laws, lenders may be required to offer certain foreclosure options, such as forbearance plans or loan modifications.
A: A short sale is a real estate transaction in which the seller’s bank agrees to accept less than the total amount owed on the mortgage loan as payment in full on the sale of a home. This agreement can help homeowners avoid foreclosure, but it can be difficult for sellers to qualify for and close a short sale.
Typically, lenders will only consider approving a short sale if the borrower has experienced a genuine financial hardship, such as job loss or medical bills, and does not have other means to pay off the loan. The lender may also require that the home be sold for less than its market value to make up the difference in what is owed. Short sales can provide some relief from debt for the seller, but they can also hurt the seller’s credit score.
A: Repossession is a legal process that occurs when a creditor takes back an item of property from the debtor due to their failure to meet the agreed-upon terms of their loan. This item can be anything from an automobile, boat, home, or other personal property used to secure a loan. The process begins with a demand letter that notifies the borrower of the debt and their intent to repossess the item if the debt is not repaid. If the borrower does not pay, a court order may be obtained from a judge granting permission for the creditor to take back possession of the collateral.
The actual repossession process typically involves hiring a professional repossession service or sending collection agents to repossess the item physically. After the item is in the creditor’s possession, they may sell it to pay off the debt or hold it until the borrower pays the loan amount.
Repossession can significantly impact a person’s credit score and financial future. A repossessed item will stay on an individual’s credit record for up to seven years, making it difficult for them to obtain future loans or credit cards. In addition, the borrower may have to pay additional fees associated with the repossession process, such as legal costs and storage fees.
A: Voluntary repossession is when a borrower who has not made payments as agreed to on their loan agreement decides to turn the collateral over to the lender to avoid further legal action. This means that the borrower gives up ownership of the item and agrees for it to be repossessed by the lender.
The lender then has the right to collect any remaining balance due on the loan, sell the item, or take other action as permitted under the law. It is important to note that voluntary repossession does not absolve the borrower of their responsibility to pay back the remaining balance due on the loan.
A: If you’re finding it challenging to cover all your expenses, you can talk to your lender or creditor and set up a plan where you can make smaller payments over time. This way, it is easier for you to stay on top of what you owe. You can also refinance your existing loan and obtain better terms to make repayment more manageable.
If these options do not work, you may consider filing for bankruptcy, allowing you to discharge your debts and make a fresh start. However, this should be done only as a last resort because it can have serious long-term consequences on your credit profile.
A: A judgment cannot be filed against you unless you have received proper notification and a summons to appear in court. This provides you with the opportunity to present a defense against the creditor.
Unpaid judgments are considered “unsatisfied,” and paid judgments are, as you might expect, “satisfied.” Even after paying a judgment, it will remain on your credit reports; however, the report will note that the debt has been satisfied.
The court can also vacate or dismiss a judgment. If the judgment is vacated, the case is dismissed without prejudice, which usually works in favor of the person being sued by the creditor. A dismissed judgment means that charges were dropped and generally benefit the party being sued.
A: As a result of a lengthy effort by consumer advocates and government authorities, the three primary credit bureaus (Experian, TransUnion, and Equifax) made changes to how judgments and liens are reported starting July 1st, 2017, to help consumers. For a judgment or lien to appear on someone’s credit report from the credit bureaus, the following information must be included:
If any of the information detailed above is missing or wrong, the credit bureaus must take the judgment off a consumer’s credit reports. Furthermore, the bureaus must confirm accuracy every 90 days – if not, it could also lead to removal.
A: A tax lien can be removed from a credit report in three primary ways:
In some cases, you may also negotiate with the IRS for a payment plan that allows you to pay off the debt over time and have the lien removed from your credit report once it is paid in full.
A: When a debt is discharged in bankruptcy, the individual has no legal obligation to pay it. The creditor cannot collect on that debt from the debtor any longer and cannot bring any legal action against them for not paying. However, creditors may still report the discharged debt on the person’s credit report for up to 10 years after the bankruptcy discharge.
The individual might have more trouble getting credit down the road. Additionally, some types of debts, such as student loans and back taxes, are not eligible for discharge in bankruptcy and must be paid even after a bankruptcy is filed.
Therefore, it’s important for people considering bankruptcy to understand what debts are eligible for discharge and which are not. Additionally, it’s essential to remember that filing for bankruptcy will hurt the individual’s credit score and may affect their ability to obtain credit in the future.
A: Bankruptcy can be used to discharge most types of unsecured debts. Examples of unsecured debt that can be discharged in bankruptcy include credit cards, medical bills, personal loans, payday loans, utility and cell phone bills, repossessions, deficiency balances on foreclosed properties, past-due rent, and judgments from past lawsuits.
It’s important to note that certain debts cannot be discharged in bankruptcy, including student loans, child support payments, alimony, and most taxes. Additionally, some types of secured debt (debt backed by collateral), such as a home mortgage or auto loan, cannot be discharged in bankruptcy. In these cases, the consumer would need to continue making payments; otherwise, the lender can repossess the collateral.
Under some circumstances, even secured debt can be discharged in a bankruptcy proceeding. For example, if a borrower has made recent payments on their loan but cannot keep up with future payments due to financial hardship, they may be able to have the balance of the loan discharged. Additionally, in some cases, a consumer may be able to have their auto loan payment reduced so they can continue to make payments and keep their vehicle.
A: Generally, there are three types of bankruptcies: Chapter 7, Chapter 11, and Chapter 13.
Out of all these, Chapter 7 is the most common; it involves liquidating non-exempt assets to pay off creditors.
Chapter 11 bankruptcy is more complicated and involves reorganizing the debt of a business or individual. This type of bankruptcy typically allows for the debt to be restructured so that it can be paid off over time.
Chapter 13 bankruptcy is designed for individuals with a steady income but too much debt. It allows them to create a repayment plan that will enable them to pay off their debt over 3-5 years. During this time, creditors are not allowed to take action against the debtor and must wait until the repayment plan is completed. This type of bankruptcy also requires that all debt obligations be paid in full before the debtor can receive a discharge from liability.