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At
CreditScoresUSA, we are as dedicated about our
customer service as we are about fixing your credit.
We pride ourselves in our knowledge of how credit
works, and have seen - and fixed - nearly any type
of bad credit situation that exists. Here we
have compiled a list of common and not so common
questions that we have encountered during our
professional tenure. As always, you can
contact us via email, phone or fax if you have any
questions that we may not have covered here. |
Who are you and how can you help?
We are CreditScoresUSA, we are a credit repair agency with a unique advantage. We are one of the few who are affiliated with several collection agencies. This is a unique advantage that allows us to purchase your debts at a deep
discount and then have them PURGED from your credit report. Our Debt Solution Professionals can implement a realistic way to clear up your debts without breaking your budget. Again, because we are so closely affiliated with Collection Agencies - not only are we able to purchase your bad debts at a deep discount - but quite often we will also get creditors to waive all interest charges and stop late-payment fees. This is
credit repair - Done Right!
What other benefits and services does Credit Scores USA provide?
Your service with Credit Scores USA includes a ONE YEAR MEMBERSHIP. We enroll all of our clients into our program for a full year so that we can report and dispute your derogatory credit lines to all three credit bureaus, month after month. This ensures that the negative items stay off of your credit report.
Credit Scores USA also has affiliates who can help you obtain mortgage loans, business lines of credit, credit cards and much more.
Can my creditors sue me or garnish my wages?
It is true that when someone falls behind on making payments, the creditors
have a right to sue. In our experience, most creditors are not anxious to pursue legal action. Legal action is costly and most creditors are willing to negotiate the amount owed to them. Of course, the creditor has the right to sue you to recover their money. Generally, open communication between the debt settlement coordinators and your creditors will allow them to work out an agreement before legal action is necessary. The threat of garnishing your wages is a common tactic used by aggressive debt collectors. Nothing is scarier than the threat of having money removed from you paycheck without your permission. While they would like to make you think it will happen on your next paycheck, it just can’t happen. First the creditor must sue you, obtain a judgment, and file for a garnishment action.
Can I settle my debts myself?
Yes. However, typically the discounts you achieve on your own won’t be nearly as large as a professional negotiator can obtain. Additionally, debt settlement may be a lengthy and time consuming process. You may want to utilize the time and expertise of our dedicated professionals instead.
Will the creditors call and harass me?
If you are delinquent on any of your debts you may have already experienced these uncomfortable phone calls. However, you have rights under the Fair Debt Collection Practices Act to prohibit abusive practices by debt collectors. We have programs to help you exercise your legal rights which will minimize or eliminate phone calls from creditors and collection agencies.
Are there any tax consequences?
Creditors are required to report forgiven debt in excess of certain limits to the Internal Revenue Service. In turn, you are required to report the discharge of indebtedness (or DOI)
to the IRS as income. However, the IRS permits you to write off any "income"
from canceled debts up to the amount by which you were
"insolvent" at the time. If your liabilities are greater than your assets you may not have to pay the IRS the DOI. Please consult your tax advisor for specific instructions and advice.
What can be removed from my Credit Report?
Anything inaccurate can be removed from a credit file including bankruptcy, judgments, collection accounts, liens, foreclosures, and late payments. Federal law requires that your credit report be accurate, complete, and verifiable. Accurate means exact and precise. If it is not accurate, we will challenge everything in question, with the ultimate goal of having erroneous negative information removed from your report.
How long does negative information remain on a credit report?
Most negative information may remain on a credit report for seven years. Bankruptcy may remain on a credit report for ten years. Keep in mind these are the maximum time frames allowed.
How does information about me get into my credit report?
When you agree to accept credit from a bank, most retail stores, or fill out an employment application – if a credit report is used as a background check – you give the creditor the right to provide information to any credit reporting company. Additional information about you comes from public records, such as court records, debt collection companies, and even the utility companies.
Are you Fair Credit Reporting Act Compliant?
Absolutely! We maintain some of the highest ethical standards. Click here to view the Fair Credit Reporting Act
I have been denied credit. Is there something that I can do about that?
Yes you can! Many Americans have some inconsistencies on their credit reports. Many of these errors are mistakenly added to the consumer’s credit reports. Under the law, if there are mistakes listed, the companies must remove these entries. You should check
your credit report and see why you were denied credit. Then, as a Credit Scores USA client, you can do something to correct the
mistakes, and have your credit corrected.
How does the credit reporting system work?
Today, the credit reporting system is literally millions of computer files about individual consumers, which are maintained by three credit agencies. The files contain personal information about you – how much you owe, how you have paid your debts, your employer, your social security number, public records, etc.
Who can request information about my credit?
Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is:
- Granting credit, reviewing your account, or collecting on your account.
- Reviewing you for employment purposes.
- Reviewing your application for insurance.
- Reviewing
your eligibility for a license or government-related benefits.
- Providing information for a business transaction, such as renting an apartment.
- A court order.
- An IRS subpoena.
- Someone to whom you have given written permission.
How often are mistakes entered into my credit file?
Frequently! Some experts say that as many as 90% of all credit reports contain some errors that are inaccurate, erroneous, or obsolete information that can cost you the credit you deserve.
Who will remove items from my credit report?
Only the credit reporting agencies have the power to remove items from your credit report. But, by law, the credit reporting agencies must delete inaccurate, erroneous, or obsolete information. As a Credit Scores USA client, we ensure that the proper steps are taken to remove these inaccurate entries.
How long does this process take?
Most of our clients see substantial movement in the scores in the 60 to 90 day time frame. We feel confident that a significant portion of your results will appear within the first 60 days. However, your participation in this process is equally important. This is a detailed and skilled procedure that may take up to one year to achieve the results you are seeking.
Is it really possible to repair credit?
Technically, no. For example, Federal and State laws prohibit us from saying that removal of all negatives can be guaranteed. Yet, any information, no matter how accurate, which cannot be verified within a reasonable amount of time according to law, CANNOT be included on your credit report.
Will deleted items reappear?
This is rare, there are times when a credit bureau will eventually verify information that has already been deleted from your credit report. The federal law requires a credit bureau to inform you prior to re-listing a previously deleted item. This same federal law makes it more difficult than ever for a credit bureau to re-list a deleted item. Therefore, although it is technically possible for a deleted item to reappear on your credit report, it is highly unlikely. If an item reappears on your credit report we can again dispute it at a future date and work towards a permanent deletion.
Can I apply for new credit during this process or should I check my credit regularly?
We ask that you do not apply for new credit during this process. In addition, you will be supplied with updated credit reports as the negative items are removed.
Are there any items that are hard to remove, such as bankruptcies, repossessions and foreclosures?
No. Any unverifiable, inaccurate, outdated or misleading item can be removed. Bankruptcies, repossessions and foreclosures are considered negatives just like a late payment, though more severe in the amount of points deducted from your credit score. Often times these items can also be removed.
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