WTV “WEALTH” WEDNESDAY – FINANCIAL 411

How does credit restoration really work? Credit restoration is mediation one imposes to questionable credit listings in order to improve one’s credit scores. These arbitrations are usually conducted in writing, but can be attempted verbally. Credit repair is much more complex than simply disputes in reality. There are hundreds of regulations that credit reporting companies, collection agencies, and credit bureaus must comply with in order for any reported item to remain on your credit report. The three major subsections are:

* Fair Credit Reporting Act (FCRA) regulates credit bureaus

* Fair Debt Collection Practices Act (FDCPA) regulates collection agencies

* Fair Credit Billing Act (FCBA) ensures accurate and complete billing information

The three major credit reporting agencies are Equifax, Trans Union, and Experian. Though the aforementioned credit agencies are governed by Federal Laws, they are not part of the Government or carry any official power from the Government. These are multi-million dollar corporations that operate for profit and make their money selling your personal information to creditors for insurance and credit offers, to landlords, and employers, and also to telemarketers and mailing list companies – all without your permission. These companies acknowledge that credit report errors exist, but state that it is not their job to ensure that the information is accurate. Instead, the credit reporting companies shift the responsibility of accurate reporting to the very people being reported on: you. It is up to you, the consumer, to prove that their report is inaccurate and contains errors affecting your credit worthiness.

*Is your report accurate? Most likely, it’s not! Credit.com reports that 3 out of every 4 credit profiles contain serious errors. Here are some alarming numbers:

• 79%  of all credit reports contain errors

• 25% of all credit reports contain errors serious enough to cause denial of credit

• 29% of population has variation of 50 points between all three credit bureaus

• 54% of credit reports contained personal information that is misspelled, outdated, or belonged to a stranger.

• 30% of credit reports contained credit accounts that have been closed but are still reported as open.

You are not at the mercy of the credit reporting agencies! There are skilled reputable credit repair companies that can help. You can also call the Free Credit Helpline at (800) 267-9390.

Here are some tips to improve your credit score:

* Make sure all the information in your credit report is accurate

* Dispute inaccurate items

* Pay down loan balances to 40% of available balances

* Try to have 12 – 24 months with no late payments or derogatory items

• Based on 2004 Study done by the National Association of State PIRGs

Call AxSys Financial  Group at 888-453-0096 for immediate help

Article by: Axsys Financial Group Founder Ela Kitchen

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