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Lets put it plainly. There is NO LAW that states that accurate, negative marks on your credit need to stay on your credit report for 7-10 years. In fact, consumers negotiate all the time with creditors to refrain from putting negative marks on your credit file.
It is an outright lie when the Credit Reporting Agencies tell you that the negative mark "must stay on there for 7 years" What they fail to tell you is that law states that the negative mark CANNOT STAY after 7 years. These are 2 very different statements.
"No one can remove negative marks." Baloney.
It is also a lie when the
Credit Reporting Agencies and other organizations tell you "No
one can legally remove accurate and timely negative information
from a credit report." That is complete rubbish.
Negative marks on
your credit can be removed at any time, at the whim (or by
instruction) of the creditor or the credit reporting agencies.
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You are breaking no law, moral or ethical by having your negative items removed through the dispute process. |
You have no ethical
obligation to keep negative marks on your credit, especially if
your financial troubles are behind you and you are on the right
track financially. Why should you have to pay for your
past problems for 7-10 years?
If the question is about irresponsibility, then what about the responsible folks who've had extreme debt due to severe medical problems, divorce, failed business partnerships, or bankruptcy due to September 11th or some other uncontrollable market conditions? Are they "irresponsible?" Probably not.
Surely you can't (or shouldn't) penalize these people for 7-10 with poor credit! Yet it happens all the time to people who neglect to request that they be removed from their report.
Everyone's reason is different, but It is ridiculous to say that these negative marks should stay for up to a decade.
By challenging your negative marks, you are simply asking the credit bureaus "Can these be removed now?"
Allow me this analogy... It's kind of like a child asking a parent to be released from "time out." The parent can let the child out at any time. There's no universal rule of parenting that requires the "time out" stay be 7 minutes.
Except the parent in this case is an unflinching and uncaring Credit Reporting Agency who couldn't care less about letting you out or whether the reason you are in "time out" is legitimate or correct or not.
They may even have mistaken you for some other kid who committed the offense. Do they care? No. Do they have any mechanisms in place (other than you bringing it to their attention) to prevent such mistakes? No.
Why seven years? It seems
the government has established this as an arbitrary length of
time that it takes an individual to become a financially
responsible citizen again. Again, ridiculous. After a
financially difficult time, a person can be ready in as little
as a few months to handle their finances responsibly.
This is precisely why you should request that they be removed.
It is up to us to assess
ourselves and ask to be freed.
It is another question, perhaps to yourself, whether you feel that you are responsible enough yet to handle a new line of credit. You must answer this question before you try to repair your credit.
Removing these marks is your way of saying to the financial community "I'm ready now" to be responsible for my finances again.
Consider this implication that I've mentioned in other places on this website: Since many employers are now running credit checks on prospective applicants before hiring, it is all the more important to your quality of life to address your negative credit marks and "ask that they be removed."
Remember this: Credit bureaus are a business. And the are out to make money. Aspects of their business that don't directly impact their bottom line (like item accuracy and handling disputes) are not their top priority. Their goal is to sell, sell then sell more of your information to those who want it.
The war against legitimate credit repair companies
Not surprisingly, the credit
bureaus have declared war against the credit repair companies
and those selling instructions on how to do-it-yourself. The
bureaus lambaste credit repair companies in the media and send
anti-credit repair literature to anyone whom they suspect of
using credit repair services. The bureaus unflinchingly deny
that accurate information can be removed from a credit report.
The simple truth is that you do not have to endure bad credit
for seven to ten years so long as you feel comfortable
challenging the accuracy or verifiability of your credit
listings. If so, it is possible to restore creditworthiness
within a much shorter time.
However you decide to address your credit challenges, realize
that regardless of what you may hear in the news media,
thousands before you have sought help and restored their credit.
They can show you their homes, cars, and credit cards.
Despite the newspaper articles, TV reports, and other credit bureau propaganda to the contrary, the simple truth remains:
You can restore your credit.
Related Articles:
Good Credit Rules!
Having good credit is one of
the most important building blocks to financial independence.
Learn how getting good credit can help your life.
Follow these tips to
maintain a great credit score
Here are a bunch of tips and suggestions that will put your
score at the top and keep it there.
Learn valuable information
about credit reports
Find out about what could be on you credit report, types of
credit reports and how to get them for free every year!
How to avoid credit repair scams
By knowing what's out there, you can save yourself a ton of
money, headaches and time. Picking the right credit repair
strategy is critical to your financial future.
Improve your
credit score by disputing items on your credit report
By disputing erroneous, inaccurate and
unverifiable entries on your report, you can drastically improve
your score and save hundreds and even thousands of dollars in
interest.
A common question - Is
Credit Repair Legal?
Read my thoughts on the legal and
ethical implications of credit repair.
Get your free Annual
Credit Report
Read my review of
www.annualcreditreport.com and learn how to get your reports
free.
Do It Yourself Credit
Repair
Remove unwanted marks
by disputing them yourself. By applying some basic
techniques and using recent legislation to your advantage, you
can have adverse entries removed much sooner.
Sample Dispute Letter
Use this sample letter format to dispute
items on your credit report.
Playing the Balance Transfer Game
Using balance transfers to avoid high interest rates can work,
but watch out, you could pay for it in the long run.
Your Debt-to-Income Ratio
learn how this important number can play a big part in your
ability to secure a loan.
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Personal Money Management Basics
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Did You Know... |
49% of adults, and 66% of US high school students got F's on a national test on their knowledge of basic economic principles.
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Food for Thought... |
"I'd rather go to bed without supper than rise in debt."
-Ben Franklin.
