Ultimate Credit Repair Guide

Our credit repair bible is designed for everyone seeking professional help or attempting to engage in do-it-yourself credit repair. It is a sizable source of information that will equip you with tools to not only help you understand the ins and outs of credit repair services but also provide insights about your rights as a consumer.

Why Credit Repair Works?

While this guide is created with the intention to mentor you through the credit repair process, it would not be fair to those that simply have no time or patience to tend to their credit affairs by themselves.

Why would anyone want to hire a professional credit repair company if it’s no secret the task can be accomplished for free without seeking expert services?

The same can be said for getting your nails done or changing the oil in your car without hiring professionals that can probably do it better since they have been trained to do so—or possibly getting legal advice since you can represent yourself without all the unnecessary attorney fees. That is how reputable and legitimate credit repair companies should work despite you having all the rights as a consumer to do the same without our help.

We micromanage every aspect of your case, working diligently with various experts to provide the best possible results on your path to a perfect credit score.

Stop the Embarrassment of Being Rejected for Credit

Cleaning up your bad credit is not only about having better financial opportunities, although that should be our main concern. As superficial as it sounds, having a good credit score and decent credit report will finally allow you to apply for credit cards or financing without your heart skipping a beat while you wait for the decision. Let’s be honest – being rejected from receiving a loan or credit card can be quite intimidating and embarrassing.

Let’s put “confidence” back into your credit affairs and fight for the financial freedom you deserve

Advocate For Your Credit Affairs

If you won’t, no one will. In fact, it is often not in financial institutions’ best interest to give out loans on the best of terms since they might be losing money due to lower interest rates and other factors. Imagine Ben, a twenty-something student who desperately desires a brand-new car. He steps into one of those luxurious dealerships in search of his dream vehicle only to find out his credit score is not sufficient to qualify for low-interest rates. He is happily offered financing solutions by a pushy salesman who makes it sound like a dream come true, but the loan terms are less than perfect. No one bothers to explain to him what the agreement means, and Ben is too excited to acknowledge the fine print at the very bottom of the page. He signs and drives away in his new ride. Sound familiar? What awaits Ben is high installment payments with ridiculous interest rates that not only dig a massive hole in his wallet but also make him pay almost double the amount of the car’s original value.

Advocating for yourself and your credit affairs is an undertaking worth your time and effort. Not only will you avoid the embarrassing moments of being continuously rejected for the lowest credit lines – having impeccable credit opens up opportunities you might otherwise never experience. Your credit score determines your chances of loan approval and ultimately dictates the terms and conditions of the credit. From daily essentials to obtaining a mortgage, good credit history and credit score can impact the quality of your life in many ways.

Know Your Rights as a Consumer

The Fair Credit Reporting Act (FCRA) ensures that consumers have equal rights when it comes to their credit affairs. Here is a summary of how FCRA protects consumers:

Anytime an institution denies your credit application based on obtaining your credit information, such as credit reports, the FCRA requires whoever used your credit check to file against you to keep you informed. The same applies to insurance or employment rejection, or other adverse action based on your credit information. Furthermore, you must be provided with the name, address, and phone number of the reporting agency.

As part of the FCRA’s accuracy promise in your credit file, you are entitled to obtain free credit reports once a year from the three major nationwide credit bureaus – Equifax, TransUnion, and Experian. In addition, you may qualify for a free file disclosure in the following circumstances:

  • You have been negatively affected due to the information contained in your credit report;


  • You have fallen victim to identity theft;


  • You have placed a fraud alert in your credit file;
  • Your credit reports have inaccurate information due to fraudulent activities;


  • You are part of the public assistance program;


  • You are currently unemployed and expected to apply for employment within 60 days.

Otherwise, you can always gain access to your credit file with a fee by providing your identifying information, such as your date of birth and Social Security number.

You have the right to obtain your credit score, a numerical representation of financial health, and your overall creditworthiness. There are several ways to go about it as you also have more than one credit score. These are calculated entirely based on the information within your file – the data your past and present creditors feed the credit reporting agencies. You may access your credit score directly from the consumer reporting agencies that ultimately create the three digits, your bank, or credit card companies.

FCRA ensures that you can dispute inaccurate or incomplete information from your credit file which will open an investigation into your report. If the information proves to be incorrect or unverifiable, the consumer reporting agency has 30 days to delete or possibly correct the information. In addition, if you do not receive any updates within 30 days regarding the credit dispute or the outcome of the investigation, you have a right to have the reported inaccuracy removed.

A time limit exists for reporting negative information by consumer reporting and collection agencies. Outdated entries, such as late payments, should not be reported if they are more than seven years old, and any bankruptcies 10 years or older should also be considered “expired.”

Although certain parties can gain access to your credit file, it is limited to creditors, insurance companies, potential or existing employers, and landlords. FCRA ensures that only valid requests get permissible information about your credit. Additionally, for employment, credit monitoring services or rental purposes, you must provide your consent before they can access your credit report.


Click here for more information about your rights as a consumer

You CAN Have Negative Entries Removed – Legally

The derogatory information fed to the credit bureaus can be legally removed. Such entries include late payments, collections, or hard inquiries. This is where the credit repair journey truly begins – with the reassurance that your credit file can be cleaned up. If removing negative credit information was not possible, many professionals would be out of a job, including bankers, brokers, or reputable credit repair service companies. Here’s why removing derogatory entries is legal:

Reporting Late Payments is NOT Regulated by Law

Just as furnishing positive information, such as timely payments, to credit bureaus is voluntary, so is reporting late payments.

Your Payment History Belongs to the Creditor, Not to Credit Bureaus

Ultimately, your creditor owns your payment history—not the bureaus. They are not forced to disclose any late payments or other information. That is between the loanee and the creditor.

Credit Reporting Agencies Are NOT Government Enterprises

The major credit bureaus that monopolized the credit industry are not government agencies, as most consumers assume. Experian, Equifax, and TransUnion are private companies collecting data about your creditworthiness that essentially craft the dreadful credit report.

Because they are privately owned, these credit-reporting enterprises follow their own protocol when compiling your credit file, which includes utilizing various sources. The credit bureaus gather information about consumers from various institutions, including retailers, banks, loan companies, and other creditors – all of which are known as data furnishers. Because credit reporting is not mandatory, companies follow different paths when furnishing your credit information to credit bureaus. Your lenders might choose to report late payments only and do so at various times and frequencies. Some may report to all three credit bureaus while others to only one.

Credit Bureaus and Creditors Make Mistakes

Just as you may miss a payment or take out a loan you have trouble paying, credit bureaus also make mistakes regarding your credit. A company may accidentally report information incorrectly, or the bureau may have made a mistake on its end.

Dispute Credit Report Errors

If this ends up happening, make sure you send an official letter to the bureau or bureaus that are listing an error. Make sure to list the inaccuracies in the letter, along with your personal information. Be detailed about the mistakes and include any documents that show where the error occurred and how. Consider printing your credit report and circling the problem areas. Do the same for any documentation you have to dispute the mistakes made by the bureau or the lender.

Wait Up to 45 Days for the Results

The bureau or bureaus will look over the information you sent and make a determination within 30 days. If the dispute isn’t properly resolved, ask that the dispute be included in your files and future reports.

Check Your Credit Reports for Updates

If the issue is resolved, make sure the bureau updates the information in a reasonable timeframe. They should give you an estimate for how long this will be.

Bottom Line

If your creditor makes a mistake, contact them to dispute this mistake. They may be able to correct the issue. If they don’t, you can reach out to the credit bureaus about the mistake.

Why Credit Repair Works

What Exactly is a Credit Score?

A credit score is essentially a prediction that can be used by lenders to determine how likely a loanee is to pay back a debt on time. They can then determine the level of risk, and what interest they are going to charge on the loan.

How Are Credit Scores Calculated?

There are a few ways that a credit bureau calculates your credit. These include:

  • Your current unpaid debt
  • Your payment history
  • The amount of available credit you are using
  • Your current amount and types of loans
  • The number of new applications for credit you have put in
  • Any foreclosures, bankruptcies, and debts sent to collections


A mathematical formula called a “scoring model” is used to calculate all of this information and create a credit score.

What is reported to the credit bureaus about you?

There are three major credit bureaus that are reported to (which we discussed earlier). These are Experian, TransUnion, and Equifax. In order to learn more about your loan history, creditors report information to them. These creditors may include:

  • Insurance companies
  • Credit card companies
  • Banks
  • Utility companies
  • Landlords
  • Telecommunication companies

While some companies may feed information to the three major credit bureaus directly, others don’t. Instead, they hire debt collectors that may, in turn, report to one or more credit bureaus.

A Brief History of Credit Scoring

While most people alive today grew up with credit scoring, it actually is a relatively new invention. The history of credit only goes back to the 1950s.

FICO was originally created in 1956 when mathematician Earl Isaac and engineer Bill Fair got together to work on a standardized scoring system. From there, they started selling it.

How Credit Scoring Affects Your Insurance Premium

As you would probably guess, having a poor credit score isn’t going to help with your insurance premium. Better credit is usually going to get you better rates on your insurance. Actually, having poor credit may even double your rates for certain types of insurance!

With that said, if you get your health insurance through your employer, your score probably won’t matter. Your credit score mainly affects how much you pay if you buy health insurance out of pocket.

  • Auto Insurance
  • Homeowners Insurance
  • Renter’s Insurance
In order to avoid a big premium, taking care of your credit score is a must.

Buying a Car on Credit—What You Need to Know

Buying a car is one of the most common reasons people want to build their credit. On top of that, owning a car and making on time payments can do a lot to boost your credit score. It’s a win-win! With that said, there are some things you’ll want to consider when it comes to buying a car on credit…

Poor Credit = Higher Interest

If you are able to build your credit before buying a car, you are better off. The last thing you want is to get locked into a loan with a high-interest rate.

If you absolutely need a car, make sure you make your payments on time. You also may be able to negotiate the interest rates with a car dealer. See if you can negotiate a loan with better terms before you sign off.

Stay Within Your Means

Keep in mind that, as your credit score improves, the amount a lender will be willing to lend you will also go up. With that said, don’t get in over your head. If a lender is willing to give you an extra $10,000 more than you were expecting, this isn’t a free pass to go crazy and buy a fancier car. Stick within your budget and your means when purchasing your car.

If you start missing car payments, your credit is going to suffer. Don’t get overzealous and buy a car you like but can’t really afford.

Which Credit Measure is the Most Common for Auto Loans?

One of the most important things when it comes to an auto loan is your FICO score. This score is made up of different parts of your credit history, which includes unpaid debts, how many open accounts you have, how long your accounts have been open, the percentage of credit you’ve used, and more.

Your FICO score is based off of information from your TransUnion, Equifax, and Experian scores. It’s good to check your FICO score before you buy a car, since it is likely going to be the determining factor when it comes to your loan.

How to Request All Three Credit Reports

It may seem daunting to request your credit reports, but it’s actually a lot simpler and more straightforward than you may think.