Two or three negative items on your credit report can lower your score from a respectable 780 score to a below average of 580. The difference between a 780 score and a 580 score could easily cost you an extra $ 500 to $ 3,000 or more each month in higher Monthly payments. A low credit score could prevent you from getting hired or getting the promotion you are counting on. You now have a legal way to fight back against Experian, Trans Union and Equifax from putting these negative items on your credit report.
Federal Law requires all 3 Credit Bureaus to have "verifiable proof" of every account on file before they can report anything on that account. If they do not have the "verifiable proof" required when you request it from them then the law requires them to remove all of the negative items on that account from your report. It does not matter if the reported item is correct or not. Before they can report the item on your report they have to have the verifiable proof on file.
The dirty little secret is that all 3 credit bureaus do not have the "verifiable proof" on file that Federal Law requires them to have. What this means is that the Credit Bureaus are not complying with the law unless you force them to. To force the credit bureaus to comply with the law you have to send them a letter asking them to provide you with copies of the original documents used to set up the account showing your signature on it. The truth is, the original creditor may have this document on file but the Credit Bureaus never have it in their files. They do not keep files! It is too cost for them to keep this documentation on file considering that up until now very few people know about the law that they do not complain with. If you request proof from them they will at best ask the original creditor to provide you with the document. That is not good enough. If they do not have the proof in their files then the law requires them to remove the items that they are reporting on that account from your report.
You can get any type of negative credit item removed no matter how bad, how many or how recent. That includes foreclosures, bankruptcy, late payments, charge-offs, judgments, repos and collections. All of them can be removed.
Once removed these items can not be put back on. The law also states that once an item is removed or changed it can not be re-reported without the credit bureau obtaining a fine of $ 1,000 per item for reporting information when the credit reporting agency knows that they do not have verifiable documentation. It's the law.
Bad Credit increases the cost of your car insurance and your home insurance. It increases your mortgage interest rates which means that your monthly mortgage payments will be hundreds of dollars higher each month. Your car payment will be $ 100- $ 400 or more higher each month when you have a low credit score.
It is even worse for some people. A low credit score will prevent some people from maintaining their required security clearance or their professional license which means that they may lose their means to earn a living. A low credit score may also prevent you from getting a job promotion or even from getting hired in the first place.
The bottom line is, Credit Bureaus get paid millions of dollars a year from creditors to report negatives on your report but there is a Federal Law that you can use to stop them from doing this. By doing it you will be getting a fresh new start. You can get rid of all those high interest loans and you will never get turned down again.