BBM Consulting Unlimited Inc.

Credit repair basics What is credit repair? Credit repair is the process of improving a poor credit score by addressing or removing negative items that could be listed on your reports inaccurately and includes rebuilding a positive, comprehensive new credit profile. Too often other credit repair companies focus only on trying to eliminate negative items rather than fully repair credit profiles, which includes the process of building a better profile. The Fair Credit Reporting Act outlines the right for Americans to have accurate credit reports. However credit reporting agencies require Americans to navigate complicated online systems and send a series of formal dispute letters in order to address some reporting issues. Other issues may require complicated navigation of legal processes or more detailed knowledge of consumer rights and abilities to solve. Lastly, few if any agencies offer the process of building a new, positive profile or how to do so on your own other than vague criteria. While you can repair your credit on your own, accomplishing it on your own is often difficult, complex and full of pitfalls that can easily derail even the most savy of consumers. Often times, engaging a professional competent in all the facets of credit repair yields the best results. How does credit repair work? Credit repair is a multistep process that focuses on auditing your credit report and finding and disputing errors. We us the following steps in our unique process as to we repair your credit: 1.Credit report analysis We go through your credit report and create a written Action Plan detailing all the steps to achieve your desired credit goals. 2.Credit disputing Our team drafts and remits the appropriate correspondence to dispute and challenge inaccurate and outdated items on your report. 3.Dispute escalating For negative items requiring additional correspondence, we keep the process going and ensure your credit rights are fairly represented. 4. Resolving accurate but negative items Most other companies cannot change accurately reported, but negative items on your report. We use our proprietary in-house process to resolve these in the most positive light possible for you. This often requires multiple months to accomplish. 5.Credit score analysis and mentoring Through the ongoing contact with your assigned counselor, we offer 24/7 access to your credit score analyses and credit counseling solutions to help you reach your credit goals. Additionally we offer tools as part of our Action Plan which builds a stronger, more positive credit profile for every client. When is credit repair useful? Credit repair is useful when your poor credit score is preventing you from qualifying for a mortgage, car loan or any other qualifying line of credit. When you have a low credit score, you’re often hit with higher interest rates and finance charges. Repairing your credit can help you qualify for a competitive rate while lowering the amount of interest you’ll end up paying over time. Credit is also used for job determinations, promotions and even qualifying for an apartment rental or car rental rates. The good news is bad credit doesn’t have to follow you for life. Taking the needed steps to repair your credit and maintain healthy financial habits can help restore your poor credit. How long does credit repair take? Unfortunately, there’s no way to predict how long it will take to repair your credit, as every credit report is unique. Credit bureaus are required to respond and resolve credit disputes within 30 days—sometimes 45 days in special circumstances. Though that seems like a short timeline, the average consumer may have multiple errors that need to be disputed, so it could end up taking anywhere from three to six months. Additionally our processes address issues most other cannot address, such as tax liens, collections accounts and past due bills. If you’re disputing the errors yourself, you’ll need some time to download and review your reports, gather all necessary financial documentation and draft the actual dispute letters. Once those are submitted to the credit bureaus—either by mail or online—the typical 30-day process will begin. . Credit repair companies What do credit repair companies do? Credit repair companies help you dispute inaccuracies on your reports with credit bureaus and creditors to help improve your credit score, while also helping you understand your credit standing. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be difficult or beyond possibility to do on your own. Credit repair companies will start by pulling your credit reports from the three major credit bureaus—TransUnion®, Experian® and Equifax®. Since some credit agencies only report to one credit bureau, there may be errors on one report that won’t appear on another, which is why it’s important for credit repair companies to pull all three. When reviewing your credit reports, credit repair companies will look for the following errors: •Incorrect inquiries •Inaccurate accounts •Accounts that don’t belong to you •Duplicate accounts •Delinquencies and derogatory marks •Fraudulent activity •Missing accounts that should be listed on your reports Once they’ve identified these errors, they may ask for extra documentation to help prove the inaccuracies. With all the necessary information, they’ll file the disputes and work with the credit bureaus to resolve the issues. These companies will also help answer any questions you may have about your credit and once the errors have been disputed, they’ll provide you with information on strategies you can use to help keep a healthy credit profile. How to know if a credit repair company is legitimate While there are many legitimate credit repair companies the industry is also filled with its fair share of scammers. Doing thorough research on the companies you’re looking to work with can save you time and money. To verify a credit repair company’s legitimacy, you’ll need to know what they’re legally allowed to do and not do. The Credit Repair Organizations Act (CROA) was put into place to help regulate the industry and protect consumers from illegal credit repair scams. Under CROA, credit repair companies are not allowed to guarantee the removal of negative items, cannot offer to create a new credit profile for you and cannot require pre= payment until after the services have been completed. When determining good credit repair companies from bad ones, look out for the following red flags: •They request payment up front. Many companies that appear legitimate state they will refund your money if they cannot help you. This is not legal under the CROA. Companies may only collect payment for work actually performed. •They’re unable to answer your questions. Legitimate companies will provide answers to any and all questions that may arise. •They ask you to lie about your credit history. Under CROA, companies are prohibited from asking you to lie or misrepresent your information. A popular illegal repair scheme going around has the company require the consumer to pay thousands of dollars in exchange for adding someone else’s stellar credit history to their report. Typically they “rent” the stellar reporting from the other person. If the repair consumer then uses this fraudulent information to obtain anything of value or provide information on a federal form, that consumer is now also guilty of a crime. •They fail to provide information. Reputable companies will always inform you of your rights as a consumer. Legitimate credit repair companies will be up front about how they can assist you and what services they think will work in your favor. They’re here to help you understand your credit standing and want to work with you to improve your credit score. How much does it cost to repair my credit? How much you pay for credit repair will depend on the company and your credit situation. Some consumers may only need a few errors disputed, while some may require more in-depth credit repair services. How you pay for these services vary from company to company, as each has its own payment structure. Some companies may require you to pay a one-time flat fee, pay per derogatory mark or charge a monthly payment. We here at BBM Consulting charge a monthly fee for ongoing services. Special circumstances which require either our legal team or other professionals such as our tax team may require additional fees. . The contract should also outline your right to cancel without penalty should you wish to do so. Unlike many credit repair companies, BBM Consulting Unlimited Inc., does not have tiers of service. Every client receives all of our services. We charge a fee for setting up the file and preparing the Action Plan. For execution of the Action Plan and provision of services, we charge $79.99 per month. This includes unlimited submissions monthly. For specific issues, such as tax liens we itemize in the agreement the cost to complete. Credit Repair On Your Own How can I repair my credit myself? If the number of errors on your credit report is below average, fixing credit yourself could end up being a free alternative. When fixing your credit you’ll want to download a copy of your credit report from each of the three credit bureaus. By law, each credit bureau is required to give you one free credit report per year. Once you have your credit report, you’ll want to review it for any discrepancies and negative items, and gather all of the documentation needed to build your case before filing a dispute. There are a few ways you can go about filing a dispute: •Submit a letter of dispute to the credit bureaus •Contact the business that reported the error to the credit bureau •Send a pay for delete letter to your creditor •Send a goodwill letter to your creditor •Send a 609 dispute letter to the credit bureaus Understanding your credit rights The Fair Credit Reporting Act (FCRA) plays a major role in the credit repair process, as its laws protect consumers by governing credit bureaus and furnishers like creditors and financial institutions. Some of the key laws and rights granted in FCRA include: •Credit bureaus are required to provide one free credit report every 12 months. •Credit bureaus are required to verify the accuracy of the information listed on the report. •Creditors and financial institutions are required to only report complete and accurate consumer information. •Consumers can challenge incorrect and incomplete items listed on a credit report. •Consumers can seek damages from credit bureaus and furnishers violating FCRA. •Consumers can limit who can access their credit reports. •Consumers can inquire if their credit report is being used against them financially. The team at Lexington Law Firm can help you understand your credit profile and rights as a consumer during our free credit consultation. How to maintain healthy credit after credit repair After your report is clean, raising your score comes down to practicing good credit habits and being mindful of how a credit score is calculated. Here are the five main factors that affect your score: •Payment History & Late Payments: 35 percent •Credit Utilization: 30 percent •Number of Credit Inquiries: 15 percent •Length of Credit History: 10 percent •Credit Diversity & Types of Credit: 10 percent Understanding what impacts your credit score is the first step to maintaining a good score. Here are a few tips to help you practice good credit habits: 1.Make on-time payments Payment history is one of the most influential factors contributing to your credit score. Most credit agencies will report late payments once you are more than 30 days late. One late payment could lower your credit score by 90 or more points. Once a late payment is on your report, it can typically stay there for up to seven years. Not only does this affect your credit score, but it can affect your ability to get new lines of credit. 2.Keep balances low It’s recommended to keep your credit card balances at or below 30 percent of your credit limit. If you go above that threshold, you could start to see a decline in your credit score. Credit utilization makes up 30 percent of your credit score—that is the total amount of debt you have compared to your credit limit. So keeping your credit balances low will help you maintain a healthy score. 3.Limit your credit inquiries Too many credit inquiries can negatively impact your credit score, so it’s best to limit them to applying for new credit. If you are trying to qualify for a major loan, like a mortgage, avoid running any inquiries during that time. Opening a new line of credit can also lower your credit age. 4.Don’t close old credit cards Since the age of your credit plays a part in your overall credit score, it’s best to keep old credit cards open—even if you’re not using them. When a credit card is removed from your credit report, it will shorten your credit age, causing your score to drop. Closing a credit card also lowers your available credit, which can lower your credit utilization ratio. 5.Monitor your credit report Even when practicing good credit habits, errors can still appear on your credit report, leading to a decrease in your score. You’ll want to be diligent about monitoring your credit report should any errors appear—like identity theft or creditors reporting inaccurate information. Is credit repair right for you? Depending on the status of your credit report, credit repair might not be the best next step to raising your credit score. If your bad credit score is holding you back from achieving your goals in life, credit repair is for you. Remember, bad credit does not have to follow you. Working with a credit repair company or working to dispute negative items on your own will help clean your credit report and put you in better financial standing. Every day more and more day to day decisions and financial offerings are determined by one’s credit. It benefits everyone to maximize their credit profile. Beyond credit repair, maintaining healthy credit habits will set you up for a successful financial future. Credit repair services are designed to help those who are most in need of negative item removals from their report. Our company goes several steps further, in addressing the difficult items that most cannot assist with. Additionally we provide the tools to rebuild a positive credit profile in as little as six months. We put you on the path to credit for better living.