The first, and most important, thing you need to know about the 3 credit bureaus

The credit bureaus are not goverment agencies. They are privately owned companies that make billions of dollars from selling YOUR credit report. And how they report that data is where the problem is. Read more

How your credit score is calculated

No one knows for absolute certain the exact formula that is used to calculate a score, but we have a good idea of the approximate percentages for credit events and how they are affect the final number. Read more

Is the method that you are saying on this site legal?

You will never find anything on this site that tells you to do anything that could potentially cause legal problems for you. I have personally done everything that I tell you do to, and would never jeopardize my, or my family's, well-being. Read more

How do I know if this works?

I hate testimonials...I really do. You never know if what you are reading is truthful, or just another ploy to get you to believe them. So my personal guarantee to you is that I will never edit any testimonial that a user puts on this site. So, with that said, to view what people are saying click the "read more" link below to view their statements.  Read more


Click a question below to expand the related answer

1.) What is the Fair Credit Reporting Act (FCRA)?

The FCRA is a U.S. Federal Law that governs the credit reporting industry. Any U.S. agency the deals with collecting, analyzing, and reporting consumer credit-related matters is bound by the FCRA. It was originally enacted on October 26, 1970. Since then there have been admendments made that provide additional rights to consumers regarding the information that can be collected, as well as how the information can be used by the CRA's (Credit Reporting Agencies). The FCRA is enforced by the U.S. Federal Trade Commission

In 2003 and amendment was made to the FCRA called the Fair and Accurate Credit Transactions Act (FACTA). This amendment gave additional rights to consumers to obtain, review, and dispute items on their credit report that they believed may be inaccurate. FACTA made it possible for consumers to request a copy of all information in their file, including information used to verify accounts contained complete and accurate data. If a consumer found that any item was not being reported correctly it provided the steps necessary to file a dispute with the CRA and have the information verified. If the information could not be verified, or was found to be inaccurate, the CRA is required to update the information or to remove it completely from the consumer's file.

2.) Who are the Consumer Reporting Agencies (CRA's)?

In the U.S. there are 4 main CRA's. These are Experian, Equifax, Trans Union, and Innovis. The first three are widely known, and are the only CRA's that sell a score based on a consumer's credit file. Innovis collects and maintains a file, but does not calculate or sell any type of score, which is why they are not as widely known, nor used, by lenders.

In 1999 the FTC stated that a CRA is determined to be the following:

An entity that meets the definitional requirement for a "consumer reporting agency" (CRA) in Section 603(f) of the FCRA is covered by the law even if the only information it collects, maintains, and disseminates is obtained from "public record" sources.

Section 603(f) defines a "consumer reporting agency" as any person "which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information ... for the purpose of furnishing consumer reports to third parties ...". In turn, Section 603(d) defines a "consumer report" as the communication of "any information" by a CRA that bears on a consumer's "credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living" that is "used or expected to be used or collected in whole or in part" for the purpose of serving as a factor in establishing eligibility for credit or insurance to be used primarily for personal, family, or household purposes, employment purposes, or any other purpose authorized under Section 604.

If the commercial service you describe regularly provides information for the purposes set forth in the definition of consumer report in Section 603(d), the agency is a consumer reporting agency and the information it collects from public record sources and maintains in its computerized files is subject to the FCRA.

This effectively made additional companies such as LexisNexis, WestLaw, ChoicePoint, and eFunds (owner of ChexSystems) fall under the category of CRA's as well. So basically any company that collects, analyzes, sells, or distributes credit-related information to a third party is essentially a CRA and are bound by the FCRA rules.

3.) Are the CRA's government agencies?

Absolutely not.

The CRA's are privately owned companies, and have no ties to the U.S. Governemnt other than the fact that they are bound by the FCRA. They are "for-profit" business that collect and then sell information related to cunsumer credit. They obtain this information through contracts with lenders who pay a fee to provide and obtain information in a consumer's credit file. They make money on both sides of the transaction, since they charge lenders to put information in a file, and to obtain information when deciding to extend credit to a consumer. Additionally they are allowed by the FCRA to charge a nominal fee to the consumer who requests a copy of their credit file, and also to obtain a credit score.

Credit reporting is a multi-billion dollars industry, and the CRA's have little incentive to ensure the information that they are reporting is indeed accurate. This causes extreme frustration for consumer's who have fallen victim to identity theft, or who have had items incorrectly placed on their credit file that do not belong to them. Since the CRA's get paid regardless, they have made it very difficult for consumer's to correct inaccurate information or even fully know what is contained in their credit file.

4.) What are other credit repair services offering?

Most credit repair services dispute items on your credit file at "not mine". There are 2 problems with this.

First, if an item on your credit file is indeed an item that should be there, you are (through the credit repair company's claim) stating that the item does not belong to you, and should not be reporting. This is legally perjury, and you could face legal action taken against you for essentially lying.

Second, while this works in some cases, the CRA's simply respond to the dispute that they have "verified" the item, and it remains on your file. The only time that they don't verify it is if the item is more than a few years old, and the original creditor doesn't respond. This is a "hit and miss" tactic, and in most cases doesn't work.

In the end you spend a considerable amount of money paying for a monthly service that doesn't work, or could land you in a lot of trouble legally.

5.) What are you offering that is different from other services?

I never tell you to dispute an item is not yours, unless in fact it isn't.

The dispute process that you will use challenges the CRA's right to report the items on your credit file. Since the CRA's do not have the necessary information that the FCRA requires, they have no right to report anything that you do not to have want in your file. The method that I use (and the one that you will be using) has specific wording to force the CRA's to remove the items that are hurting you, and update the items that are working for you.

This is why I tell you that it doesn't matter what kind of negative item it is (i.e. judgment, foreclosure, bankruptcy, collection, etc.), the CRA simply does not have the legal right to report it unless they have the necessary documentation to prove that they are reporting it correctly. If you've read the other parts of this website, you wil clearly see that they indeed do not have the information.

Furthermore, I give you the necessary legal information to pursue the CRA's if it should come to that point. By following my instructions, you will have what it takes to make sure that your credit file is only reporting what the CRA's are allowed to report.

6.) How long does it take to get results with your process?

This is a tough one. There is no set time as to when the CRA's will do what they are required to do. However, I personally have seen results with my own credit file in 3 weeks.

Each case is different, however you should start seeing results within the first 60 days at most. With each round of letters, you should see more and more items being deleted, with the best case scenario of a completely clear file within a few months.

If anyone tells you that they can produce reults in less time, they are simply lying. No one can promise anything because the CRA's will fight you as hard as they can. But, with the method that you will be using, they won't have a leg to stand on, and eventually the items will be removed or updated.

7.) The CRA didn't respond to my dispute within the 30-day period. How do i handle this?

This actually happend to me with Equifax.

I sent the first letter on January 16th, and by March 27th my entire Equifax file was cleared. It took me a few phone calls, and a lot of arguing with a representative, but in the end they were forced to remove or update every single account that I originally disputed.

The key is that you need to be patient. Don't run out and threaten to file a lawsuit right away, because it will only cause more stress on you. Simply read my detailed account of this in my package and you will see exactly how to handle the situation.

8.) I keep getting responses that they are not going to investigate. What do I do now?

This is a very common tactic that all of the CRA's use. It is designed to discourage you from forcing them to do something that they don't want to do.

The FCRA allows the CRA's to deem a dispute as "frivolous". However, if the CRA did not produce the necessary documentation, or "proof", that the item should be reporting on your credit file, they can not legally deem your dispute as frivolous. For this response there is another letter included in my package that deals with this particular response from the CRA.

Believe me when I say that they will try their hardest to continue to use this response. However if you are persistent they will eventually have to take action and remove the item that you are disputing. It's only a matter of time.

9.) Items were indeed removed from my report, but my scores haven't changed/went down?

This is a common problem that we see during the process.

The problem is that your credit score is based on a number of factors (click here to see). One of them is the length of your credit history. If you dispute an account that was opened a number of years ago, and that item is removed, your score with not take that account into consideration any more. This effectively reduces the amount of time that you've had credit, and therefore affects your score. Your score may remain the same, or even decrease, based on the age of your other accounts.

Keep in mind that the longer a negative item (such as a charge-off) remains on your report, the less negative impact it has. That item may in fact be helping your score because of the age of the account.

The bottom line is that you really need to think about the items that you want to dispute, and focus on the more recent ones as opposed to the older ones. You can still take care of the older ones, but in a different way than trying to get them removed.

10.) Your process worked. Now what?

Conratulations! Welcome to a better financial life.

First, and foremost, don't screw up again. You don't want to have to go through the entire process a second time. The next time may not be so easy.

Depending on which CRA worked the best for you, you should be able to start using your new credit file immediately. In my package I provide information for the best credit accounts to begin applying for.

As a teaser, if your Equifax file is the best, you can start by opening an account at one of 3 credit unions (DCU, Alliant, and PennFed). The first 2 are the easiest, and have the least amount of requirements to join. At the time of this posting all three use Equifax as the sole bureau to determine credit. All of them offer complete online banking services, direct deposit, and a number of credit card and loan products. PennFed requires that you be a resident of PA, and that you are a member of one of their authorized agencies. For more information see their website.

In my package I provide additional information about the types of credit available, and which CRA the particular lender uses. The list also provides a target score that you should be at when you apply, and the amount that you could potentially be approved for.

11.) Items that were deleted/updated appeared again on my most recent credit report.

Don't panic. This happens sometimes, but is easy to fix.

In my package I provide a letter specifically for this problem. Since the CRA's use an automated reporting process, they are unaware of items that reappear thoughout the normal course of business. We simply bring this to their attention, and the item should be removed or updated again.

12.) Can I use your package for more than one person

Everything in my package can be used as many times as you like for as many people as you want. However, because of the sheer time and effort that I have put into this I would respectfully ask that you only use it for people in your immediate household.

For friends, or other people not living with you, I would respectfully ask that you simply send them to my website and have them purchase the package themself.