How Do I Fix My Credit Score?

Having your debts end up in collections can do horrible things to your credit score. If you live in New York, you have options to help start repairing your credit.

Why is a Good Credit Score Important?

Most people know that having a good credit score is important when getting a loan. The higher your score the lower your interest rate. Two people financing the same car for the same price in the same timeframe can have dramatically different monthly costs. With a bad credit score, you can end up paying hundreds of dollars a month more.

If you are a renter, many landlords will run a credit check as part of their background screening of potential tenants. Landlords tend to view low credit scores as a red flag and a sign that the renter is a financial risk.

Depending on where in New York you live, employers may run a credit report on you as part of the hiring process (except for some jobs, this is now considered illegal in New York City). A bad credit report may end up costing you a job you really want or need.

Who Creates the Credit Reports and Where Do They Get Their Information?

The three main credit reporting companies are TransUnion, Equifax, and Experian. These credit bureaus get their information directly from your creditors and from public records. This information is then entered into your credit reports, and this is where mistakes can be made.

One in three Americans find errors on their credit reports. There are primarily three types of major red flags to look for:

• Wrong Account information – closed accounts marked open, late payments when there were none, wrong credit limits…
• Mistaken Personal Information –if you have a common name, someone else’s debts can end up on your record.
• Fraud and Identity Theft – someone could have gotten a loan or credit card under your name

This is why it’s so important to check your credit reports on a regular basis. Because there are three credit reporting companies, you need to check all three reports. You have a right to review your credit reports for free every 12 months. You can contact each company individually, or you can use this site to request all three – https://www.annualcreditreport.com/index.action

Why Should I Hire a Lawyer Instead of a Credit Repair Company?

This really depends on the damaging information. Some simple mistakes can be cleared up by calling the credit reporting companies directly. But for some of the errors on your report, you may need the help of a debt attorneythat specializes in credit repair.

• It’s easy to point out a mistake in your credit report – but what do you do if the lender who reported it refuses to fix the mistake? Your debt attorney can sue and bring the matter to the attention of the courts. Even the threat of legal action can get things fixed.
  
• Sometimes the business that reported damaging information to the credit bureaus is no longer around, and your debt is with a collection agency. Your debt attorney can then either negotiate or possibly litigate to get the information off your credit report.
  
• Short of litigation, your debt attorney can also bring your case to multiple government agencies that oversee credit reporting lapses.
  
• And if you have damaging information on the report that is accurate (such as late or missing payments, debts that have been sent to collections, etc…), your debt attorney can help negotiate with your lenders to settle any open issues and have them removed from the reports.
  
• Lawyers are trained to use “mitigating” language, so your debt attorney can help change or improve the wording of your damaging information to make it appear less damaging.
  
• Your debt attorney can also help you deal with the fallout of identity theft. If the damaging information on your credit report can be identified as fraudulent, your debt lawyer can have the false information removed. Your attorney can also better handle dealing with the various authorities, government agencies, credit card providers, and police.

• To counteract any lasting damaging information, your debt lawyer can also reach out to “friendly” accounts that may have not reported your positive information. Multiple positive statements on your reports can lessen the harm of one or two entries of damaging information.

• If your credit report is just one damaging information claim after another, your debt attorney may recommend bankruptcy and can help guide you through the process. This will eventually clear out all your existing debt and let you start again with a clean slate.

To learn more about repairing your credit, click here.

What to Do Next

If you are struggling with the effects of a low credit score and/or have found damaging information on your credit reports, you need to take action. Reach out to New York debt attorney Ronald Weiss for a free consultation. He can guide you through the available options for your specific needs. Ron can get the process started and will be at your side the whole time. Call 631-271-3737 and take the first step to a fresh start.