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This document outlines some of the core services we offer at Rising Tides and outlines exactly
how you can utilize us
as well as some more general information for you.
- read this document thoroughly if you are experiencing any difficulties. If you have any
questions that are beyond
the scope of this document, feel free to email at
info@risingtidesconsults.com Thank you so much!
What is credit repair?
What is credit repair?
Credit repair is the process of removing any questionable negative items from your credit. This process could potentially improve your credit score. Credit repair is typically carried out by a credit repair company or organization for a fee. A reputable credit repair company will work to help you understand your credit report and dispute any inaccuracies with credit bureaus and other creditors on your behalf.
While you can repair your credit on your own, navigating the process could become tricky if you have multiple errors on your report. If this is the case, hiring a credit repair company can help.
Negative marks explained
Negative marks are also known as derogatory items.
Late Payment
When you fail to pay a bill on time, it will appear as a late payment on your credit reports.
Creditors will send this notation to the bureaus after 30 days and it will worsen every 30 days after if it has not been paid (30 days, 60 days, and 90 days). Late payments can typically stay on your reports for seven years.
Charge-off
This is when your account is written off as a loss by your creditor and handed to collection agencies.
This typically will happen after the maximum late payments are recorded. Charge-offs can typically stay on your report for up to seven years.
Collections
After your debt has been written off, it will typically land in third party debt collection agencies.
Often, these charges can show up on your report as both collections and charge-offs for up to seven years.
Bankruptcy
A bankruptcy is typically among the more damaging negative items on a credit report. They can typically stay on a report for up to 7-10 years.
Foreclosure
After a borrower misses enough mortgage payments, the lender may take over the property in a foreclosure.
Foreclosure is also among the more damaging negative items.
Repossession
Similar to a foreclosure, a repossession is a loss of property on a secured loan.
The lender takes back the collateral property and auctions it off to recuperate losses. This includes voluntary repossessions.
Inquiry
An inquiry is when a company requests to check your credit.
A soft inquiry (usually for personal use) does not affect your credit, while a hard inquiry (usually when applying for a loan) is a more in-depth check and typically affects your score negatively.
How Does Credit Repair Work?
Credit report analysis
Credit disputing
Dispute escalating
Credit score analysis and recommendations
Credit repair is a multistep process that focuses on auditing your credit report and finding and disputing errors. Here are the basic steps we take to repair your credit:
We obtain your credit report and create a plan targeting the questionable negative items affecting your credit score.
Our team will send the appropriate correspondence to dispute and challenge the inaccurate negative items on your behalf.
For negative items requiring additional correspondence, we keep the process going and ensure your credit is represented in a fair, accurate, and substantiated manner.
Through the online portal and app, we offer 24/7 access to your credit score analyses and credit recommendations to help you reach your credit goals.
Key Takeaway
Credit repair is the process of fixing and restoring poor credit and can be done on your own or with the help of a credit repair company.
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.
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.
Credit Repair Terminology
Credit can sometimes feel like an entirely different language. Here are some common credit terms and their meanings.
These terms are important because they are part of financial literacy.
Learning financial literacy plays into being a fully competent adult and can help with many things.
These things include taking care of your family and loved ones.
DISPUTES TAKE TIME
Each negative item can take between 30 – 45 days for the bureaus to investigate.
Credit repair companies help you dispute inaccuracies on your reports with credit bureaus, debt collectors and creditors to ensure you have the most accurate credit report. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be hard to do on your own.
Credit repair companies will start by pulling one or more copies of your credit report 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. (Lexington Law is one of the few credit repair firms that has a relationship with all three bureaus and pulls all three copies of your reports.)
When reviewing your credit reports, credit repair companies will ask you to identify any errors, such as:
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 you have identified these errors, the credit repair company may ask for extra documentation to help confirm the inaccuracies. With all the necessary information, they’ll file the disputes and work with the credit bureaus to resolve the issues.
In addition to working to remove inaccuracies, credit repair companies may also help answer questions you have about your credit or provide you with information on how you can achieve a healthy credit profile.
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 varies 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.
Credit repair companies cannot charge you for services that have not been delivered. The contract should also outline your right to cancel without penalty – although you may be charged for any unpaid fees due.
Just for you
The Credit Repair Organizations Act prohibits credit repair companies from demanding advance payment.
At Rising Tides Credit Repair we are very flexible on billing.
Our pricing is as low as $22 a week. We try to make our plans and pricing as affordable as possible. Most of our clients have such high debt, we don't want to add to the problem. Our compeitiors like Lexington law charge almost 3x as much as we do to repair credit. And they take much longer.
Chapter 4
Chapter 4 begin
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 the 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 Rising Tides can help you understand your credit profile and rights as a consumer during our free credit consultation.
Just for you
Do your research and understand your rights under the Credit Repair Organizations Act before signing any credit repair contracts.
How do I know if a 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 the 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 accept 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. All payments must be made after the services have been completed.
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 the CROA, companies are prohibited from asking you to lie or misrepresent your information.
They fail to provide information. Reputable companies will always inform you of your rights as a consumer.
Fraudulent activity
File false identity theft reports.
Legitimate credit repair companies like Rising Tides 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.
In addition to working to remove inaccuracies, credit repair companies may also help answer questions you have about your credit or provide you with information on how you can achieve a healthy credit profile.
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. 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. Follow the steps in this guide if you’re ready to improve your credit and reach your credit goals.
Written by: Kane Traylor
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional advice. Consult with us further for more in depth professional advice.
