Debt Consolidation Credit Counseling In Phoenix

With a bankruptcy mark on your report your score will be lowered considerably. However there is hope, you can remove this mark and by building some positive credit you can create a good score.

Contrary to popular belief this mark can be removed from your report and without waiting 10 years. To remove this mark we suggest:

1. Dispute the mark with the bureaus.

You can do this yourself or by hiring a service, a dispute letter must be sent to each bureau disputing the accuracy of the mark. Upon receipt the bureaus will investigate, however because bankruptcies are recorded in public records which the bureaus will not check during an investigation, the mark will not be verified.

The Fair Credit Reporting Act says that any mark that can not be verified by the bureau must be removed from your report. Additionally this mark says that you the consumer can dispute any item on your report that you do not feel is accurate. Often people are concerned with the legality of credit repair, and you should know you will never be fined, prosecuted, arrested, or face any legal action for disputing an item.

It is rumored that after 2 years it is easier to remove this mark, however it is not required. Additionally we suggest you make sure that any negative item on your report reads "included in bankruptcy." The reason for this is you will later dispute the validity of these items because your report does not show a bankruptcy.

2. Dispute each negative item.

You will be able to challenge the mark on the basis that your report does not show a bankruptcy. Therefore each item should be deleted by the bureaus upon investigation.

3. Build positive credit. This will help the most if you have a new revolving line of credit such as a credit card.

When you make your on time monthly payments you will create a positive payment history on your report. Additionally this will help your utilization ratio, this is how the bureaus decide if you are in over you head financially. It is measured by the amount of available credit you have versus how much debt you have. These are the two biggest factors when your score is calculated.

It might not be the most ethical to dispute items you know are accurate on your report. However is it ethical for lender to charge you 30% interest rate for missing a payment, no matter how long you have been a model customer?

In sum you don't just have to live with bad credit. You can remove the items and you can do it today. You can create a high score for yourself by removing the bad items and building positive marks. This will save you; on interest rates, embarrassment from a low score, and give you the purchasing power you deserve.