Is Rapid Credit Repair Possible?

Whilst everyone wants to achieve rapid credit repair, this is rarely possible. If you have failed to comply with the T&C's of one or more credit agreements, this information will be provided to all three major credit reference agencies (Experian, Equifax and TransUnion).

The only instance where it is possible to repair bad credit fast is when incorrect data is held. In order to check whether this is the case, you need to get hold of a copy of your credit report from each of the agencies.

Rapid Credit Repair when Errors Exist

The Consumer Data Industry Association (this is the trade body representing credit reference agencies) believes that as many as 2% of all reports contain erroneous information. You can either attempt to correct these yourself or employ the services of an attorney.

The Fair Credit Reporting Act 1970 provides that you need to contact the credit reference agency directly to get any erroneous data corrected. The exception to this rule is credit cards. It is important to understand that an amendment doesn't take place over night. It is important to check your credit report many months before applying for a mortgage, personal loan or credit card.

The process is likely to take several months, possibly longer if the correct supporting information isn't provided. Stuart K. Pratt, the president of the Consumer Data Industry Association said that: "55 to 60 percent of consumer disputes contained no supporting documentation."

If you are going to challenge the error yourself, it is imperative that the relevant information is provided. Failure to do so, will slow the process down to a snails pace. If you are concerned about handling things yourself, it is possible to hire an attorney to expedite the process.

Can You Repair bad Credit Fast?

If you have failed to keep-up with repayments on all of your credit agreements, rapid credit repair is not a possibility. Don't believe any of the scams or websites promising to provide you with a new credit report. The attainment of a new credit report under false pretences is fraud.

The only way to recover from a poor credit history is by making punctual repayments now and in the future. Provided that you do this for long enough, your credit will gradually improve. This will begin to happen in just 7 to 8 months.

After a couple of years, following filing for bankruptcy under chapter 7, your score will start to improve. This is provided that there aren't any further credit indiscretions. However, it will still show on your credit report for a minimum period of 10 years.

Whilst rapid credit repair isn't possible, poor credit isn't a terminal condition. Pay for a copy of your credit report and get any errors corrected. Make repayments on-time. If you do both of these things, you may be pleasantly surprised by how quickly you qualify for mainstream loans, credit cards and financial services.

Sources

Tedeschi, Bob (2009, April). "Faulting Credit Firms on Fixing Errors." The New York Times.

Disclaimer: This article in no way attempts to provide legal, financial or tax advice. One should consult a licensed attorney, tax advisor, or other qualified financial professional before proceeding.