Credit Restoration

Financial Security offers Credit Restoration through one of its service providers.  They will use the laws that were enacted by congress to help protect the consumer’s individual rights when it comes to information being reported on an individual’s credit report.  F.S.I.’s Credit Restoration Program operates under the set of laws outlined in section 609 of the Fair Credit Reporting Act (also known as FCRA).  F.S.I. simply enforces the 3 credit bureaus to properly verify each and every credit entry that is displayed on your credit profile with the 3 major credit reporting agencies.  The credit bureaus must comply with over 380 points of law to keep the information on your credit report.  When one of the points of law is not followed, the credit bureau must permanently remove the negative or inaccurate information. Credit Restoration is a time consuming and tedious job.*

Credit Restoration will be performed through its service provider on ALL accounts enrolled in Financial Security’s Debt Settlement Program.

Credit Overview:

What is a credit rating?  Typically, a credit rating tells a lender or investor the probability of the consumer being able to pay back a loan. However, in recent years, credit ratings have also been used to adjust insurance premiums, determine employment eligibility, and establish the amount of a utility or leasing deposit. Credit scores range from 350 to 850. A poor credit rating indicates a high risk of defaulting on a loan, and thus leads to high interest rates; or the refusal of a loan by the creditor.  Credit is a very important part of our lives, even in our day to day life.  Most people do not realize the importance of credit until it is too late!   For many people living with bad credit, it’s a way of life.   Fortunately that does not have to be a way of life.

Frequently Asked Questions

What is a credit score?

A credit score is a number that reflects your credit risk level, typically with a higher number indicating lower risk. It is generated through statistical models using elements from your credit report; however, your score is not physically stored as part of your credit history on the credit file. Rather, it is typically generated at the time a lender requests your credit report, and is then included as part of the report. Your credit score is a fluid number, and it changes as the elements in your credit report change. For example, payment updates or a new account could cause your score to fluctuate. There are many different credit scores used in the financial service industry. Your score may be different from lender to lender (or from car loan to mortgage loan); depending on the type of credit scoring model that was used.

How long does the process take?

For someone not educated in this process of correcting one’s credit, it will take a very long time and in most cases the consumer will just give up.   With our services, we can investigate your files for dispute in 3 to 7 business days, but not to exceed 10 business days of receiving them, then mail them to the credit bureau for their investigation, which by law they have 30 days, and the source of the disputed information must review the evidence given. The investigation period can be extended by 15 days if the Credit Reporting Agency receives relevant information within the initial 30 days.

Can I restore my own credit?

Given the proper tools, background and experience, you can do anything. In a court of law you have the right as a citizen to represent yourself, but in many cases most people choose an attorney because of their understanding of the law. F.S.I., understands your rights when disputing your personal credit files, but most of all we too understand the law concerning those rights.

If I pay off my bills will it restore my credit?

Sorry, most of us think that would be true, but it just doesn’t work that way. When you pay an old debt, the negative credit listing doesn’t disappear. In fact, it starts the 7 year clock all over again with a new negative listing. What’s even worse is that a paid negative listing is not any better than an unpaid negative listing. The good thing is that in most cases we can assist you in this matter.

Can a deleted item reappear on my credit report?

Yes it is possible, we call it a negative listing that was recently deleted but eventually verified by the creditor. Let’s also be aware that the new Fair Credit Reporting Act requires that the credit bureau inform you before the re-reporting of a previously deleted listing. Now, because of these new factors, it is rare for listings to come back on once they’ve been deleted.   Also keep in mind, with our debt settlement program in which we are settling the account and having it report with a zero balance, it is very unlikely that the creditor would take the time, effort and money to re-report to the bureau when they have nothing to gain from it.

What is a charge-off?

When you become very delinquent on an account, the creditor will probably charge it off. This means that they have written the debt off as a loss for tax purposes. This does not mean that they have given up collecting on the debt. The creditor is now likely to either sell the debt or send it to collections. Charge-offs are very negative listings, but they can often be settled through debt settlement for much less than you owe. Be very aware of some collection companies, you still very much have rights protecting you.

How to Build a Good Credit History?

  • Charge only what you can afford to pay – When you get into the habit of charging only what you can afford, it tells the creditors and banks that you are a responsible borrower with an ability to repay on your debts.  It will become much easier to borrow money, get new loans at market rates and avoid being overextended.
  • Use only a Small amount of the credit you have – part of the scoring module for credit is your balance to credit limit ratio.  Typically, this ratio should be about 30%.  Example, if you have a credit limit of $1000, you should owe no more than $300.  If you apply for a loan and the creditor or bank sees that you exceed and/or are maxed on your credit limits, this is a strong indication to the bank that you may have trouble repaying the loan.
  • Start with one credit card – The best way to build credit is to get a small credit card, even with a high rate.  As long as you charge wisely and pay off the balance monthly, the interest rate will not make a difference.   Another option is to get a secured credit card.  This is when you give the bank a certain amount of money to hold in escrow and the bank issues you a credit card for that amount.  In the event you default they keep your money.  After a year or so, the bank with timely payments by you will most likely release the escrow money back to you with interest.
  • Pay your balance in full and on time – If you charge only what you can afford, this should not be an issue.  Paying your balance in full will show the creditor your ability to repay on your debts.  This along with timely payments will help improve your credit over time.
  • If you cannot pay off the balance monthly, carry a balance the right way – There is nothing wrong with carrying a balance on your credit cards as long as you keep in mind the rules of thumb, i.e., 30% ratio of balance to limit.  You can also pay a little more than the minimum to help pay down the debt a little quicker.  This only works if you keep your balances at a reasonable level.
  1. Though we realize that even average results are exciting, we must warn you not to interpret past performance as a guarantee or promise that we will achieve precisely the same results for you as we have other clients in the past.  Because no two client situations are the same, individual results may vary!
  2. F.S.I. is not and makes no claims to be a credit repair company.  F.S.I. also makes no guarantee to remove or delete derogatory information from one’s credit profile.

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