Here are some basics facts and tips on consumer credit repair and why you should look into having it repaired.

"What is a credit report, and why is it important?"

A consumer credit report is a factual record of your credit activities. It reports all your credit accounts and outstanding loans, the balances on your credit cards and loans, and your bill paying history. Lenders are permitted by credit report laws to check your credit report and review it in order to determine whether or not to grant you credit. Most of the information on your credit report comes directly from the businesses you have accounts or loans with. Whether you pay your bills or fail to pay your bills, lenders report your credit information - good or bad - to credit reporting agencies.

"How much money can I save by repairing my credit?"

The better your credit is, the lower your interests rates can be. You can save hundreds of dollars a month, and thousands of dollars in the long term. See our Cost of Bad Credit for more information on how good credit can make an immediate impact on your wallet!

"What can be removed from my credit report?"

Anything can be removed from your credit report including bankruptcies, foreclosures, repossessions, late payments, collections, charge offs, judgments, and more. The FCRA ensures that any item on your credit must be removed if it is found to be inaccurate or cannot be validated.

"How long can negative items stay on my credit bureau?"

Accurate negative information generally can be reported for seven years. This seven year period starts from the time you were late or the account went to collections, not from the time you first opened the account. Here are some other rules to keep in mind:

Bankruptcy information can be reported for ten years;

Information reported because of an application for a job with a salary of more than $20,000 has no time limitation;

Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;

Information concerning a lawsuit or judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer;

Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions;

Tax liens stay on for seven years from the date PAID.

"How long does the process take?"

You can start to see results within the first 30 to 45 days. However just as every credit report is different, so do the times vary from case to case. Depending on how many items are being addressed and how serious the problems, it could take several months.

"Is credit repair legal?"

Absolutely! Your credit report is maintained by three credit bureaus who are simply private, for profit companies whose sole motivation is to make money by keeping track of and selling your personal financial information. A survey by the United States Public Interest Research Group found that 70% of the credit reports had serious errors and mistakes. Through the Fair Credit Reporting Act (FCRA), the federal governement has given you the right to repair your credit and no longer be part of that majority.

"My credit isn't that bad, why do I need help?"

You may be thinking, "I had no problem getting my car loan. 7% interest isn't too high, is it?" YES IT IS! You could save thousands of dollars by lowering your interest rate just a few points. You can save even more with home loans. Look at the results when comparing a 30 year fixed mortgage for $150,000 at 7% versus an interest rate of 5%. Your savings over the life of the loan total $69,379.20, almost half the original mortgage amount!

Have more questions or need help with your bad credit? Go to to find a free credit seminar in the Houston area. Its never too late to start turning your credit around.

Author's Bio: 

Steve De la Rosa has worked in all aspects of consumer lending for nearly a decade. From credit cards to lines of credit, auto loans to home mortgages, home equity loans to personal loans, he has worked with consumers from the lending side and have seen the credit market become increasingly difficult for consumers to navigate. De la Rosa has helped people with foreclosures, repossessions, bankruptcies, collections, judgments, charge offs, and more get the loans they want at interest rates they can afford. With DLR dredit Solutions, LLC he wants to use his experience to help you find your way to credit success.