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You are here: Home / Archives for credit repair

CreditRepair.com Review: How Does It Really Work?

June 28, 2017 By Marco Carbajo

CreditRepair.com Review

Is Credit Repair.com the right company for repairing your credit? CreditRepair.com review

With all the credit repair companies out there, it’s hard to decide which company is reputable, honest, affordable and will really repair your credit. If you’ve done the research you probably discovered that there are only a few reputable companies that stand out from the rest.

In this post, we are going to review one of those reputable companies known as CreditRepair.com which was founded in 1997. Our CreditRepair.com review will reveal to you how their program really works, what features they offer, why their service is unique, and why they are a top-rated credit repair service.

First things first.  Every individual has the right to repair their own credit; in fact, the Fair Credit Reporting Act protects our right to do so. With that said why do people turn to credit repair companies if they can fix their own credit?

It comes down to three major reasons:
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Filed Under: Business Credit Tagged With: credit repair, creditrepair.com, creditrepair.com review

Credit Literacy Quiz: Test Your Credit Knowledge

June 10, 2013 By Marco Carbajo

Credit Literacy Quiz

The reality today is we are facing the toughest financial era since the Great Depressiocredit quiz n. Despite the massive amounts of resources being assembled in the cause of financial education, year after year, surveys uncover that people all over the country are as financially and credit illiterate as ever.

In order to win this battle requires us to be diligent and continue to utilize all the invaluable resources available to us.

My passion lies in educating consumers and business owners with the credit knowledge and resources they need to utilize the power of credit to their advantage.
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Filed Under: Consumer Credit Tagged With: credit education, credit literacy, credit quiz, credit repair

Credit Repair Companies: Consumer Credit Repair

December 30, 2009 By Marco Carbajo

Credit Repair Companies

I felt it was extremely important to write about this because of the many people who may have seen their good credit fall to the wayside as a result of a recent job loss, cut back, family emergency or many other unforeseen circumstances who are desperately seeking for help with their personal credit.  credit repair

All across the country I have heard stories like Joanna Fridinger, owner of a limo company in Baltimore, who had the credit limit on her American Express card cut to $1,400 from $19,500 after getting just a single late fee on another credit card.

You’ve probably seen headlines like…

‘U.S. Consumer Credit Card Debt May Crash Economy’ ~ Fox News

‘Credit card hike fright: Banks raising rates, even if you’ve paid on time’ ~ Daily News

‘Some Credit Card Companies Profiling Customers’ ~ ABC News

‘Consumers’ Credit Card Limits Slashed as Companies Try to Reduce Risk’ ~ the Washington Post

With all this circulating the media it’s easy for some people to be influenced to believe that there is no hope and no way to get their credit back on track.

Not true!

When it comes to personal credit challenges there are several alternative solutions that each and every individual should consider.

In this particular post I am going to cover one of the many viable solutions for individuals undergoing personal credit challenges.

First, let me say that this is my personal opinion and after working with thousands of consumers on personal credit issues over 21 years one of the most commonly asked questions I hear is ‘ How can I get my personal credit restored?’

Before I get into this highly misunderstood service called ‘credit restoration’ or ‘credit repair‘ let me be the first to tell you that if you are an entrepreneur or small business owner that has experienced personal credit issues don’t be alarmed when it comes to obtaining business financing.

One of the major benefits for entrepreneurs and small business owners is the ability to build a business credit profile separate from your personal credit profile.

This post is intended to fully educate you on answering two main questions:

Is Personal Credit Repair Legal?

Are Credit Repair Companies Legal?

Let’s get started shall we?

Personal Credit Repair

The Federal Trade Commission which is a federal agency created to investigate and eliminate unfair and deceptive trade practices in business, initiated a specific body of legislation which was put in place to regulate the credit reporting agencies and protect YOU the consumer from unfair credit reporting. This legislation is called the Fair Credit Reporting Act.

Take a look at the FCRA

Now look at section 611 of the FCRA which outlines the procedures in case of disputed accuracy on your credit reports. The FCRA empowers YOU the consumer the right to dispute and verify the accuracy of questionable items on your personal credit reports.

So, this means you can in fact repair your own credit in accordance with the Fair Credit Reporting Act.

But here’ the catch!

The underlying problem for the consumer is that this is a self policing law. It’s completely up to you the consumer to police your own personal credit reports. It’s up to you to find any errors and it’s up to you to monitor any and all activity on your personal credit files with all three main credit reporting agencies.

In the justice system you are innocent until proven guilty but in the credit reporting system you are guilty until you proof yourself innocent.

If you haven’t seen your personal credit reports recently keep in mind that you are entitled to one free credit report per year which can be accessed at http://www.annualcreditreport.com

Now don’t worry this won’t count as an inquiry when you order your free annual reports.

Credit Repair Companies

Despite the massive efforts of the credit reporting agencies (which are privately held companies) to convince you otherwise, there are many credit restoration companies that are no different than most other services. Like all industries, less-than-honest companies do exist and are damaging to their clients and to the credit repair industry as a whole.

For example, you may have 20 car mechanics in your hometown. Most likely, 17-18 of these mechanics are honest, hardworking people who want to earn a living and give you the best service possible. The other 2 or 3 mechanics may not be so honest and will take your money while not giving you the quality or quantity of service you pay for… or, they may be out-and-out crooks who take your money and lie to you.

This doesn’t mean that your town is a bad place to get your car fixed; it just means that, like any industry anywhere, there are good companies, mediocre companies, and really bad companies.

Let me take you back a little bit first because the credit restoration industry was completely unregulated in the mid to late 1970s, hundreds of credit repair companies sprung up all over the place. Most of them were dishonest and were interested only in stealing money from gullible consumers. As a consequence, thousands of consumers were milked out of millions of dollars while receiving little, if any, of what was promised to them.

As a result the FTC initiated another legislation called the Credit Repair Organizations Act (CROA) that outlines how these companies may legally operate.

Take a look at CROA

This Federal regulation is proof that the industry as a whole is legal and not a scam. I think the reason why there has been this general negativity about credit restoration companies is because of the few bad companies that have given the industry as a whole a bad name.

The Federal Trade Commission regulates credit bureaus and credit repair organizations.

Take a look at the definition of a Credit Repair Organization (look at Sec. 403 Definitions)

(3) Credit repair organization. — The term ‘credit repair organization’–

(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of

(i) improving any consumer’s credit record, credit history, or credit rating; or

(ii) providing advice or assistance to any consumer with regard to any activity or service described in clause (i); and

Now let’s look at Section 404 Prohibited Practices.

Specifically look at definition (b) payment in advance.

(b) Payment in Advance–No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.

Basically, a credit restoration company cannot charge you for credit restoration upfront unless they are exempt from CROA.

The specific organizations and institutions that DO NOT fall under the definition of a credit restoration organization and are therefore exempt from prohibited practices are non profit companies, credit unions and affiliates of credit unions.

This means that there are a very select few credit restoration companies out there that can charge for credit restoration upfront.

Take a look at Sec 403 definitions under description (B) does not include-

These organizations and institutions include any nonprofit organization which is exempt from taxation under section 501(c) of the internal revenue code and any depository institution (as that term is defined in section 3 of the Federal Deposit Insurance Act) or any Federal or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act), or any affiliate or subsidiary of such a depository institution or credit union.

So if you decide to enroll in a credit restoration service review the company’s track record and BBB rating and make sure they are either a non profit or credit union (affiliate).

Ready to reclaim your excellent credit scores? Submit your name and email below to receive my FREE course ‘7 Steps To Superior Credit’ ($497 value) =>

About the Author

business credit expert

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, Dun and Bradstreet Credibility Corp, the SBA Community, and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Filed Under: Consumer Credit Tagged With: bad credit, bad credit help, consumer credit repair, credit education, credit help, credit repair, credit repair company, credit repair counseling, credit repair fix, credit repair service, credit repair services, credit report repair, credit restoration, credit tips, creditcrunch, credithelp, creditreport, creditreports, creditscore, creditscoring, ficoscore, free credit help

Is the Credit Repair Business a Scam or Solution?

July 13, 2009 By Marco Carbajo

Credit Repair ScamDespite the massive efforts of the credit reporting agencies to convince you otherwise, there are many credit repair companies that are no different than most other services. Like all industries, less-than-honest companies do exist and are damaging to their clients and to the credit repair industry as a whole.

For example, you may have 20 car mechanics in your hometown. Most likely, 17-18 of these mechanics are honest, hardworking people who want to earn a living and give you the best service possible. The other 2 or 3 mechanics may not be so honest and will take your money while not giving you the quality or quantity of service you pay for… or, they may be out-and-out crooks who take your money and lie to you.

This doesn’t mean that your town is a bad place to get your car fixed; it just means that, like any industry anywhere, there are good companies, mediocre companies, and really bad companies.

As for credit repair- do your homework. Is the company you are selecting a non-profit organization or credit union service organization? Are they claiming that they can delete accurate negative information? Do they provide you with consumer rights information? Do they charge outrageous fees?

Consumers should take these things into consideration when hiring a credit repair company to help them with their credit issues.

To better understand the credit repair business some background on the industry is necessary. Beginning in the mid to late 1970s, many unscrupulous entrepreneurs realized that millions of Americans have damaged credit report ratings and that they could make money by convincing these people they could remove all negative information from their credit files.

Because the industry was completely unregulated, hundreds of credit repair companies sprung up all over the place. Most of them were dishonest and were interested only in stealing money from gullible consumers. As a consequence, thousands of consumers were milked out of millions of dollars while receiving little, if any, of what was promised to them.

Federal and state authorities received numerous complaints about credit repair companies, and as a result, both federal and state governments began passing laws regulating the credit repair industry. In addition, credit repair companies must contract with all clients in writing before work begins and cannot collect any upfront fees unless they exempt from CROA.

Be sure to read ‘Credit Repair Fix‘ for more details regarding laws governing credit repair companies.

Despite such regulation, dishonest credit repair companies still operate. This bit of knowledge is used by dishonest credit repair services to perform credit repair for their clients. Their aim is to either overwhelm the Big Three with reverification requests (letter writing) with the goal of getting as much negative information removed as they possibly can, or hoping that a few requests slip through and result in the removal of negative information.

It is important to note that not all credit repair companies are dishonest. Some companies offer a valuable service to those who find the whole process of credit repair too boring or complex, or just don’t have the time to learn about credit repair. A Credit Repair Service is as legitimate and worthwhile as a tax preparation service — the IRS claims that everyone can do their own taxes, but most people hire someone else to do them.

There are a number of credit repair companies offering to give consumers a “fresh start” with their credit histories. These companies seek to obtain a second Social Security number or federal ID number for their clients. This is commonly referred to as “file segregation”. File segregation is a fraudulent practice and violates many Federal and State Laws.

I strongly oppose the abuse of consumers by companies and individuals which direct you to commit fraud in order to obtain “clean” credit reports. In this scheme, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. That may sound perfect, especially if you’re afraid that you won’t get any credit as long as bankruptcy appears on your credit record. The problem: “File segregation” is illegal. If you use it, you could face fines or even a prison sentence.

If you have filed for bankruptcy, you may receive a letter from a credit repair company that warns you about your inability to get credit cards, personal loans, or any other types of credit for 10 years. For a fee, the company promises to help you hide your bankruptcy and establish a new credit identity to use when you apply for credit. These companies also make pitches in classified ads, on radio and TV, and even over the Internet.

If you pay the fee and sign up for the service, you may be directed to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Typically, EINs – which resemble Social Security numbers – are used by businesses to report financial information to the IRS and the Social Security Administration. After you receive your EIN, the credit repair service will tell you to use it in place of your Social Security number when you apply for credit. They’ll also tell you to use a new mailing address and some credit references.

To convince you to establish a new credit identity, the credit repair service is likely to make a variety of false claims. Listen carefully; these false claims, along with the pitch for getting a new credit identity, should alert you to the possibility of fraud. You’ll probably hear:

Claim 1: You will not be able to get credit for 10 years (the period of time bankruptcy information may stay on your credit record).

Each creditor has its own criteria for granting credit. While one may reject your application because of a bankruptcy, another may grant you credit shortly after you filed for bankruptcy. And, given a new reliable payment record, your chances of getting credit will probably increase as time passes.

Claim 2: The company or “file segregation” program is affiliated with the federal government.

The federal government does not support or work with companies that offer such programs.

Claim 3: The “file segregation” program is legal.

It is a federal crime to make any false statements on a loan or credit application. The credit repair company may advise you to do just that. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses.

Further, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.

All the information in this post is provided to help clear up those “questionable” items on your credit reports. “Credit repair” is a general term usually used to describe a systematic process of rehabilitating an individual’s creditworthiness, or financial credit reputation.

The process is generally started by obtaining copies of the individual’s credit report, reviewing the credit report for errors, omissions, and misleading information, and requesting corrections to such information by means of a formal dispute letter. Many laws, regulations, and practices govern this process, and many organizations exist that will assist in guiding individuals through this sometimes complex process, though much, if not all, may be accomplished by individuals by their own efforts.

When you identify inaccurate, erroneous, and obsolete entries on your credit reports and bring it to the credit reporting agency’s attention they must do one of two things by law. Correct it or delete it!

If you are in the process of applying for a mortgage, immediately notify your lender of any incorrect information in your report and you may be able to do a rapid re-score.

Looking to build your business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>

About the Author

business credit expert

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in the SBA Community, American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Filed Under: Consumer Credit Tagged With: bad credit credit repair, bad credit help, consumer credit repair, credit card repair, credit own, credit repair, credit repair business, credit repair com, credit repair company, credit repair counseling, credit repair dispute, credit repair fix, credit repair help, credit repair service

Bad Credit Business Loan – Top 5 Solutions

July 2, 2009 By Marco Carbajo

Bad Credit Business LoanDuring tough economic times many business owners are faced dealing with tough personal credit challenges.  As a result they have to resort to applying for bad credit business loans just to keep their businesses afloat regardless of the interest rate being charged.

 

Hard money lenders have no problem charging outrageous fees and interest rates for taking on the risk but there are alternatives to bad credit business loans.

 

Here are my Top 5 Solutions to Bad Credit Business Loans

 

Accounts Receivable Factoring

 Factoring is a form of finance used to finance commercial, consumer, and government accounts receivable. Typically, businesses factor their accounts receivable to improve and accelerate their cash flow. Businesses that factor their invoices (accounts receivable) sell their invoices to a factoring company, usually for anywhere between 95 to 99 cents on the dollar.

 

 Business Cash Advance

 An alternative to a traditional bad credit business loan, you can receive advance cash based off your future credit card sales (Visa, MasterCard, American Express, Discover, and Debit Cards). There are no personal guarantees or collateral attached to the business advance. This allows you to have the working capital you need within 3 business days or less. There are no restrictions on how to use the money allowing you to grow your business hassle free.

 

 Business Asset Liquidation

While liquidation usually means you’re closing your business forever this can be a viable strategy to raise capital without actually closing your business. You may have equipment that you no longer use or other assets that can be sold off that can generate substantial capital for your business.

 

Personal Credit Restoration 

It’s not a shame to have bad credit because everyone at one time goes through challenges but it is a shame to keep it. Start repairing your bad credit immediately by either fixing it yourself or enrolling in a solid, reputable, and legal credit repair service.

 

Increase Credit Scores

In addition to credit restoration another strategy for solving a bad credit challenge is in improving your debt to credit utilization. You accomplish this by establishing higher credit limits with lower balances typically below 30%. When you have larger credit limits on personal and business credit reports new lenders that you apply to will tend to extend even larger credit lines.

 

Bad credit business loans do exist but before you decide to commit be sure to consider these options. If you do choose to apply or you are already in a high interest rate loan because of bad credit be sure to start restoring your personal credit. Once you improve your credit you can apply for a loan and obtain a much better rate. This will allow you to pay off the high interest rate loan and saving you thousands in interest.

 

Remember – Improve your business, your life, your relationships, your finances and your health. When you do the whole world improves. ~ Mark Victor Hansen

 

Instead of jeopardizing your personal credit and assets every time your company requires financing, you can use the business’ credit rating to secure the financing you need with even more favorable terms and lower interest rates.

 

Start your business credit today!

 

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpegMarco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club.  Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.

Filed Under: Business Credit Tagged With: bad credit business loan, bad credit business loans, business asset liquidation, business cash advance, business credit, business credit help, credit for small business, credit repair, credit repair fix, factoring, increase credit scores, small business loan bad credit, start business credit

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