Why would I need a credit lawyer?
Think of your credit score as a prized possession that needs to be repaired by a credit lawyer. You failed to take good care of it and make sure that incorrect information didn’t damage it. Damage occurs when the three credit reporting agencies (CRA’s) include wrong information about you. It could have happened because someone made a mistake by entering a wrong birthdate or because someone stole your identity. According to a 2013 Federal Trade Commission (FTC) report, one in four consumers identified errors on their credit reports that might affect their credit scores.
Whatever the reason, this bad information has damaged your credit rating and this damage will last for seven years unless someone corrects the error. You can do it if you have the time and patience to deal with the three agencies. Or you can hire an experienced credit lawyer who knows how to discover bad information and how to get it removed.
For its 2014 report, the Consumers Union collected stories from more than 1,000 consumers nationally. It found, among other things, that “…getting the CRAs to correct credit report errors can be a very difficult and frustrating process.” During this process the CRA’s, the report said, devote limited resources, conduct inadequate investigations, and accept the information furnisher’s word on disputes without requiring evidence
May a good credit lawyer save me money?
It depends on your circumstances, but if your low credit score is based on the wrong information he most likely can get it removed, which will increase your score. A higher score will save you money, especially on financed items such as a house or a vehicle. Your credit score makes an amazing difference in you interest rate. Here are the 2017 rates for new and used vehicles according to www.bankrate.com.
|Average Car Loan Rates by Credit Score|
|Credit Score Range||New Car Loan||Used Car Loan|
|Super Prime: 781 to 850||2.6 percent||3.4 percent|
|Prime: 661 to 780||3.59 percent||5.12 percent|
|Nonprime: 601 to 660||6.39 percent||9.47 percent|
|Subprime: 501 to 600||10.65 percent||15.72 percent|
|Deep Subprime: 300 to 500||13.53 percent||18.98 percent|
And here are the 2017 interest rates for single family homes according to the Lenders Network:
“579 and lower – If you are approved for a mortgage with this low of a score you will have a credit score as much as 2% higher than the current lowest rate. 580-619 – You can expect an interest rate as much as 1% higher than the lowest rates available. 620-679 – With a credit score in this range your interest rate will be slightly affected. Rates could be .5% higher than someone with great credit will receive. 680-739 – This is the range for most homebuyers. Your rate will not be affected much at all in this range. 740 and higher – You will be offered the best rate.”
The difference between a 30-year, $200,000 loan at today’s best rate of 3.8% and the same loan at a rate 2% higher, or 5.8%, equals approximately $87,120. If the credit lawyer helps you raise your credit score from less than 580 to more than 580, your interest rate may decrease 1%. That is a savings of $42,480 over 30 years. In addition, current FHA guidelines require a score of 580 to qualify for the lowest rate.
In the purchase of either of these big-ticket items, you will save far more than the cost of hiring a credit lawyer.
What questions should I ask my credit lawyer?
The Credit Repair Organization Act (CROA) protects you from unscrupulous credit repair agencies that demand money upfront and do not provide services. Here are suggested questions to ask your credit lawyer:
- How much do your services cost?
- What do you offer that I can’t do myself?
- What proof will you provide that you are negotiating with my creditors?
- What are your cancellation and refund policies?
- Are you in compliance with the CROA?
If you need a credit lawyer, to speak with a representative directly and immediately call 844-685-9200 for a free, no obligation case evaluation. Our attorneys have experience in dealing with CRA’s to correct credit reports and standing up for consumers. If you require legal action to correct your credit report, we will represent you in court.