Credit Repair Quiz: get ready to Repair Your Credit
QUESTIONS
1) how long will it take to repair your credit?
A) 6 weeks
B) six months
C) It takes as long as it takes
2) how much time does one need to devote to your credit repair efforts?
A) two to three hours a month
B) two to three hours every week
C) It takes as long as it takes
3) how much will credit repair improve your credit score?
A) a minimum of fifty points
B) over one hundred points
C) There is not any secure range of points your credit score can improve
4) what’s the primary step in the credit repair process?
A) Apply for a secured credit card
B) Get copies of your credit reports
C) Pay off old debts
5) what’s debt validation?
A) once you verify with a debt collector that you simply owe a debt
B) when a debt collector provides proof that you simply owe a debt
C) The method a debt is listed on your credit reports once it has been paid
6) If your debt has reached the Statute of Limitations then what will happen?
A) you’re not lawfully needed to pay the debt
B) The negative listing automatically removed from your credit reports
C) both A and B
7) To whom does one submit credit report disputes?
A) Credit bureaus
B) Original creditors
C) collection agencies
D) All of the above
8) how you can submit your credit report disputes?
A) Online
B) mail
C) Fax
9) how will negative listings be removed from your credit reports?
A) Through the dispute method
B) Through the debt settlement method
C) both A and B
10) What’s the best way to build positive credit?
A) Pay your bills on time, every time
B) Keep your credit utilization ratio below 30 %
C) return your credit cards to a zero balance each month
D) All of the above
ANSWERS
1) how long will it take to repair your credit?
C) It takes as long as it takes
The credit repair method can’t be rushed. for many of them, you’ll be waiting on responses from the credit bureaus, creditors, or collection agencies. however even once negative listings are removed from your reports, you continue to take time to add positive credit history. It may be many months, or a year or more before you see a big improvement in your credit score.
2) how much time does one need to devote to your credit repair efforts?
A) two to three hours a month
Here’s what your monthly credit repair schedule may seem like.
3) how much will credit repair improve your credit score?
C) There are not any guaranteed number of points your credit score can improve
The only guarantee is that you simply can see some improvement in your credit score at some point…provided you follow the credit repair method and maintain smart credit practices going forward.
4) what’s the primary step in the credit repair process?
B) Get copies of your credit reports
You are entitled to free copies – from all 3 credit bureaus – every twelve months. To request yours, visit AnnualCreditReport.com. Then undergo every credit report with a fine tooth comb. Here’s what to look for. it’s based on what you find in your credit reports that you simply can enter into following the step of the credit repair method – disputing listings with the credit bureaus.
As for paying off previous debts, attempt debt validation first.
5) what’s debt validation?
B) once a debt collector provides proof that you simply owe a debt
If a debt collector cannot prove that you just owe a debt, then two things happen – you’re not needed to pay the debt and it should be removed from your credit reports. Debt validation is especially effective for old credit card debt that the original creditor has sold out to a debt purchaser. The debt purchaser might not have the documents necessary to prove you owe the debt. make them prove it.
Learn more regarding debt validation.
6) What will it mean if your debt has reached the Statute of Limitations?
A) you’re not lawfully needed to pay the debt
However, the negative listing will still be on your credit reports for up to seven years, which implies it’ll still negatively have an effect on your credit. If you have got a debt that’s near the 7-year mark, you may wish to wait for it to fall off. However, if it’s still a ways off, you may want to settle the debt (even though you’re not lawfully needed to pay it). simply make sure you’ve tried debt validation first. And if you are doing plan to settle, however sure to negotiate the complete removal of the negative listing.
7) To whom does one submit credit report disputes?
D) All of the above
Start with the credit bureaus. If your first dispute with the bureaus doesn’t work, attempt another. Keep at it till you have exhausted each possibility with the credit bureaus. If this doesn’t resolve the issue, then move to the original creditor collection agency.
8) how you can submit credit report disputes?
B) snail mail
All of the credit bureaus have online dispute choices. However, it’s suggested that you simply send your dispute-certified mail with the return receipt requested.
Be sure to make copies of your dispute letter and make note of it once you receive the return receipt. The credit bureaus have thirty to forty-five days to reply once receiving your dispute. If they don’t, the listing in question should be removed from your reports.
Find the simple letter template that you need to tweak and send your dispute.
9) how will negative listings be removed from your credit reports?
C) both A and B
Negative listings may be removed from your reports through a successful dispute method. However, you’ll also negotiate the removal once you settle a debt.
10) What’s a decent way to build positive credit?
D) All of the above
Pay your bills on time, every time. Keep your credit utilization ratio below 30 %. And return your credit cards to a zero balance each month. If you’re having a hassle obtaining a new line of credit to begin reconstruction, attempt a secured credit card. simply make sure it’s one that reports to the credit bureaus.
