Repairing bad credit is not difficult, but it does take time. There are many legitimate credit repair firms and they do help. They deliver, but they cannot guarantee results in twenty-four hours. There is no overnight fix and it could take years to completely turn your credit around. You can, however, work with one of these firms and get yourself on the road once again to financial betterment. Here is some advice you can follow before meeting with the local firm you have chosen to help you.
Your credit report
The first thing you should do is order a copy of your credit report from each of the three crediting bureaus – Experian, Equifax and Trans Union. Go to each one carefully and identify any inconsistencies or errors so that you may bring them to the attention of the firm you are working with to repair your bad credit. From there, they will ask you for supporting documentation to back up your claim and they will help you prepare appropriate correspondence to send back to the credit bureau to have the item verified or removed from your report. The credit bureau has thirty days to comply.
If you have negative information on your credit report that is due to a previous marriage, identity theft or similar scenario, the credit repair company you are working with can help you prepare a letter explaining your side of the story. This is called a ‘consumer’s statement’ and the credit bureau will re-open that item in lieu of new information. Make sure that you get a copy of your new credit report. If you do not receive one, your credit repair firm can request one for you.
A little known fact
Many people do not know that they can have the repaired credit report resent to anyone that turned you down for credit. The credit repair firm will help you determine which companies pulled your credit report over the last six months – that’s as far back as you can go – and help you submit the request demanding that they send the corrected report. If you were turned down for a job over the last two years because of credit report problems, you can have it sent to them as well. It probably won’t get you that job, but it is the principle of the matter.
Things to watch out for
Some credit repair firms will ask you to prepay them for their services. The law states that they must wait for payment until they have completed the services you contracted them for. That means you will see results before you turn any money over to them. This is one of the many scams that have been reported to the Better Business Bureau of the years.
Also, never allow your credit repair company to use any tricks to fix your credit. This includes swamping the credit bureaus with letters and requests on the same day about the same individual. This technique does not work. In fact, this may actually cause the credit bureau to slow down and take their sweet time or ignore your request all together.
There are some things on your credit report that you simply will not be able to remove until the statute of limitations is up, such as bankruptcy which cannot come off your credit report for ten years.
By: Robert Newsome
Posts Tagged ‘Correspondence’
Bad Credit Repair Advice – Help to Get You Back on Track
February 22nd, 2010Credit Repair Fast
February 10th, 2010
When you have bad credit and a low credit score, the faster you can fix the problem, the faster your life gets back to normal. Rather than just accepting your status, learn what you can do to understand the credit process and what you can do to track and repair problems that may appear on your credit report.
The place to begin is with your credit reports. The idea behind looking at a current credit report is to see exactly what is being reported about you. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion, provide you with a free copy of your credit report once every 12 months, if you ask for it. To order your free report, visit Annual Credit Report dot com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form.
1. In order to make credit repair fast, you need to be aggressive and diligent in your efforts. Make a list of mistakes and errors you find, then compose a letter to the bureau reporting the error, and asking them to remove it from your files. Send all correspondence by certified mail, and ask for a signed receipt.
Some credit repair companies will even send a dispute letter knowing that the item they are disputing is accurate. If the bureau doesn’t verify the item, or can’t do it within the 30 days allowed by law, the bureau has to remove those items immediately. The result is a big, and fast, positive pop to someone’s credit score.
2. No matter how horrible your credit picture is today, credit bureaus and lenders are most concerned about your latest credit management habits. Be sure you make all payments on time, and preferably early. Never, never, never ever make a payment late. This is critical if you want to rebuild your credit.
3. If you have any outstanding collection accounts, you can probably work out some kind of payment arrangement with them, either a discounted payoff in full at anywhere from 30
Credit Repair Steps to Success
November 30th, 2009
Introduction
I’ve spoken to thousands of people over the years about their credit. I’m often asked to explain the steps that should be taken to remove errors from credit reports. Here is a step by step guide that will produce results if followed carefully. The content of your credit report has a major impact on the quality of your financial life. The efforts that you make to improve your credit will pay significant dividends. Good luck!
Get Copies of Your Credit Reports
I strongly suggest that you get individual copies of your three credit reports rather than a tri-merged report which combines all three. This will make the tasks that follow considerably easier. You will be addressing your communications to the three individual bureaus and it is essential that you remain organized. Your credit reports can be obtained for free from annualcreditreport.com one time per year. If you have done this within the past twelve months and must purchase your reports please make sure to purchase them individually.
Organize Your Effort
Once you have your three reports it is time to get organized. Make three individual files and label them clearly with the names of each credit bureau. You will need to follow the directions below for each bureau individually. It is important that you keep copies of all of your correspondence with the bureaus in the proper files so that you can monitor the results and take follow up action as necessary. Time to get to work!
Look for Derogatory Information
Review each report for the presence of derogatory information. Make a note of anything that you see that is questionable. Give yourself the benefit of the doubt. If you see a late payment that you don’t remember, or an account that you don’t recognize, it is important that you not assume that the credit report is right. Credit reports are notoriously inaccurate. You need to look out for yourself. You will be disputing every single thing that does not ring true.
Look over Neutral Information
This is a step that most people ignore. And yet the neutral information on your report can have as much of an impact on your credit scores as the more obvious derogatory information. Neutral information includes the initial reporting dates for each account, high credit limits for each account, current balances, duplicate accounts, and unrecognized inquiries. These items are crucial. An understated high credit limit, for example, might cost you 20 points on your credit score.
Start Your Disputes
It is time to start writing letters to the bureaus to dispute every questionable item. Take the time to do this right and you will have success with your credit repair efforts. These tips can make all of the difference. First of all, type your dispute letters. Second, keep it simple; just say what you need to say and not a word more! And third, don’t dispute more than three things at a time. Follow these instructions and you will be thrilled with the results.
Dispute Again
There is a very high probability that the first response that you get from the bureaus will indicate that they have checked the item in question and it was verified by the creditor to be correct. Don’t worry. This response is built into the system. After all, the reason the error is on your report is that the creditor is reporting it. So now it’s time to dispute again. This second dispute must clearly indicate that you are not satisfied and that you would like the issue to be researched. If you don’t get satisfaction after the second dispute don’t be afraid to dispute a third time; this is the final and most effective step in credit repair. This time you must demand that they provide documentation. If the reported item is incorrect it will be now be removed.
Other Useful Tips
If your credit is limited you would be well advised to open one or more new accounts. If your credit keeps you from being approved by traditional credit card providers then you should apply for a secured credit card. These require a small saving deposit to be made as collateral. It is also effective to be added to a friend or relative’s existing credit card as an additional cardholder. Of course they have to be willing to help you in this way, but once this is done your credit score will benefit from the presence of the item on your report.
Summary
This process takes some stamina, but if you follow these instructions you will have success. Don’t be intimidated. Credit repair is your right.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
By: Jim Kemish
