Many of us searching for the fastest way to credit repair just don’t understand the process or know where to start. Often we become so frustrated with the notion of having bad credit that we give up. It’s not that bad; credit repair is possible and doesn’t take forever.
First you must be willing to get what you want. No one sitting by the sidelines worrying about life will make any changes. In order to reclaim your good credit there are 3 things you must understand; TransUnion; Equifax AND Experian.
Those are the 3 credit bureaus, more like large depositories of personal information, which you will have to deal with to reclaim your good credit. Understanding how the process works will help you fortify a plan and follow through with your credit repair.
1. First, you have three different credit reports, created by three diverse credit bureaus and they contain select information placed there by your creditors. Your creditors will forward their report of your payment history monthly, bi-monthly or quarterly. These reports from all your creditors are summarized and rated and will determine your credit worthiness.
2. You can request and receive 1 free credit report from all 3 credit bureaus once per year. This allows you to review your credit report for any inaccuracies and this is vital to your credit repair.
3. Upon finding any inaccuracies, you must write a letter to the credit bureau, explaining how the negative information is wrong or in other words, dispute the negative information.
4. The credit bureau has 30 days from receipt of your letter to correct or corroborate the information and send you an updated credit report.
Now this really is a summation of what you need to do for credit repair, but this explains your foundation for getting started. The credit bureaus will not make it easy to remove data, but with a good understanding of your rights and persistence for credit repair you’ve won half the battle.
By: David N Kamau
Posts Tagged ‘Free Credit Report’
Quick Start to Credit Repair
February 12th, 2010Credit Repair Scam – How To Avoid Being A Statistic?
February 2nd, 2010
A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Promises to “fix” your credit are always made by credit consolidation companies, but they are seldom true. Here are some of the important tips to avoid scams:
First things first. Negative information cannot be erased if the information is correct. Only inaccurate information can be corrected in your credit file. Credit file information remains on your record for seven good years from the time it is reported to the bureau. For bankruptcy, the information remains on your record for ten years. All the consolidated information about your credit bills you fell behind on, but are now paid, will remain on your report for the time period mentioned above.
Do not pay the credit repair company unless their promises are kept. Remember, the law is on your side. Federal law requires credit repair companies to give you a complete detailed explanation of your legal rights, a completely documented written contract, and above all, 3 days to cancel. This applies to all credit repair services including for-profit services, non-profit services, creditors and credit unions.
Be wary about emails you receive. When you hover your mouse over the link in the email, you will know for sure if it is a trusted website or a fraudelent one. If fraudelent, report it to your bank promptly.
You don’t need a counselor to correct your mistakes in the credit report. Take charge of it yourself. If you were recently denied credit, you can request a free credit report. Otherwise there is a small charge for it. Some states will allow you a free copy of your credit report once a year. It doesn’t cost you anything to dispute or question items in your credit report. Get online or follow instructions from your credit bureau. The three major credit bureaus are Equifax (800- 685-1111), Experian (800-682-7654) and Transunion (800-916-8800). In most cases you will need to contact all the three credit bureaus as the information they have about you may vary.
Remember that you can’t create a second credit file. Some of the fraudelent companies will offer to provide the consumers with a different social security number (tax identification number if ssn does not exist) in order to create a new credit file for the consumer. Such a practice is called as file segregation. File segregation is illegal and does not work.
Whereever possible, add explanation to your credit report to prove your point. If you have legitimate reasons for not paying certain bills on time (switching jobs, illness), or if you refused to pay because of a dispute, send the bureau a statement to be tagged with your credit report. Each lender who pulls your report will be aware why you fell behind on those bills.
Counseling might be a good option. Find a good non profit consumer credit counseling service in your neighbourhood. Get online or open your yellow pages to find one. Seek the guidance of friends and family members. Select a counselor, meet them in person to make sure they are right for you. Ask them on tips and advice on how to build a good credit history. If you are still lagging behind on your payments, credit consolidation firms will be able to set up a payment plan with your creditors. If money is an issue, select a non profit credit counseling service. They will offer their service for free or for a very low cost.
By: Bill Smiths
