Usually it’s about the time that someone needs to buy a new car or is about to purchase their first home that they realize that they are going to need to do a little bad credit report repair. While it can be quite costly to hire a professional to help you get your credit rating back on track quickly, there is hope for people who are the more do-it-yourself type and want to save some money.
Bad credit report repair can be done on your own if you have the time and some organizational skills. It is not difficult work to fix your credit, it is just a matter of understanding exactly what makes up your credit score, identifying the problem areas, and then workings swiftly to resolve those issues. All of this can easily be done on your own, without the help of an expensive professional.
The first thing that you need to do is order a copy of your credit report from each of the three credit bureaus, Experian, Equifax and Trans Union. You can order a copy from each of the three agencies for free every 12 months, and it only takes a minute. Just go to the Annual Credit Report website, enter in your contact information, and you’ll instantly have an electronic copy of your report, which you can save to your hard drive and print out. Just be sure to visit the official Free Credit Report website, as there are many other that suggest you can receive a free report, but only if you sign up for a trial of their monthly credit monitoring service. The official site, however, has no strings attached.
Once you have downloaded your report, print if off and take out two different color pens or highlighters. You are looking for two things that you want to distinguish from each other. The first thing you are looking for is errors on your report. One in four credit documents include misinformation, so chances are you will find some. The other thing you are looking for, which you want to highlight in a different color, is the accurate information that is negatively affecting your credit score. Each report will be slightly different, so thoroughly and carefully look at each document.
Once you have done that, the next in your bad credit report repair plan is to remove the false information and eliminate the negative information. To do this, make two columns on a sheet of paper that that are labeled, “misinformation” and “negative information.” List your items in the appropriate column, but rank them in terms of their greatest impact on your credit score. For example, if you have a bankruptcy on your credit report that did not occur and a typo in your employer’s address, you want to list the bankruptcy first since having that removed will have the greatest impact on your credit score.
Once you have your items ranked in the proper order, you will have an idea of where you need to focus your energy to improve your credit score the fastest. When disputing items on your credit report, you don’t want to do them all at once. Just take care of the biggest problems first in order to get the most cooperation from the credit bureaus and getting them to act fast.
By: Ryan J. Taylor
Posts Tagged ‘Free Credit Report’
Credit 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
Bad Credit Repair Yourself – 4 Steps to Repair Bad Credit Yourself
January 12th, 2010
Does your bad credit cause you to miss out on sweetheart deals or keep you from getting the things you want now?…on terms you can live with? Let me share a short story with you…A few years ago… I had horribly bad credit. Though it was mostly might own fault for the mess I was in…It deprived me of getting my dream house and all the other things I wanted and deserved. Which lead me on a journey…looking for any and all advice on how to do bad credit repair yourself I could find.
There are lots of ways for you and I to repair bad credit. It’s really quite easy once you know how…and I’m going to share with you some advice to help you repair bad credit yourself.
Step One– Getting your credit reports
Order your credit reports. Do you know whats on your credit reports? If you don’t you really should. Notice…I said “reports”. Why? because there are 3 major credit reporting agencies (Experian, TransUnion and Equifax) and each has it’s own data base. You can get 1 free credit report per year from each agency. Review your reports and make note of any errors, incomplete or false entries that aren’t yours.
Step Two– Know you rights…The Fair Credit Reporting Act
Before you contact the credit reporting agencies to dispute them…visit the federal trade commission website ([http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm]) and learn what your consumer rights are. Would you believe me?…if I told you that you can demand removal of any false or incomplete entries on your credit reports and the credit agencies MUST comply under penalty of federal law.
Step Three– Time to take action…Dispute the Credit Reporting Agencies
Now that you have an idea of whats on your reports…it’s time to challenge any discrepancies. Sit down and write a letter to each credit reporting agency about any erroneous entries…Now, don’t be afraid of the “credit police.” You see…these agencies are nothing more than a clearing houses who’s only purpose is to collect and store credit information on you and I… to sell that information to merchants that we apply to for credit.
They have no special power over us…they’re just in business to make a buck.
Step Four– Monitor your progress…Keep fighting for your good name
Okay, so you’ve fired off letters disputing any discrepancies…Now what? It’s time to play the waiting game. It takes up to 30 days for your disputes to be verified by the creditors in question and if you’re successful…the errors will be removed.
If the credit agency sends back a reply saying you own a disputed account …relax. Why? Here’s how they verify your accounts with creditors. The credit bureaus send out a simple little one page form to creditors/debt collectors already filled in with your name, ssn and no detailed info. The creditor checks their files and either confirms–yes, it’s yours or says no… and removes the item from your credit report. That’s It!
I once had a bankruptcy being reported as mine that belonged to some lady in Ohio. Our social security numbers did’nt even match and I’ve never lived in Ohio a day im my life. In fact– the only thing we had in common was our initials! Moral to this story…keep disputing…ask the creditor in question for contracts or agreements that you’ve signed (they have to produce at your request or delete it from your credit report.)
So, as you’ve learned… to repair bad credit yourself isn’t hard at all. Armed with some solid advice…It takes just a little time and patience to order your reports, learn what your rights are… and most importantly….Take action!
By: John Briggs
