| Credit companies always appeal to consumers who | | | | information. Examples are: |
| have poor credit history and they often promise to | | | | - Foreclosure |
| erase bad credit, to clean credit reports and even | | | | - Repossession |
| create new legal identity. But can they really help in | | | | - Collections |
| repairing bad credit history? | | | | - Credit rejections |
| Here are some points to consider when deciding on | | | | - Late payments |
| seeking any help from credit repair companies: | | | | - Bankruptcy |
| - They collect payment for services in advance | | | | - Court judgments |
| before they provide any solutions | | | | - Loan default |
| - They do not inform you of what they can do for | | | | - Past due payments |
| free; they even conceal the information regarding your | | | | - Credit inquiries |
| legal rights. | | | | Take note that if your company does not notify you |
| - They advice you not to directly contact your credit | | | | of the bad information that will be placed on your |
| report company. | | | | report, they are clearly violating the FCRA. You can |
| - They recommend you to create a new credit report | | | | use this act against them and you can immediately ask |
| and new credit identity using the employer identification | | | | them to remove the negative listings. |
| number rather than social security number. | | | | 4. Create a dispute letter addressed to the credit |
| - They suggest that you hide all information about your | | | | bureaus. Indicate the reasons why you disagree on the |
| credit report. | | | | report and check all the items that you are questioning. |
| Check on the above scams because engaging in | | | | You can ask for every detail that you found disputable, |
| something fraudulent can lead to your prosecution. | | | | but you will have a hard time to get foreclosures and |
| The truth is that no company can legally and | | | | bankruptcies off your credit report. Be sure that the |
| accurately remove all bad records on your credit | | | | letter is sent certified or registered. This is important so |
| report. | | | | that you can be sure when the letters are sent and |
| According to FCRA or Fair Credit Reporting Act you | | | | received. The letter will also give you rights when the |
| can actually ask for a free credit report when a | | | | company will not respond on the prescribed time by |
| company acts adversely against you. For example, | | | | the law. |
| you are denied of your application for credit or | | | | 5. Have a record of all your transactions; document |
| insurance. | | | | the date when you send letters and what are the |
| Basically, there are techniques on how to repair your | | | | results. Track down your correspondences and have it |
| credit: | | | | organized. You should also note all the telephone |
| 1. Review and always get a copy of your credit report. | | | | conversations from the date and time, name of the |
| Even though you have no bad credit record, you | | | | person you talked to, her/ his position, what transpired |
| should review your credit report regularly. This will be | | | | in your conversation. |
| useful to ensure that all contained information is | | | | 6. Let the credit bureau investigate your claims and |
| correct, up to date and complete, and check on the | | | | wait for the results. Once the agency receives your |
| information in your credit report that will affect your | | | | letter, they are obliged to investigate it. The agency will |
| insurance or loan application and what amount will you | | | | have to resolve the dispute within 30 days, after which, |
| pay for them. It will guard you against someone who | | | | the consumer shall receive written notification of the |
| utilizes your personal information such as identity | | | | results. If the investigation results reveals error again, |
| thieves. | | | | you can request for revision of the report |
| 2. Analyze your credit report. This can let you see if | | | | 7. Evaluate the results. The credit bureau will |
| there are inaccurate entries or negative listings. Most | | | | summarize the revisions it made on your report. |
| of the entries are not easily looked upon, such as | | | | Compare your notes with the list from the bureau to |
| medical collection. In addition, there are those reporting | | | | check if the results are accurate. |
| late payment although you have paid on time. | | | | 8. Repeat the initial steps if you are not satisfied with |
| Analyzing your report will let you ensure that no | | | | how your disputes are settled. Reinvestigation is free, |
| thieves are stealing your identity and using it for illegal | | | | so request for it anytime you want. |
| transactions. | | | | Persistence and patience are needed because not all |
| 3. Make an entry of all the items which you find to be | | | | credit bureaus are cooperative. Once your credit |
| negative or questionable. Identify the negative and | | | | report is repaired, creditors will come to see your good |
| positive items on your credit report. You should also | | | | financial standing again. |
| rank these items from the least to the most damaging | | | | |