| OK, so you have a little (or maybe not so little) problem | | | | type a letter without making a couple of typos. |
| with your credit report. All is not lost, but you will have | | | | So mistakes happen, wrong information gets into the |
| to dedicate some effort and time to "fix or repair" your | | | | wrong file, and all three credit bureaus don't talk. They |
| credit score. Keep in mind that it took more than 30 | | | | are competitors so they don't share information and all |
| days to screw your credit score up, so make sure | | | | three can generate a different score. They all loosely |
| that you follow the basic guidelines of restoring it. | | | | base these scores on the FICO method. |
| There's a lot of jargon and information you need to | | | | FICO scores are based on 22 pieces of data |
| know before you start your repair project. Repairing | | | | collected by the three major credit bureaus. The |
| your credit score is not brain surgery but you do need | | | | lowest possible score is 300, while the highest is 850. |
| to adhere to some basics in order to accomplish your | | | | None of the credit bureaus will apply these methods |
| goal of a higher credit score. There's a lot of | | | | exactly the same and also may not have the same |
| misinformation out there about just exactly what a | | | | data so it's common to get a different score from |
| credit score is and how you improve it. | | | | each one. |
| Don't Get Ripped Off | | | | The lending companies (or creditors) will usually use |
| Another problem with credit repair is there are 100's if | | | | this FICO based score provided to determine the risk |
| not 1000's of scoundrels out there that prey on the | | | | of lending money or granting credit. The higher your |
| unsuspecting person with less than stellar credit. They | | | | score, the less risk, so the lower the rate. The |
| will make unrealistic claims that promise to fix anything | | | | difference in credit cost can be dramatic. If you are |
| for a price. And the worst part is that not only will they | | | | applying for a $216,00 mortgage and have a score of |
| take your money, they can actually cause damage to | | | | 630, your rate could be $1568 per month at 7.89%. If |
| your credit score. | | | | your rate was 680, you could get a rate of $1394 at |
| Our less than perfect credit rating system is regulated | | | | 6.7%. That's a $2100 per year difference so you can |
| by the government. Which can be both a good thing | | | | see how 50 points can have a big impact on your |
| and a bad thing. But you should know a few facts and | | | | credit cost. |
| don't get fooled. | | | | Basic Repair/Fixing Methods |
| You can also get a FREE credit report from all three | | | | You often hear that you should dispute (challenge) any |
| major credit bureaus. Don't pay for something that you | | | | and all negative information. But most people don't |
| can get for FREE. Go o the Federal Trade | | | | know or advisors fail to mention that the creditor and |
| Commission's site here to get the full details: | | | | the credit bureau may declare the disputes "frivolous" |
| [ | | | | and not have to respond. So before you go crazy on |
| The only catch 22 is that you don't get a credit score | | | | disputes, keep that in mind. Many of the negative items |
| with your credit reports. But if you have been turned | | | | do have a time limit imposed, depending on the item. |
| down by a creditor (or given what you think is an | | | | Here's a good set of guidelines on what to challenge: |
| unfair rate) you can request the information from them | | | | -- Information is not based on you (mistaken identity) |
| and they will provide the score they used to determine | | | | -- Information is inaccurate based on what actually |
| your rate. | | | | occurred. |
| But it's still pretty clear on the credit reports what might | | | | -- Information is outdated - there was an issue but it |
| be having a negative impact on your credit score. So | | | | has been resolved. |
| these reports are the first step in working on raising | | | | -- The time limit on the information has occurred. |
| your credit score. | | | | -- The information is totally incorrect with no valid basis |
| And keep in mind there are no secrets, no special | | | | So once you have requested your FREE copies of |
| methods, and certainly no one has any better chance | | | | your credit reports, you need to review them to find |
| than you, the owner of the credit score, to repair or fix | | | | any inaccurate or false information. When you find a |
| your credit score. | | | | negative entry that you want to dispute, you need to |
| What Is A Credit Score? | | | | send a letter of dispute, or file the dispute on line |
| A credit bureau, or credit repository, is an entity that | | | | directly from the credit bureau website. Some say the |
| gathers information about consumers' credit histories. | | | | online method is much quicker and since USPS does |
| Your credit history/report includes information regarding | | | | take days it probably is faster. The credit bureau has |
| the following items: | | | | up to 30 days to verify the dispute with the filer of the |
| -- Identity information such as your name, address, | | | | negative information. If you forget to give all the |
| social security number, spouse and date of birth. | | | | necessary information and they request more |
| -- Payment habits such as how promptly you have | | | | information they can get an additional 15 days (total |
| made payments to previous creditors. | | | | 45). |
| -- Public records such as records of arrests, | | | | You can get a sample credit dispute letter here: So it's |
| indictments, convictions, lawsuits, tax liens, marriage, | | | | important to make sure you provide all required |
| bankruptcies, and court judgments. | | | | information to shorten the process. Once filed the |
| -- Debts. | | | | credit bureau will respond to you with the results. |
| -- Other relevant credit data Information concerning | | | | The good news about our credit reporting system is |
| your current employment such as the position you hold, | | | | that time marches on and you can start improving |
| length, and possibly your income. | | | | your credit score immediately. Most experts in the |
| -- Information about your personal history such as the | | | | financial industry agree that the last 18 months is the |
| number of dependents you have, your previous | | | | most important. Try and negotiate any negative items |
| addresses and information about your previous | | | | that are true (bring payments up to date, settle old |
| employment. | | | | claims, work out new payment plans, whatever). Most |
| Credit bureaus sell credit reports to credit grantors, | | | | creditors will be more than willing to work with you if |
| such as banks, finance companies, and retailers. Credit | | | | you make an honest effort in resolving the negative |
| grantors use credit reports to determine whether or | | | | issue. But make sure the creditor agrees to update |
| not a potential borrower is creditworthy. | | | | your credit record. |
| There are three major credit bureaus in the United | | | | You can also make sure any good credit information is |
| States: | | | | listed. If you have credit experience that is favorable, |
| * Equifax: 800-685-1111 | | | | write or contact the creditor and as to have it added |
| * Experian: 888-397-3742 | | | | to your credit report. Many times good information is |
| * Trans Union: 800-916-8800 | | | | never reported. You can also open new credit |
| These three bureaus provide nationwide coverage of | | | | accounts from creditors and pay them off early (even |
| consumer credit information. The credit bureaus are a | | | | if you have the money to pay cash) to get addition |
| for-profit system that generates billions of dollars in | | | | good credit entries. |
| revenue each year from selling copies of credit | | | | Get our Free Repair Your Credit In 30 Days Guide for |
| reports to creditors and mailing lists. Trans Union made | | | | more details on how to raise your credit score here: |
| 1.5 BILLION dollars last year. | | | | Everyone should check his or her credit report each |
| It is essential to understand that Credit Bureaus are | | | | year. It's now Free and won't take much time as long |
| nothing more than record keepers, and sometimes not | | | | as you stay on top of it. You can request one credit |
| very good ones. Consider the fact that these | | | | bureau at a time every 4 months and have a good |
| organizations are tracking millions of people with up to | | | | idea of what's been entered in the past 12 months. |
| 40-50 entries per individual. In all fairness, I can't even | | | | |