Apr 21, 2008

Do-It-Yourself Credit Repair

Having bad credit in the US is a nightmare. There are do-it-yourself credit repair tips that can help to restore your credit rating to a level that you can be proud of. Our journeys through life sometimes lead us into difficult times. It is not very hard to get behind. Once that happens and your credit rating drops, it will take some time and effort to get it back up. Don’t let it get to you though, you can do it. Here are some do-it-yourself credit repair tips to help you along:

Tip #1: Know what you’re dealing with. If you want to restore your credit to a given level, you have to know where to start from. You are entitled to a free copy of your credit report once every year from each of the 3 major credit reporting agencies, but if you’re looking to do some credit repair, you should purchase them from each credit bureau separately.

Tip #2: Once you know what you are dealing with, you can begin your credit repair efforts. Do-it-yourself credit repair is all about having negative items removed or updated to a positive account. Even if the accounts are “really yours”, they must be removed if they are not verified within a reasonable amount of time – normally 30 to 45 days.

It’s important to go through your report and dispute negative items in the correct order. Your first letter should be disputing any contact information that is not current. In your second letter, you can start disputing the negative accounts. It’s not wise to dispute more than 5 accounts at the same time.

It’s up to the credit reporting agency to investigate the information at this point. They do so by contacting the originator of the negative complaint. If that individual or organization does not respond and verify the item in time, the law states that it is to be immediately stricken from your report. Additionally, there is a statute of limitations on almost all credit report items. They are automatically to fall off after a given time period. Check for them and inform the CRAs of any discrepancies.

Tip #3: You need to keep good records. You want to always be a thorn in the side of these reporting agencies. Clerical errors, human laziness, company mergers and bad record keeping are but a few of the reasons why your negative items may not be verified in a timely fashion. This is what you want to happen! Also, send in your dispute forms at the busiest times of the year like major holidays and the peak of tax season.

Tip #4: After you send in the dispute letters, go about your business and make sure that you are not creating any more negative issues concerning your credit. Make your payments on time – every time. After 30 days, the credit bureaus should have sent you another copy of your credit report. They don’t always do this. If not, you may need to call them or write them and request it. Go over it again and check to see if every dispute that you filed has either been removed or verified. The statistics say that around 40% will have disappeared. That’s great! Sometimes, it’s a lot higher.

Do-it-yourself credit repair is a simplistic endeavor. It only requires organization and a plan. With some attention to detail and patience, your do-it-yourself credit repair efforts will save you thousands of dollars as compared to hiring the services to be done for you. Your credit rating will be enhanced and your life will begin to flow smoother. When it comes to repairing your credit, do it yourself!

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Jan 25, 2008

Top 5 Credit Repair Tips to Increase Your Credit Scores

Having good credit is very important in today’s culture. We now live in a world where credit determines how much interest you’ll pay on your house, car, boat etc. Your credit scores are used by landlords, employers and insurance companies to determine whether or not you get an apartment, a job and what your insurance rates will be. It can also mean the difference between having to pay no deposit for a cell phone (or other utility) and having to deposit $500 or more.

Which side of the fence do you want to be on? Do you want to go through life with good credit or bad credit? The decision really is up to you. Below are some top credit repair tips for consumers with credit problems.

1. Become familiar with the Fair Credit Reporting Act.

Right off the bat, let’s start with one of the best tips I could ever give you. It doesn’t sound like much fun especially when you see it on paper, but it really is very important and it won’t take that long. I’m not saying you need to read all of the technical legalese from top to bottom, but get familiar with what the FCRA is all about.

2. Any information can be disputed on your credit report.

I don’t know how else to put this: ANYTHING on your credit report can be disputed – personal information, public records, accounts, inquiries…ANYTHING!

3. Credit repair is a process.

If you have 20 negative accounts reporting on each credit report, do NOT dispute every single account. Credit repair is a process, not a one time deal. The credit bureaus are more likely to label your dispute as frivolous if you trying disputing that many items. Dispute no more than 3-5 accounts at a time.

4. Keep your dispute letters simple.

Unfortunately, many amateurs on the net are giving people long, drawn out, unnecessary “sample letters”. Sample letters are fine, but it’s unnecessary to mention laws, procedures, court rulings, or threaten law suits, etc. The credit bureaus know the law. There is no need to be condescending or act like you are a professional. That won’t get you very far.

Simply dispute the accounts you would like to have removed or updated. If your letter is confusing, it will more than likely get returned or thrown away. There is also no need to tell them your life story or why you were late or why it should be removed. They do NOT care. Keep it short and simple!

5. Procedural Request – Ask for Method of Verification.

So, after you’re first dispute you got a few accounts deleted – that’s great! But, what about the ones that came back as “verified”?

Send them a procedural request. If you request it, the credit bureaus are obligated by law to provide you with the method the creditors used to verify the information that they are reporting on your credit report. By requesting this information, you are forcing the credit bureaus to actually provide you with what they received from the creditor as valid proof. If the creditor replied to your dispute stating that the account should remain on your credit report, they need to have proof. The creditor rarely provides the credit bureaus with this information. So, when you do this you are putting pressure on them to either “prove it or remove it”.

Keep records of everything the credit bureaus and your creditors send you in case you should ever after to sue them for violating your federal rights.

Posted in FCRA, bad credit repair, credit, credit repair tips, credit report repair, dispute credit reports, dispute letters, method of verification, procedural request | No Comments »