Repairing credit is a must for great financial ratings.
Credit problems seem to become more and more prevalent, especially since we are in going through difficult times financially as a country. We are all feeling the squeeze, and tightening our belts, in the mean time, there are natural consequences which do affect our credit. Repairing credit is something that you have the power to do, and in this article, I will give you some tips that will help you in repairing credit.
Tip 1
Obtain your credit history from the 3 largest credit bureaus, Experian, Transunion, and Equifax, and go over it with a fine-tooth comb. There is a chance that there can be some inaccurate information, that can be affecting your credit score. The majority of those who check their credit history, will find errors. There are many companies that say they will help in repairing credit but these are the top three.
Tip 2
Have all the errors removed from your credit report. If you think these will automatically be removed, you are sadly mistaken, you will need to find each one and write a letter to have them removed. Just doing this will affect your credit score positively. You will need to write a “challenge” letter, which is just letting the credit bureaus know that there is something on your credit history that needs to be investigated and then removed.
Tip 3
Another option for repairing credit is to call the collection agency or creditor and negotiate with them. By working with them directly, it is possible to negotiate a lower amount than owed in exchange for them deleting the negative information from your credit report.
Tip 4
When sending your letters, keep a copy for your records, and send your letter registered or certified mail. To see some samples of these challenge or dispute letters, you can go to the Federal Trade Commission website. You will be introduced to more valuable information to assist you in repairing credit.
Tip 5
While you are awaiting a response from the credit bureaus, start processing letters for any more errors that you have found. Below are the addresses of the three top credit bureaus.
Experian
P.O. Box 2104
Allen, TX 75013-0949
(888) 397-3742
TransUnion
760 W. Sproul Rd.
Springfield, PA 19064-0390
(800) 888-4213
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
By law, these companies need to respond to your letter within 30 days. If they can’t verify the information you are disputing during that time, they are required to delete it from your credit report, and follow up with your updated and corrected report.
Repairing credit is time consuming and takes effort but well worth it for your financial freedom.