Credit Report Repair
If you have an error on your credit report or you have bad marks on your
credit report there are ways to repair it. Every consumer should periodically
request a copy of his or her credit report. The reason you should request
and review a copy of your credit report periodically is to monitor it
for errors and to be aware of exactly where you stand as a credit risk.
There may be items on your consumer credit report that you are not aware
of. One source reported that 43% of consumers have an error their consumer
credit reports they are not even aware of. As well, you may have fulfilled
a debt and it was never removed from your consumer credit. This could
result in a bad credit score.
The reasons for periodically requesting a copy of your credit report are
many and they are important reasons.
It is easy to acquire a copy of your consumer
credit report. You can obtain a free copy on the Internet. As well
you can contact one of three credit reporting agencies. Three companies
exist that report credit to banks, credit card companies and other lenders.
The reports that are given to lenders by these agencies are whet creditors
use to base their decision on whether to extend you credit or not. The
way agencies report credit information is by scoring you. If an error
exists or you have bad credit it will result in a bad credit report. This
is why it is important to not only request a copy periodically but to
repair any errors or bad debts on the report.
There are three agencies that do credit reporting. The agencies are Trans
Union, Equifax
and Experian.
You can obtain copy of your credit report by writing one the three agencies
directly as well. Remember you have rights as a consumer. It is your credit
report therefore you have a right to see it and know what is on it.
In the event you discover an error on your consumer credit you can repair
it. Under the Fair Credit Act you have rights as a consumer.
It is also important that you acquire a copy of your consumer credit
report from each one of the three credit agencies. The reason you would
want a copy from each agency if that many lenders and creditors report
to one credit agency only. The credit reports given to creditors when
you are being considered for credit may vary. A particular company may
only deal with Trans Union and if an error were reported to them it would
not show up on Equifax or Experian yet it would still exist and hinder
your chances for securing credit.
Repairing your bad credit report seems like a complicated matter. It
can be complicated and confusing indeed, but if you educate yourself and
are aware of your rights and what to do it is a much simpler matter. Getting
frustrated will not repair your credit report so you need to learn the
steps and understand how the process works in order to successfully repair
your credit. According to the Fair Credit Reporting Act you have rights
as a consumer. One of those rights is to have a bad credit mark on your
consumer credit report investigated in a given amount of time. You can
call the credit agency and request a matter be investigated. As well you
can write a letter. It is highly advised you write a letter as opposed
to telephoning the credit reporting agency. The reason is that it is hard
to prove a telephone call was replaced. If you write a letter you have
a recorded and dated document proving when you contacted the agency. As
well having a copy of the letter also proves what you requested as well
as when you requested it.
These letters are called letters
of dispute. After you send a letter of dispute to the credit reporting
agency you have taken an important step in repairing your bad credit report.
According to the Fair Credit Reporting Act the credit agency has a specified,
by law, amount of time to respond to you, the consumer, and investigate
the dispute. If the credit reporting agency does not respond to you or
investigate the credit matter within this allotted time you will have
to send another letter. In this letter you should enclose a copy of the
original letter you wrote disputing a matter on your consumer credit report.
In this letter you must state that the credit agency has not responded
within the allotted time nor investigated the matter they must remove
it. According to the Fair Credit Reporting Act they must remove it.
We are consumers and not attorneys so how do we know what to say in these
letters? There are many resources available to the consumer telling you
exactly what information you must include in the letter of dispute. Additionally
they provide sample letters already written that contain specifically
what the law requires you say to the credit reporting agency.
The Fair Credit Reporting act has time restrictions to protect the consumer.
If you are attempting to repair your credit it can be a lengthy process
but certainly not as lengthy as it would be if this Fair Credit Reporting
Act did not exist. It is important for you as a consumer to be aware you
have rights as a consumer and you have the opportunity to repair your
bad credit report.
One of the most important steps in repairing a bad credit report is to
look at your current consumer credit report and know what is on it. By
beginning the necessary steps to repair credit you are already on your
way. If you have a bad credit report it is essential that you take the
necessary steps to repair it. It may seem lie a complicated matter but
once you educate yourself on all of your options it seems a much simpler
situation. Repairing your bad credit report is necessary and can only
benefit you now and in the future.
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