Therefore, credit scores are essential in obtaining loans, credit cards, mortgages, renting an apartment, and even employment opportunities. If you find that you have some erroneous entries that are currently bringing your score down, then you may want to fix it yourself. The credit report is something that can be cleaned up on your own with some time to spare and a little effort, thus improving your score.
Here are some tips for doing credit repair yourself:
Get Your Credit Reports
The first step is to ensure that you get copies of your credit report from the three major reporting agencies that are Experian, TransUnion, and Equifax. Check all three reports closely for any errors, inaccuracies, or negative items that should not be listed, such as:
- A blog, an account that does not belong to you
- For instance, where you had arranged to pay an amount on a particular date, but for one reason or the other the payment could not be made until a later date, then that is a payment that you did not make, but which is recorded as having been made.
- Account status, balances, credit limits, and dates have been cross-checked and some of them are wrong.
- One example of how companies manipulate balance sheet figures is closed accounts being classified as open.
- Accounts or inquiries under someone else’s name
That’s why it’s necessary to distinguish all the errors, even if they don’t seem serious at first glance, to define what must be refuted in the reports.
Dispute Misrecorded or Fake Items
Once you discover there are entries on your credit reports that are erroneous, you will need to challenge the bureaus. Remind to explain which information on the report is wrong, and the documentation is attached (such as bank statements, payment receipts, police reports in case of identity theft, and so on). Always write a formal dispute letter to each bureau, not only the one that reported the error. It is also suggested to send this letter by certified mail with the return receipt requested to have proof that the letter was delivered. Some common disputes include:
- It would be those collections you do not think are legitimate.
- These are the accounts that you have never opened
- Difference in account types (open and closed accounts)
- Credit terms that were due for a specific month but were paid at the end of that particular month.
- This includes anything that stems from identity theft.
The credit reporting bureaus are required to investigate the items within 30-45 days from the time the dispute is received. In case the credit bureaus find that the item violates clause 102, they shall delete it from your report after the investigation. If they believe it is accurate and should remain, ask them for a written justification of any removal. You can also include a 100-word statement on the outcome of the investigation if you are unhappy with the findings to state your version of the truth.
Upon approval of the grant, send goodwill letters to creditors.
‘Goodwill letters are letters to the creditor or the company reporting the negative items indicating to them to please be kind enough to take off the negative item from the credit report. These letters are best used for such incidences that would include manipulations such as late payment when you were struggling financially. The next thing that you should not do is to accept blame but come out clearly and account for the reasons why you have been making late payments and assure the credit-crunched company that you are in a better position today. End the letter politely requesting them to accept the late payments and kindly request their assistance in getting the amounts removed from your credit records.
There are other ways that you can improve your score.
In addition to formal credit disputes and goodwill letters, there are other positive steps you can take to help repair your credit:In addition to formal credit disputes and goodwill letters, there are other positive steps you can take to help repair your credit:
Pay Down Balances: In fact, one should lower his/her balances and credit utilization rates as much as possible; otherwise, it will hurt your FICO score. Ensure that your credit utilization rates are less than thirty percent of your credit limits.
Become an Authorized User: If you are not sure that you will be able to qualify for a credit card with a credit history, then you can ask your spouse or a family member with good credit score to add you as an authorized user to one of the oldest opened credit card accounts. You will begin receiving a good payment history that can immediately benefit your credit reports.
Open Secured Credit Card: To take out a secured credit card, one has to provide a cash deposit that determines the credit limit of the card. Credit card companies submit their data to all three credit bureaus in their cycle which is monthly. On-time payments indicate that one has been paying his or her bills appropriately.
Negotiate with Creditors: Sometimes, a creditor allows you to pay back the other amount in installments or even requests them to remove the late payments in your report after making satisfactory timely payments. It also stated that both options can assist in raising your score.
Be Persistent
Unlike other techniques, which can be learned and performed in a short time, credit repair is a slow process that requires commitment. The entire credit repair journey- from disputing the credit report to waiting for your credit history to speak for itself- should take at least three to six months. Do not rush into anything, follow up on any disagreements actively, make payments on various dues on time, and check your reports every month. It is advisable to be consistent and dedicate time to solving all the errors on your credit report before you see the changes in your score. Continuing the repair work on your own requires some energy and willingness but the upside is that not only will you be cutting costs but you can also take an active part in fixing your credit score.
Call now for expert credit repair services: (888) 803-7889
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