People with bad credit reports include people who have a history of bad credit. But, not always, sometimes its the fault of the credit bureaus for not removing credit report errors.
This subsequently results in having a bad credit score, and hence the bad credit.
A credit score is a 3 digit figure usually ranging between 300 and 720 which depicts a borrower’s credit worthiness at a point of time.
Usually, people with bad credit face a lot of problems in getting any type of good rates when it comes to credit.
Checking your credit reports on an annual basis can be a great idea. A study done by the Federal Trade Commission found that 25% of all consumers have an error on their credit report that negatively impacts their credit score.
There’s a good chance that your reports have one or more errors.
If you’ve already spent the past several months, or even years trying to remove errors from your credit reports, it may feel like you have no choice but to live with the inaccurate marks.
If you can’t find the time or don’t want to deal with the credit bureaus, you can pay for professional help. There is hope, a company called CreditRX America specializes in removing negative items from your credit report.
The study also showed that 80% of those that challenge items on their credit report are able to get at least some of the negative information altered or removed. That’s great news!
Follow this process for removing credit report errors:
1. Get copies of your credit report from the three major bureaus. You can get a free copy of each report each year from AnnualCreditReport.com.
If you’ve recently been rejected for credit, you’re also entitled to a free copy of the report containing the derogatory information.
2. Get your official credit scores. It would be a shame to do all this work and not know how much of an effect your efforts had on the metric that matters the most.
3. Find and record all the errors that are harming your credit score. Some people decide to simply challenge all the negative information, whether it’s accurate or not.
4. Write a dispute. Your dispute can be very simple. Provide enough information that the credit bureau can identify you and the item you’re disputing. In general, it’s most effective to declare that you were never late or that the account isn’t yours.
5. Mail your disputes and request a return receipt. The credit bureau is on the clock from the time they receive your complaint. If they can’t complete their investigation within 30 days, they basically have to make the changes you requested. Include only one dispute per letter.
The credit bureaus would love for you to file your dispute online.
It saves them money and helps to automate the process. Receiving your letter is much more cumbersome for them. So send your complaints via snail-mail.
6. Watch the calendar. Their response should be postmarked within 30 days of receiving your letters.
7. Evaluate the responses you receive back. It’s likely that some of your disputes will be found in your favor. It’s also likely that some will not. One credit bureau has been known to simply give you what you want without investigating at all!
8. Continue disputing all the negative items. At the end of the day, the credit bureaus exist to make money.
They make money by selling credit reports, not by dealing with consumers. Your disputes cost them money. With a little diligence, you’re likely to get your way, so be persistent.
Consumers have historically done well when suing the credit bureaus.
It’s difficult for them to truly verify the information in your credit reports. If you’re not satisfied with the results, consider filing a claim in small claims court.
Credit bureaus get fined $1,000 per infraction. You’ll likely settle out of court and get your credit report cleaned up. If this seems like to much work, then let professionals like CreditRX America handle the cleaning up of your credit report.
9. Find help on the internet. This is a good source of getting information regarding all sorts of ways to assist you in removing errors from your credit reports.
Learning, no matter how it is you are doing so, is the best way to retain the type of knowledge that is needed to guide you in the appropriate financial path.
There are plenty of credit advisors out there that can provide you with the appropriate information, hopefully preventing credit problems from occurring with you.
10. Stay organized. Maintain records of all your correspondence. Make copies and keep those copies filed in an organized manner.
Be sure to keep track of dates.
11. Don’t accept no for an answer. If you’ve disputed an error several times and it continues to be verified by the credit bureaus, but you know its incorrect, continue to dispute it.
It is so very important for everyone to understand early on in life just how difficult your adulthood can be because of bad entries on your credit report. This is why you should always be aware of what is contained on your credit reports.
The fact that errors on your report can indeed happen to you, just as with anyone else that you know. But, if you are aware of this fact then you should most definitely be more prepared in knowing just what to do when and if does come.
Fixing the errors on your credit reports is simple, but it does take time.
It’s important to check your reports every year. The cost of credit reporting errors can be staggering, as they can dramatically increase your interest rates on any loans you receive.
Request your credit reports today and spend the time to examine them carefully. Consider making it a part of your annual financial housekeeping.
Are you ready to increase your credit score? If so, check out the companies recommended to you by Inker Street Consumer Credit Advice. For fast and effective credit repair with pay after service and a 100% guarantee we recommend CreditRX America.