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Self Help Credit Repair: Credit Repair 101 |
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Many people want to repair credit history issues. There is a
lot of free credit repair advice. Some of this advice about how to repair
credit history issues is very good. Some is not so good. Just like any free
advice, try to use several sources, rather than only one.
Free credit repair strategies can help a person improve his
financial picture as well. Many agencies offer services for a fee, but anything
they can do for you, you can do for yourself--for free. One of basic strategies
involves paying off outstanding debt.
Tips for How to Repair Credit on Your Own
Let's suppose you apply for and are denied credit, insurance
or employment. The most likely reason for this is that one or more companies
provided negative information about you.
This could be a credit card company or mortgage company
reporting that you missed payments or that some of your payments were 60 or
more days late. Or it could be a report that you wrote checks that were
returned for insufficient funds.
- If you
believe the information was inaccurate, you should first request a copy of
your credit report. You need to ask for this report within 60 days of when
you were denied credit or turned down for insurance or a job. This report
will be free.
- If you
find negative items on your credit report that you believe are mistakes or
outdated, you can dispute them, also at no cost.
Both the reporting
company (Equifax, Experian or TransUnion) and the company that provided
the negative information about you are responsible for correcting any
information you can prove was inaccurate or incomplete.
- To
take advantage of this, you need to contact the company with the negative
information on your credit report, and the company that provided the
information to that company.
For example, if the credit report with the
negative information came from TransUnion and the company providing that
information was your mortgage holder, you need to contact both TransUnion
and the mortgage company.
- Start
by telling the consumer reporting company (TransUnion, Experian or
Equifax) in writing, what information you think is wrong or incomplete.
You should include copies (not originals) of any documents that support
your position.
Make sure you provide your complete name and address, and
that you identify each item in the credit report you dispute. State the
facts and explain why you disagree with the information. Be sure to
request that the information is removed or corrected.
- The
consumer reporting company must investigate the items you questioned -
usually within 30 days - unless they consider your dispute frivolous.
They
must also send all the your information to the company whose information
you dispute. In turn, this company must investigate your claim and report
the results back to the consumer reporting company.
- If the
information provider finds the disputed information is, in fact, wrong, it
must notify all three nationwide consumer-reporting companies so they can
correct the information in your file.
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