Do it yourself Credit Repair
Your credit report is very important to your financial capacity and credit establishment. If you have already mishandled credit and are now trying to reestablish yourself, you should read this section carefully!
The following steps help you recover from your past mistakes. It takes time and know-how, but you can repair the mistakes, wipes the slate clean and start over with your new understanding know-how and determination.
The steps below explain how to correct some of the mistakes. The forms mentioned in these steps are included in the credit repair letters on the site.
Step One
Obtain a copy of your credit report to determine what you are going to need to do a repair your credit. When you apply for a credit card or a loan the approval/disapproval decision is made by determining your ability to repay.
The bank or company will pull a copy of your credit report and analyze your history of credit management. Your credit report will contain your complete payment history on your house, bank loans, credit cards, taxes, legal judgments, Etc. if potential creditors see that you have met all of your obligations in a timely manner, the chances of getting your requested financing improves.
If they find out that you have been late, or made partial payments on your obligations, chances are they will not look too favorably on lending you more money or extending credit.
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Step Two
Keep a detailed record of everything you do. Keep a record of all your phone call, letters and actions while trying to correct these errors. First step is check for accuracy of the information. Credit bureau often makes mistakes on the information being reported. People sometimes find other people information on their report.
Check information such as your name, address, phone number, social security number, birth date to make sure no mistakes exists. List all the things you disagree with.
Step Three
Whenever you make a request for credit, the bank or company that requests a copy of your credit report is listed as an inquiry at the bottom of your report. If you have a lot of inquiries on your report, it will be considered as negative sign by a lender. The lender sees it as numerous inquiries as an indication that you are applying everywhere you can to try to obtain credit. This makes lenders nervous.
Typically, inquiries stay on your report for up to 2 years. The more inquiries you have, the less likely you are to obtain credit. Usually 4 to 6 inquiries with the last few months will begin to penalize your efforts to obtain more credit. So if you plan on applying at numerous companies, spread your applications out over time to avoid bunching up a pile of inquiries that will get you rejected.
Check for duplicate inquiries listed on the report. If so call the company or institution and have them remove duplicates. Make sure there are no entries on your report from companies you didn’t authorize to look at your credit report. Many companies are happy to remove inquiries if you submit a written request.
Step Four
If there are items on the report that you are disputing, you should document everything you do in handling your request to have items removed from your credit report. Keep in mind negative items stay on your report no more than 7 years. If they remain longer than that, dispute the information and have the information removed.
Keep in mind that it rarely pays to get upset at an individual over a credit item. Kind, courteous and informative communication will pay in the long run! When you send the letter, send copies not originals of all documentation that supports you dispute, if you have a cancelled check, bank statement, receipt, etc. that proves your case, send a copy of it along with letter. Keep in mind that you are sending this dispute letter to the credit agency and not the company that reported it.
The credit agency will check with the company that reported it to correct the mistake. It will take approximately 3 to 6 weeks to accomplish this. Ask them for proof of removal or a statement of the outcome of the dispute. Credit bureaus only report what they are told by other institutions and companies. The credit agencies have a responsibility to investigate your request. If you don’t hear from them in 6 weeks, send another request by certified mail.
Step Five
If the item is not handled to your satisfaction, you should contact the company or institution who reported it directly. The will generally try to be helpful. If the company is located neat your residence, go in person and talk to the credit officer about the dispute. You will get faster result. Otherwise, send the company all the information you sent to the credit bureau regarding the dispute along with documentation.
Step Six
If after your best efforts, you still can’t have the disputed item removed, submit a statement (100 words or less) to the credit bureau which explains what has happened and have the bureau include it on your report. If you checked your report and you have positive items which should be included but have not been reported, contact those companies and ask them to report your record of payment. Any positive payment listing will enhance your credit report.
Formal complaints
If you feel that your rights have been violated and you are unable to correct a problem with your credit report, you can register a formal complaint with the Federal Trade Commission. Contact your local office and explain your circumstances and the action you have taken. They will request that you make a formal and written complaint.
