Fix Credit – How To Fix A Bad Credit Report And Score
The first step to fix credit issues is to order a copy of your credit reports. The major reporting agencies are required to provide consumers with a copy of this report on an annual basis.
Once you get the reports, you need to look over the information included on them. You are checking for discrepancies so you can dispute credit inaccuracies. For example, your name or address could be incorrect. Even something as simple as that could lower your score by a few points.
Listings that can have a significant effect on your score include late payments, liens and charge-offs. There are things you can do to have those items removed.
If any of the information listed is over seven years old, you can write to the reporting agency or bureau and ask them to remove the outdated information. It may take a few months to get outdated information removed from the report, but it is well worth your while.
Reports of late payments that are relatively new, but with a company you still do business with could be easy to remove. You can give the company a call or write them a letter or both. If they want to continue to do business with you, they should be willing to contact the reporting agencies to have the items removed.
Another step that will help fix bad credit ratings is to check for accounts that are listed as open, but are in actuality closed. For example, cards that you do not use or accounts that have been paid in full should be listed on the report as closed.
When creditors see lots of open accounts on a report, they will often deny an application. Their concern is that you cannot afford to pay the minimum monthly payments that correspond to each of those accounts, if they grant you a new one.
It is sometimes necessary to contact a lawyer to fix bad credit report listings or errors. This is especially true if you have been a victim of identity theft. Identity theft is a frustrating thing to deal with. The burden of proof is often placed on the victim. It’s as though the reporting agencies believe you are lying.
If you dispute any of the information listed on the report, the bureau has 30 days to verify the data. If they cannot verify the data within that time period, they must remove the data from the report. It should be as simple as that.
The problem is that the bureau contacts the creditor to verify the data. The creditor believes that you were the one that created the account or failed to pay the debt, even if you were a victim of identity theft.
While it is more difficult to fix credit problems when identity theft is involved, it is not impossible. Most victims are eventually successful.