How To Repair Your Credit


April 25, 2016 Facebook Twitter LinkedIn Google+ Financial Service


credit repair

Credit repair isn’t rocket science. It takes time but you can improve your credit score legitimately. Beware of any offers that claim to improve your credit score fast. There’s no quick fix. The best way to improve your credit is to repair your credit history.

credit-score

Here are 3 things you can do to improve your score:

Get A Copy Your Credit Report

Credit repair begins with your credit report. Start by request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your score and it may contain errors. Make sure there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau.

Audit Your Credit Report

Credit report information comes from the companies who have accounts with you. The goal is not just to fix your credit report, but to make sure that your information is correct so that it will be reported correctly to everyone who checks your credit references.

Reviewing your credit report can help you resolve inaccuracies.

Each credit report differs in how information is presented, but here’s a breakdown of what you will typically find:

  • Personal Identification (addresses, employment history, name, social security number)
  • Types of Accounts (revolving, installment, loans, joint accounts, credit limits, debts)
  • Collections (if any accounts went to collections)
  • Public Records (about financial obligations)
  • Consumer Statement (statements if you do not agree with your lender about the status of your account)
  • Hard Credit Inquiries (showing you applied for new credit or services)
  • Soft Credit Inquiries (showing requests made by lenders who sent you an offer or that you requested your own report — soft inquiries are shown only to you)

Dispute Incorrect Data

You can dispute incorrect information in a variety of ways. Always start with a current copy of your credit report. Then, you can call the phone number on your credit report or send a dispute letter to the credit reporting agency.

In most cases, you only need to ask one credit bureau to dispute an account on your behalf. If your lender responds to a disputed item with a correction, they are required to report that corrected information to any credit reporting company to which they provide their data.

Disputing information on your credit report does not hurt your credit scores. Disputes are not reported in your history and are not scored. Disputing inaccurate information is exactly what you should do to help ensure your credit history is correct.

SAMPLE DISPUTE LETTER

[Your Name]
[Your Address]
[Your City, State, Zip Code]

[Date]

Complaint Department
[Company Name]
[Street Address]
[City, State, Zip Code]

Dear Sir or Madam:

I am writing to dispute the following information in my file. I have circled the items I dispute on the attached copy of the report I received.

This item [identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.] is [inaccurate or incomplete] because [describe what is inaccurate or incomplete and why]. I am requesting that the item be removed [or request another specific change] to correct the information.

Enclosed are copies of [use this sentence if applicable and describe any enclosed documentation, such as payment records and court documents] supporting my position. Please reinvestigate this [these] matter[s] and [delete or correct] the disputed item[s] as soon as possible.

Sincerely,
Your name

Enclosures: [List what you are enclosing.]

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