Feeds RSS

sponsored

Your Ad Here

Sunday, 21 June 2009

Repairing Damaged Credit 101

Repairing damaged credit is not difficult. It will, however, require a fair amount of correspondence with the credit agencies as well as your patience. Begin taking steps to remove negative and/or inaccurate information from your credit report and improve your score, thereby repairing damaged credit in no time at all.

Your first step is to contact the three major credit agencies (Experian, Transunion and Equifax) and obtain a copy of your credit report. Review the accuracy of the reported information (former creditors, debt balances, payment history, etc.) Unless you are regularly reviewing your report, there are likely to be some errors and inaccuracies, however minor. This information is compiled from a large number of sources over lengthy periods of time.

As a consumer, you have the right to dispute any inaccurate or erroneous information in your report at any time. Submit a letter to each of the 3 credit agencies, highlighting the inaccuracy and the reason for your dispute. It is now the agency's responsibility to verify the information through contacting the respective lender who provided it.

Federal law requires lenders to retain promissory notes in connection with each debt obligation undertaken and to produce such documents in connection with any dispute. Further, the credit agencies are required to respond to your dispute within 30 days, thereby placing a significant burden on them to verify the accuracy of information in their files. If the item is found to be inaccurate or if it can't be verified (due to compliance issues or a lack of response from a creditor), the item is deleted in the agency's file for good. Sometimes repairing damaged credit is that easy. Other times, it will require repeated efforts.

Disputing inaccurate information is far from an exact science due to the sophistication of computer programs handling data and the sheer volume of information which needs to be sifted through and extracted. This process may be enhanced through utilizing computer software specifically designed for disputing negative and erroneous information and/or working with a firm specializing in creditor disputes.

Some cases will warrant paying for the expertise of proven resolution specialists, who understand the law and apply such knowledge in dealing with the agencies to achieve successful outcomes. Credit repair companies can often work much faster and more efficiently than you can on your own.

Take the first step in repairing damaged credit so that you will never again be penalized or denied a job, mortgage or other significant opportunity.

Posted By Max Robert

0 comments:

Post a Comment