Credit Report Repair: How Painful Is It?
Some people simply shudder at the thought of looking at their credit reports. Good credit-and that is considered a score of 650 or higher-is absolutely essential to getting the best interest rates available and to receiving financing. Many people have average or poor credit, due to financial difficulties beyond their control. However, some may be very close to good credit and not even know it. It’s not uncommon for there to be numerous mistakes on a credit report. That’s why an annual credit report check is essential. Credit report repair is actually easier than you may think.
The good news is repairing a credit report may be lengthy, but it is actually quite a painless process if you follow a simple step-by-step process.
OK, let's repair your credit report, if necessary, step by step:
Step One: Get a copy of your credit report from Experian, TransUnion or Equifax, the three major credit bureaus. Some states offer residents one free copy of their credit report annually. You may also get a free copy of your credit report if you meet certain criteria such as being on welfare, being unemployed but looking for work and if you’ve been denied credit in the last sixty days.
Step Two: Review your credit report thoroughly to ensure your personal information (name, address and social security number) is correct. Also make note if you notice there are any accounts or legal actions noted that do not belong to you. Other errors you may find on your credit report include:
- Accounts listed more than once.
- Bankruptcies ten years or older.
- Accounts seven years or older.
- Bankruptcies mistakenly noted: i.e. noted as Chapter 7 if you really filed for Chapter 13.
- Late payment notations when there were no late payments.
Step Three: Notify the credit bureau that the report came from, highlighting the errors on your credit report. If you’re in desperate need of getting that information removed as soon as possible-either because you’re applying for financing for a car or a mortgage-you should call the credit bureaus directly. They can usually expedite the changes in such situations. Otherwise, write a letter to the credit bureaus. If you haven’t received a response in 30 days, follow up with another letter.
In most instances, it takes at least three months for the mistakes to be removed from your credit report. This is one reason you want to make sure you always know what’s on your credit report and do an annual check.
Step Four: Optional. You may not realize, but you have the option of giving a brief description of why your credit report is poor on the bottom of your credit report. Only do this if you have a viable reason such as a spouse or child’s illness, business failure or divorce. You must keep the reason to 100 words.
Step Five. Obtain a copy of your credit report at least once a year and do a thorough review of the information listed. Repairing your credit report isn’t difficult, though it does take time for the information to be removed.
Keep in mind that obtaining a copy of your own credit report doesn’t count against you. However, the more others pull your credit report, the more it adversely affects your overall credit score. So why should you pay a credit repair specialist several hundred dollars to do it for you?
Resources:
- Experian: www.experian.com
- TransUnion: www.transunion.com
- Equifax: www.equifax.com
- Annual Credit Report: http://www.annualcreditreport.com/cra/index.jsp
|
About This Article: Copyright (c) 2005 by Dennis Becker. You may publish this article, in its entirety, on your web site or in your ezine, as long as you include this full signature box including an active hyperlink to our web site. |