Credit Repair Part 1

5 Tips on Credit Repair

In today's world, credit is essential. Most of us use credit almost every

day without even thinking about it: credit cards, car payments, house

payments, etc. . . Unfortunately, most people don't give their credit

rating much thought until they run into trouble with it. Having a bad

credit rating affects far more than your ability to get a loan: you will

also have problems obtaining any kind of credit at all - you'll no longer

be able to get store financing, you'll pay deposits on phone lines and

other utilities, and face problems renting property. It's essential to take

steps to repair your credit as quickly as possible. Here are some tips

for credit repair:

Get Your Credit Report



This step is crucial - all credit information is reported by banks and the

like to credit bureaus, who in turn hold the key to credit repair. Most

people never consider obtaining their credit reports until they are

attempting credit repair, but it's always a good idea.

In most cases there should be no charge to receive a copy of your

credit report - you simply have to request it (usually in writing and

accompanied by photocopied ID). When you are turned down for a

credit card or loan, the company must state which credit bureau

reported you as having bad credit, and you can then request a report

from this bureau.

Credit repair begins by taking a detailed look at your credit report.

Look for any inaccuracies - in some cases there can be mistakes on

your file, or your credit information can get confused with someone

else with the same name. Many people are surprised how often a

company reports a missed payment by mistake.

If you find any inaccuracies, you can have your credit repaired by

requesting, in writing, that the credit bureau investigate the disputed

items. If you have any supporting documentation, include it, otherwise

simply state where the confusion is and request that it's looked into.

This benefits you in two ways: first, if the credit bureau can not verify

the information you are disputing, by default it must be removed from

your file; second, if the bureau doesn't respond to your request for an

investigation within 30 days, the information in dispute must be

removed.

If it turns out that your bad credit is the result of a mistake, going to the

credit bureau is usually all you need to do for credit repair. Keep in

mind when requesting your credit report that many credit bureaus will

make the process seem more difficult than it is, as in terms of man

hours it is not in their interests to be responding to many credit report

requests.