Proper Steps in Repairing Credit Reports and Credit Scores
Credit Bureaus are the ones providing us with credit reports. They project an image of credibility, sophistication, professionalism and finality. They are mandated by law to give free credit report once every twelve months.
In turn, these credit reports are used as a tool in assessing creditworthiness or the ability of an individual or company to meet debt obligations.
But the credit reports they provide are not absolute fact. 79 percent of all credit reports contain some errors and 25% contains serious errors enough to deny an individual for credit according to the study of the National Association of State Public Interest Research Groups in 2004.
If you are an American citizen, you should be alarmed because these flawed credit reports result to wrong computation credit score. Even those who in real practice have good credits have to pay higher interest rates that they clearly do not deserve. You can avoid this by regularly checking on your credit reports and looking for every bit of information that may contain errors.
What if you found out that your credit reports contains errors? Don��t panic because there are available measures to repair your record. You can also challenge your file to correct your credit scores.
Immediately tell to the credit bureau that your file contains error. According to the Fair Credit Reporting Act (FCRA), you are entitled to a prompt investigation. This is usually within 30 days. Let them know by writing effective and detailed dispute letters either by mail or using the online dispute letter.
If your complaint is validated and proven to be true, the credit bureau must correct or delete the wrong information in your record for free. You must receive from them in writing the result of the investigation and the corrected free copy of your credit report. Take note though that they cannot erase accurate data.
If the investigation did not resolve your dispute, you can ask that your dispute be included in your file and future credit reports or provide your statement to anyone who has a copy of your credit report before but this comes with a fee.
You can also opt to seek help from credit repair companies in correcting your credit score and report so you don not have to deal with the processes. It is not bad to seek professional help from them. Be wary however because there are fake credit repair companies. You can detect these kinds of companies if their offers are too good to be true like erasing all the negative data in your report. Credit repair companies are legal but choose wisely to avoid becoming a victim of credit repair scams.