In 1970 the Fair Credit Reporting Act or the FCRA, was enacted. It gives consumers the right to dispute and challenge inaccurate, erroneous and misleading credit information. Even with this right, many people still feel intimidated by the process of credit repair.
If credit repair is done right it can make some major improvements on your credit report and with your credit scores in a relatively short period of time. However, it does take perseverance, determination and expertise and it is not necessarily an easy process.
If you decide to attempt to repair your credit yourself make sure that you are willing to persevere until the job is complete. It is highly unlikely that one letter will achieve the results that you want and you will probably have to follow up with the credit bureaus month after month until you start to see results.
The first and probably the most important thing that you need to do when you begin a credit repair process is to take your credit report and examine it line by line. Be aware of the small problems along with the most obvious and the most pressing problems. Problems such as duplicate accounts, underreported credit balances, paid off accounts that are showing a balance, and questionable charge-offs and collections are all very common. Make sure that you are aware of all of the problems that you can address in your credit repair efforts.
An issue that arises frequently on credit reporting is the time period for reporting. Negative items can only show on your report for a specified period of time. Usually it is not more than 7 years, but it can be less than that. There is also a statute of limitations on how long a company can try to collect a debt. Make sure that you do your research before you begin your credit repair.
After you start sending the letters of dispute, you will need to be diligent and organized. Credit bureaus must process the disputes but it is not something that makes them money so they do not usually put a lot of effort into it. They may reject a valid dispute outright and you will just need to be persistent and submit it again and again until your get the results you are looking for.
Repairing your credit will not last if you do not incorporate sound financial decisions afterward. Do not defeat your purpose by incurring more derogatory credit. Learn what it takes to achieve and maintain a high credit score.
You can complete credit repair on your own but it does take time, effort and expertise. If you do not have the time to devote or you are unsure about your confidence in your own expertise you can engage the services of a reputable credit repair service that can help you complete the job.
