You have the right to dispute and challenge inaccurate, erroneous or misleading information on your credit report. In 1970, the Fair Credit Reporting Act or the FCRA was enacted on your behalf for that reason. However, many people still feel intimidated by the process of credit repair.
Credit repair can mean a huge difference on your report and with your credit scores if you do it right. It is possible to make some major improvements within a relatively short period of time it you do it correctly. However, it does take patience, determination and expertise and you will need to put some effort into it. It is effective but it is not necessarily easy.
Credit repair takes some time and if you decide to do it yourself make sure that you are prepared to stick with it for as long as it takes. You will likely need to follow up with the credit bureaus month after month before you start seeing results. It may take many letters of dispute to get results.
The most important and the first thing that you must do before you attempt to repair your credit is to get your credit report and examine it line by line. Do not focus on only the most obvious and pressing problems but be aware of everything that is listed on the report. Problems such as duplicate accounts, underreported credit balances, accounts that are paid off but still showing a balance, and questionable charge-offs and collections are all very common. Make sure that you are aware of every potential problem so that you can address them all in your credit repair efforts.
One issue that comes up frequently on credit reports is the appropriate time period for reporting. A negative item should only show on your report for a specified amount of time. 7 years is usually the high end of the limit. A statute of limitations also exists for the amount of time that a company can try to collect a debt. Do your research before you start your credit repair.
After you start issuing the disputes you will need to be diligent and organized. Credit bureaus are required to process dispute but it is not something that they like to spend much time at because it does not make them any money. Oftentimes they may reject your dispute outright and you will need to be persistent and submit it repeatedly until you see results.
Once you have repaired your credit you will need to incorporate sound financial decisions in order to avoid having problems again in the future. Do not defeat your purpose of credit repair by getting more derogatory credit. Learn about how to get and maintain a good credit score.
It takes time, effort and expertise to repair your credit. You can complete the process on your own but if you do not have the time or the confidence to do it yourself you can always employ the services of a reputable credit repair service.