Excellent Outcomes With Credit Repair

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Very few people escape financial problems entirely and most people experience bad credit at some time or another. These problems are becoming even more common in the current economic crisis. But you can take steps to repair your credit. You have a right to repair your bad credit.

The Fair Credit Reporting Act is a Federal law that was enacted back in the 1970?s to protect consumers. Up to 79% of all credit reports contain inaccurate, misleading or erroneous credit. As a consumer you can defend yourself against this bad credit and take steps to repair your credit.

It is not necessarily a confusing thing to repair your credit, it can however, take some time to complete the repairs. However, you need to take the time because of the benefits of having a higher credit score and having a better credit report. You can repair your credit on your own or you can hire a professional but either way it is important for your financial future to make the effort.

The very first step is to get a current credit report. You are entitled to a free report from each of the three main credit reporting agencies one time per year. The main agencies in the United States are TransUnion, Experian and Equifax. You are entitled to the free report without further obligation. If you call one of the ?free credit report? advertisements you will find that they are for a credit monitoring service. You can get the free report without subscribing to a monitoring service and a monitoring service is only necessary if you deem it to be beneficial for you.

Once you have the reports, you need to study them very carefully. Make sure you look at every line. Look for duplicate accounts, accounts that belong to someone else and also accounts that have exceeded the time period for reporting. There is actually a statute of limitations on how long a debt can be reported on and even how long a creditor can try to collect a debt. This is typically no longer than 7 years.

Once you have determined the erroneous credit you will need to write letters of dispute. Be specific and explain why the reporting needs to be removed. Make sure that you keep a copy of all correspondence for yourself and also know that it may take more than one letter to get results. However, the creditors have a specific period of time to verify the accuracy of their reporting or remove it from your account.

If you have outstanding debt it is also wise to pay it down as much as you can. A large portion of your credit score is determined by your debt to available credit ratio and you need to keep it below 20% if at all possible in order to have the highest scores.

You can also apply for some new credit accounts. Always make sure that you are being responsible and that you are making your payments in the timely manner that is expected. With a little bit of effort and of course some time, you will have your credit repaired and your financial situation will be much improved.

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