Many people tend to ignore their credit reports until there is a problem. They get rejected for credit or are required to pay a higher interest rate and then they are anxious to get their report and see why.
Most credit reports contain inaccuracies and inconsistencies. In fact, it is estimated that over 75% of all reports contain errors that gravely affect credit scores. You may be required to pay higher interest rates or even be denied a loan completely if you are unaware of mistakes and inaccuracies on your report.
You are entitled to a free credit report one time every year from each of the three main credit-reporting bureaus, which are TransUnion, Experian and Equifax in the United States. It is also possible to get a tri-merged report for a fee. After you get your report you will need to spend some time going through it line-by-line so you can find every possible inaccuracy.
Usually there are some blatant problems that you know that you will need to address. However, more often than not, there are also more subtle problems. Issues like underreported credit limits can seriously affect your credit score. Duplicate accounts and closed and paid off accounts that are still reporting a balance can also affect your score.
After you have thoroughly checked your report you will need to make a plan on how you will dispute the problems. All disputes must be in writing. Try to be as succinct as possible and write in clear and simple language. Keep a copy of every letter, preferably in a separate file folder for each credit bureau. The bureaus have 30 days to investigate and another 5 days to respond back to you. You may not get the results you want with the first letter, so if that happens, send another letter and another letter. Credit repair usually requires persistence.
Credit repair is possible but it is rarely a quick fix and it is not necessarily a permanent fix. The problem lies in the fact that the credit bureaus handle enormous amounts of information every single day. Reporting your credit fairly and accurately is not a priority for them; it is only a priority for you. You must make sure that your own credit is reported as accurately and affirmatively as possible.
Issuing disputes on inaccurate credit is only one of the things that you can do to repair your credit. Paying down credit card balances is very helpful if you are able to do it because your credit score is largely based upon your debt to available credit ratio. Also, being consistent in making your payments on time over years is crucial.
If you have questions about how you can best go about repairing your credit, you are not alone. Many people look into the services of a professional credit repair company. A reputable company can offer you the best suggestions and guide you into the best ways to repair your credit and increase your credit score based upon their years of experience and professional expertise. They may offer you suggestions that you never thought of on your own. An excellent credit repair company will make sure that every possibility is taken advantage of and you get the best results.
