Basically, credit repair is the process of disputing errors and bringing account balances up to date in order to improve your credit rating. This is not a quick fix, however, and is not without its risks. In addition, there are some scams that can rip you off. So, you need to be smart about how you approach credit repair.
Get a copy of your credit report
Getting a copy of your credit report can help you avoid identity theft and protect your credit history. It also can help you determine if you qualify for a loan, a credit card, or an insurance policy.
You can order one free credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Each of these reports contains a detailed history of your financial information. They include your name, address, employment history, and past and current debt.
You can dispute errors in your credit report and improve your credit score. To dispute a mistake, contact the credit bureau that has reported the information. They will investigate the item and respond within 30 days. If they do not remove the item, you can request another copy of your credit report.
When you get a copy of your credit report, make sure you review all the information. You may be surprised at the number of errors. They can include inaccurate spellings, payment history, and Social Security numbers.
Disputing errors on your credit report
Disputes on your credit report can affect your interest rates, credit score, and chances of getting approved for new credit. The process of resolving these errors can be time consuming, but it’s worth the effort.
To dispute a credit report error, you’ll first need to contact the company that provided the inaccurate information. This information provider is usually a business or lender. Once you’ve contacted them, they will need to investigate the issue and report back to the credit reporting bureau.
Once you’ve made a claim, you’ll need to provide supporting documents. This can be anything from a letter from the company to a copy of your credit report.
The information provider must also notify the three major credit bureaus about your claim. If the credit bureau is not willing to change the information on your report, you may need to send a copy of your credit report and a letter to the bureau, asking that it investigate the disputed information.
Avoiding scams
Trying to avoid scams when doing credit repair is important because it can seriously damage your credit. In order to avoid scams, you must be aware of the different types of debt relief schemes. There are reputable debt relief companies that can help you improve your credit, but you should also be wary of companies that promise to fix your credit quickly without any effort on your part.
When you’re dealing with a debt relief company, you need to understand how much you’re paying and what your rights are. Credit counselors can help you understand your rights and set up a repayment plan. If you’re paying for a service that’s not being done, it’s illegal and could land you in trouble.
Several companies that advertise their services are not legitimate. Many of these companies will prey on people who are desperate for a debt solution. If you think you’ve been cheated, you can contact the Federal Trade Commission, the Consumer Financial Protection Bureau, the Attorney General’s office in your state, or the Better Business Bureau.
