Have you recently been denied a loan, apartment, mortgage, or credit card? You may need information and advice on credit repair.
Credit denial is often an indication of some negative entries on your credit report, which can happen in two circumstances.
One is that you have mismanaged your credit, including overuse of your available credit. Most commonly, your credit file has faulty information, which negatively affects your credit score.
Regardless of the situation you are in, it is imperative that you embark on credit repair sooner rather than later.
A little self-education helps rectify your situation, so here is information on credit repair that you can use.
1. Begin by requesting a copy of your credit report from all 3 credit bureaus. You are allowed one free credit report from each office per year. You can also get a free credit report if you have been denied credit in the last sixty days.
2. Upon receipt of your report, study it closely. You should examine each account (also known as a business line) and mark those that are incorrect and damage your credit rating. Errors are surprisingly common.
3. Once you have determined which business lines are wrong entries, contact the credit bureau and request that they be removed from your report. Start with these because you have a legitimate reason to dispute and most likely removed them.
4. Even when you find some correct entries on your credit report, but the information is negative in nature, you can still try to have it removed. Find legitimate reasons like getting old again, which means resetting the account date, something especially common among debt collectors.
5. Make sure all your correspondence with creditors is by certified mail. However, you may not want to do this with credit reporting agencies, as it raises a red flag because this is what credit repair clinics advise their clients to do.
6. The law allows 30 days for any action to take place. If the credit reporting agencies determine that the entries were incorrect or that the creditor cannot verify the account, it will need to be removed.
Just keep in mind that credit repair is not a quick fix, nor is it a one-day affair. You need some persistence and guts.
There is no comprehensive information on credit repair that doesn't tell you what not to do. People with low credit scores are often desperately trying to repair their credit and are often misinformed, thereby damaging their credit even more. Here are some of the things you MUST NOT DO to repair your credit:
1. New credit file or file segregation - Many bogus credit repair companies lure people with false promises and best credit repair information, such as telling them that they can create a new credit file. This is also known as file segregation and is illegal.
2. Many credit repair companies claim that they can repair credit by removing accurate negative information from your credit reports, thereby improving your score. Now this is not guaranteed. You must first understand the information deletion process. In reality, no one can remove negative items from your credit file except the credit bureaus and your creditors.
3. Don't close old active accounts: If you have active credit accounts, don't close them. Keep them paid on time as they help build a credit history and thus help increase your credit score
4. Don't make upfront payments for credit repair if you use a credit repair service. Asking for advance payments to repair credit is illegal. They can only charge you for legitimate services that they have already provided to you. Don't be fooled by any contract that promises to repair your credit before any work has been done.
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