It is important to inspect your credit report before making a significant purchase; this will allow you to be certain it is accurate. Interest rates and loan approval can be affected considerably by just a blemish on your credit report. Having a good knowledge about the debt to credit ratio, payment history, and accounts can go a long way in helping you to prepare for securing a new debt. If there are any problems with your credit history, you can have them fixed by using a credit repair agency. They can help to clean up your credit history and get excessive debts and charge-offs removed from your report.
Credit Repair Service
There are a number of credit repair agencies that can help to fix your credit woes. A credit repair service will help to look at your credit report with a view to dispute anything that you may believe is not meant to be there. There are some credit repair agencies that tend to make false claims, though there are genuine ones that will work to improve your credit and help to ensure a difference in your overall credit score. The legitimate agencies know how to take care of things so as to get you satisfactory results. When you want to choose a credit repair company to work with, make sure you check the Better Business Bureau records (BBB) as well as other agencies that maintain consumer reviews that relate to services. Again, consider what services are included in the price and be certain if they will meet your personal needs.
Steps to Fixing Bad Credit
Here are the steps you need to follow to fix bad credit:
- Dispute any credit entry that is questionable on your credit report. If the debt is not something you are familiar with or the information that is provided is disputed, it is a good idea to dispute the results.
- Once the item that you dispute has been verified, get a copy of the report and call the credit bureau.
- Use the reference number from the report with a view to asking the credit bureau how the entry was verified. Make sure that the verification method used is as instructed in FRCA section 611 (a)(7). If this was not used, you can dispute it further.
- Most times an online program that automates the verification is used by the credit bureaus. If there are no proofs that a phone call was actually made to the original creditor, you can ask for the phone number of the original creditor so as to contact them yourself.
- The next step is to ask the original creditor to provide you with a copy of your credit records. If the original creditor has no records to give to you, you should call the credit bureau to inform them of the name of the representative you talked to, the phone number you called and that the original creditor has indicated that they have no records. You can open a new dispute at this point.
- If you are told the collection agency has the record that relates to the debt by the original creditor, you can ask for their number so that you call them directly to get the records. Check to see if there are any inaccuracies once you get those records. If the record does not show that the entry belongs on your report, call the credit bureau to open another dispute with them.
- If a negative item is included by the credit bureau for more than 7 years, they are violating the FCRPA. If this should happen you are entitled to $1000 in damages and legal expenses.
When you have one or two negative items on your report, you can fix it yourself to save time but in a more complex situation, hiring a reputable and experienced credit repair agency may be worth the investment.