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Disputing Credit Report

“Sometimes, it’s not easy disputing a credit report. Read these tips, as they are sure to help. Check them out now!”

Ways on Disputing Credit Report

Checking the accuracy of your credit report is important, given recent reports that 5 percent of consumers may have errors in their reports that can result in higher interest rates on a loan.

The National Foundation for Credit Counseling has developed a list of “do’s” and “don’ts” for managing your report, which tracks your individual borrowing history. The major credit bureaus — Experian, TransUnion and Equifax — use information in the reports to create a credit score, which lenders use to decide if you are a good candidate for a loan and what interest rate you qualify for. Scores can also be used to determine eligibility for other financial products, like insurance.

Here’s the foundation’s list:

Review your report for accuracy at AnnualCreditReport.com. You’re entitled by law to one free report from each of the three major bureaus every 12 months, so you can check a different one every four months. Despite the availability of free reports, few consumers check them, the foundation says. Reviewing your report at least three months before a major financial move gives you time to dispute any errors and have them corrected.

Understand your rights. The federal Fair Credit Reporting Act provides protections for the accuracy and privacy of information in your credit file. The credit bureaus have dispute resolution processes in place. But it is up to the consumer to initiate the process by submitting the dispute form, either online or by phone.

Tara Siegel Bernard, writing for The Times, found that it’s better to submit a dispute in writing, to create a paper trail in case you need it later and to submit disputes to all three bureaus.

Credit reporting companies are required to investigate the items in question, usually within 30 to 45 days of the dispute being filed. The bureau receiving the dispute must forward all relevant information to the source of the information to begin the investigation process. After the provider’s investigation is complete, the results are sent back to the bureau. If the information provider finds the disputed information to be inaccurate, it must notify all three credit reporting companies, allowing each of them to correct the information in their files.

Not all errors have an equal impact. Some mistakes are more serious because they may have a negative impact on your credit score, like accounts that don’t belong to you, or credit lines listed with lower limits than they actually have or negative information that has stayed on the report longer than allowed. Those sorts of errors should be addressed immediately. More at Tips for Disputing Credit Report Errors

You can also watch this video for more tips on Disputing Credit Report:

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How Do You Repair Credit?

Lots Of People Ask, “How Do You Repair Credit?” The Secret Answer Is That There Are 5 Methods You Can Use.

How Do You Repair Credit Intro

How do you repair credit? Although the credit bureaus would like to have you think otherwise, there is absolutely nothing illegal about disputing items on your credit report. In fact, it is your explicit right by law to do so under the Fair Credit Reporting Act.

What is illegal is stating something that is false, such as “It’s not my account,” if it actually is your account.

How Do You Repair Credit–The 5 Methods

There are five main methods, all of which are completely legal, that you can choose from to repair your credit.  Some are much better than others and some are much faster too.

1. Time.  By law some negative credit accounts are allowed to show on your credit report for up to 7 years and others are allowed to show for up to 10 years.  The important point is not that they have to be reported for that long, but that they can’t be reported for longer than that length of time.  So, if you’re not in a rush, and you don’t want to put in any effort or money whatsoever, then you can just wait a few years.

2. Following the credit bureaus’ instructions.  Another method is to go to each of the credit bureaus directly.  You can challenge your negative accounts that they are showing on your report and see if they’ll remove this hurtful information.  The problem is knowing what to say and how to say it, so that you aren’t guilty of fraud, and that you get the response you’re looking for.

3. Do it yourself credit repair.  There are many courses, manuals, programs, etc. that can show you how to repair credit yourself.  The quality and price varies, but usually for well under $100 you can learn how to repair credit yourself.  One drawback is that there’s a good bit to learn, terminology to understand, letters to write and paperwork to deal with.  Another problem is that you have to stick with it.  Each month you’ll have to write more letters and deal with more paperwork until you’ve gotten the results you want.  Are you dedicated enough to follow through for three months up to as much as a year?

4. Credit restoration software.  A different version of do it yourself credit repair, but with a software program that helps to produce the letters you’ll need.  You’ll still have to learn more about credit repair than you probably want to know and you’ll still have to have the self discipline to follow through each month, but its usually easier than plain do it yourself courses and they also run for $100 or less.

5. Credit repair companies.  The bad here is that it’s the most expensive option, about $50 per month.  The good part is that they do the work for you and they keep doing it each month until your negative items on your reports are gone.  You won’t have to learn all the details about how to fix your credit and you won’t have to figure out how to write the letters.  And you won’t have to be self disciplined enough to follow through each month with whatever tasks remain.

How Do You Repair Credit Conclusion

So, how do you repair credit?  From personal experience and observations of others, credit repair companies are the best choice for most people.

Many won’t be able to force themselves to read a manual, with or without the help of a software program, to learn how to properly and legally repair their credit.  Of those that do, most won’t be able to make themselves do the various tasks needed each month to keep the process going until they get the results they want.

When you consider that most all credit repair courses tell you to send each letter via certified mail and that the credit repair companies send these letters for you if you hire them to do it, then they really aren’t that much more expensive, if at all.

If you are very focused and genuinely interested in the details, then the best choice would be one of the software programs.

Otherwise, the answer to “How do you repair credit?” is that if you can handle about $50 per month, the best choice is a good credit repair company.