One can't fix a report unless they know what's wrong with it- so consumers must find a way to access their credit report. Many online resources offer free ways to access a credit report, although there are other several paid options that may offer more service to consumers. Either way, this is the first step in fixing a credit report, and can clue consumers in on clerical errors or other serious matters such as identity theft.
The next step in improving one's credit score is to obtain evidence to send to the credit companies. Without proper evidence, nothing will be changed. Thus, as much as possible will need to be included in the document being sent. If one claims a clerical error, proof of the error must be obtained by the lender. If it as serious as an identity theft case, a police report or court case will likely be sufficient in proving error.
When giving the credit company evidence, always be sure to give credit companies the duplicate copies of any documents. In many cases, a credit company will require further information or documents and will commonly not keep good track of what has already been submitted. Other mail delivery errors or credit company policies may mean that consumers will never get their documents back- so make sure they are only duplicates.
Sending a credit company just evidence and a simple letter won't do much good. Consumers will need to send a formal request that includes their name, contact information, and a polite letter that states the purpose of their request. Always send such information via registered mail, and expect up to 30 days in order to obtain a solid reply from the creditor.
As many things in life go, following up on requests via phone calls and keeping in constant contact with one's credit company is always a good idea to ensure there is no slack or room for error in the process of obtaining a solid and prompt reply from creditors. Because it can take up to a month, consumers often don't need to start this process until the 30 day mark, in which they should already have a reply.
Final Thoughts
Debt isn't something that consumers commonly want to get into. In fact, it's safe to say that no one wants to experience debt at any point in their life. To help avoid the prospect of debt, fixing one's credit score is vital. Doing so may take a month or two of stress when dealing with creditors, but the hundreds to thousands of dollars saved from loans and interest rates is well worth the stress obtained from the process. If one wishes to find out more, going to see a financial official is often the best choice.
Fix Credit Report Errors
There are normally two types of blunders on credit reports: outright inaccurate information and errors that are a reflection of the carelessness of either the credit reporting bureaus or creditors themselves. Credit report errors themselves come in a wide variety of forms and may be related to “inaccuracies or omissions”. Omissions are also considered to be errors such as the existence of a delinquency that was already remedied, or an action of a collection still reported overdue when it has been paid in full.
Inaccuracies on a credit report can be removed or updated from an individual credit report rather quickly but diligence and persistence is required. The Fair Credit Reporting Act declares credit bureaus must investigate an individual’s claim within 30 days. Once an error is noted, the mistake must be rectified and the other credit bureaus must be notified of the correction as well. Many individuals choose to use a credit repair service to handle these credit repair issues because the process can be time-consuming and somewhat frustrating.Others prefer to handle it on their own because they have the necessary free time to adequately follow up on the corrections and keep a detailed paper trail to insure everything is fixed.
Surprisingly, about 25% of all credit reports have major errors. These errors can result in an individual being denied an insurance policy, a credit card, a home mortgage or even employment. If these errors are not detected until an application is made for a loan, credit or a job, the individual may not have the ability to receive a corrected credit report in a timely manner and the situation has the potential to be devastating.
Some of the most common credit report errors are noted below:
·Inaccurate Entries - It is not unusual for merchants and banks to submit information that is inaccurate to the credit bureaus. A certified letter to the credit report agencies (three in all) can fix most of the inaccuracies with all the facts (usually written proof) of any incorrect debt information. The credit reporting agencies can then notify the creditor of the dispute, and ensure verification of the inaccurate entry.
·Bankruptcy Discharges - With the receipt of a bankruptcy discharge, the credit report should reflect all of the accounts that have been included in the bankruptcy. Moreover, the balances on these accounts should reflect a zero. These accounts are often not accurately updated with the information subsequent to a bankruptcy discharge being granted.
·Identity Mix-Ups - At times the credit file of one individual may be linked with another individual. This normally results in an unfair credit history that is obviously adverse for the individual who has the stronger credit score/report.
·Obsolete and Outdated Information - A bankruptcy is to appear for a maximum of 10 years on a credit report.Debts are to remain on the credit report for a maximum of 7 years per the federal “statute of limitations”.However, it is common for debt collectors and debt purchasing firms to submit a “phony” or inaccurate charge off date so that the debt is incorrectly extended out on the credit report beyond the “7 year limitation”. Remember that the clock on the “7 year statute of limitations” starts ticking on the date the account is charged off by the original creditor.
As Americans, our credit score is more important than ever to our financial futures. Many individuals and families encounter periods where mounting debt problems and the inability to “stay on track” with timely monthly payments will harm or reduce a credit score. Credit cards are the most challenging unsecured debt to manage when there is an illness, or a job loss, or an extenuating circumstance that creates financial hardship, because those payments do not provide critical basic needs (shelter, food).Many consumers will turn to debt settlement services or debt consolidation services to resolve their problems. Yet this decision typically occurs only after a period of financial hardship when the credit history has already been negatively impacted. So it becomes advisable to monitor your credit report on a regular basis, and insure that you have not been a victim of the most common credit report errors discussed here.Keep in mind that you can perform your own credit repair, but the process will require time, persistence and attention to detail. There are credit repair services with solid reputations that can also handle your credit restoration process.
Both Chris Channing & Liv Worthington are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Chris Channing has sinced written about articles on various topics from Flirting Tips, Finances and Credit Cards. Learn more about and .. Chris Channing's top article generates over 1830000 views. to your Favourites.
Liv Worthington has sinced written about articles on various topics from Dogs, Free Credit Report Score and Family. Liv Worthington has worked in the credit and debt management field for many years. She takes pride in helping all of her clients find the right
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