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[H1267]How To Improve Your Credit

by Michael Challiner, Mic

In today's climate of credit crunch, nervous investment and the number of financial institutions that are going to the wall, it is not surprising that lenders want to cover their backs as much as possible. They need to be as sure as they can that borrowers will be able to pay back the money that has been lent to them.

Pretty much everyone now has a credit rating. In the main, lenders use one of three credit reference agencies who compile factual information on our financial backgrounds. These agencies, CallCredit PLC, Equifax and Experian, although business rivals all work more or less in the same way.

They all research our credit histories from a variety of sources including Count Court Judgements, the electoral roll and by finding out if past debts have been paid on time.

A poor credit history doesn't necessarily mean that you will be refused a credit card or a loan but you will probably have to pay more for it. Usually, the self-employed or people on short-term contracts are those who are less attractive in terms of their risk to lenders. There are lots of different reasons why people are refused credit but one of the major factors can be down to information about you (often provided by the credit reference agencies) which suggests that you may find it difficult to repay a loan. What can you do to make sure that your credit rating is the best that it can be?

Firstly, make sure that all your payments to creditors are made on time. If you do have to miss a payment, you must inform the creditor and also make sure that a payment is made the next month.

You can also boost your rating by simple measures like making sure you are on the electoral register or ensuring that you have filled in credit application forms properly. Obtain your credit history from one of the agencies. It costs as little as £2.50 and will enable you to check that all the details on it are correct and up to date. Make sure that any payments you have made are on your file and this includes payment of County Court Judgements. If you have had a bankruptcy order annulled, don't forget to send a copy of the order of discharge to the credit agencies.

Remember, lenders can search your credit report several times during a single application. You are allowed to attach a “notice of correction” on your credit report which enables you to explain why there may have been a period of poor credit when payments were missed. Let the agencies know so that they can do this for you.

If your credit report contains financial information which is linked to other peoples' names, if you have had a joint bank account with someone for example, then their credit rating could affect your own. If you are no longer associated with these people, make sure you request the credit reference agencies to remove the information.

One thing to avoid is to make lots of applications for credit within a short space of time. As soon as you apply for credit to a lender, a credit search will be registered against your name as part of the application process.

Always remember how valuable your credit history is, a good rating means you will have the luxury of shopping around for the best deals and lowest interest rates on the market.

Under the FCRA, both the consumer reporting company and the information provider (the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider if you see inaccurate or incomplete information.

1. Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report that you dispute, state the facts and explain why you dispute the information, and request that the information be deleted or corrected. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the one on page 8. Send your letter by certified mail, return receipt requested, so you can document what the consumer reporting company received. Keep copies of your dispute letter and enclosures.

Consumer reporting companies must investigate the items in question ? usually within 30 days ? unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that the information is, indeed, accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

If you request, the consumer reporting company must send notices of any correction to anyone who received your report in the past six months. A corrected copy of your report can be sent to anyone who received a copy during the past two years for employment purposes.

If an investigation doesn't resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. Expect to pay a fee for this service.

2. Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct - that is, if the information is found to be inaccurate - the information provider may not report it again.
Sample Dispute Letter

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name
Under the FCRA, both the consumer reporting company and the information provider (the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under the FCRA, contact the consumer reporting company and the information provider if you see inaccurate or incomplete information.

1. Tell the consumer reporting company, in writing, what information you think is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report that you dispute, state the facts and explain why you dispute the information, and request that the information be deleted or corrected. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the one on page 8. Send your letter by certified mail, return receipt requested, so you can document what the consumer reporting company received. Keep copies of your dispute letter and enclosures.

Consumer reporting companies must investigate the items in question ? usually within 30 days ? unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that the information is, indeed, accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

If you request, the consumer reporting company must send notices of any correction to anyone who received your report in the past six months. A corrected copy of your report can be sent to anyone who received a copy during the past two years for employment purposes.

If an investigation doesn't resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. Expect to pay a fee for this service.

2. Tell the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct - that is, if the information is found to be inaccurate - the information provider may not report it again.
Sample Dispute Letter

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

Enclosures: (List what you are enclosing)

Article Source : Check Credit Rating

About Author

Both Michael Challiner & Lar 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.

Michael Challiner has sinced written about articles on various topics from Finances, Advertising Guide and Quit Smoking. For loans, cheap loans, personal , unsecured loans or secured loans visit www.loan-sure.co.uk. Michael Challiner's top article generates over 165000 views. to your Favourites.

Lar has sinced written about articles on various topics from Travel and Leisure, Credit Cards and Hotels and Hostels. Has someone stolen your identity? How do you know? Get a and check all of your transactions. Submitted by:. Lar's top article generates over 201000 views. to your Favourites.