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Simple Ways To Repair Bad Credit |
| By: Conleth C Onu |
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If you have bad credit you are like thousands of people in
America that have credit problems. The good news is you can
repair your credit yourself.
Before extending credit to you, creditors will look at your
credit history to determine if you are a good credit risk. The
guidelines vary from creditor to creditor, of course. Some
creditors may be satisfied with only your salary and job and
other financial information you put on your application. But most
also want to know your habit of repaying debts.
They contact credit reporting agencies, also known as, credit
bureaus, to obtain whatever records they have on you. These
agencies collect and store information about borrowers that is
routinely supplied by many lenders and creditors.
Bad credit can prevent you from getting the loan or credit card
that you want. Here are the steps you can take to repair your
credit.
The first step to repairing your credit rating is to get a copy
of your credit report from the credit bureau. You have the
absolute right to know what is in your credit file.
You may obtain a free copy of your credit report if you have been
denied credit within the past 60 days due to information
contained in your credit report. If not, the credit bureau may
charge you a small fee.
Once you get your report, review it to see what kind of
information it contains. There is a chance that your credit
report lists items that don't belong to you. If you believe that
there is an error in your report, contact the credit bureau and
dispute the item.
All the information you need to dispute or correct an error is
sent with your credit report. Forward all correspondence using
certified mail, return receipt requested. You want proof that
they received your dispute letter and all supporting
documentation. Keep records when mail was received and be sure to
retain copies of everything.
The credit bureau must reinvestigate your dispute within a
reasonable period of time. If they do not respond within the
alloted time, then the disputed item must be deleted from your
report.
Contact the credit bureau indicating that they had more than a
reasonable period of time to respond and demand that they delete
the disputed items from your file. By law, they must comply with
your request.
If there is any negative item and the item is being reported
accurately, you can negotiate with the creditor. Offer them a
percentage of the amount you owe as full payment of the account
if they will in turn remove the negative information from your
report.
If you are unable to get your creditor to delete or amend the
negative information, you can file a short statement explaining
your side of the story. The law allows you to place a "100-Word
Consumer Statement" in your credit file. The credit bureau is
obligated to include that information in your credit file.
Once your credit report is corrected, you should request that the
credit bureau send a corrected copy of your report to any
businesses that received a report on you within the past six
months or two years if it involves employment.
After you have erased your bad credit, it's time to re-establish
your good credit. To re-establish good, you must add positive
items to your file. There are several ways to do this.
You can add positive credit information to your credit file by
depositing funds with a financial institution to serve as
collateral for a loan or credit card, applying for a charge
account at a local department store or even asking a friend or
relative with good credit to cosign a small loan.
Regardless of the method that you use, it's important to show
that you can handle credit responsibly...by making all payments
on time.
Don't let bad credit ruin your life. Avoid the embarrassment and
rejection associated with a bad credit record. You can rebuild
your credit, and with the right information, it's something you
can do yourself, quite easily.
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Conleth C Onu writes about credit repair and other topics. Visit
his website http://www.amazingcreditrepairtools.com This website
is a great place to find credit repair information, resources and
articles. |
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Featured Credit Report News
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