Credit Repair Tips: Hints on Getting Back Your Freedom

Credit repair companies always boast of being able to remove bad entries from your credit report. Whereas, in most cases, you can have them removed yourself at a much lower cost?

credit repair

Why Credit Repair?

In many cases, bad credit occur from irresponsible money management. But it often occurs because of unexpected financial hardship. One day, everything will be perfect, and another day you could become disabled or lose your job. And if you fall behind on your debts, it will wreak havoc on your credit rating. Therefore, this credit repair tips will come handy.

Remove Negative Entries

Negative entries may be removed from your report to facilitate credit repair with two methods below;

Option #1: File a Dispute with the Credit Bureaus

The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. Information on your report must be corrected or remove if it is found to be inaccurate, false, or unverifiable. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation.

A dispute is certainly in order if the information on your credit report are accurate. But some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed.

If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. But keep in mind that if the entry is verified, it will remain on your report. And if the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry. However, as long as they notify you at least 5 days before doing so.

Option #2: Negotiate with Creditors

Dealing with creditors can be intimidating, especially if you’re not on good terms with them. But speaking to your creditors directly may help you get negative information removed from your credit report.

A creditor might be willing to remove derogatory information on the account of one or two late payments. That is, however, once you’ve resumed a regular payment schedule. If you’ve experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative entry. It sounds like a long shot, but you never know until you ask.

After you’ve brought you account current, requests to remove late payment information may be made. But if you’re hoping for removal of a repossession or collection action, it’s best to negotiate a deal before you pay anything.

Bad Entries Irremovable?

Disputing information on your credit report or negotiating with creditors do not guarantee that you will get negative items removed from your record. If it doesn’t, the best thing you can do is try to build up some positive information on your report.

The first thing you need to do when trying to rebuild good credit is bring past due accounts current. Try to work out a deal with your creditors to accomplish this, or talk to a credit counseling agency. But don’t miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, make sure to keep the current account current.

Put a priority on keeping your accounts current at all possible time.

In conclusion, making your payments on schedule will raise your credit score, and with the passage of time, the good entries may outweigh the bad.

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