Fix Credit Report – Repair Boost Score Ratings

Carrie Reeder asked:




Establishing credit after a recent bankruptcy is very important. For
the most part, many consumers acquire excessive debt because of using
credit irresponsibly. Hence, after a bankruptcy is discharged, many people
are hesitant to obtain new credit accounts.

However, opening new credit accounts is the first step to rebuilding
credit. Low credit scores are common following a bankruptcy. This makes
it difficult to obtain a mortgage, auto loan, etc. Here are a few tips
to help you increase your credit score and re-establish a good credit
history.

Understanding the Usefulness of Credit Scores

If you are hoping to make a purchase using credit, credit scores are
essential. Prior to obtaining any sort of credit, lenders must assess a
copy of your credit report. In some cases, lenders simply review your
three digit score. This is practical when approving an applicant for
instant credit. Those with a low credit score are at a disadvantage.

Following a bankruptcy, you can expect your credit score to nosedive.
Thus, it is important to take the necessary steps to improve your credit
standing. Bankruptcy does not last forever. However, you must put forth
the effort to boost your credit and prove your creditworthiness.

Avoid Repeating Past Mistakes

If bad credit or bankruptcy occurred because of using credit unwisely,
learn from your mistakes and move forward. Many young adults acquire an
excessive amount of debt. In some instances, they do not fully
understand how credit works.

If you are drowning in debt, bankruptcy may be the only alternative. If
so, avoid making the same mistake twice. Sadly, there are individuals
who file bankruptcy repeatedly. However, rebuilding credit takes time.
Once you are on the path to increasing your credit standing, avoid bad
credit decisions.

Establish New Credit Accounts

The only approach for establishing new credit is opening new credit
accounts. At first, this may sound scary. However, this maneuver is
necessary to quickly increase credit scores. New credit accounts may consist
of a major credit card, store credit card, automobile loan, etc.

Secured credit cards are very effective and easy to qualify for. These
sorts of credit cards require applicants to have a down payment.
However, it’s well worth the fee. Once you have obtained a new credit card,
attempt to do three things: make timely payment, maintain low balances,
payoff the balance each month. By doing so, each month your score will
increase. Soon, you will qualify for an unsecured credit card. Within
24 months, you may also qualify for a mortgage or auto loan with a
comparably low rate.

Stephanie

Irena Bocheva asked:




Do you want to raise credit fast? Do you want to qualify for a favorable mortgage or auto loan, but fear that your FICO score is too low? Are you worried that the job you want to get requires a mandatory credit check? Whatever your case is, you are not alone. More than 35 million Americans are dealing with issues related bad credit score.

Contrary to the popular beliefs, fast credit repair is possible. The only requirement is knowledge about the inner workings of the credit system and the various loopholes in it.

Here are 3 simple tips that will help you understand how fast credit repair works:

1 You are not the victim…learn your rights.

Harassing collection phone calls, tons of unwanted mail, refusals to get financed on your mortgage or auto purchase-a lot of factors can leave you with the impression that you are a helpless victim of the credit system. In reality, however, you have numerous rights and you are far from being powerless. For example, under the Fair Credit Reporting Act you can dispute any incorrect, outdated, incomplete, questionable or unverifiable information on your report. The disputes can be filed on multiple levels -credit bureaus, companies reporting to credit bureaus, collection agencies and original collectors (623 Dispute). You can dispute the validity of the whole negative account (the account is not mine) as well as separate listings within the account (wrong balance, wrong account limit, you did not make a late payment that month etc). Under the protection of FCRA you can sue credit bureaus if they fail to conduct investigation on your case within 30 days. You can also sue original creditors if you dispute a debt and they fail to report it as disputed to collection bureaus or if they pull your credit report without your authorization. Collection agencies can also be held accountable if they can’t validate a debt (provide proper documentation that the debt is yours), but continue to pursue collection activity. The Fair Credit Reporting Act and the Fair Debt Collection Practices specify numerous rights for the consumer and limitations for the practices of the credit agencies and debt collectors. The more you know about these rights, the better your chances to raise credit score fast.

2 Are you taking advantage of the loopholes in the system?

The credit system is rife with loopholes. However, you have to be knowledgeable in order to take advantage of them. A simple example-the so called Dispute 623 allows you to dispute a listing ( within a negative account ) with the original creditor. Only a small percentage of creditors keep a decent records. The rest preserve records for 13-18 months the most. The reason is simple-it takes a lot of money to keep huge database updated or to input data from one system to another (in the case of acquisition). If your debt is more that 18 months old, file 623 dispute. More than likely the creditor will not have the proper documentation to verify the debt. Under these circumstances, creditors are required to remove the whole item ( even though you disputed a separate listing) from you credit record. Nice, isn’t it…

3 No written proof…no guarantee

Another thing you have to keep in mind is that fast credit repair requires keeping proof of every piece of paperwork you ever exchange with credit institutions. If you attempt to engage in credit repair over the phone or e-mail, you mind end up on the losing side. Use certified mail and fax instead.

If you want to raise credit fast, you have to gain knowledge about the credit system and the various loopholes in it. You don’t have to reinvent the wheel here-simply use strategies and little known secrets that worked for others.

Stephanie

hayes asked:


this was a auto loan, and not amonth later i totalled the car i have papers showing that i had gap insurance but the company wouldnt accept it so i finished paying it off because i was being sent to iraq and wouldnt be able to fight it. now that i realized what was going on i wanted to know if i should get a credit lawyer or try and fix it on my own….any ideas?

Jesus

Ryan J. Taylor asked:




Unfortunately, chances are there are errors on your credit report that are significant enough to hurt your credit in a way that would not allow you to get a favorable loan. That means your inaccurate credit score could cost you the ability to get an auto loan, rent an apartment, or even get a job. Studies show that 1 in 4 credit reports have false information, but there are ways to quickly fix credit report errors.

The first step is obvious. Get a copy of your credit report. By law, the three credit reporting agencies are required to give you one free copy of your report once a year. You can elect to receive a copy from all three agencies at once, or obtain one report at a time. If you have not reviewed your credit report in over a year, it’s recommended to request them all at once since some information can be listed on one report but not the other. You can always purchase a copy of your credit report later if needed.

Once you receive your credit report, you simply want to look for errors, particularly the negative errors. Look for:

Open accounts that are not yours Notices of delinquent payments that have been on time The same loan or credit card listed twice The absence of a loan or credit card

You also want to double check that your name, birth date, current address and social security number is accurate. Otherwise information from someone else with a similar name could be confused with yours. Some wrong information, however, is not necessarily a big deal. The use of “street” versus “road” in your personal address, for example, or the correct spelling of your previous employer. These types of things will not affect your credit score and does not really make it any easier for an identity thief to steal your information.

If you find an error, notify the credit agency immediately. They are required by law to contact the lender/creditor and within 30 days.

Jonathan