Improving Financial Situations And Credit Repair

Posted on March 7, 2010
Filed Under Credit Score | Leave a Comment

Many people have suffered with credit problems specially in the recent economy.  While we all want to have excellent credit the fact is that now and again life throws us a curveball and things come to pass that are past our control.  However, credit troubles can create a huge amount of trouble for an individual because with low credit scores and bad credit it is complicated if not impossible to acquire credit, you can be charged much higher interest rates or you may have to put down more security if you do get credit.

There are some actions you can take however, that can start you on the road to excellent credit.  The first step of credit repair is you have to to obtain a credit report from each one of the big three credit reporting agencies, which are Equifax, Experian and TransUnion in the United States.  You can get one report each year for no cost from each or you can purchase a tri-merged report that has all three reports in one.

When you have your credit report, you will need to study it carefully for errors and inaccuracies.  It has been estimated that as many as 79% of all credit reports hold mistakes and errors so it is doubtful that your credit report is totally correct.  You can dispute anything out of the ordinary or anything that is inaccurate.

The credit reporting agencies are not concerned with the accuracy of their information.  The fact is that they make their money by selling the information, it doesn’t matter to them if it is accurate or not.  If there are mistakes on your credit report you are the only one who suffers so it is your responsibility to make sure that your credit report is truthful and correct.

The Fair Credit Reporting Act gives users the right to dispute information on their credit report.  You can submit a formal dispute and the credit reporting bureaus will have 30 to 45 days to verify the accuracy of the information or erase it from your report completely.  They must prove the truthfulness of their information if you question it.

As a consumer you in fact have an advantage when it comes to disputing credit listings.  Since the credit bureaus are only paid to present information it is actually a loss to them when they have to corroborate a dispute.  Therefore if you put forth a good case, you have a really favorable chance of getting the information removed.

It is also smart to start rebuilding good credit and paying down the balances on any debts that you have.  A large portion of your credit score is attributed to how much credit you have accessible compared to how much credit you have used.  The highest credit scores belong to the individuals who have access to credit but never utilize it.

Rebuilding and repairing your credit can be done; you just need to take the steps to get started.  If your job and financial situations are in order but you still have bad credit now is the time to do what is needed to repair your credit.

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