Credit Repair

Credit Repair
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When a person is applying for a credit card or a loan from a bank or other financial lenders the credit history of that person is considered. The credit score is checked against the 3 bureaus TransUnion, Equifax and Experian. These bureaus receive information from lenders and creditors about accounts. This information include opening credit accounts, borrowings, repayments, defaults, late payments and the information is reported on a credit report which will be used by lenders to determine whether to give credit or loan, how much they will loan to the borrower, the annual percentage rate APR and the repayment period.

The credit score affects your ability to get a job, a loan, credit card, insurance among other things. You are entitled to get a free credit report every 12 months (when you ask for it) if you are unemployed and looking for a job, on welfare or you believe there is credit card fraud. You can pay a fee to get a credit report from any of the bureaus or you can order a combined report.  Check the report because it will be used by the bank, insurance company, credit card issuer, car dealer and employers. Your credit history will follow you, so it is important to credit repair it before you miss getting a loan, a job or insurance when you need it most. Life can become very difficult because you will be given stricter terms i.e. higher interest rates which will be more expensive.

You can do credit repair yourself by first checking why your credit score is so low. Check the credit report and if it is inaccurate or it has errors you can apply to have it rectified because it affects your creditworthiness. You are entitled to free investigation if you believe the information is incomplete or inaccurate or if there are errors. Contact the company or organization which provided the information and also the consumer credit bureau. Attach copies of the credit report and point out why the information is inaccurate, erroneous or incomplete.

You will need to write a dispute letter to the particular bureau which has reported the negative information. You should include your name, address, social security number and your account number. The bureaus will write to the bank or financial service that provided the information to them and ask them to prove the accuracy and if they do not provide proof to the bureaus the information will be removed from your account and this will raise your credit score.

- bankruptcies
- tax lien
- re-possessions
- foreclosure 
- court judgments
- loan defaults
- late payments

All this information may be damaging your credit score. Dispute everything starting with the information that is damaging the credit report most. Credit repair takes time and effort. It involves a lot of correspondence and record-keeping and some people may not have the time to do it. You can hire a credit repair company to help you repair your creditworthiness.

Last modified onTuesday, 02 April 2013 16:13
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