Helen Hecker asked:




Assuming you already have a copy of your annual credit report you may have already found some errors that should be removed. Errors should always be a big concern because they can and probably have affected your credit score, also called a FICO. You can repair your credit with a little bit of help.

It may seem like a lot of work but it’s really easy. The hardest part is actually sitting down to do it. You’ll need to check all three credit bureaus to make sure the same error isn’t on all three but if you just have one credit report, start with that one.

First make a list of any and all errors that you find on your personal credit report. These could be in the form of personal information such as birth date or more likely there will be information that you know not to be true such as late payments or no payments recorded etc. If you think there is any possibility that you could be wrong check your past history with the creditor in question first.

You want to make sure you are right before you make the request to have any information removed from your credit report.

You will be sending the letter only to the credit bureau mentioned on the report, which would be Esperian, Equifax or TransUnion. You don’t want to sound angry in the letter, just be matter-of-fact, straightforward and business-like. Just outline the facts – name of creditor, dates, and the error(s) or problem(s) you’re finding on the credit report.

Here is a sample letter:

Date:

To whom it may concern at Esperian (or other credit bureau):

I recently acquired a copy of my credit report and found some errors that I’d like to dispute. I am enclosing documentation to prove the information is incorrect and would like a correction. I value my good standing and good credit history and want to maintain a good credit rating and credit score.

Name the creditor along with the reference date including the month, day and year if possible.

The error(s) I have found are:

I’m including copies of my payment record, with a (cancelled check or online payment print-outs or any other documentation that you have).
I would appreciate any attention to the matter as I would like my credit report to be accurate. I’m sure you understand that credit bureaus need to include only information that is accurate in my file.

Thank you for taking a look at my letter and file and hopefully making the necessary corrections so I can continue to maintain my good credit standing. Please let me know that my file has been reviewed and what action has been taken. I would also like a copy of my corrected credit report sent to the enclosed address. Thank you.

Sincerely,

Besides your full name as shown on the report, include you mailing address, a copy of the report that you have, your social security number, driver’s license photocopy and any other documentation such as a cancelled check or online payment confirmations.

Make a copy of the letter for yourself and a copy of any enclosures with the letter. Send the dispute letter by certified mail with a ‘return receipt’ requested. Then make sure to get the free credit reports from the other two main credit bureaus or reporting agencies to make sure they don’t have the same incorrect information. You can get free instant credit reports from the other two online.

Shawn

Thomas Mathews asked:




Before I reveal to you “whats a good credit score” you need to know that all 3 credit bureaus have a credit score for you and they will usually vary 10 to 40 points depending upon the number of bad credit items that are on each specific credit report.

Why does each credit bureau have different scores for you? Because not all creditors report to all 3 credit bureaus; therefore, you may have more bad credit items on a report than the other two, thus the report with the most bad credit items on it will have the lowest score.

Most mortgage lenders look at what is known as the Fair Isaac or FICO Score. A FICO score can range from 300 (very bad) to 850 (very good). The median is 723, according to Fair Isaac statistics. Recently, the 3 main credit bureaus, Experian, TransUnion and Equifax have developed their own combined score to compete with lenders that use the FICO score and they are trying to encourage lenders to use their new scoring system that they call the “Vantage Score”. It ranges from 500 (very bad) to 990 (very best) and like the FICO score it is based on the review of all 3 credit bureau scores along with their own proprietary formula.

So whats a good credit score?

The bottom line to having a good credit score irregardless of whether it is an Experian, TransUnion, Equifax, FICO or Vantage score is – the more “bad credit” items that you have reported on your 3 credit bureau credit reports the lower your credit score will be on your FICO and or Vantage score. It is that simple.

The key to achieving a good credit score is to be able to get any and or all of the bad credit items removed from each of the 3 credit bureau credit reports. More on how to get that done later.

How Is A Good Credit Score Calculated?

Your credit score is simply a number representing your life as it relates to your past and existing debt. Each credit bureau, FICO and Vantage has it’s own proprietary algorithm that they closely guard but there is general information available as to how they all calculate their score for you. Like it or not Creditors use your credit score no matter where it comes from as the indicator of your creditworthiness. Your credit score is calculated using five key categories.

How the Scores Are Calculated

1) 35% of your Score is devoted to Payment History. This would include missed payments, collections, bankruptcies and the like. The older the information the less of an impact on your overall score.

2) 30% of your Score is based on Utilization. This is the amount of credit you have in used as compared to your available credit. The recommendations point to less than 10% of your available credit be utilized.

3) 15% of your Score is impacted by your Credit History. Effectively how long you’ve had accounts open and obviously takes some time to build.

4) 10% of your Score is based on Inquiries. If you apply for various forms of credit and then don’t get that credit it will impact you negatively. Checking your own credit does not impact this number.

5) 10% of your Score is determined by Types of Credit. This would be different forms of credit such as mortgages, auto loans, revolving credit and installments.

Did you notice that there Is something Missing? You’ll note that there is no consideration for your actual income in this model. Interesting to say the least don’t you agree? Your income doesn’t have anything to do with calculating your credit score. Lenders do.

Whats a Good Credit Score?

How many times am I going to make you ask me “whats a good credit score” before I answer? OK, ok. The short non-scientific answer is 760 or above. That’s the score that is going to get you the best interest rates possible on a mortgage, auto loan or many other forms of credit. That doesn’t mean that each lender will offer you the same rate if you have that magical 760 score. It will depend upon the amount of money a particular lender has available at the time that you apply for your loan that will dictate what the loan rate they will offer you.

If your score is 760 or above then I recommend that you monitor your credit scores and if drop for some reason you will know immediately and you will be able to do what needs to be done to get it back to that magic number. Why is that important? Because if you allow it to drop within 30-60 days you’ll see many of your loans and or credit card rates slide upward. How can that happen you ask? The “fine print” on every loan or credit card agreement will usually allow the lender to adjust your rate without notice if your credit score changes.

If your credit score is far below the magical 760 score then you may want to learn how you can force all three of the credit bureaus to give you a good score. There’s a way to do that. Let me know if you are interested.

Lydia

Steven Parsons asked:




1. Be aggressive in repairing your own credit.

Credit repair is not going to just happen. Bad credit is not something you can ignore, hoping that it will work itself out. Things like credit card charge offs, accounts that went to collections, and late payments will stay on your credit report for 7 years. But once bills have been paid off it is much easier to have them removed. The easiest way to remove a charge off is to send the credit bureau a challenge letter, also called a dispute letter.

2. Dispute the items you want removed.

The Fair Credit Reporting Act gives you the right to dispute any negative items on your credit report. This means you can challenge repossessions, charge offs, collections accounts, bankruptcies, foreclosures, judgments, tax liens, and anything else you disagree with. The thing to keep in mind is that the law says you are allowed to dispute anything, so go for the charge offs for sure.

3. How to dispute items on your credit report.

First contact the credit bureaus and request a free copy of your credit report. You are entitled to one free report each year from each bureau. So as long as you have not already requested one this year, you can get a free one. Send each bureau that lists the negative item a letter telling them to remove the specific item you want removed, and why. Make a photo copy of the credit report and circle each of the items you are disputing. Put a number next to each circle, that number should correspond to a number on your letter. This makes it fool proof for the bureaus to figure out which item you are talking about in your letter.

4. The investigation process

There is nothing for you to do now but sit back, relax, and wait. The credit bureaus have 30 days to investigate the items you dispute. That time starts when they receive the letter. They will contact the original creditor notifying them of your dispute and asking them if they agree or disagree with you. From there the credit bureau must provide proof through documentation that the entries are valid. If the entries can not be validated within 30 days from the time they receive the letter, it must be removed from your credit report.

5. Following up

It is critical that you follow up with the credit bureaus. A trend that is starting to emerge with them is they simply don’t remove items that have not been validated, or sometimes they don’t even conduct an investigation. So if you don’t get a letter within a couple weeks after the investigation should have been complete, make a call to them and find out what happened. Whatever they say, ask them to send a letter for your records.

So lets recap what you need to do. First, get a copy of your credit report. Second, review your credit report and make note of any items on the report that you want removed. Third, write your dispute letter then circle and number each item on the report that you are disputing. Fourth, sit back and wait for the investigation to be completed. Fifth, follow up if you have not received an answer within 6 weeks.

Follow these simple steps and you will be well on your way to easy credit repair. To make things even more simple, order a set of proven credit repair letters from an expert. The reason you should do that is their letters have been proven to work, because they have used them successfully to dispute items for their clients. A well written dispute letter will practically guarantee success.

Mary

Divya Mishra asked:




You may know that it is very important to get bad credit removed from your report. However, how should you actually proceed and get this job done? How to get negative items removed from your credit history? You cannot just get a copy of your report and strike them manually, can you?

Neither can you approach your lender and beg them to provide wrong information to credit bureaus. Although this is possible in theory, it is very difficult to achieve in practice because your lenders hit getting into trouble for a problematic borrower.

There are certain points that you should consider getting bad credit removed. Firstly, if it is inaccurate, then you should raise a dispute and try to get it out of your credit history as early as possible. What process should you follow?

You should have filed a written dispute and you should request the credit bureau to remove the information. You should provide photocopy of the various documents that prove your point.

It is advisable to retain the originals in your hand. The last thing you want is for the originals to be lost due to an administrative mistake

The credit bureau has thirty days to complete the process of verification. If it is not verified or if it is verified as incorrect, then the information will automatically be deleted.

Even if the information is accurate, if it cannot be verified for lack of documentation or record keeping, you can easily get the information deleted. There are many persons who have got a bad credit removed from their score simply because the lender went out of business and destroyed all the records.

You can also employ credit repair services for advice, tips and information on the right way to improve your credit report. This is not a very difficult task provided you choose to deal with the right service provider. Make use of the World Wide Web to identify the right characteristics of a quality credit repair services.

You should also consider all those negative points in your credit report that are present because the law insists on their mention. Take bankruptcy for example. It must remain on your credit report for at least eight to ten years.

However, once this time period expires, the information must be automatically removed. If it is not done so, then you should take steps to get it off your history as early as possible.

Randall

Conleth Onu asked:




Disputing negative entries on your credit report is the most effective method to delete unfavorable information and improve your credit rating.

Many people in America have negative information on their credit report. These derogatory items can be detrimental to your ability to obtain loans, credit cards and other financial services.

You have the right to dispute any inaccurate or incomplete information that is contained in your credit report. There is no charge for this.

If an account is not being reported 100% accurately, by law the credit bureau must remove it from your report.

Here’s How The Process Works.

1. You get a copy of your credit report from the credit bureaus.

2. When you get your reports you carefully review them and note any negative accounts and inaccuracies.

3. You then dispute the negative accounts. Submit the dispute in writing, along with any supporting documentation. If the credit bureau cannot verify the accuracy of any item you dispute, they must remove the item within the alloted time.

4. When the investigation is complete, the credit bureau must send you a free copy of your report if the dispute results in a change.

You can continue this process until you are satisfied with the outcome. Remember, if the negative item is not 100% accurate the credit bureau must remove it from your file.

Before you begin the process, it is essential that you have good information on how to go about restoring your credit.

Do you want to learn more about how to do it? I have written the ultimate guide to credit repair, “How To Clean Up Bad Credit And Establish AAA-1 credit Rating.” For free details, click the link below to visit my website.

Leroy

Justin Smith asked:




Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).

The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:

1. The most obvious: pay off your debt! This doesn’t include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.

2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see real results from your on-time payments, but keep it up, sooner or later the credit bureau will notice the change in your payment habits. Develop the mentality that no late payment is acceptable!

3. If possible, pay over your minimum amount. This is especially important with credit card balances, and will reflect a slight boost in your score.

4. If you have paid off all your debt, and your credit score seems to be at a stand still, you might want to make small purchases each month with your credit card and pay them off immediately. Often times the credit bureaus like to see at least some kind of activity. Otherwise, they have no way to gauge how you are doing financially.

5. Be patient! Sometimes repairing credit can be a long and arduous process. Especially if you have had a bankruptcy. It can often take the better part of a year or more to see any significant raises in your score.

Clearing a derogatory mark on your credit report:

This is probably the most difficult in regards to credit repair. If you have requested a copy of your credit report, and notice a problem (an example would be a late payment mark), that shouldn’t be there, you need to take action to get the derogatory mark cleared as soon as possible. It is extremely important to get your credit score cleared before you attempt to get prequalified for mortgage.

Here are the steps you should take:

First of all, if you are in contact with a loan officer, you may want to describe the problem you are having to them. They can be very helpful when it comes to credit repair, and should know exactly what to do if you have a bad mark on your credit that is a mistake. In some cases, they may even call the creditor for you to address the situation.

Second, you should call your creditor and each credit bureau to find out which course of action you should take. In most cases, writing a letter will do. Here is an example letter:

Date 00/00/00

Dear Big Credit Bureau,

This letter is a complaint that you are reporting inaccurate and/or incomplete credit information on my credit report.
I am displeased that you have included the below information in my credit profile that includes the following errors. Credit reporting laws ensure that bureaus report 100% accurate credit information.

The following information concerning my credit report needs to be re-investigated. I respectfully request to be provided proof of this alleged item on my credit report. If this cannot be provided, the item must be deleted from my report as soon as possible:

CREDITOR AGENCY, acct. 123-34567-ABC

The listed item is inaccurate and/or incomplete, and is a serious error in reporting. Please delete this information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Also, please provide the name, address, and telephone number of each credit grantor or other subscriber.

Under federal law, you have 30 days to complete your re- investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.

Sincerely,

your signature

Your Name

SSN# 123-45-6789

Unfortunately, you will need to write 3 separate letters to each of the 3 major credit bureaus. Here are the contact addresses for each:

Trans Union

P.O. Box 1000

Chester, PA 19022

1-800-888-4213

Equifax

P.O. Box 740241

Atlanta, GA 30374-0241

1-800-997-2493

Experian

P.O. Box 2104

Allen, TX 75013-2104

1-888-397-3742

Maurice

C Cruz asked:




Having a bad credit report is very damaging to your financial future. But you already knew that.

Getting your credit report back to pristine status once it has been damaged can be accomplished, but it will take time. However, you must know how to go about it, because you might only get one crack at it.

Your goal should be to have the “verifiable” negative marks deleted from your credit report.

In order for a creditor to consider deleting a “verified” negative mark on your credit report, there must be something in it for them. Primarily that you pay the account in full.

Several factors will determine if a creditor will consider deletion of a “verified” negative account. Some of these include:

>Your ability to pay

>Your job status

>Your income

>Your assets

>Age of the account

>Dollar amount that is due

>Who the creditor is

Just to name a few.

However, you must beware.

You must know if the person you are negotiating with has the authority to delete the negative mark from your credit report.

If you are talking to the collection agency, they may only have limited authority. Meaning that the collection agency may only be able to delete the collection agency report but not the original creditor’s report.

Anything that you agree to must be in writing. Detailing what you must do and what you will be getting in return.

Have an authorized signature on the letter.

Make certain that the settlement offer and terms are on official company letterhead.

Keep a file and document all communications with the creditor or collection agency.

Everything:

>Date and Time

>Person you talked to

>Operator number

>Phone numbers and extensions

>Address

>Timeline

>Details of what was discussed and by whom

Having as much detail on file will help you in the future if the creditor or the collection agency does not adhere to the terms of the settlement.

Louise

D Ellenwood asked:




As was mentioned in Part One, having good credit is very
important. It affords us the ability to own a car or home,
take out a loan or have a credit card. Of course, these
same advantages may also be the avenue by which we
find ourselves with bad credit. One or more payments
missed or a default on a loan is all that is needed for a
creditor to report these to a credit bureau, who will in
turn add it to your credit history. Once this happens it
can be very difficult to fix poor credit. It may stay on
your credit history for up to seven years.

Once you are in the position of having poor credit, you
must go on the offensive.

It is essential to understand that as soon as you run into
trouble with a debt that you contact the creditor holding
your debt. This may be a little embarrassing, but it will
prevent a lot of problems down the road.

One of the first things to do when you have fallen behind
on one of your payments is to contact the creditor. The
key is to contact your creditor before too much time has
elapsed, to prevent them from calling a collection agency
and then the credit bureau. In many cases the creditor
will be open to discussing options for payment.

Before you contact your creditor, have a plan in mind of
how much you are able to pay off monthly. It must be
realistic from both ends, manageable for you to pay each
month, and enough to keep the creditor “happy.” It is
very important to adopt a plan that you are able to stick
with, but even more important to actually stick to the plan
once the terms have been agreed upon. The worst thing
that you could do at this point is to default on these
payments.

In closing, if you find yourself in the position of falling
behind on your payments, contact the creditor to make
arrangements for getting them to a current status. It
may be a bit uncomfortable to admit that you have fallen
behind on your payments, but a little discomfort to
straighten things out will immensely help in preventing
a poor mark on your credit report.

Michele