Fixing Your Credit Score Doesn't Have To Cost You - Hydra Debt
Fixing Your Credit Score Doesn’t Have To Cost You

Fixing Your Credit Score Doesn’t Have To Cost You

Credit repair ads claim to ensure a quick fix on your credit report. They promise for a fee (not always disclosed at first) to clean your credit history up in order to be eligible for a fresh house, vehicle, insurance coverage, work, or premium bank cards. Before you sign up with one of these companies, you need to know some facts.

The real facts on repairing your credit history

The truth that is real that no one can legally remove information on a credit report. The Fair Credit Reporting Act (FCRA) allows you, the consumer, to request an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge to you. There are other steps without paying a credit repair company, such as that you can do yourself:

* You are permitted a free credit report if a company denies you credit, insurance, or employment (if this is a part of your employment application) provided you request a report within 60 days of this denial. The notice will give you the name of the consumer reporting agency that provided this report. You’ll dispute information that this denial is based upon. Under FCRA, both the customer agency that is reporting the details provider are responsible for fixing inaccurate or any incomplete information for the reason that report.

* place in writing exactly what information you believe to be inaccurate. Include copies of any documents that supports your claim. Make sure to send this page to the credit reporting agency, and send it certified mail so it was mailed and signed for at their end that you can prove.

* you’ll get a reply within 1 month. During their investigation, they must forward your papers to the vendor or merchant that supplied the credit that is negative and report back to the credit agency. They must notify all three reporting agencies of their findings: Equifax, Experian and TransUnion if they find that the information is inaccurate.

* if the investigation is determined, you must get a duplicate associated with results in writing and a duplicate of this dispute in case it is changed. It the disputed item is changed, the credit reporting agency cannot put the disputed information back to your file unless it really is verified as accurate by the vendor or vendor.

* The credit scoring agency must send notices of a correction to whoever received your credit history in the past half a year. You could have a corrected copy delivered to companies that failed to hire you considering your credit history.

Getting rid of a bad credit rating

You can only wait for it to be removed over time when you have a bad credit rating based on negative information that is accurate. By law, a credit reporting agency can only report information that is negative seven years and bankruptcy for a decade. The reporting period goes back seven years or until the statute of limitations runs out for unpaid judgments. Criminal convictions and applications for over $150,000 of life insurance have no time limits. By needs to spend your bills on time and contacting the creditors you can start to change your credit profile to the positive side, but that will take time also that you cannot pay.

When you do decide to use a credit repair business

Start by getting a free copy of your credit report. Then assemble all your credit card bills and write them down. This will give both you and your credit repair company a point that is starting. By law, credit fix companies must provide a brochure, “Consumer Credit File Rights Under State and Federal Law” when a contract is signed by you for their services. This contract must specify your rights clearly, obligations and fees. The agreement must also clearly detail the explanations regarding the services they are going to perform it will take to see the results, and any guarantees they offer you for you, how long. Members of the National Foundation for Credit Counseling are non-profit organizations providing free and cost that is low to consumers with many plans, covering many types of credit utilized, including house mortgages.

Credit repair organizations can help if you should be drowning in debt. Before you sign a contract, check out these low cost and free options you can do yourself.

Copyright 2005 Ed Vegliante.