You CAN Repair Your Own Credit

October 13, 2009

Have you ever applied for a charge account, personal loan, insurance or job?

Chances are you have. If you have, they have a file on you. This file includes a bunch of personal and financial information about you. It includes where you live, work, how you pay your bills, whether you’ve been sued, arrested or ever gone bankrupt. And just who are “they”?

They are the Consumer Reporting Agencies (CRAs), small companies across the map that get this information about you and sell it to other companies for a profit.

The CRAs sell this information about you to Credit Reporting Bureaus (CRBs). There are three Credit Reporting Bureaus: Equifax, Experian and Trans Union. What they sell is basically what is called a consumer credit report. You already know that a consumer credit report is used to evaluate how worthy you are financially to receive a loan of any sort.

What’s staggering about all this is how wrong most of these reports that the CRAs sell are. Over 75% of all credit reports contain some sort of error that will affect your ability to get the loan, mortgage or lease or a car you need.

Surveys show that almost all consumers have at some point or another in their lives have a problem with inaccuracies on their credit report. 25% of all credit reports contain an error so great that it will prevent a consumer from getting credit easily.

There are certain rights that all consumers have that very few people know about. It’s my intention to inform you of them now becuase regardless of what anyone tells you, you CAN repair your own credit!

In fact, anyone who has a credit report has a right to dispute anything that appears on your report. Once an item is disputed, the credit bureau must prove that it is true, or they must remove it.

More often than not, what happens is that credit bureaus can’t prove the information they have, and they are forced to remove the information.

The first step is always to get your report so you can see what information the bureaus have on you. As I said previously, there are three of them. It’s more than likely that more than one of the bureaus has information about you, so you should contact all three and get each report.

You can get all 3 reports with a free score at Free Credit Score.

I’ll share some steps to begin removing negative entries off your credit report in my next post.

To your good credit!

Amanda Layne

Category: Credit

7 thoughts on “You CAN Repair Your Own Credit

  1. The 4 best steps to get out of debt

    Step 1: Carefully budget your money, remember, there is always a way to spend less money. I know you’ve heard it a millon times, however, it is true. For example, by forfeiting that morning coffee or the lunch that you purchase everday for five or ten dollars a day, it adds up to more than you expect. You do the math, by the end of one-month you would have saved yourself a pretty penny to put towards your debt.
    Step 2: Pay off your credit cards with the lowest balances first (this could be accomplished with your beer money) not the ones with the highest interest rates. The reason for this is the credit cards with the lowest balances will be paid of quickly and once these smaller balances are out of the way you can then use the combined money that you were paying on those credit cards to put toward other credit cards with higher balances. If you use this method, not only will you be debt free faster, but it will give you a sense of accomplishment because you have paid off one of your credit cards, and, do wonders for your credit score.
    Step 3: Try to make a extra one hundred dollars a month. Take this extra hundred dollars and use it (in addition to your snack money) to pay off the smaller debt we talked about in Step 2. Come on, I know you can find some legal way to make an extra hundred dollars a month if you put i mind to it. You found thousands of ways to spend this money in the past, let’s figure out one way to earn it. It may be easier to say to yourself “What can I do to earn 25 dollars a week”, same goal just may sound more realistic if you look at it from this perspective. Okay, if one-hundred is still too much, start with a smaller goal, and work your way up.
    Step 4: Talk to all of your creditors to see if thay can work with you on your interest rates and payment. Depending on your creditor this could also tie into step one. It is much harder right now with the banks trying to get every penny they can but it’s worth a try, this could save you a few payments or get you a reasonable payoff.
    With these basic steps you should be well on your way to being debt free. And if you will like any more info about debt please visit us at http://www.bdwassociates.com.

  2. Its just that people are just to lazy and do not want to move to get things fixed. Well. even if you start monitoring your reports it can help clear of a lot of problem and get your focused on things that needs to be worked on. Also it can help you from being a victim of identity theft. But all this require that you move yourself and take the effort

  3. My spouse and I repaired our credit scores significantly by simply contesting older and bad claims. A lot of what we found to be hurting our credit were stuff that we were unaware of. Due to that we are strong believers in having your credit checked regularly.

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