Ways to fix your bad credit

Do you have bad credit? This article explains how to fix bad credit and how the best credit repair services can help.

Before making a significant purchase, you need to inspect your credit report so you will know about your credit history and so you can check to make certain it is accurate. Just one blemish on your credit report can have a considerable negative impact on interest rates or loan approval. Knowing about your debt to credit ratio, payment history, and accounts can help you prepare for acquiring new debt.

If you have had problems with your credit history, you may want to try to fix your credit rating by using the service of a credit repair agency. They will work to get your credit history cleaned up, and get delinquencies, charge offs and excessive debts removed from your report and out of the view of potential creditors.

Credit repair services can improve your credit enough to lower interest rates, which in turn, can save you thousands of dollars on a loan. When making a significant purchase, such as buying a home, it is important to make sure your credit rating is at its best in order to get the best rate and terms possible.

Credit Repair Services

There are multiple credit repair services available to help you fix your credit woes. A credit repair service will look over your credit report and then dispute anything that you may believe is not accurate. While some credit repair services make false claims, there are legitimate firms that will work to improve your credit and make an amazing difference in your overall credit rating. The legitimate operations know how to take care of business and get satisfactory results.

Many of the credit repair services have extremely high success rates. Before selecting a company to work with, check Better Business Bureau records and other agencies that maintain consumer reviews regarding services. Also consider what services are included in the price and what services will meet your personal needs.

How Credit Repair Services Work

Legitimate credit repair agencies will tell you that they can not guarantee that they will improve your credit score by leaps and bounds. Those credit repair services that have been around for a while and that operate honestly know how to navigate the rules, what loopholes to look for and how to approach your credit issues so they can work to get your credit rating upgraded.

There are federal laws that are designed to protect the consumer. If a creditor violates these federal laws, they have a limited time to correct the error on the report or they could be required to pay you $1,000 for damages. The Fair Credit Reporting Act (FCRA) works to protect the rights of the consumers from improper and illegal collection practices.

Steps to Fixing Bad Credit

Here are the steps required:

1. Dispute any questionable credit entry that is on your credit report. If you are not familiar with the debt, or if you dispute the information that is provided, then dispute the results.

2. If they verify the item that you have disputed on the report, get your copy of the report and call the credit bureau using their toll-free number.

3. Using the reference number from the credit report, ask the credit bureau how they verified the entry and ensure they used a method of verification as instructed in FCRA Section 611(a)(7). If they did not use the entry that the law requires, you can dispute it farther.

4. Most often, credit bureaus use an online program that automates the verification process. If they cannot provide you with solid proof that they actually made a phone call to the original creditor, ask for the phone number of the original creditor so you can contact them yourself.

5. For the next step, call the original creditor and ask them to provide you with a copy of your records. If the original creditor indicates that they have no records, call the credit bureau and inform them of the name of the representative you spoke with, the number you called and that the original creditor has indicated that they have no records. At that point, you can open another dispute.

6. If the original creditor tells you that the collection agency holds the records pertaining to the debt, ask for the number for collection agency and call the creditor directly asking for the records under the new FACTA Act. When you get those records, immediately look them over to check for inaccuracies. If the records do not prove that the negative entry belongs on your credit report, call the credit bureau and ask to open another dispute, providing them with a copy of the report to assist in your dispute.

7. If the credit bureau includes a negative item for more than 7 years, which is the statute of limitations on your credit report, they are violating the FCRPA. In the event of such a violation, the consumer could be entitled to $1,000 in damages plus legal expenses. Delinquent debt must be removed from the credit report as soon as the statute of limitations has passed.