Getting a start on credit repair |
By David Pilley on July 18, 2011
.jpg.aspx?width=166&height=20) In the world of credit repair, you have the power to do it yourself. Credit counseling is always an option if you need help, but there’s no better boost to your self-esteem than tackling your own problems. A great start is, well, knowing where to start. What do I need to do to get my credit score out of the subprime and back into the prime range? The answer is to obtain your credit report from all three credit bureaus.
Your credit score may be the single most important factor in getting a new loan with an affordable interest rate, so obviously you need to know what the credit companies know about you. You can go to annualcreditreport.com and get your report from all three companies: Equifax, Experian, and TransUnion. You are allowed one free report from each company, and when you order a copy, it should take about two weeks for you to receive it.
Now, you’ve probably seen the commercials on TV about getting your free credit report. Some of the commercials show a visualization of the three scores, usually two tall men with a number above 700 and a shorter fellow with a number in the 500s. How is it possible to have two prime scores and one subprime credit score? Well, this is why you need to read your reports carefully (and also why you need to check all three credit bureaus). Credit bureaus create their reports on what they receive from creditors. For one, not all creditors report information to all three bureaus. (It seems like the world would be a much simpler place if they did, but then again there’s not a lot of people out there who like doing paperwork.) And second, credit bureaus don’t verify the information they receive from creditors. You need to look through all three reports and note anything different. It may be something as simple as a misspelled name or incorrect mailing address. It could also be something more damaging, like an incorrect credit card balance or even an account that isn’t yours.
If you find anything wrong, you have the right to dispute it. You can report your findings to the credit bureaus, and they will investigate and respond to your claim between 30 and 45 days later. If the incorrect item is fixed and removed, the one score in the 500s can shoot back up into the prime range, and you will be a much happier person.
Knowing where to start can make all the difference in solving your everyday problems. With credit issues, always obtain a credit report from all three bureaus. Chances are they might not be as informed as you think they are.
|
Current Rating: 0 (0 ratings)