Credit Report Repair Advice
How To Repair Your Credit Report
By Tomkin Coleman
A credit report is run on a buyer when he or she needs to buy something that
will take a long-term loan, such as an automobile or a house. The credit
report can come from one of three agencies – Equifax, Experian, and Trans
Union. Each of these three agencies uses their own techniques of arriving at
a credit score and receiving credit information, so attention should be paid
to all three. A credit report score can go up to 800, and an increase of 50
points is a big one, enabling borrowers to get loans they previously were
denied, and getting loans at much better interest rates. A 1% drop in an
interest rate on a $150,000 house, for instance, may drop a payment by over
$100 a month, saving the borrower over $35,000 over the life of the 30-year
loan.
Each of these credit agencies have taken all the financial
information they can find about you and tabulated a credit score from those
results. Information will include your current and previous home addresses
and employers, the credit cards and loans you have, and any late payments
made over the last ten years. These agencies’ credit reports will be very
similar, but there will be differences, as they all make mistakes, and the
banks and credit card companies giving them the information make mistakes,
too.
Here’s where you can improve your credit score. Any request for a change in
information in a credit report must be answered and corrected within 30 days
because federal law regulates the credit bureaus. If you write in to a
credit bureau complaining that one of the late payments on your credit
report is wrong, they must investigate and correct the information within
the 30 days, or delete the information. Because this deadline is very
difficult to make, often the late payment report is simply deleted off of
the credit report.
This procedure is very slow and time-consuming, and you can either do it
yourself or hire an agency to do it for you. Each letter should only request
one change, otherwise the credit bureau will usually declare the request to
be frivolous and thus they are not required to do anything. Each letter
should be written to all three credit reporting agencies. These agencies,
Equifax, Experian, and Trans Union, all have PO boxes specifically set up
for complaints, but they change the PO Boxes often to make it difficult for
customers to find. Every month you, or the agency you have hired, should
send out another letter referring to a different mistake in your credit
report. After many months, your credit report will show many fewer late
payments, perhaps even none, and your credit score will have improved
dramatically.
The author runs the finance website http://www.pawninfo.com about short-term
loans and payday loans, and any or all of this article may be reproduced in
any form as long as there is a link to the website. Pawn Shops and Short
Term Loans
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