Family Issues

It is costly to have errors on your credit report.  No need to worry.  Getting started is the initial step.

Just follow these simple steps.

1. Order your credit reports

Creditors are entitled to a free credit report from the credit bureau. The bureau’s name, address and telephone number must be supplied by the credit company. After receiving a letter that your loan request has been denied, you have 60 days to ask for a copy.

2. Examine your reports carefully

It is your job to keep your credit report true and accurate. Polish any inaccurate and incomplete information.  Check for typographical errors.  Be thorough about your dispute.

3. Double-D strategy — dispute and document

In a written letter, point out your disputes and explanation.  Have your credit report photocopied and encircle the mistakes. Submit supporting documents.

Once the changes are noted, a free and updated copy of your credit report will be sent. Once removed, a negative item cannot be placed back unless a creditor confirms its correctness.

4. Solve and dissolve debt

Devise a spending plan as a means to reduce your debt and set up timely payment.

If you are encountering payment difficulties, be proactive. Keep in touch with your creditors and negotiate to keep your account updated so that you will not have any delinquent or “bad debt.”  Ask for a reduction in your monthly payments or a change id due date.

Deal with accounts that need to be collected.  Having unpaid collections is far worse than having paid collections. Ask for a pay-off settlement or removal of all derogatory remarks in your credit report.  Have verbal agreements written in black and white before making any payment.

Get rid of unneeded or unused accounts.  Limit yourself to carrying from two to four credit cards.

5. Add stability to your credit file

Work out steps to add positive information and show stability in your credit report file.

Some reasons for denial of credit may be due to insufficiency of your credit file although you have credit.  Some companies do not report credit history to credit bureaus.  Work out with the credit company for the possibility of having your account reported to a credit-reporting agency.  Do not let your credit status go dormant if you already have bad credit. Re-establishing good credit may improve credit rating. Establish a solid credit history.

Finally, open a new savings account in your bank. This is a signal to creditors that you are taking steps to save and that you have enough funds to pay-off debts.

Tags: Credit Repair, Bad Credit, Credit Cards, Unpaid Debts, Credit Reports