As most people already know, credit problems and poor credit scores can cause a lot of difficulty to someone. You could be rejected for credit and if you are lucky enough to get approved, then you have higher interest rates and bigger deposits you have to pay. All this kind of stuff can cause a lot of chaos in someone’s life. For those of you who are wondering, there are some ways to repair your credit, but no magic wand.
Of course, the first thing you would want to do is get a credit report to see what you are working with. You should get three credit reports. Each of the reports will come separately from the three major credit-reporting agencies, which are Experian, TransUnion, and Equifax. Each year you are an entitled a free report, or you could choose to have them come in a combined report for a fee.
After you get the credit report back, make sure that everything it contains is accurate, since over 70% of credit reports have unrelated information. These may ultimately be the cause of your problem. Accuracy is not a quality of credit reports.
Many are not aware of the fact that credit-reporting agencies put together information and sell it. Whether the information is accurate remains irrelevant to them, since their payment depends on the information they provide and not accuracy. Really, the only person who cares about the accuracy of the information on credit reports is you.
This is where the Fair Credit Reporting Act comes in. Originally, they established as a way to help you to know what is on your credit report and gives you the right to dispute information within it. Legally, the only information that can stay on your report if you dispute it is not what they consider accurate, but the information that they prove as accurate.
The law gives you the right to dispute any of the information on your credit report. This process simply asks them to prove the information as accurate on your report. Any proof for information on there that they cannot prove, they must remove.
This gives you an advantage, if you decide to dispute information on your credit report. Essentially, disputes cost money to the credit bureaus and collection agencies, regardless to how it turns out and they cannot recover this money. This is part of doing business, but for the most part are geared less in their favor. They do not like handling disputes, due to loss and gives the smart consumer an advantage.
Despite the accuracy of your credit report, there is no one that cares other than you. You have the choice to repair you credit by the help of a credit-repairing agency or on your own. Take the initiative to repair as much as you can on your credit report, rather than having to deal with the problems.