Now that you know the value of good credit, you can begin making changes to your current financial planning. The best things you can do are simple.
It is essential to understand that Credit Bureaus are nothing more than record keepers. Simply put, they keep a record of who has given you credit, when they gave you credit, how much credit you are given and whether or not you paid it back on time. When you want to obtain credit cards, loans, financing for a car or a home mortgage, leases, apartments and sometimes even employment, the lender or bank will check your credit to see your financial history.
Credit Bureaus are paid by the people who request your credit file. Credit Bureaus have no legal power over you so don't be intimidated by them. Due to the tremendous amounts of information on their computers, their method of storing information is very basic and ridden with many errors. Since the bureaus have made so many errors in the past, all Federal Laws regarding credit information are very much in your favor.
The only thing you legally need to supply the credit bureaus for a copy of your report is your name, your social security number and a legal mailing address (P.O. Box is a legal address). If you don't want to chance harassment by creditors or lenders at any time, it may benefit you to acquire a P.O. Box.NEVER give credit bureaus more information than they need!
The bureaus also have a right to request a copy of your social security card, but only give a copy of the front. They also may request a copy of something showing your address if it is different than what is showing on the report. Send them a billing statement that has your address. Do not send them a copy of your driver's license as they request.
Remember these bureaus are information-gathering companies who sell your information, not only for credit, but also for promotional reasons.
Before going any further, you should have copies of your current credit reports. If you don't, request one from the 3 major bureaus.
The Credit Bureaus must send you copies of your credit file, free of charge if you were recently denied credit. They will also provide you with one free copy each year.
Do not use letterheads
Do not photocopy a fill in the blanks form letter
State the item you are disputing, but do not use dispute forms or file numbers provided by the bureau. This will cause fewer delays by the credit bureau asking for clarification.
You can dispute mistakes or outdated items for free. Under the FCRA, both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report.
Disputing items on your credit report is not an easy task, you will need a great deal of patience and you will also need to be persistent and not give up. Don't take “No” for an answer! If you want the negative items off your credit report, don't just take your first answer and give up. In fact in most cases when it comes to fast credit repair, persistence is what triumphs. Just keep disputing and eventually you will win. Remember the credit reporting agencies are required by law to investigate your disputes, so don't let them bully you into thinking that it is not possible to have things removed from you credit report.
Note: You can add an explanation to your report. If there is a good reason why you weren't able to pay bills on time (job loss, sudden illness, etc.) or you refused to pay for something because of a legitimate dispute, give the credit bureau a short statement to include in your file.