by Bob Jones
Negative comments on your credit report can cost a lot of money. You do not have to give up though, because it is never too late to repair your credit worthiness. However, remember that credit repair does not take place overnight. It requires serious dedication and perseverance to start with a clean slate once more.
How to Get Started: You should know who the three credit bureaus are and what they are saying about you. Since creditors do not have to report to Equifax, TransUnion and Experian all together, they generally only report to one or to those to which they are subscribed. This means that the reports from the bureaux are often a bit different from one another.
The first thing you ought to do is to order your credit report. Remember to order it from each bureau since you would only waste your time and money if you just order a credit report from one bureau. The cost of the credit report might vary from state to state, although we think that the cost of your credit report is about $10.
However, you are entitled to a gratis copy of your credit report from the agency, if you have been denied employment or credit due to a bad credit report. You must ask the company to send the name of the credit bureau, telephone number and address.
Once you get your hands on your credit report, look at it very carefully, since the credit bureaus create your credit report based on the details they receive from your creditors, which is never verified. It is up to you to ensure your credit report is a good reflection of your status.
Be especially on the look out for typing errors, incomplete information, and out-dated or / and inaccurate histories of account transactions. After reading the report to ensure its veracity, list all the points you want to verify and the reasons why.
Since bad reports cost you money, remember to be thorough. You have two choices: either complete the dispute form supplied with your credit report or write a letter. It is also recommended to send a photocopy of your report with the errors circled to the credit bureau who supplied the report. Furthermore, do not neglect to include supporting documents with your report.
Before posting the documents and report, do not forget to keep copies of all the forms and the date you sent it. Normally, the bureau will investigate the dispute over the thirty days after receiving your letter. Then, any item that has been proved to be false is removed.
Stability in Your Credit Life: Another method of repairing your credit is to prove that you are working at adding positive information and stability to your credit life. Even if you have the required credit rating, there can still come times when you are denied credit due to insufficient credit information.
There are a minority creditors that do not normally report credit history to the credit bureaus, so what you can do is try asking these creditors to report their information about your account and the history of your monthly repayments to the credit-reporting agency or agencies.
You could also try creating a solid credit history by the use of secured credit cards. This type of credit cards is recommended for those with no credit status or who are in the process of repairing their credit.
Furthermore, it is advised that you open a savings account in your bank. Doing so, would show your creditors that you are trying to save and that you are reserving money for the purposes of paying off your debts and repair credit.