Do you know what makes up your credit score?
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There are quite a few credit repair secrets your creditors and the credit reporting agencies do not want you to know about. When you start taking measures to repair your credit, it can cost both the creditors and the reporting agencies a great deal of money.
There are many different credit repair secrets they do not want you to be familiar with, but the one we want to focus on here is the ability to dispute negative items on your credit report.
You can significantly improve your credit by disputing the negative items you find on your credit report. Using a correctly formatted letter is the way to accomplish this, and when you do so it is always a good idea to keep a copy of the letter you send.
You may also want to send along a copy of your credit report so they can see where the problem is. The following are a few simple steps to help you effectively dispute the negative items on your credit report.
Step #1 – Get a Copy of Your Credit Report – Once you have your report, make sure you look it over for any mistakes. For every separate listing on your report, check out the information to make sure it is really yours.
At times you may find a wrong listing will end up on your report, so if you take care of these first, it will probably help to get rid of the other negative items.
Step #2 – List the Items You Want to Dispute – After taking care of wrong listings, then you can start looking at the negative items on your report and make up a list of things you want to dispute. You should put the most harmful items at the top of your list to be taken care of first.
Then it is time for you to start writing. Each separate item should be addressed in a separate letter, and you should be sure to send the letter to each of the credit reporting agencies. Remember, this is one of the many credit repair secrets because agencies do not want to be disputed, but doing so is legal and will help to repair your credit.
Step #3 – Personalize and Use Strong Language – One of the reasons these credit repair secrets are so “hush hush” is because creditors and credit reporting agencies do not want to investigate or get rid of the negative items on your credit reports.
You are going to have to use strong language and a great letter to get through to them. Although they may give you some trouble and tell you that you are not allowed to dispute items, remember what you are doing is legal and they are required to investigate the problem. Let them know with your words that you mean business.
It will take a few weeks for everything to get underway, but after the credit reporting agency investigates, then a new credit report should be issued. Make sure you check out your report to be sure negative items have been taken away. This is one of the best kept credit repair secrets, but once you learn how to use it, you can effectively repair your credit report.
If you spend any time on the Internet, you have surely seen the many ads offering free credit scores. It sounds like a good deal, except credit scores are never really free. You will pay one way or the other. To get your rating from one of these companies, you will have to sign up for one of their services, usually a credit monitoring service. That is not necessarily a bad idea. It can help protect you from identity theft, and alert you to credit checks by businesses that want to offer you a pre-approved credit card or loan. But, it’s never really free.
If you do not want to join those programs, you can pay for your score on the FICO website. The only time you can get free credit scores, and the reason why you do not want them, is when a lender denies you credit. A new law going into effect in mid-2011 requires lenders to send the applicant their credit score when they deny their credit due to a low rating. This is a good thing for consumers put in that unfortunate position, as it will eliminate all of the mystery surrounding a consumer’s credit rating.
Don’t confuse free credit scores with free credit reports. You can get a free report once per year from all three reporting agencies. You can also get a free credit report anytime someone denies you credit. Just contact the reporting agency, and they will mail you one. The report doesn’t show you your credit score, but it does give you a lot of good information about your credit history.
Your best bet is to maintain the finest credit history you can. If you have a great rating, you will be approved for most loans. If that happens, you won’t get free credit scores. That is a good thing. If you must know your rating, you can go ahead and pay to get it.
Knowing how to avoid credit repair scams can save you a lot of time and money. There are some legitimate companies that can be helpful, such as credit counseling services, but if you end up with a fraudulent company, you’re bound to be out quite a lot of cash. In reality, a sure-fire way to avoid these scams is to repair your own credit.
These scams involve promises of cleaning negative credit information from your credit report. There is no legal way to do that, so don’t believe the hype. Other things to look out for are companies which charge fees before they provide a service, and companies which recommend you start a new identity to get a fresh credit report. These companies may also tell you to dispute all items on your report in hopes the loan provider will not respond to the dispute, resulting in the removal of the item. They may advise you to avoid direct contact with the reporting agencies so you do not learn the truth about their scam.
You can repair your own credit, and you do not have to waste money paying someone else who only offers promises. For starters, you can request a free credit report from each of the credit reporting agencies. You are entitled to one free report per year, and a free one anytime you are refused credit; so do not pay a company to give you your report. Check the report for accuracy. If you find erroneous items, send a letter to the reporting agency stating which item you’re disputing, and why. Be honest and do not dispute just hoping to get things removed.
After that, you need to start building good credit. It will cost you extra in interest fees, but you can provide your own credit repair by paying on a new loan or credit card. Get a secured card and keep up with it according to the agreement. While you are building your credit with it, other items will eventually fall off your report. Most unpaid items disappear after seven years.
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