How to Fix Credit Reports
If you’ve ever tried to buy a car, house or get a credit card then you know that credit is important, even if you never really bothered with it in the past. So now you’re probably stuck in a rough spot and not able to buy that big ticket item you needed with bad credit and you don’t understand how you got there. Here are the steps to getting your credit back into shape.
1. Get your credit reports – There are 3 of them and their names are Equifax, TransUnion and Experian. If you have never received a credit report before then you are due for a completely free one from each company. You need to go to each site and request your free credit report, they will give you a identification number of some kind, it is very important that you save this for future use. Print and save your credit report.
2. Analyze the reports for suspicious activity – This might take some time and research. You need to start with the section that has your previous address and aliases. What we are looking for is anything that isn’t your name or address in the past. This could be a sign of identity theft. Then got through the whole report and look for any credit that you don’t recognize. Keep in mind that items may show up under companies that you don’t recognize, because they will be listed by the main holding company. For example, if you have a Sears card it might show up as a Capital One credit card. If you find anything at all that might be suspicious write it down or circle the item.
3. Research – Next you need to research the suspicious activity. Call the companies directly and find out about the charges. If you still don’t recognize them then inform them that these charges were not made by you. They may have a process where they will report it themselves and remove it from your credit report. If they do not volunteer to do this, then you will need to dispute the information on your credit reports.
4. Check for errors – Now you need to go back through the reports and look for mistakes. This could vary from payments listed as not made when they were, to total running balances or dates. This information can greatly impact your credit score. Also, when it comes to reports, they can’t be on your credit report for more than 7 years. So if you see a negative item that is more than 7 years old you can dispute to have that information removed.
5. Dispute – There are two different ways that you can file a dispute. You can either write to the credit bureaus or you can file your disputes online. You’re going to need the ID number that you were given back in the beginning. If you write a letter then you need to list exactly what you are disputing and why. If you file the disputes online there will be a form that you fill out for each item.
6. Document everything – Make sure that you are keeping track of everything you do and keeping copies of everything as well. You may need this information in case something goes wrong or is misplaced.
7. Check your results – It can take up to 45 days for your errors to be addressed and researched. You will receive a letter regarding the outcome of your disputes within 5 days of it being closed. Now you need to go through and check for the changes. Just because it was resolved doesn’t mean the change will be effective immediately though. It can take up to 6 months for it to happen. You will need to keep checking (monthly is best) until the changes are made. If they are not made to your happiness or if you are not happy with the result then feel free to start the process over again.
Your credit is something that says a lot about you. It affects where you live and what you own. It’s almost impossible to purchase anything in the United States without good credit, unless you are able to save 100’s of dollars a month until you can afford to buy it outright. Improving your credit will help improve your life.