Credit Repair

Credit repair is something you should look into if you’ve been turned down for a loan of any sort or a line of credit. Credit repair is not just for those with bankruptcies, repossessions or liens. It could also benefit those with average credit, and I’ll tell you why.

With there being so many consumers and only 3 major bureaus, the chances of errors showing up on your credit report are quite high. You see, the bureaus are not run solely on artificial intelligence, they also depend on people, and everyone knows that people make mistakes.

The most common credit report errors usually come as a result of data entry issues. These errors are very easy to correct and could make a significant difference to your credit score. Sometimes credit repair is necessary even if you haven’t had so much as a late payment.

Often times, the negative information is very much correct but its impact on your life is such that you are propelled to dispute it anyway. Whatever the case may be, it is possible to fix your credit.

It’s not as difficult a task as a lot of folks make it out to be. I’ve done it for myself, friends, and family, without any previous experience or relevant background. In the following paragraphs, I will explain exactly how I did it in detail.

Step-by-Step Guide to Credit Repair

In order to begin the credit repair process, you will need a copy of your credit report. Per the FTC, you are entitled to one copy from all 3 major bureaus every 12 months free of charge. You can request it in writing or through AnnualCreditReport.com. Now, keep in mind that this is all that they are obligated to do. If you would also like to know your credit score, then you would need to go though a company such as Experian.

Once you have your credit report in hand, you should start things off by reviewing your personal information. Make sure that your name, addresses, and employers are being reported correctly. If they are not, take note of this and keep a copy for future reference as it may work to your advantage when you are disputing items that show this as part of your account information.

It’s time to move on to the negative items on your credit report. Negative items are pretty easy to identify because not only will they state late, charge-off, collections, etc. but they are usually decorated with a nasty little red x or something along those lines.

Make a list of these items and order them from oldest to newest. The reason for that is that except for bankruptcies, they are only allowed to stay on your credit report for 7 years after the account became delinquent (bankruptcies can stay for 10). So if you have any items that are overdue for removal, you’re in luck because that is an easy fix. In this situation, credit repair is not needed at all. Just a simple letter asking for the item to be removed as it is past the lawful reporting time-frame.

The bigger challenge comes from more recent items. You will dispute these items by sending the credit bureau that is reporting it a dispute letter. I recommend that you only dispute 2 items at a time, otherwise the credit bureaus may suspect fraud and thoroughly investigate your complaint, which is not something that would behoove you in most cases.

You may be wondering, why? Well, the reason that the credit bureaus are so willing to delete items from your credit report is because sometimes they have no choice. By law, they must validate your debt with the creditor who reported it within thirty days. Validation means a lot more than picking up the phone and having the creditor confirm that you were indeed late or never paid. They need to have concrete proof, such as something you signed. With the credit bureaus being bombarded by disputes and various inquiries every day it’s not impossible for them not to meet the deadline or in a lot of cases for the creditor or collection agency to not be able furnish the information in a timely manner, if they even have it. This is one of the main reasons why credit repair is entirely possible for the average person to do.

Which brings me to my next point. It is much easier for you to achieve a negative item deletion by asking the credit bureau to validate a debt than any other argument. So, unless you have concrete evidence of a specific scenario, I don’t recommend going any other route. Furthermore, never give the credit bureaus more information than they need. Remember that they are in the business of collecting information and if they can, they will use it against you. Especially if they suspect that you’re attempting credit repair.

Here is sample dispute letter:

Your Name
Your Address
City, State Zip
SSN:
DOB:

Credit Bureau
Bureau Address
City, State Zip

Date:

To Whom it May Concern:

This letter is a formal complaint that you are reporting inaccurate credit information.

I am very distressed that you have included the below information in my credit profile due to its damaging effects on my good credit standing. As you are no doubt aware, credit reporting laws ensure that bureaus report only accurate credit information. No doubt the inclusion of this inaccurate information is a mistake on either your or the reporting creditor’s part. Because of the mistakes on my credit report, I have been wrongfully denied credit recently for a , which was highly embarrassing and has negatively impacted my lifestyle.

The following information needs to be verified and deleted from the report as soon as possible:

CREDITOR AGENCY, acct. 123-34567-ABC

Please delete the above information as quickly as possible.

Sincerely,
Your Signature
Your Name

enclosure: Copy of driver’s license, whatever else you think you should include.

Make sure to fill in all the information including your social security number and attach a copy of your driver’s license. If you have lost track of your debts and don’t have your account number, you can say something like “I have no record of this account. Therefore, I cannot provide an account number”.

I suggest that you take the time to add a personal touch to your letters as this will greatly increase your credibility.

Here’s an example of a letter I sent that helped me get a negative item deleted to help you brainstorm:

Jane Smith
1234 W 56th St
Miami, FL 33101
SSN xxx-xx-xxxx
DOB: 7/17/1977

TransUnion
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022

Date: 06/10/2011

To Whom it May Concern:

This letter is a formal complaint that you are reporting inaccurate credit information on my credit report.

I am very distressed that you have included the information noted below in my credit profile due to its damaging effects on my good credit standing. As you no doubt are aware, credit reporting laws ensure that bureaus report only accurate credit information. No doubt the inclusion of this inaccurate information is a mistake on either your or the reporting creditor’s part. Because of the mistakes on my credit report, I have been wrongfully denied credit recently for an auto loan, which was highly embarrassing and has negatively impacted my lifestyle. I was never notified of this alleged delinquency and do not have a complete account number to provide. I have attached a screen-print of my credit report where this information appears.

The following information needs to be verified and deleted from my credit report as soon as possible:

PINNACLE CREDIT SERVIC, acct. XXXXXXX

Sincerely,
(My signature)
Jane Smith

enclosure: Screenprint of credit report, driver’s license

It is extremely important that you send your letter via certified mail, get a return receipt, and document everything. Remember that time is your biggest ally in the credit repair war. All your work will be for nothing if they turn around and say, “We never got it” or if they say they did get it but you have no way of proving that they did not act within the legal time-frame. That would really stink.

Here are the addresses for all 3 major credit bureaus:

Equifax
P.O. Box 105873
Atlanta, GA 30348
(800) 685-1111

TransUnion
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
(800) 916-8800 or (800) 888-4213

Experian
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742

In the event that your debt comes back validated, things can get a little sticky. Also, items such as bankruptcies, foreclosures, child support and judgments can be really difficult to have removed on your own because they are very easy for the credit bureaus to validate. In this case, you may want to consider working with a credit repair service.

However, most credit repair services charge you monthly, so the more you can do on your own the better it will be on your pocket because it won’t take them as long to handle 5 items as it would 10, for example. I had to seek the aid of a credit repair company myself when it came to dealing with my repossesion. Perhaps, you prefer a hands-off approach and would like for a 3rd party to work on your behalf. Whatever the case may be, be weary of who you trust your money and information to. There is only one company I recommend and you may have heard of them already. In my next post, I’ll tell you more about that.

Hopefully, your case is different and you can do your credit repair on your own. Not only will it be cheaper, but you’ll find it very fulfilling and you may even develop a skill that you can profit from as there are many folks that earn a living thanks to credit repair (many mortgage brokers and realtors can attest to that).

Nobody truly wants debt, but I would rather have debt than not be able to buy a house or car and I know most people feel the same. I hope this helps you and that you are successful in your credit repair endeavors.