Understanding and Repairing Credit Problems

Credit problems and low credit scores can cause a person great difficulty. Higher interest rates, bigger deposits, denial of credit applications can all cause great chaos in your life. So how can you help yourself and repair what you can in order to simplify your financial life?

First off you will need to get a credit report from each of the big three credit reporting agencies, TransUnion, Equifax and Experian. You are entitled to one free report each year. You can also pay a fee and get a combined report that may prove to be helpful.

As soon as you get your report, check everything for accuracy. It has been reported that as many 79% of all credit reports contain erroneous information. It may be the errors that are causing you so many problems. Credit reports are not known for accuracy.

You should be aware that the credit reporting agencies are paid to compile information and sell that information. They do not care if the information is accurate and truthful or not. It does not matter because they get paid for the information period and to them the accuracy of that information is irrelevant. In fact the only person who cares if the information on your report is correct is you!

But the Fair Credit Reporting Act was enabled to help you. You have the right to know what is on your report and the right to dispute what is on your report. In fact, the only information that can legally stay on your report if you decide to dispute something is not what is accurate but only what can be proved to be accurate. You do not have to prove accuracy but the creditors and collection agencies must prove that their information is accurate.

You have the right by law to dispute any information that is on your credit report. You are simply asking the creditors and collection agencies to prove that what they are reporting is accurate. If they can not provide proof then the information must be removed.

You do have an advantage when you dispute information on your report. The fact is that disputes cost the credit bureaus and collection agencies money and regardless of the income they can not recoup that money. For them it is a cost of doing business but essentially all of the costs incurred with handling disputes are considered a loss. Therefore they do not like to handle disputes. A wise consumer can use that fact to his advantage.

Whether your credit report is accurate or not is your responsibility. Nobody else cares. You can repair your credit either on your own or with the help of a credit repair company and it is smart to repair it as much as you can rather than dealing with the problems.

Source by Karen Lynch

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