Are you paying the high cost of having a low credit score? This must be a result of having derogatory marks on your credit history. Did you know you don’t just have to live with this for seven long years?
Yes, you can remove items from your credit file. However it isn’t always the easiest road, but it sure is worth it. When you start looking at all the things and the way your score influences the quality of life you live, you can see how important it is to fix this. It can be the determining factor if you are: renting or own your home, the kind of car you drive, the purchases you can finance, and even the amount of disposable income you have.
How Can I Do This?
First, you need to find out what is on your report. Get a copy of each or your reports, one from each bureau. Now, you need to figure out what items are negative and bringing down your score.
Once you decide on what items you want to dispute and have the bureaus investigate you must write a dispute letter or hire a professional to file this with the bureaus on your behalf. If you do this yourself in your letter you need to include your personal information, the item you are questioning, and the reason.
The bureaus will then investigate this item. They will contact the debt collector or creditor that created the negative entry and ask them to verify the account. It is not uncommon for items to be removed due to creditors not verifying it. Often this is a financial decision on behalf of the creditor.
Let’s look at an example: if you have a credit card and quit making your monthly payments. After six months the issuer will write off your debt. You will get a charge off on your report, which is a very negative mark. Next the issuer will sell your debt to a debt collection agency.
Now when you dispute the bureaus and they contact the credit card issuer and ask them to verify your account the issuer in most instances will not do it. This is because they have already received payment for your account when they sold it to an agency and therefore have no legal rights to collect this debt. Additionally it will cost the issuer money just to keep the record of your account and money in man hours to have someone actually verify it with the bureau.
Use this to your advantage! No one ever said you have to just live with bad credit. In fact the Fair Credit Reporting Act which was passed in 1970 in order to protect consumers from the credit bureaus and creditor’s puts a time limit on the maximum amount of time an item can be on your report, seven years. However this law says nothing about the minimum amount of time an item must remain on your report. Stop living with the high cost of a low score and take action to clear your credit file.