Fixing Credit Problems

Checking your credit reports, and fixing credit problems when they show up, should be part of your regular routine in handling your finances. Especially in times like these when lenders are cracking down on credit requirements and with identity theft on the rise like it is.

But before you can fix any credit problems, you need to first find out what the problems are. You begin by pulling your credit reports from the three major reporting bureaus; TransUnion, Experian and Equifax.

Everyone is entitled to one free credit report each year from the three bureaus. Simply go to AnnualCreditReport.com to receive your free reports from all three bureaus. This site is the only authorized source for people to access their free annual credit reports online.

If you have already gotten your one free report this year, you must contact each bureau individually. You will be charged a small fee for each report.

Experian
PO Box 740241
Atlanta, GA. 30374

Equifax
PO Box 2002
Allen, TX. 75013

TransUnion
PO Box 2000
Chester, PA. 19022

Another option is to sign up for an automatic monthly credit report service. Not only will you receive your credit reports, you will also receive your actual FICO scores from each bureau. Your FICO scores are what lenders use to gauge the creditworthiness of the borrower and determine the interest rate charged. The cost of the service is minimal and is extremely helpful in achieving and maintaining an excellent credit score.

Numerous studies have been done that show a majority of credit reports contain errors of some sort or another. So once you've gotten a copy of your credit reports, identify any errors you find and take steps to get those errors corrected and removed. You can do this yourself or hire a repair company to do it for you.

Carefully check your reports for accuracy. Begin with the spelling of your name, and then check to be sure the addresses you've lived at are correct. Then check for any omissions or other errors. Especially be sure to verify that all creditors are yours and that the payment history shown is correct and the balances are accurate. Make a note of any and all inaccuracies you find.

The dispute process is the same whether you do it yourself or if you hire a repair company to do it for you. Write the bureau reporting the error, or errors, and explain what the error is and why it is incorrect. Ask them to correct the problem or remove it. They are required by law to investigate the disputed item and provide you with their findings within 30 days. If they are unable to prove the accuracy of the dispute, they must remove it from your file.

Bob Pering writes about credit repair, debt management and personal financing solutions. Special emphasis is given to the problem of derogatory credit histories in credit reports and what you can do to legally repair or erase them.

For more detailed information on this or other credit problems and solutions, visit my website at: http://badcrediteliminated.com/diy.html. Find tools, tips, suggestions and ideas on how you too can quickly improve your credit scores.

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