Simple Outcomes From Credit Repair
Low credit scores are fairly common these days and the recession in the economy has just made it more acute. You can have an excellent credit score and miss just one payment and your score can drop as much as 100 points or more. One concern is that many people do not have any idea about how credit scores are measured, how they can drop and how to increase them.
Credit scores are based upon a combination of a few different things. Of course, it is partly if you make your payments in a timely manner but there are other things too. One of the most crucial things that the credit bureaus look for is the difference between how much credit you have accessible and how much you are using. If your credit cards and credit lines are maxed out at the limit your score is considerably reduced.
When you are looking at your credit remember that the best credit scores go to the people who use only 30% or less of their accessible credit limits. You can raise your limits or pay down your balance to get below 30% but of course the best thing would be to never go above the 30% mark in the first place. Having accessible credit but not using it is a determination of a good credit risk.
Longer-term credit is looked at more positively than shorter-term credit so if you have older credit cards use them more frequently than the newer ones. Of course, all of the same rules apply, make your payments on time and never exceed more than 30% on the balance. Paying it off every month rather than carrying a balance is always best.
It’s very important you know that you have the legal right to dispute any negative information found on your credit report. The Fair Credit Reporting Act was enacted to defend consumers from false information on their credit. When you file a dispute the bureaus and the creditors must prove the accuracy of the debt within a short period of time. If they cannot or do not prove the accuracy within the allotted time period then the information must be removed from the credit report.
The creditors and the bureaus have 30 to 45 days from receipt of your dispute to verify the accuracy of their information. However, the benefit you have, as a consumer is that it is estimated that as many as 40% or all disputes are never verified. That means that up to 40% of all disputed information is removed from the reports. You can use that fact to your benefit.
As you start disputing the negative information on your reports make sure that you keep exact and detailed records. Send all correspondence via certified mail and make sure you keep accurate dates. Also make sure you send a separate correspondence for each dispute.
It will take some organization and determination to repair your credit but you can do it. You have the legal right to dispute any negative listings and you need to do all that you can to repair your credit. It will definitely be advantageous to your financial future.
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