Fundamentals to Repairing Credit
People who know they have “bad” credit and are a big “credit risk” are usually aware that something has to change with the way they manage their money and debts.
You will need the “do it yourself” directions to assist you with this time consuming and sometimes discouraging project. However, you will be proud of the finished project.
The “credit risk” label is based on your “credit report” and “credit score.” Therefore, you need to know what those are all about. The credit score is a very important 3 digit number that a “credit risk” will need to raise. A score of 700 or more is “good.” If the score is under 700, this might be problematic. This information is essential to the repair process.
To find out this information, you will begin by obtaining your credit reports. You will need to be brave and confront these reports. There are 3 credit bureaus that supply reports: TransUnion, Equifax, and Experian. On a yearly basis, you are able to receive a free report (fee for the credit score) from each of these agencies. For the details on this procedure, see www.annualcreditreport.com.
A business does not always report to the same credit bureau. Therefore, you want to see all 3 reports for comparison. It is possible that they may differ.
After the comparison, examine each report for errors. Determine the nature of the error or errors and DISPUTE THE ERRORS. This will take some time but you are the one who has to fix it.
You will document any and all errors along with the reasons for the errors. You will send this written documentation with a copy of the credit report to each agency. Remember to keep copies of all documentation for your records.
This is the first information you need to have. Be prepared, there may be some surprises on those reports. Be persistent.