The next step to repairing your own credit after getting copies of your credit report are as follows.
Now that you have a copy of your credit report, you must read it and review it thoroughly. It is very important to make sure your credit report is up to date and accurate. This information is used to determine your credit score.
The following is a list of things you want to check on your credit report. If you do not know how to read your credit report be sure to view my sample credit report page which shows how to read an example credit report.
- The creditors Name, Address, phone# and account#
- The date the account was opened
- The type of account, (auto, mortgage, credit cards or revolving etc)
- The credit limit or original borrow amount
- Reported since, (date account started being reported)
- Terms, (lenght of mortgage, auto loan, if credit card, NA)
- Monthly payment( credit card may show “0” since min pmt varies
- High balance ( showing your largest obligation)
- Recent Balance
- Status (Open/Current; Paid/closed, never Late
These are most things to look for there are a few more. be sure to check out the sample credit report page for full details on how to read your credit report.
Double Check!
First check your personal information. Your name , middle initial and last name, and any sir name, like Jr or Sr etc., There are many errors found due to having the same name as someone. Also check your address it could be wrong for the same reason.
If you find any mistakes in this section notify that credit reporting agency directly.
Never forget that humans are inputting much of the data that goes into your credit report and millions upon millions of credit reports are generated each year. there are bound to be errors.
Check It! Verify it! Dispute it!
Review your credit report carefully. Are there any accounts that you hav not heard of? Are there amounts, dates, or any information that appear incorrect? Compare the credit reporting information with your own records. Make sure these items are really yours and is accurate. Errors in your in your personal information does not affect your credit score, but still need to be corrected. Errors or unidentifiable information especially a PO Box if not yours can indicate identity theft, or the credit bureaus may have crossed some one else information on your credit report. That type of error may affect your score. If not for this review you wouldn’t even know why your score was so low and that it should be higher. This process may takes some time, several hours. Remember, time is money, and so is having good credit. All your interest rates are determined by your score, so a few hours of your time to check your credit report is a great way to invest in smart time.
How to get the dispute removed?
Filing a dispute for an error on your credit report is one step, but often you have to follow up to have the dispute removed.
Make sure to be diligent in your search for errors, the credit bureaus are known for making many mistakes. Find an error? File a dispute as soon as possible! You can file a dispute for free online, over the phone or by mail. You don’t have to pay anybody to do this, but most people will do and pay heavy cost. Contact me if you require my help, have a question, or simple prefer for me to do it for you. Fill out the contact form and I will get back to you ASAP. It is easy, so I recommend you do it yourself and save money. Our letter template are only 2$ each, and that just covers admin cost.
Once you file a dispute, the credit reporting agency contacts the lender or creditor or the credit card company. If you file in writing make a copy of the current credit report. Highlight the credit report number, the date , and actual error. Your letter should include your basic information, plus a copy of current utility bill as proof of residency. Make sure the bill shows your name and address and include a copy of your state issued ID. Include a detailed explanation of each error, along with your statements, or whatever else you have to prove your dispute.
The credit reporting agencies has 30 days to resolve the dispute. If they can not prove the error, the item has to be removed until they can prove that it belongs to you. See debt “Validation Letter Template”
Step 1 : Download dispute letter template.
The collections agency may not respond. A simple stall tactic, if so, send a follow up letter. Download “Follow up Proof of Debt Letter”
Another stall tactic is the agency will send you a letter head with name of creditor and balance, but that doesn’t prove anything. If they continue to send this, Then you need to send “Validation of Debt Notification” This requires real proof, like original contract , etc….
This part of fixing your credit is the tricky part and is where you can get the run around. Don’t worry you have the FDCPA and the FCRA on your side. They have a certain time to respond, you just have to be diligent and follow up and send out all the letters certified. Each dispute must be followed up with, not required by law but will help your case. They have thirty days to respond to your first dispute, if they do- not send follow up, but you may then send the letter to the credit bureaus to correct the information.
After they have not responded to your dispute, or have not validated the debt in the thirty day time period, you then must deal with the credit bureaus. When dealing with the credit reporting agencies it is recommended that you send a letter to correct the information. “Correct Information Letter Template” . After, thirty days send a follow up letter. This “Follow up Correct Information Letter” has a little more attitude as it points out what must be done per the FDCPA and FCRA.