Raise Your Credit Score-Re-Build It The Right Way And Save $$$
December 26, 2009 by Dan O Spark
Filed under Bad Credit
Most people are surprised to learn how much information about them is included in a credit report. This is a big collection of all the financial transaction related to credit and loans done by the individual with different businesses, institutions and organizations. The report also contains information on the current and past addresses together of any criminal or legal action or convictions and even information on bankruptcies if there were any of course. This information is a key factor in determining the credit worthiness of a person, something very useful for businesses, institutions or employers considering extending credit to a person. This is why credit agencies invest in gathering this information than charging the businesses for this information.
It is very beneficial to have a good credit report because it means it is much easier to get credit or borrow money. The other benefit is the lower interest and better terms one gets resulting in smaller payments for any given loan. These days it is very easy to fall for scams that promise to erase negative information from the credit report even if it’s true. They advertise in every available media about the great service they can do for a fee of course. Watch out for these offers as you may loose more money because the fact is that no one can remove negative items from a report except the owner of the report by making a commitment taking serious action to repay the outstanding bills and increase your credit score.
The Fair Credit Reporting Act (FCRA) was designed to assure that the data in each personal file of each consumer is accurate, kept private and it is used in a fair way by the official reporting agencies in the country. The FTC from its part is a key factor in imposing the FCRA on these agencies. The FCRA was recently expanded to further protect the consumers with new demands from the reporting agencies. These new additions are also imposed by law on the businesses that provide the information to the reporting agencies.
According to the FCRA both sides that create the report, the reporting party (Businesses, organizations and individuals) and the reporting agencies are responsible to correct erroneous information and complete missing portion to make the information in each file accurate and complete. They are required by law to take any necessary action to assure that this is the case. In order to increase your credit score, you as a consumer can take advantage of this FCRA law and contact the reporting agency or financial entities involved in the wrong information demanding to correct it.
One of the first things you can do to correct the error and increase credit score is contact the reporting agency directly in writing and tell them why you think that the information on the report is not correct. It is a good idea to attach copies (not originals) of any supporting documents that prove your point. It is extremely important that the letter has all the details that identify you and the specific item on the report you are referring to. After that write clearly the facts and the reasoning you are disputing the information on this item.
Another thing you should do is contact the provider of the specific information to the credit reporting agencies and tell them that you do not agree with the information presented on this case. Support your statement with clear reasoning and attach copies of any supporting documents that can help prove your point. According to the FCRA the provider must inform the credit reporting agency on your dispute and if they find your claim justified, ask the item be removed from your report which will of course increase credit score? .
Want to find out more on how to increase your credit score? , then visit Dan O Spark’s site and get a FREE e-Book on how to Avoid The Most Devastating Credit Mistakes.
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