How to Repair Your Credit Score

By Susan M. Keenan

Credit scores, numbers typically between 350 and 800, are part of a consumer's credit report. They reflect an individual's credit worthiness. Obviously, the higher scores are the better ones to have. In fact, any score below a 600 is not looked upon favorably since it indicates that some problems exist.

Any number of things can influence an individual’s credit score. Some things will have a more drastic influence than others. Paying your bills late or not at all, defaulting on the mortgage, or filing for bankruptcy can all have a negative impact on your credit score. Fortunately, there are steps that you can take to repair your credit score to a healthy level.

Important Facts About Credit Scores

• It is free to dispute information on your credit report.
• You do not need a lawyer to dispute information on a credit report.
• You do not need a credit repair company to repair your credit, but it may be easier for consumers who lack discipline.
• If you use a credit repair company to repair your credit, it may take less time since they know what to do.
• The disputed information must be investigated by the credit bureau within 30 days.
• Credit bureaus do not have to investigate any claims that have no actual basis.
• Negative information remains on your credit report if it is accurate, at least for the length of time allowed by law.
• Credit bureaus will contact the source of the dispute to verify or disqualify information that is subject to dispute. If it cannot be verified, then the information will be deleted.

Important Steps to Take

• Acquire a copy of your credit report, free if possible through one of the major credit bureaus, Experian, Equifax, or Trans Union.
• Check the credit report thoroughly for errors.
• Immediately contact the credit bureau to dispute any inaccurate information that you discover.
• Also contact the credit bureau concerning any misleading information to dispute it.
• Be specific in your comments. Dispute isolated information rather than the entire report.
• Provide supporting documentation for any dispute that you make.
• Provide only accurate information and provide as many details as possible.
• Maintain records of any requests that you make and the results generated by them.
• Follow through until the matter has been resolved.

Helpful Tips

• Date your correspondence.
• Keep copies of your correspondence.
• Check your credit report on a regular basis.
• Maintain good spending habits.
• Protect your financial information and keep it secure.

Other Things You Should Know About Credit Reports

• The Fair Credit Reporting Act, or FCRA, issues guidelines by which consumers can dispute information on their credit reports.
• According to the guidelines set forth by the FCRA, the credit bureaus must investigate the disputes within 30 days.
• The three major credit bureaus, Experian, Equifax, and Trans Union, offer one free copy of a credit report to consumers per year. You must request it personally.
• Certain circumstances also allow consumers to obtain a free copy of their credit report for review. These circumstances include: denial of credit application, denial for insurance, or denial for employment. However, consumers must request the copy of the credit report within 60 days of the occurrence of one of the above in order to acquire it at no charge.

© Doityourself.com 2006