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How To Repair Your Credit Report
A credit report is run on a buyer when he or she needs to buy
something that will take a long-term loan, such as an automobile
or a house. The credit report can come from one of three agencies
- Equifax, Experian, and Trans Union. Each of these three
agencies uses their own techniques of arriving at a credit score
and receiving credit information, so attention should be paid to
all three. A credit report score can go up to 800, and an
increase of 50 points is a big one, enabling borrowers to get
loans they previously were denied, and getting loans at much
better interest rates. A 1% drop in an interest rate on a
$150,000 house, for instance, may drop a payment by over $100 a
month, saving the borrower over $35,000 over the life of the
30-year loan.
Each of these credit agencies have taken all the financial
information they can find about you and tabulated a credit score
from those results. Information will include your current and
previous home addresses and employers, the credit cards and loans
you have, and any late payments made over the last ten years.
These agencies' credit reports will be very similar, but there
will be differences, as they all make mistakes, and the banks and
credit card companies giving them the information make mistakes,
too.
Here's where you can improve your credit score. Any request for a
change in information in a credit report must be answered and
corrected within 30 days because federal law regulates the credit
bureaus. If you write in to a credit bureau complaining that one
of the late payments on your credit report is wrong, they must
investigate and correct the information within the 30 days, or
delete the information. Because this deadline is very difficult
to make, often the late payment report is simply deleted off of
the credit report.
This procedure is very slow and time-consuming, and you can
either do it yourself or hire an agency to do it for you. Each
letter should only request one change, otherwise the credit
bureau will usually declare the request to be frivolous and thus
they are not required to do anything. Each letter should be
written to all three credit reporting agencies. These agencies,
Equifax, Experian, and Trans Union, all have PO boxes
specifically set up for complaints, but they change the PO Boxes
often to make it difficult for customers to find. Every month
you, or the agency you have hired, should send out another letter
referring to a different mistake in your credit report. After
many months, your credit report will show many fewer late
payments, perhaps even none, and your credit score will have
improved dramatically.
The author runs the finance website http://www.pawninfo.com about
short-term loans and payday loans, and any or all of this article
may be reproduced in any form as long as there is a link to the
website. Pawn
Shops and Short Term Loans
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