Mike Geraghty asked:
1. Request all three of your credit reports from Equifax, TransUnion and Experian. You will most likely come across several errors as it’s estimated that up 70% of all credit reports contain errors. It’s likely that the information will vary between the 3 credit bureaus. You can order your credit reports free of charge from several places. (I’ve listed a great free resource at the end of this article). You can do this once a year. You can also request a free copy of your credit report anytime you are denied credit as long as you request it within 60 days of your credit denial. If you have been denied credit, copy the credit denial letter from the creditor (which they are required to send to you after they deny you credit) and include that with your request. You are also entitled to a free copy of your credit report anytime you are denied insurance, or if you are unemployed.
2. Analyze all 3 copies for errors. You’re likely to come across entries that you don’t recognize. Also look for duplicate entries, misspellings of your name, and old and/or inaccurate addresses. This is very important. Any negative or inaccurate item which is tied to an old or inaccurate address should be noted and removed. Also look at the inquiry section. Contact these creditors you do not recognize and that you do not recall applying for credit, and request that they remove the inquiry from your credit report. Some may, some may not. Note: this is really only important if you have a lot of inquiries.
3. If you are receiving collection letters from a collection company or a collection attorney, always respond back in writing requesting validation of the alleged debt within 30 days of receiving the letter. Basically this means you are asking them to prove that this is a valid debt of yours AND that they have a legal right to collect the alleged debt. They must provide you written proof of the debt. If you ignore the collection letter without writing them for “debt validation”, the law says they can assume that the debt is valid and belongs to you. Please don’t ignore this important step.
4. Dispute the items on your credit reports that you feel are inaccurate, incomplete, or misleading. When you have targeted the items to be disputed, create 3 folders for each credit bureau so that you can keep everything easily organized and separated by credit bureau. Be sure to make copies of all dispute letters and copies of your credit reports and keep each separated and filed accordingly. IMPORTANT: Handwrite all of your dispute letters. Trust me on this. Handwritten letters are sorted and separated from typed (form) letters by the credit bureaus for investigations. Typed letters risk getting flagged as being written for you by a credit repair company. And the credit bureaus tend to believe that credit repair companies simply dispute every single negative item regardless of accuracy, which runs the risk of your disputes getting flagged as “frivolous”. They may or may not flag it, but you don’t want to risk it. Be sure to mail all letters by certified mail. The credit bureaus have up to 45 days to investigate your disputes, so be sure to document the dates of the letters as well.
Within 30-45 days you should receive the results of the credit bureau’s investigation. They will either verify, update, or delete the information.
5. Work on adding good credit to your credit reports. Look into bad credit secured and unsecured credit cards. Pick 2 or 3 max, as you do not want to apply for too many credit cards at once. This appears as though you are desperate for credit, adds too many credit inquiries on your credit reports, and can lower your credit scores.
6. Opt out of all credit and credit related promotional offers. All 3 credit bureaus have information explaining the opt-out process. Write to the address they indicate for opting out of all credit related offers and promotions.
Betty
1. Request all three of your credit reports from Equifax, TransUnion and Experian. You will most likely come across several errors as it’s estimated that up 70% of all credit reports contain errors. It’s likely that the information will vary between the 3 credit bureaus. You can order your credit reports free of charge from several places. (I’ve listed a great free resource at the end of this article). You can do this once a year. You can also request a free copy of your credit report anytime you are denied credit as long as you request it within 60 days of your credit denial. If you have been denied credit, copy the credit denial letter from the creditor (which they are required to send to you after they deny you credit) and include that with your request. You are also entitled to a free copy of your credit report anytime you are denied insurance, or if you are unemployed.
2. Analyze all 3 copies for errors. You’re likely to come across entries that you don’t recognize. Also look for duplicate entries, misspellings of your name, and old and/or inaccurate addresses. This is very important. Any negative or inaccurate item which is tied to an old or inaccurate address should be noted and removed. Also look at the inquiry section. Contact these creditors you do not recognize and that you do not recall applying for credit, and request that they remove the inquiry from your credit report. Some may, some may not. Note: this is really only important if you have a lot of inquiries.
3. If you are receiving collection letters from a collection company or a collection attorney, always respond back in writing requesting validation of the alleged debt within 30 days of receiving the letter. Basically this means you are asking them to prove that this is a valid debt of yours AND that they have a legal right to collect the alleged debt. They must provide you written proof of the debt. If you ignore the collection letter without writing them for “debt validation”, the law says they can assume that the debt is valid and belongs to you. Please don’t ignore this important step.
4. Dispute the items on your credit reports that you feel are inaccurate, incomplete, or misleading. When you have targeted the items to be disputed, create 3 folders for each credit bureau so that you can keep everything easily organized and separated by credit bureau. Be sure to make copies of all dispute letters and copies of your credit reports and keep each separated and filed accordingly. IMPORTANT: Handwrite all of your dispute letters. Trust me on this. Handwritten letters are sorted and separated from typed (form) letters by the credit bureaus for investigations. Typed letters risk getting flagged as being written for you by a credit repair company. And the credit bureaus tend to believe that credit repair companies simply dispute every single negative item regardless of accuracy, which runs the risk of your disputes getting flagged as “frivolous”. They may or may not flag it, but you don’t want to risk it. Be sure to mail all letters by certified mail. The credit bureaus have up to 45 days to investigate your disputes, so be sure to document the dates of the letters as well.
Within 30-45 days you should receive the results of the credit bureau’s investigation. They will either verify, update, or delete the information.
5. Work on adding good credit to your credit reports. Look into bad credit secured and unsecured credit cards. Pick 2 or 3 max, as you do not want to apply for too many credit cards at once. This appears as though you are desperate for credit, adds too many credit inquiries on your credit reports, and can lower your credit scores.
6. Opt out of all credit and credit related promotional offers. All 3 credit bureaus have information explaining the opt-out process. Write to the address they indicate for opting out of all credit related offers and promotions.
Betty
