Discover Trouble-free Consequences From Credit Repair
Low credit scores are fairly common these days and the recession in the economy has just made it more acute. You can have a great credit score and miss just one payment and your score can dip as much as 100 points or more. One problem is that most people do not have any idea about how credit scores are determined, how they can drop and how to increase them.
It is actually a combination of a few things that make up your credit score. Making your payments in a timely manner is crucial of course, but there are other considerations also. The credit bureaus look at the discrepancy between how much credit you have accessible and how much you have used. If you have maxed out your credit cards or other lines of credit your credit scores will suffer.
If you want to increase your credit scores make sure that you are only using 30% or less of any accessible credit lines, including credit cards. If you have a higher credit limit yet you are using very little of it you are considered to be a better risk.
Longer-term credit is looked at more positively than shorter-term credit so if you have older credit cards use them more often than the newer ones. Of course, all of the same rules apply, make your payments promptly and never exceed more than 30% on the balance. Paying it off every month rather than carrying a balance is always best.
People today can dispute negative information on your credit report. Due to the Federal government enacted the Fair Credit Reporting Act in an attempt to protect consumers. If you have a negative mark on your report you have the opportunity to dispute it. The bureaus and the creditors must then prove the validity of it within a certain period of time. If they fail to prove that the information is valid within the allotted time period, then the information must be removed from the report.
The creditors and the bureaus have 30 to 45 days from receipt of your dispute to prove the validity of their reporting. However, the advantage you have, as a consumer is that it is estimated that as many as 40% or all disputes are never verified. That means that up to 40% of all disputed information is deleted from the reports. You can use that fact to your advantage.
As you start disputing the negative information on your reports make sure that you keep exact and detailed records. Send all correspondence via certified mail and make sure you keep accurate dates. Also make sure you send a separate letter for each dispute.
Although it may take time, energy and determination to repair your credit it can be done. You have the legal right to repair your credit and it is worth every effort.
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