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Thursday, September 3, 2009

Unique Content Article on , ,

Simple Consequences From Credit Repair

by Tammy D Sanders

Loads of individuals have had the trial of having bad credit. It is just a reality of life and it is becoming even more rampant in the current monetary predicament. In spite of this, just because you have some credit tribulations it does not mean that you cannot do some repairs to your credit. You have the right to repair your credit.

The Fair Credit Reporting Act is a Federal law that was enacted back in the 1970's to look after consumers. Up to 79% of all credit reports enclose wrong, ambiguous or erroneous credit. As a consumer you can defend yourself against this bad credit and take steps to repair your credit.

It may not be as baffling and mysterious as it would seem to repair your credit but it can take some time. However, it is worth the exertion because of the advantages you will gain from having an amplified credit score and a better credit report. You can sign up a specialist to assist you repair your credit and that may be a good idea but you can also do the work on your own. Either way it is important to do it so that you can enhance your financial future.

The initial step you must take is to get a up-to-date credit report. You have the right to get one free of charge report from each of the three key credit reporting agencies, which in the United States are TransUnion, Experian and Equifax. There is no extra obligation in getting the free report and if you phone one of the advertisements about the free credit reports you will find that they are providing a credit monitoring service, which is not essential unless you consider that it would be advantageous.

When you have the credit reports, you will need to spend some quality time studying the information. Make sure to look for duplicate accounts, accounts that belong to someone else and accounts that are old and past the statute of limitations. There are limitations as to how long a creditor can report a bad debt and also how long they can endeavor to collect the debt. In general it does not go over 7 years.

Once you have found the imprecise and erroneous credit then you will need to write some letters of dispute. Be detailed and concise but make clear why the listings need to be removed. Keep a copy of all of your correspondence. You must also understand that it may very well take a few letters to get results so be determined. However, after receiving your dispute the creditors have a definite quantity of time in which they must either confirm the accuracy of the reporting or remove it from your report.

You should also pay down any outstanding debt that you have. Much of your credit score is determined by your debt to available credit ratio and if you can keep it lower than 20% you will be able to have the superior credit scores.

It may also be sensible to submit an application for some new credit accounts. Be dependable and make all of your payments on time. With some energy and time you will have your credit repaired and your economic picture will look much better.

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