The Easy Way To Fix A Credit Report
There are numerous people who suffer from spotty credit report, which is the reason for
low grades. According to a study, one in every 50 household has a credit card debt of
more than of $20,000. It was also mentioned that more than two million Americans visit
credit experts each year to avoid bankruptcy. Credit scores calculated after details of
credit file are basis in deciding interest rates on numerous things such as finance for
mortgages, auto loans, personal loans, student loans to credit cards.
There is no doubt with the fact that credit report plays a vital part in our life. Therefore, it
has become highly significant to avoid falling into bankruptcy.
These steps can save you from bad credit situations:
Begin by requesting for a free credit report
Every American is entitled to have a free copy of credit file according to the Fair Credit
Reporting (FCRA). Equifax, Experian and TransUnion are three credit reporting agencies
that offer credit statement after every 12 months. So, grab one to check your history and
details mentioned in it, which can be a reason for your low scores.
Monitor credit statement carefully for inaccuracies
Your credit report provides some information which has to be taken care. Creditors
provide information to the reporting agency. One should take time in understanding the
details mentioned in the credit statement. It is highly significant in differentiating
between good and bad. Besides, you also ensure that there should not be any error in your
statement, as it can be reason of low scores.
Solve the inaccuracies by raising disputes
It is also stated by the FCRA that credit bureaus must solve the flaws on the credit file.
So, if you come across any issues after carefully monitoring the history, then you can
notify the credit bureaus in writing. They move ahead by passing your dispute to the
concerned information to the company that provided the disputed item. If your raised
dispute is correct then the FCRA tells all the reporting agencies to remove the flaw from
your credit report.
Ask for verification of debt
According to the Fair Debt Collection Practices Act (FDCPA), consumers have rights
against debt collectors. You can write to the original company for asking the verification
of the debt. There are 30 days to complete the process. Along with this, you should also
send follow-up letter to the credit reporting agencies.
Ensure to keep up your credit
After monitoring your credit or reviewing your credit statement one should keep the
credit up by taking care that bills have be on time, as late payments lower the scores.
You should not apply for loans unless you are in need because it will remain on the file
for two years.