Credit Repair Tips
In some cases, bad credit is a result of irresponsible money management. However, it often occurs because of unexpected financial hardship. One day you might have all of your bills current and the next you could become disabled or lose your job. And, if you fall behind on your debts, it will wreak havoc on your credit rating. Credit repair agencies claim that they can remove bad entries from your credit report. But did you know that you can often have them removed yourself at a much lower cost? There are two methods by which you may be able to get negative entries removed from your report. Option #1: File a Dispute with the Credit Bureaus The Fair Credit Reporting Act (FCRA) requires credit bureaus to investigate any item on your credit report that you dispute. If the information is found to be false, inaccurate or unverifiable, it must be corrected or removed from your report. The bureaus have 30 days from the time they receive notice of the dispute to complete their investigation. If there is any inaccurate information on your credit report, a dispute is certainly in order. Some people have had luck disputing items that were in fact accurate, including judgments, collections accounts and repossessions. If such items are not verified by the creditor (or the court in the case of judgments) within the time limit for investigation, they must be removed. If you decide to dispute a legitimate entry, simply write a letter to each of the credit bureaus stating that you dispute that entry. No explanation is required. But keep in mind that if the entry is verified, it will remain on your report. If the creditor verifies the information after the 30-day time limit, the credit bureau may reinstate the entry as long as they notify you at least 5 days before doing so. Option #2: Negotiate with Creditors Dealing with creditors can be intimidating, especially if you're not on good terms with them. However, speaking to your creditors directly may help you get negative information removed from your credit report. If you only have a late payment or two on your account, a creditor might be willing to remove the derogatory information once you've resumed a regular payment schedule. If you've experienced repossession or had an account turned over to collections, payment in full might persuade them to remove the negative
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entry. It sounds like a long shot, but you never know until you ask. Requests to remove late payment information may be made after you've brought you account current. If you're hoping for removal of a repossession or collection action, it's best to negotiate a deal before you pay anything. If You Can't Get the Bad Entries Removed There is no guarantee that disputing information on your credit report or negotiating with creditors will get negative items removed from your record. If it doesn't, the best thing you can do is try to build up some positive information on your report. The first thing you need to do when trying to rebuild good credit is to bring past due accounts current. Try to work out a deal with your creditors to accomplish this or talk to a credit counseling agency. Don’t miss payments on current accounts to put money toward those that are past due. If it comes down to paying one or the other, keep the current account current. Once you've brought all of your accounts current, make it a priority to keep them that way. Making your payments on schedule will raise your credit score and with the passage of time, the good entries may outweigh the bad.
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Special Report provided by:
Pamela Cendejas
Certified Real Estate Support Specialist & Owner of Second Self Virtual Assistance. 866-921-5364 – Toll Free 928-505-6373 – Direct Email: info@ThinkSecondSelf.com www.ThinkSecondSelf.com Pamela has been providing real estate support services since 1997. She currently works with real estate professionals who are challenged with finding time to maintain their online presence, marketing and other administrative needs while also selling real estate. What makes Pamela’s service unique and creates a successful outcome for her clients is that her years of experience and knowledge have helped her create programs and services that bridge the gap between the sales portion of her client’s business and their administrative and supports needs. As a result, Pamela’s clients are able to find more time for themselves, feel less stressed and enjoy their real estate careers more through growth and revenue generation. Pamela offers a FREE ½ hour Plan of Action Consultation. Contact her or visit her website for more information.
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