Bad credit not only looks bad but it makes it difficult in the future to
receive fair loan interest rates and may affect your ability to buy a home
when you want. The Federal Trade Commission, which claims to protect
America's consumers, recommends starting with self-help rather than going
with a credit repair agency such as the ones that send out fliers
advertising quick fixes to your credit repair problems. These companies
often involve scams. While their methods may work for some people, they are
not useful for everyone. For this reason, the FTC recommends self help
first. They provide a list of steps to follow. They are summarized below.
Step One
When you receive a report from a consumer reporting agency that you believe
is inaccurate, tell them you think it is inaccurate. Many times, mistakes
are simply made. It is important that they are aware that you know something
is amiss and that you are paying attention to what they send you.
When you send them a letter detailing inaccuracies, you need to send off
copies of documents that support your position. Do not, under any
circumstance, submit the original documents. If your originals are gone, so
is any proof that you have that supports your side.
Once your report is submitted, the reporting agency generally has 30 days to
rule on your report. If they view your dispute as frivolous, they can
dismiss it immediately.
Step Two
Tell the creditor or other information collector that you dispute an item.
This group needs a copy of documents that support your position as well.
They will need your dispute in writing, not over the phone, and will
probably request an address as well. If your dispute is shared with a
consumer reporting agency, the creditor must enclose a copy of the dispute.
If the information in dispute is found to be inaccurate, the information
provider may not report it again.
This two step process seems easy enough but when there are issues with the
future rates on loans which affect your entire financial life, it is
important to get these things done correctly. The credit reporting system is
flawed to a degree.
In addition to these two steps, the FTC also recommends that people not buy
into the quick-fix groups. These groups are often just running scams. The
biggest clue that they are running a scam is that they ask for money before
they provide any help. Another big sign that the company may not have your
best interest in mind is the company that won't tell you your legal rights.
The third biggest clue, and the one that directly contradicts everything
else the FTC recommends, is the company that tells you not to contact the
credit reporting agency on your own.
By Joe Devine If you are facing
negative credit reports that are affecting your life, contact the Credit
Repair Attorneys of Smith and Garg, LLC. They will fight for your credit and
try to place your name back in good financial standing as soon as possible.
http://www.uscreditrepairattorneys.com
