Practical and Legal Credit Repair Advice

Repairing your credit, unfortunately, is a necessary part of life. A bad credit score can mean real problems, and whether it’s not getting a cell phone or not having your application approved for a mortgage loan, you should certainly consider repairing your credit as soon as possible. With credit repair, though, comes lots of advice that simply isn’t legal. Understanding what you can and cannot legally do with your credit score is essential to setting your financial records straight.

One option you have to legally repair your credit is to carefully examine your credit report. Experts suggest you do this at least every six months, but if you must wait, at least do so once per year. Credit reports try to present a financial photograph of your life to potential lenders. They list the total amount of debt that you currently have, who holds each debt, and your credit lines on each account that you currently have open. Additionally, it lists your payment history and any other lenders who have recently inquired about your credit report. The most important part of your credit report, though, is the credit score, a three-digit number made up of several factors including your payment history, how much debt you currently have, how long you have had a credit history, and any new applications you have filled out. Your credit score can range from 300 – 850, and the higher number you get, the better rating you will get from lending agencies.

With so much information on a single report, there can be lots of errors. From erroneous late payments to the wrong credit limits,   hundreds of little things can lower your score, so it’s important to check carefully. Moreover, if you’ve been the victim of identity theft, you may have lots of errors on your credit report. If you wish to legally repair your credit report because of an error, you must do two things. First, you must contact the lender who reported the false information to the credit bureau. It’s best to contact them both in writing and by telephone. Second, you must contact the credit bureau itself. Legally, your contact with the credit bureau must be in writing, and you must report the error itself as well as what must be done to correct that error. Be sure to include copies of any helpful information in the dispute letter. There are many dispute letter templates online to help you begin the process. By law, the credit bureau will report the results of its investigation to you.

Another option you have to legally repair your credit is to contact a agency for help. Since they are familiar with the ins and outs of credit scores, they’re certain to help you navigate your way through what is sure to be a frustrating process.

One thing you cannot legally do to repair your credit is to start with a clean slate. Some companies suggest using a tax identification number or a new social security number instead of the current one to essentially offer you a clean file. This is illegal.

If you have some negative information on your credit report, there are several paths to practical and legal credit repair.