Friday 28 January 2011

Successful Credit Restoration Today

By Wilfredo Raymond


Numerous people are stressed with low credit scores and dreadful credit reports and the existing economic conditions are just making it worse. Many of the regular rules of the past are becoming obsolete and scores of people may not know precisely where to turn or what to do about credit problems.

Credit scores are a mathematical rating that supposedly tells of a person's creditworthiness. Although many people do not even understand what a credit score is composed of. It is not common knowledge that the debt to credit ratio is very important or that inquiries will suddenly reduce your score. The fact is that if you are shopping for credit you are considered a high risk and if you have credit and in fact use it you are also considered a high risk. In order to maximize your credit scores you need to maintain your debt at about 15 to no more than 35% of your accessible credit and stop any inquiries into your report.

Under the FCRA or the Fair Credit Reporting Act you do have the right to be given one free copy each year of your own credit report from each of the major credit reporting agencies. It is wise to get this report every year so you can track your report and make sure that it is looks as positive as possible.

One reason is since it is estimated that as many as 75% or more of all credit reports contain mistakes and inaccuracies. These mistakes can cause you various difficulties if they come up when you are trying to get credit. You can avoid many of these problems if you obtain your report every year and check it out for mistakes and inaccuracies.

The FCRA has also given you a right as a consumer to dispute mistakes and inaccuracies and get them removed from your report. After a dispute is issued the credit bureaus have 30 to 45 days to prove that the information they are reporting is accurate. If it is not verified within the time frame it must be deleted from the report. As many as 45% of all the disputes that are received are not verified within the time frame and a intelligent consumer can take advantage of that fact.

Besides making sure that your credit report is clear of mistakes and inaccuracies every year there are also other things that you can do to improve your credit score. Debt to credit ratio is very important so you can either get your credit limits increased or pay down your debt so that your debt does not exceed 15 to 35% of your available credit. What's more you should avoid all inquiries into your report. Do not shop for credit unless you are sure that you will get it and then have the creditor combine the inquiry into the loan so that you do not show any inquiries.

You can do the labor necessary to repair your credit on your own or you can use a expert that specializes in credit repair. Each way can be quite effective but if you decide to hire a professional just make sure that it is a honest company with a good track record. Regrettably there are some scammers out there so do your homework and find a reliable company that has been around long-term.

Credit repair can be accomplished. It is not a fairy tale. Congress passed the FCRA to allow consumers to defend themselves against inaccuracies and discrepancies on a credit report so take advantage of that information and do everything you can to increase your credit report.




About the Author:



No comments:

Post a Comment