9 Real Ways To Repair Your Credit
Date Added: December 11, 2007 06:54:42 AM
The next bit of information that might surprise you is that the vast majority of the information you can find on the internet that deals with credit repair is incorrect.
For example, you have more than likely done some searching on the internet and seen the free letters for disputing information with the credit bureaus.
The Federal Trade Commission guidelines say that the credit bureaus have a maximum of 30 days for investigation of any dispute. After those 30 days they either need to prove the debt is yours or delete it from the report.
The dispute letters will tell the credit bureau that a given account is incorrect, ask them to investigate it and delete it from the file.
The truth is that these letters rarely actually work. If they did work that easily everyone would be out there charging up debt just so they could send in those letters and have it deleted. If it sounds too good to be true…..
The thing you need to know is that there are methods of credit repair that actually do work.
Let’s start out with something that is incorrect on almost all credit reports. That is re-aging debt. You should understand how to calculate date of last activity because it is usually not reported correctly. Dating this at the time the collectors purchased the debt is what they like to do bu incorrect and a easy way to get it removed.
Another item that is not usually taken into account is the statute of limitations pertaining to the amount of time an agent it allowed to either attempt to collect or sue on an outstanding account. In nearly all the states the time is three to four years.
Take a few moments and opt out with the credit bureaus. Credit bureaus will notify your creditors of many things pertaining to your credit including applications for credit, banking information, change of address and any disputes your making. The collectors also subscribe to this information so they can easily track you. Opting out is an easy process that you can do by calling 1.888.5.optout.
Get an abbreviated version of the Fair Credit Reporting Act and read it. This will show you how to read your credit report, find balances, credit limits and payment histories. Then get an abbreviated version of the FDCPA which covers third party collection agents and read it. This is about learning the laws to know when your rights are being violated. If a collector violates your rights, it is an opportunity for you to gain an edge in negotiating with them.
Many of the collection agents out there only get licensed and insured in their home states. It is just way too expensive to do it in every state. What you need to do is get the licensing information on the collection agent and check them out.
Then find out what your state requires for a collector to be allowed to pursue collections. If the state requires licensing, bonding and insurance, but the collector does not possess one of those items, the collection is deemed not valid and must be removed. A good resource for more information on this is the attorney generals website for your state.
Ask the collector to show you the contract he has with the original creditor. He must have this validation of the debt in order to pursue debts on his behalf.
In addition the collector must be able to provide some proof that you are responsible for the debt in question. This does not mean their internal records as that will not suffice. The collector must provide copies of the original documents that substantiate the debt.
When you do send your disputes, you should know that the credit bureaus have numerous addresses. A simple search online will uncover them. Take your disputes and send them to various addresses via certified, return receipt mail. There nothing in the law requiring you to send your dispute to a specific office.
By sending it to other addresses it may prolong the receipt of the dispute in the correct office, but that is not your problem. As long as someone with the credit bureau signs for the document you have proof of delivery and the 30 day period starts long before the correct office gets the dispute.
Credit repair can be successful when you use all the tricks and weapons at your disposal.
