Are you wondering “how to clean up my credit report”? Are you fearing applying for a mortgage or auto loan because of a low credit score? Are you unwilling to pay thousands of dollars in high interest? Is finding employment in your area getting harder, because of the mandatory credit checks performed by employers? Whatever your specific problem is, raising your score is always a good solution. Raising your score FAST is even better. Contrary to the general myth that credit repair takes time and considerable financial effort, there are a lot easier and quicker ways to improve your score. The only requirement for success-credit knowledge.
1. Don’t be the misinformed victim. Educate yourself.
When it comes to credit repair, knowledge is vital. A lot of creditors and debt collectors actually prey on the huge crowd of misinformed people. They threaten, intimidate and leave you with the impression that paying what you owe in FULL is the only option if you want to raise your FICO. In reality that’s more bark than bite. Do you know how your FICO score is calculated and which are the most important credit factors? Why paying off your debt in full can actually lower your credit? Why having items deleted from your report is the most successful tool for credit score increase? Do you know how to dispute with credit bureaus and debt collectors? How to ask for validation of debt every time you dispute an item? How to file paperwork in court and have legal judgments deleted from your report? How to pressure creditors and debt collectors if they fail to meet their obligations under the Fair Credit Reporting Act? Credit knowledge is your best offense and defense. The more you know about the loopholes in the system, the better you chances to raise your score.
2. Not all debt is created equal.
It’s important to keep in mind that different types of debt have different impact on your overall FICO score. In general the more current the debt, the bigger influence it has. That’s why missing a single payment on your car or house can lower your score more than several old negative items. Examine your report in detail and focus on the most detrimental accounts.
3. Learn your rights and…exercise them.
When it comes to credit repair, you have many rights. By law you can dispute any item in your report that you find outdated, inaccurate, biased, incomplete, questionable, unverifiable. You can file disputes with credit bureaus and with the companies reporting to credit bureaus (the so called 623 dispute). You have the right to ask for verification of debt. If the credit bureaus or the debt collectors fail to provide proper documentation, they have to remove the item from your record. You also have the right to be notified when a negative item is placed on your report. The creditor is in violation of the Fair Credit Reporting Act if no written warning is sent to you within 30 days. In a nutshell-you have various rights. The key to credit success is to use those rights.
The answer to the question “How to clean up my credit report?” is simple — Educate yourself on the shortcuts and the loopholes in the system. There are easier and faster ways to clean credit report once you start thinking outside the credit box.