The New Laws Help You Re-Build Your Credit Score and Save Big $$$
The credit report is a file with a collection of all the relevant financial information on each customer. In addition to the address and personal details, every application for a loan, credit card and payment history is recorded in the file together with all the payment history and whether the payments were made on time. The report also includes data on the legal history of the person, his law suits, arrests and bankruptcies. The credit reporting companies sell this information to businesses, insurance companies, potential employers and alike. This report actually tells them the person credit worthiness.
It is very beneficial to have a good credit report because it means it is much easier to get credit or borrow money. The other benefit is the lower interest and better terms one gets resulting in smaller payments for any given loan. These days it is very easy to fall for scams that promise to erase negative information from the credit report even if it’s true. They advertise in every available media about the great service they can do for a fee of course. Watch out for these offers as you may loose more money because the fact is that no one can remove negative items from a report except the owner of the report by making a commitment taking serious action to repay the outstanding bills and increase your credit score.
The Fair Credit Reporting Act (FCRA) came about to protect the consumers from being taken advantage off by businesses and organizations, It puts clear demands and restrictions on the reporting companies and credit reporting agencies to make sure the information is accurate, meets the privacy codes and it is obtained and provided in a fair way. New addition that were just introduced puts the same responsibility on the individuals and businesses that report the information to the reporting agencies
The previous and new measures of the FCRA the reporting parties (organizations, businesses or individuals) have the responsibility to make sure the information in the credit report is not partial and is correct. They have to by these new laws to take all the necessary action to correct and keep the information they sell to businesses and organizations. Every consumer can take advantage of this law and contact the reporting agency demanding them to correct erroneous information
One of the first things you can do to correct the error and increase credit score is contact the reporting agency directly in writing and tell them why you think that the information on the report is not correct. It is a good idea to attach copies (not originals) of any supporting documents that prove your point. It is extremely important that the letter has all the details that identify you and the specific item on the report you are referring to. After that write clearly the facts and the reasoning you are disputing the information on this item.
Another thing you should do is contact the provider of the specific information to the credit reporting agencies and tell them that you do not agree with the information presented on this case. Support your statement with clear reasoning and attach copies of any supporting documents that can help prove your point. According to the FCRA the provider must inform the credit reporting agency on your dispute and if they find your claim justified, ask the item be removed from your report which will of course increase credit score? .
Need to find out more on how to increase your credit score? , then visit Dan O Spark’s site and get a FREE e-Book on how to Avoid The Most Devastating Credit Mistakes.
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