Credit Repair With Excellent Outcomes

You no doubt know that if you are late on even one payment it can drop your credit score by as much as 100 points? Most people really have no idea how credit scores are determined and how they can be repaired and increased. Unfortunately, low credit scores are more frequent than ever and the current recession in the economy has just made it more acute.

Credit scores are based upon a combination of many different considerations. Of course, it is somewhat based on if you make your payments in a timely manner but there are other things too. One of the most critical things that the credit bureaus look for is the difference between how much credit you have accessible and how much you are using. If your credit cards and credit lines are maxed out at the limit your score is substantially reduced.

When you are reviewing your credit remember that the best credit scores go to the people who use only 30% or less of their available credit limits. You can raise your limits or pay down your balance to get below 30% but of course the best thing would be to never go above the 30% mark in the first place. Having available credit but not using it is a element of a good credit risk.

Longer-term credit is regarded higher than shorter-term credit so if you have older credit cards use them more often than the newer ones. Of course, all of the same rules apply, make your payments promptly and never exceed more than 30% on the balance. Paying it off every month rather than carrying a balance will always be best.

In recent times you can dispute any negative information that is shown on your report. The Federal government enacted the Fair Credit Reporting Act to protect consumers from erroneous credit information. After you file a dispute the bureaus and the creditors must prove the correctness of the information within a short period of time. If they neglect to do so then the information must be removed from your report.

The creditors and the bureaus have 30 to 45 days from receipt of your dispute to verify the accuracy of their reporting. However, the benefit you have, as a consumer is that it is estimated that as many as 40% or all disputes are never verified. That means that up to 40% of all disputed information is removed from the reports. You can use that fact to your advantage.

Make sure that you keep meticulous and detailed records of your disputes. Make sure that every piece of correspondence is sent by certified mail and you keep all of the receipts along with copies of the disputes. Do not dispute more than one item per letter. Send separate correspondence for each negative mark.

Despite the fact that it may take time, energy and patience to repair your credit it can be done. You have the legal right to repair your credit and it is worth the effort.

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Written by Trevor Lawson on February 16th, 2010 with no comments.
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