Should you attempt to do it yourself and repair your own credit?
Individuals are able to try to repair their own credit. It is very important to understand that there may be some risks in doing so. These risks are particularly great if you are unable to set aside enough time to work on your credit files, or if your skills, organizational aptitude and perseverance are not 100%. Those seeking to do it yourself need to understand that it is possible not only that your attempts will be in vain, but also that it is possible to do real damage to your credit report during your repair efforts.
What those do it yourselfers should know about credit repair.
Vital to your ability to repair your own credit is understanding your rights, as well as the legal requirements that Credit History Bureaus must obey. Neither you nor anyone else can remove accurate, albeit negative, information from your credit history report. What you can do, free of charge, is request an investigation of information contained in your credit file that you believe is incomplete or inaccurate. Every power a credit repair company has to repair your credit history you have too. The question is - do you have the time and/or the knowledge?
You are entitled to one free credit report every year if you can demonstrate that:
1) you are unemployed and intend to look for a job within 60 days
2) you are on welfare
3) your report is inaccurate as a result of fraud
4) if you apply for your reports through the new annual credit report website. Learn more here.
If you cannot meet one of these criteria, any credit bureau has the right to charge you up to $9.00 for a copy of your credit report. The first step of repairing your credit history is to acquire a copy of your credit report and read it through carefully for errors and/or out of date information.
Understand the following rights that protect you as included in the Fair Credit Reporting Act:
1) Every individual is entitled to a free copy of their credit report if they've been denied credit, insurance or employment within the last 60 days.
2) If an application for credit, insurance, or employment is denied as a result of information supplied by a credit bureau, the company you applied to must provide you with that particular credit bureau's name, address and telephone number.
3) You have the ability to dispute mistakes or outdated items on your credit report at no charge.
4) To lodge a dispute, request a dispute form from the credit reporting agency or submit your dispute in writing, along with copies of any supporting documentation. Always keep originals of all documents in your possession.
5) Very clearly identify each item in your credit report that you dispute, provide a written explanation about why you are disputing it (them) and then request a reinvestigation of all disputed items.
6) If the requested investigation reveals an error on your credit report, you have the right to request that a corrected version of the credit report be sent to anyone and everyone who received the flawed credit report within the past six months.
7) Those individuals who have uncovered errors on their credit reports and are job applicants can request that the corrected credit report be sent to anyone and everyone who received their credit report for the purposes of employment during the past two years.
8) If an investigation reveals an error that results in a change on the credit report, the credit bureau in question must provide you with written results of the investigation, as well as a free copy of your accurate credit report.
9) If an item on the credit report is altered or removed, the credit bureau is not entitled to reinsert the disputed information into the file, unless that person or company providing the information verifies its accuracy and the credit bureau provides you with written notice that includes the name, address and telephone number of the information provider.
10) All creditors or information providers should be notified by you, in writing, that an item is up for dispute. This way, any information provider that provides information about the disputed item to a third party must include with the information a notice of your dispute. As well, if your dispute proves correct, that information provider cannot use the information in the future.
11) If an investigation into inaccurate information does not resolve the dispute, request that the credit bureau include your version of the dispute in your credit file and all future reports.
12) There is no charge for a reinvestigation into a dispute.
Know the reporting rules governing accurate, negative credit information.
Negative, but accurate, information can be reported on a credit report for a period of seven years. There are some exceptions to this rule.
1) Bankruptcy information can be reported for 10 years.
2) Credit information reported as a result of a job application for a job with a salary of over $75,000 has no time limitations placed on it.
3) Information that is reported as a result of an application for credit of more than $150,000, or for life insurance, has no time limitations placed on it.
4) Information about a judgment against you or a lawsuit can be reported for a period of seven years, or until the statute of limitations expires - whichever period is longer.
5) U.S. Government insured or guaranteed student loans default information can be included on a credit report for seven years AFTER a particular guarantor begins certain actions.
If you are unable to resolve your own credit problems and need additional help, read more about the services offered from Credit Heaven.
Doing it Yourself:
Step 1 - Contact your creditors as soon as you realize that you cannot make payments and try to work out an acceptable payment plan and budget
Step 2 - Always get a copy of your credit report and review it for errors
Step 3 - Contact CreditHeaven.com if you need help disputing inaccurate information on your credit report.
Regardless of whether you believe you have a good or bad credit history, every individual should request a copy of their credit history to ensure it's accurate. This is particularly important for those contemplating a big purchase or loan that will require quick and easy access to credit.
