Your Credit Report and Credit Repair
Credit reports can be very confusing to most consumers with all of the different types of lingo they have in them. Don't let this discourage you if you take a calm professional approach anyone can clean up their credit report. Understanding that it will not be done overnight is important. One must take on this task with an understanding that it make take time but will be well worth it. The first plan of attack should always be knowledge of your rights. Everyone has right and new laws have come into play for consumer when it comes to debt collections. It would be very wise to read the Fair Credit Reporting Act. This act is established to help consumer and their rights when it comes to creditor harassment.
One must get a copy of their credit report from all the credit bureaus Experian, Trans Union and Equifax. Some accounts can show up on one report and not the other. After getting a copy go over all of the accounts and familiarize yourself with them. Knowing what one owes and who it is owed to will help in the research that one is about to enter into. For the same reasons that one checks all three bureaus they want to make sure that the debts are not on the credit reports more than once. Many times the debts can show up looking as if they are different accounts when in actuality they are the same account. Check the account numbers for each account to make sure they are not the same. If the account numbers are the same they are the same debt that has been listed twice and only one should be accounted for.
Once you have established what debt is owed it is important to know the statute of limitation in your state. The statute of limitation is the amount of years that the creditor is allowed to collect on a debt. If the debt on the credit report has past the statute of limitations the consumer is no longer liable to pay the debt and the debt should be removed. If this is the case the consumer must send a request in writing to the creditor asking that the debt be removed from their credit report immediately. The credit bureau has thirty days to comply and should remove the debt unless they can prove otherwise.
If one feels there is a debt on their credit report that they believe they did not accrue they need to write a compliance letter asking for the proof of the debt. The creditor has thirty days to provide proof of the debt or the debt needs to be removed. This happens a lot more than most realize. Debt can be charged that are not theirs and if the consumer does not notice chances are they will pay the debt assuming it is theirs. This is also a very common occurrence when it comes to medical debt as well. It is always wise to know what debts you have as well as what one have already been paid.
If you are in a better financial situation than you once were you may want to try and settle some of the debts. Consumers do not realize that they are in control of the debt and don’t have to pay for someone else to settle their debts. Call the creditor directly or write up a letter to come up with a settlement offer. Be sure that you get it in writing that the debt will be removed once it is paid. It is key to take time and understand that it may take some time but is worth it to bring up your credit score without paying an insane amount of money to a company when you can do it yourself.
It's always a good idea to keep tabs on your credit report. Getting a report through annual credit report is always a good start.