You want to make sure that, as a consumer with credit problems, you take the specific steps necessary to restore your credit. Observing these steps will ensure an increase in your score in no time.
The first thing you should do is get a credit report from each of the three major credit reporting agencies (Equifax, TransUnion, and Experian). You are entitled to one free copy each year from each of the major credit reporting agencies. You can download all three of these reports instantly from annualcreditreport dot com.
Now that you have obtained all three credit reports from the three major credit bureaus, you should review each of these reports carefully. There are some items you may find on one credit report that you may not find on the other, so it’s important to review each report carefully. You should write the negative items in the order of the most damaging on your credit report. You should watch out for new negative items on your credit report. New negative items added have more effect on your credit score than old ones. So keep in mind that you should address each negative item as it appears on your credit report. You also want to keep an eye out for items on your report that aren’t yours, mistakes made in your personal information, and accounts you’ve paid in full but still show a balance.
The next important step is for you to submit dispute letters to the office for each of the negative items found on your report. The law allows you to give a reason for dispute and the most popular and effective reason is the ‘not mine’ account. With this disputed ground, if the creditor was unable to verify the account when the credit bureaus submit their inquiry, the account should be deleted. Please note that you can dispute anything in your account. Due to poor record keeping by creditors, most accounts may not be verifiable, so most negative items in credit accounts end up eliminated.
Do not discuss multiple negative items in a dispute letter. It will most likely be classified as a ‘frivolous dispute’. It is important that you address each negative item on your credit report dispute letter one at a time. Send your dispute letters by certified mail and keep a record of each dispute letter the credit bureau receives. With these records, you will be able to prove with specific dates when you sent your dispute letters and when the credit bureau receives your dispute letters.
Once the credit bureau has received your letters, they are required by law to begin investigating your cause of dispute. You must know the result of the investigation within thirty days. If your request is granted, you will receive an updated copy of your report showing that the corrections have been made. If the account is verified and your request is not granted, you will need to dispute your account with your original creditor.