If you’re in the process of rebuilding your credit, there are a few things you need to know. The first step is obtaining a credit report to see what old unpaid bills are listed. You can request a free credit report to begin this process. You are allowed one free credit report per year from each one of the credit bureaus. Once you have obtained that information, you should take note of what needs to be resolved or disputed while making a plan to tackle these issues.
Your credit report is important. Creditors use this to determine your creditworthiness, which could be the determining factor as to whether or not they see you as a good risk. A high credit score between 750 and 800 is very good. The lower the score, the likelihood of not getting approved increases. Creditors also use the VantageScore, which is an alternative to the FICO score and in a number of cases, is a better reflection of the person’s credit potential.
How can you resolve or dispute items on the credit report?
Once you confirm the accuracy of the information and where it came from, there are a number of ways you can do this:
File a dispute with the reporting bureau in question.
This can be done through the mail, by phone, fax, or online. Once you dispute an item on your credit report, you must wait for the credit bureau to acknowledge your dispute, and for the creditor to respond. This process takes about 30-45 days. If the creditor does not respond, the credit bureau will automatically remove the information from your report. If the creditor negates, your claim, it is best to contact them directly to resolve the issue.
Contact an agency that will dispute the items for you.
Using a credit services agency that can help you rebuild your credit can not only help you resolve the issues of erroneous information on your credit report, but can also help you become more financially responsible as you work to repair your credit.
Request a new credit report.
Once you have gotten items corrected or removed, you should request a new credit report from each of the credit bureaus to make sure they all have the same information. This will also confirm that the information in question was removed or resolved.
Going through this process can be a learning experience, but you should not have to go through this alone. Getting assistance from the team at Build My Scores can help you with restoration, preparation for obtaining a mortgage or new car, and monitor your credit to ensure it is improving. For more information, contact an associate for a free consultation today!